Trade Regulations

CBP signs Mutual Recognition Arrangement with Brazil

Sep, 21, 2022 Posted by Gabriel Malheiros

Week 202238

On September 16, U.S. Customs and Border Protection (CBP) and Brazil’s Customs Authority Receita Federal signed a Mutual Recognition Arrangement (MRA), formalizing the partnership between its Authorized Economic Operator (AEO) programs. The signing event took place in Washington, D.C., and ended a seven-year-long journey of negotiations between the authorities of both countries.

A Mutual Recognition Arrangement (MRA) is a bilateral or multilateral agreement by customs that have AEO programs compatible with each other to promote trade facilitation and combat customs and trade offenses.

After the accord, the Brazilian AEO program became compatible with the Customs-Trade Partnership Against Terrorism (C-TPAT), one of the world’s top certification programs in supply chain security.

Brazilian businesses certified under AEO-Security will now be considered safer and certain to pose a lower risk. With increased reliability, inspections of Brazilian exports to the U.S. are expected to be reduced. Furthermore, when cargoes from these organizations are selected for verification, they should be given priority in the examination.

Exports

The destination of 14 percent of the country’s exports, the US is Brazil’s second-largest trading partner, with a flow of more than $70.53 billion in 2021. Of this total, Brazil exported $31.15 billion to the North American country and imported $39.38 billion.

According to the Ministry of Economy, in the last three years, firms in the AEO Program accounted for 17 percent of exports to the U.S. The ministry did not disclose detailed estimates but reported that the move should lead to a higher demand for AEO-Security certification among Brazilian companies.

Source: Informativo dos Portos

To read the full original article, please go to: https://www.informativodosportos.com.br/brasil-e-estados-unidos-firmam-acordo-de-reconhecimento-mutuo-entre-aduanas/

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