A recent agreement between the United States and the European Union will facilitate customs and security clearance procedures in trans-Atlantic trade involving "trusted" U.S. and EU importers and traders. On May 4, 2012, the two formally agreed to a Mutual Recognition Decision on their respective "trusted traders" programs. Under the agreement, U.S. Customs and Border Protection (CBP) and the respective customs and taxation authorities of European Union Member States will recognize participants in each other's supply chain pre-clearance programs, the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) and the EU Authorised Economic Operator (AEO) program, respectively. These programs allow trusted traders to enjoy lower costs, streamlined import procedures and greater predictability when entering products, but until now have been administered wholly separately from one another, without any official recognition of one by the other. With this new agreement, C-TPAT's 26,000 members will receive the same beneficial treatment in the EU as the 5,000 AEO members, who will in turn receive the same prioritized treatment in the United States. Moreover, the Mutual Recognition Decision establishes a single format for compliance, meaning importers will not have to doubly certify their supply chains to receive benefits; clearance in one system will effectively confer the benefits of both.
Register Now As you are not an existing subscriber please register for your free daily legal newsfeed service.Register
If you have any questions about the service please contact email@example.com or call Lexology Customer Services on +44 20 7234 0606.
Mutual recognition agreement should benefit companies involved in U.S.-EU trade
- McDermott Will & Emery
- Philip Bentley QC, Jay L. Eizenstat, David J. Levine, Raymond Paretzky and Adam M. Taylor
- European Union, USA
- May 23 2012
If you are interested in submitting an article to Lexology, please contact Andrew Teague at firstname.lastname@example.org.
"Lexology is one of the few newsfeeds that I do actually look over as and when it comes in - the information is current; has good descriptive headings so I can see quickly what the articles relate to...
"Lexology is one of the few newsfeeds that I do actually look over as and when it comes in - the information is current; has good descriptive headings so I can see quickly what the articles relate to and is not too long."
Senior Legal Counsel, Bankwest Business
Bank of Western Australia Ltd