Recently, Shenzhen Smoore Technology Ltd. obtains the AEO Advanced Certification, the first in China electronic atomization industry.
AEO is a concept under the World Customs Organization (WCO) to secure and facilitate global trade. And AEO Advanced Certification is the top credit level, which is a “VIP Pass” for international enterprises recognized by customs in several countries.
Taking SMOORE as an example, FEELM is a high-quality atomization technology brand belonging to SMOORE. Its annual productive capacity has surpassed 1.2 billion pieces, and products with FEELM inside have been exported to Europe, America, East Asia, Africa, Oceania and many other countries and regions. With the AEO Advanced Certification, it will take much less time for customs clearance, significantly increasing its global competitiveness.
Passing Rate only 0.22%, Application Difficulty Similar to Mini-IPO
How difficult it is to obtain the AEO Advanced Certification?
The AEO Advanced Certification is the top credit level approved by the customs. It requires a well-established management system, healthy financial index, and effective cargo security management, etc.
Applying for the AEO Advanced Certification is far from easy. It’s a complicated program involving a number of departments such as human resource, accounting, supply chain, logistics, quality inspection.
According to the customs statistics, there are in total 3,239 enterprises owning the AEO Advanced Certification, accounting for only 0.22% of the registered enterprises in China. The application requirements reach up to 30. Even from the perspective of experts, the application difficulty is similar to that of a Mini-IPO.
To pass the exam, SMOORE set up a program team back in 2018. 9 departments have participated, over 30 training have been organized, and a 7,524-page file has been submitted. The whole application thing lasts for nearly two years.
Till now, China has signed mutual AEO agreements with 42 countries and regions, including Singapore, the Republic of Korea, the European Union, Switzerland and New Zealand, which tops all countries.
In addition, the Chinese government is promoting the cooperation with customs along the “Silk Road”, planning to complete the mutual agreement with around 20 countries and regions which occupying for 80% export volume, providing more convenience for cooperates.
To be specific, SMOORE could enjoy more conveniences in custom clearance, like holding a “VIP Pass”. The conveniences including less inspection on goods, quicker release of goods, simplified process and less clearance costs, etc. The customs clearance time of AEO certificated entrepreneur is averagely decreased by 30%, hugely reducing the logistics cost.
Setting exporting to South Korea for example, in 2019, the average inspection rate is 2.84%, while 1.09% for AEO certified ones.
According to Frost & Sullivan, SMOORE were the world’s largest vaping device manufacturer in terms of revenue, accounting for 16.5% of the total market share, in 2019. Products developed and manufactured by SMOORE have been exported to more than 50 countries and regions. AEO Advanced Certification will strengthen SMOORE in overseas market.