Companies in Ningbo, Zhejiang province, are among the first to benefit from the new Authorized Economic Operator (AEO) mutual recognition agreement between China and Ecuador, implemented to boost trade efficiency.

On July 1, the AEO mutual recognition agreement between China and Ecuador officially came into effect, marking a significant step forward in bilateral trade facilitation.

In Ningbo, Ningbo MH Group is preparing to export over 500,000 yuan ($69,765) worth of dyed polyester fabrics and sewing thread to Ecuador — one of the first shipments to enjoy the benefits of this agreement.

Under an announcement made by the General Administration of Customs, AEO-certified companies in both countries are now entitled to reduced inspection rates, priority customs clearance, and dedicated liaison services. For companies like MH, which specialize in garment accessories and sewing equipment, these streamlined procedures are vital for meeting strict delivery schedules.

From January to May, AEO-certified firms in Ningbo exported about 87 million yuan in goods to Ecuador, a year-on-year increase of 40 percent. MH alone contributed over 14 million yuan in exports during this period, up 44 percent.

"The reduced clearance time will significantly improve customer satisfaction," said Mao Chunbo, the company's business manager.

China has now signed AEO mutual recognition agreements with 31 economies, covering 57 countries and regions — the most in the world. AEO certification not only facilitates customs processes but also enhances exporters' credibility and competitiveness in international markets.