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Mutual Recognition for EU Supply Chain Security Program to Take Effect Next Summer

Thursday, December 01, 2011
Sandler, Travis & Rosenberg Trade Report

The U.S. and the European Union announced Nov. 29 a long-awaited agreement to mutually recognize each other’s supply chain security programs. Expected to begin no later than July 2012, the mutual recognition arrangement will essentially treat the United States’ Customs-Trade Partnership Against Terrorism and the EU’s Authorized Economic Operator program as equivalent. EU Taxation and Customs Commissioner Algirdas Semeta said certified companies will “enjoy lower costs and simpler procedures at customs, as well as greater predictability and fewer delays.”

C-TPAT has amassed over 10,000 participants since its launch in 2002, while AEO membership currently totals about 4,600. Importers engaged in trade between the U.S. and the EU who are not already a member of one of these programs may want to consider enrollment in light of the forthcoming mutual recognition.

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