The Shanghai Municipal Commission of Commerce and the Shanghai Municipal Development and Reform Commission jointly unveiled measures in January aimed at promoting the high-quality development of companies holding Authorized Economic Operator status.

The AEO system, initiated by the World Customs Organization, streamlines Customs clearance for trade firms that demonstrate high levels of compliance with laws, creditworthiness, and safety standards.

On February 26, the Shanghai Municipal Commission of Commerce released the full text of the document, titled Several Measures of Shanghai to Further Support the High-Quality Development of AEO-Certified Enterprises, online. Here are some key highlights from the document.

1. Recommendation mechanism: In partnership with agencies such as the Shanghai Municipal Commission of Economy and Informatization, the Shanghai Municipal Commission of Commerce will compile a roster of potential companies for regular endorsement to Customs for AEO certification. Priority will be given to enterprises operating in pivotal industries, emerging sectors, and prospective fields. This also includes small enterprises specializing in and leading new industries, as well as the headquarters of both foreign-funded and domestic companies. Additionally, the focus will be on group enterprises and core companies in the upstream and downstream supply chains of critical industrial chains. (Responsible units: Shanghai Municipal Commission of Commerce/Shanghai Municipal Office for Port Services, Shanghai Municipal Commission of Economy and Informatization, Shanghai Customs)

2. Onsite training and guidance: Establish an AEO certification guidance center in Shanghai, and support districts including Huangpu in working in conjunction with local Customs to establish regional guidance centers. These centers will disseminate policies, showcase sample cases, provide training and education, and offer personalized guidance on the certification process. (Responsible units: Shanghai Municipal Commission of Commerce/Shanghai Municipal Office for Port Services, Shanghai Customs)

3. Online training: Deliver online training and counseling services through an AEO service zone established at the China (Shanghai) International Trade Single Window. (Responsible units: Shanghai Municipal Commission of Commerce/Shanghai Municipal Office for Port Services, Shanghai Customs)

4. Financial support: Provide financial assistance to eligible AEO companies utilizing existing national and municipal funds. Encourage capable districts to extend support to qualified AEOs. (Responsible units: Shanghai Municipal Commission of Commerce/Shanghai Municipal Office for Port Services, Shanghai Municipal Bureau of Finance, district governments)

5. Work permits for foreign talents: For foreign talents employed by AEO-certified companies, those meeting the specified criteria can now apply for work permits with a validity period of up to 5 years (Category A) and 2 years (Category B). For foreign "highly skilled and urgently needed" personnel employed by AEOs, a direct application for a Category A work permit is possible provided they have a recommendation letter from the Shanghai Municipal Commission of Commerce/Shanghai Municipal Office for Port Services. (Responsible units: Shanghai Municipal Commission of Science and Technology/Shanghai Foreign Experts Administration, Shanghai Municipal Commission of Commerce/Shanghai Municipal Office for Port Services)

6. Household registration (hukou): Chinese individuals returning from overseas studies and employed by AEO-certified companies as urgently needed professionals may, upon meeting relevant conditions, apply for household registration, commonly known as hukou, in Shanghai. Overseas talents hired by AEOs, meeting specific criteria, are eligible for additional points and related benefits when applying for Shanghai's Residence Permits for Overseas Talents (Certificate B). Outstanding domestic talents hired by AEOs can also apply for local household registration if they meet the necessary conditions. (Responsible unit: Shanghai Municipal Bureau of Human Resources and Social Security)

7. International expansion: Facilitate the global expansion of AEO-certified companies by actively supporting their participation in international exhibitions, providing international logistics assistance, and preferentially recommending them to potential purchasers. (Responsible units: Shanghai Municipal Commission of Commerce/Shanghai Municipal Office for Port Services, the Council for the Promotion of International Trade Shanghai)

8. Export tax rebate: For AEOs meeting the eligibility criteria, guarantee that the average processing time for regular export tax refunds (exemptions) is within 2 working days.(Responsible unit: Shanghai Municipal Tax Service)

9. Talent evaluation: Foreign professionals holding international professional qualifications listed in the city's recognition catalog may be acknowledged with equivalent domestic professional titles. Senior executives with outstanding contributions are eligible for recommendation for the Shanghai Magnolia Award. (Responsible units: Shanghai Municipal Bureau of Human Resources and Social Security, the Foreign Affairs Office of the Shanghai Municipal People's Government)

10. Convenience for family members and children: For foreign senior executives, within the framework of relevant policies, relevant departments will facilitate their family members in obtaining residence permits, accessing medical services, applying for talent apartments, and enrolling children in schools, kindergartens, and nurseries. (Responsible units: Shanghai Municipal Exit-Entry Administration, Shanghai Municipal Commission of Health, Shanghai Municipal Bureau of Human Resources and Social Security, Shanghai Municipal Commission of Education, Shanghai Municipal Commission of Housing and Urban-Rural Development, etc)

Source: sww.sh.gov.cn