The Federal Authority for Identity, Citizenship, Customs, and Port Security (ICA) has recently signed an explanatory memorandum with the General Administration of Customs of China, that includes a joint mechanism for implementing the Mutual Recognition Agreement of the Authorised Economic Operator Programme. The move aims at enhancing customs and trade cooperation; exchanging experiences, benefits, facilities, and customs information between both countries; defining joint work procedures and mechanisms for exchanging Information on mutual recognition and identification of the list of authorised operators of both countries; and measuring returns from the mutual recognition. The explanatory memorandum was agreed upon virtually, between Suoud Al Agroobi, Director of the ICA International Relations Department, and Zhang Xiuqing, Deputy Director-General of the Projects, Control, and Audit Department. This comes at a time when the total volume of non-oil trade exchange reached record rates between both countries, despite the repercussions of the Coronavirus Pandemic, reaching more than Dhs174 billion in 2020. The total volume of non-oil trade exchange is expected to increase in the current year at large rates exceeding those achieved in 2020, where the total volume of non-oil trade exchange between both countries in the first half of 2021 amounted to about AED103 billion, bringing the total volume of non-oil trade exchange between both countries to Dhs277 billion only in 18 months.
China is the second-largest trading partner of the UAE, and the leadership is keen to expand the areas of joint cooperation, and sign trade agreements that help in the growth of bilateral trade between both countries. Al Agroobi said, “The mutual recognition of the authorised economic operators is one of the global means used by customs authorities to enhance partnership with the private sector and reward the authorised operators who have passed the requirements of customs compliance standards set by the customs authorities for customs facilities, the most important of which is the reduction in customs clearance time and other facilities.” Al Agroobi indicated that negotiations were held with China based on the Mutual Recognition Agreement of the Authorised Economic Operator Programme, which was signed in 2019 and agreement on the signature plan and implementation mechanism, in a way that enables the exporting and importing companies that are authorised under the Programme in both countries to benefit from the advantages and facilities of the customs and the exchange of experiences, knowledge, and information between both parties, which will remove customs barriers, shorten the customs clearance time, and increase the volume of bilateral trade. He added that, “The signed explanatory memorandum aims to define the steps and mechanism for implementing the Mutual Recognition Agreement of the Authorised Economic Operator Programme in both countries, and to agree on the mechanism for exchanging customs information and statistical data of trade facilitation measures between both parties. It was also agreed to work on a three-month phase to ensure implementing the procedures for identifying the authorised companies and applying the agreed facilities smoothly, provided that the Mutual Recognition Agreement is applied to all lists of authorised companies of both countries, considering that the number of authorised companies in the UAE is 84. This will be followed by the signature of mutual recognition of the Programme based on the results of the trial phase.”
Meanwhile China’s Jinsha Holding Group and UAE’s Royal Strategic Partners signed a strategic cooperation agreement, during a ceremony in Dubai recently. The agreement includes establishing joint ventures in digital assets and entertainment games. Jinsha Holding Group works in several fields, including blockchain technology, finance, entertainment, real estate, and others. Royal Strategic Partners operates and focuses on investing and developing emerging industries in the UAE. Royal Strategic Partners is a major contributor to “Hala China” initiative, and made outstanding contributions in promoting economic exchanges, investment cooperation and cultural exchanges between the Republic of China and the United Arab Emirates. The ceremony was attended by Dr Hamad Al Ali, CEO of Royal Strategic Partners in UAE, and Leo Liu, Chairman of Jinsha Holding Group, who signed a strategic cooperation agreement. The ceremony was also attended by Abubaker Al Khoori, CEO of Abu Dhabi Capital Group. Chairman Liu expressed his sincere gratitude to Abu Bakr Al Khoori and Dr Hamad Al Ali for their trust and strong support, Chairman Liu stated that Jinsha Holding Group and Royal Strategic Partners will work together, to build the largest Chinese-Arab investment base in the Middle East.