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TABLE OF CONTENTS
LIST OF FIGURES....................................................................................................................................................iii LIST OF TABLES ..................................................................................................................................................... iv LIST OF BOXES........................................................................................................................................................ iv LIST OF ACRONYMS ................................................................................................................................................v EXECUTIVE SUMMARY ......................................................................................................................................... 1 1. CONCEPTUAL FRAMEWORK.......................................................................................................................... 3 1.1. The Authorized Economic Operator Concept and Its Brief History ....................................... 3 1.1.1. Antecedents....................................................................................................................................................3 1.1.2. WCO SAFE Framework..............................................................................................................................4 1.1.3. A Short Summary of Trade Facilitation Measures in WCO Safe Framework ....................4 1.1.4. WTO Agreement on Trade Facilitation ..............................................................................................5 1.2. Authorized Economic Operator Design and Implementation Process ................................. 6 1.3. Benefits of AEOs to Trade Facilitation and Supply Chain Security ......................................... 7 1.4. How do AEOs Contribute to More Trade?......................................................................................... 9 1.5. Benefits of Mutual Recognition Agreements ................................................................................11 1.6. SME Participation....................................................................................................................................12 2. GLOBAL TRENDS AND PRACTICE...............................................................................................................14 2.1 Global Trends ............................................................................................................................................14 2.2 Three Best International Practices ...................................................................................................18 2.2.1 Rationale behind Case Choices..................................................................................................................... 18 2.2.2 The Japanese Case.............................................................................................................................................. 19 2.2.3 The Canadian Case ............................................................................................................................................. 25 2.2.4 The European-Union Case.............................................................................................................................. 28 2.3 Evaluation of the AEOs ...........................................................................................................................33 2.4 Developing Country Perspective ........................................................................................................35 2.5 Requirements for a Successful AEO Outcome................................................................................37 3. ANALYSIS OF OIC MEMBER STATES EFFORTS ......................................................................................40 3.1. AEO Programs in the OIC Countries .................................................................................................41 3.2 Assessment Approach ............................................................................................................................47 3.2.1 Data Collection..................................................................................................................................................... 47 3.2.2 Identification of Themes and Variables.................................................................................................... 48 3.2.3 Convergence Analysis....................................................................................................................................... 49 3.3 Comparative Findings ............................................................................................................................49 3.3.1. Convergence Results within OIC Member Countries ........................................................................ 49 3.3.2. Convergence Results of OIC in Comparison to APEC ........................................................................ 62 3.4 Comparison of AEO Programs in OIC with Best Practices.........................................................64 3.5 AEO Programs and Effectiveness of Customs ................................................................................68 3.6 OIC Member States not implementing an AEO Program ...........................................................70 3.7. Major Achievements and Challenges ...............................................................................................72 4. COUNTRY CASE STUDIES ..............................................................................................................................78 4.1. The AEO CASE STUDY of JORDAN ......................................................................................................78 4.1.1. Evolution of the AEO Program .................................................................................................................... 78 4.1.2. Benefits of the AEO Program........................................................................................................................ 81