The Tax Authority has signed an agreement with the Chinese government that is set to make doing business with China much easier for Israeli firms. In a ceremony Tuesday in Beijing, Moshe Asher, head of the Tax Authority, signed an agreement with his Chinese counterpart Yu Guangzhou that turns Israel into an Authorized Economic Operator (AEO) in China (the program is known as Enterprise Credit Management Program in China).
Israeli companies that apply for and are approved for the AEO program will find it easier to export goods and services to China. Israeli goods will be put on a “fast track” for release from customs, while customs inspections will be limited, on the assumption that Israeli authorities inspect and certify the shipments before they leave for China. Israeli goods and raw materials will also receive certain breaks on import duties, and paperwork at several points of the import process will be eliminated. Chinese goods arriving in Israel will receive the same treatment.
This is Israel’s fifth AEO agreement; other countries that have signed with Israel are the United States, South Korea, Canada and Taiwan. So far, some 120 Israeli companies have qualified for the program, with the criteria for joining the program based on the size of the company and its experience in compliance with international customs and shipping procedures and laws.
According to Asher, “This agreement will have an important impact on the Israeli economy. It is one of numerous projects we have undertaken to assist Israeli exporters and to open them up to new markets.”