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Box 5.1. Challenges in the Design of a Successful MRA
The commitment for cooperation and intention to implement all pillars of the SAFE
Framework of the partner Customs is the most important prerequisite for a successful
MRA. For the partner countries having a transparent and well published AEO program and
utilizing the application standards homogenously will enhance the implementation of the
MRA through the easy and symmetric information provided to the partners’ traders.
Compatibility of the legislative framework, data security and data protection provisions is
another issue that should be satisfied for a successful MRA.
Aigner (2017) and WCO Framework both summarize the challenges of an MRA as follows:
1. WCO does not have a formal process or guideline for successful MRA negotiations,
which decreases standardization.
2. Each AEO program is tailored to the country needs which brings heterogeneity in
application, implementation and evaluation. Thereby, these differences bring more
discussion.
3. The degree of engagement of each Customs Administrations is different from each
other.
4. The terminologies of AEO programs are different from each other.
5. Information sharing is a vital part of the MRAs. However, due to legislation, the degree
of sharing varies in each country.
6. AEO Programs offer different benefits to traders. Thereby, it is not easy to provide
reciprocity with MRA.
7. It is not easy to identify the traders of partner countries preventing AEO holders to
utilize the benefits with the MRA agreement.
8. The IT technologies used by Customs are different from each other which sometimes
make it very difficult to work together in a coherent way. WCO does not have a standard
on these.
9. In order to work together under an MRA, the costs and investments for adopting new
and compatible technologies may be outrageous.
10. There is the issue of big data for storing the partner country’s AEO related data. Data
storage and security becomes a problem both in terms of cost and incompatible legislative
framework.
11. Following an MRA, the partner countries should capture and validate the traders AEO
status which require the adoption of Customs declaration systems.
12. The Customs in each country should adopt risk management engines for recognizing
the AEOs and treating them favorably.
13. MRA partners AEO identifying scheme may not be compatible.
14. The scope of each AEO Program may not be the same, for example, Customs brokers
are covered in one partner’s AEO program but not in the others.
15. It is not easy to cover all the traders in the supply chain.
16. Benefits provided to AEO holders may not be compatible in MRA partner countries.