AEO mutual recognition boosts Taizhou's exports to Africa

chinadaily.com.cn | Updated: 2025-08-04

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An interior view of a workshop of ERA piping (Zhejiang) Co Ltd in Taizhou. [Photo/taizhou.com.cn]

The mutual recognition of Authorized Economic Operator (AEO) status between China and Benin Customs took effect on Aug 1.

It marks China's fourth AEO agreement in Africa and 52nd globally, helping companies in Taizhou, East China's Zhejiang province, expand into African markets.

The AEO system, backed by the World Customs Organization, is seen as a "green light" for international trade. Benefits include lower inspection rates, priority handling, dedicated liaisons, and expedited clearance during supply chain disruptions.

At a workshop of Taizhou-based ERA piping (Zhejiang) Co Ltd in Huangyan district, shipments of pipe fittings bound for global destinations — including a $100,000 order for Benin — are being prepared. The company's sales in Africa reached $16 million in 2024, with $9 million generated in the first half of 2025 — a 15 percent year-on-year increase. Sales to Benin alone surged from zero in 2018 to $160,000 in 2024, and are expected to grow over 20 percent this year thanks to the new AEO agreement.

The mutual recognition has significantly improved customs clearance efficiency and reduced costs, said Weng Yelong, vice-general manager for overseas sales at ERA Piping (Zhejiang) Co Ltd. The company now exports to 34 countries in Africa.

In addition to Benin, China has established AEO ties with Uganda, South Africa, and Burundi. In the first half of 2025, Taizhou's trade with Africa totaled 8.19 billion yuan ($1.14 billion), up 31.4 percent year-on-year, with private enterprises accounting for 97.5 percent of this trade.

Taizhou Customs is fostering more high-level AEO-certified enterprises and collaborating with local departments and financial institutions to enhance support, aiming to create a robust export environment and connect with more emerging markets.