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What does an AEO mean?

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In case where the results meet the criteria, applicants should prepare a statement on export and import security management by each criteria. In addition, Internal AEO Managers of applicants should complete training for 16 hours or more in advance. In order to figure out whether preparations are appropriate, companies can apply for preliminary audit before applying for authorization which is optional. Checking whether there are factors to be disqualified Step 2. Conducting the SA based on authorization criteria Step 3.

Confirming whether SA results are meeting the criteria Step 4. AEO validation consists of a documentary audit and an on-site audit, and the AEO Deliberation Committee is determining whether an applicant can acquire authorization or not, and its authorization level by conducting both audits. Details by steps are as follows:. A documentary audit should be conducted on whether the authorization criteria are satisfied within two months from the date the application is received.

If it is difficult to conduct an audit with the documents submitted by the applicant, supplementing the documents is required to the applicant. In this case, the period spent to supplement may not exceed one month in the aggregate and is not included in the audit period. Documents should be prepared and submitted by each premise of the applicant because every premise of the applicant shall be audited in case where the applicant has more than one premise.

The Commissioner shall notify the applicant which satisfies the authorization criteria in the documentary audit of on-site audit plans one month prior to the on-site audit.

As compliance with AEO criteria is affected not only by the applicant but also by its business partners on the supply chain, compliance of such business partners needs to be verified. Therefore, if necessary, the on-site audit may be applied in the same way as with the applicant.

After completing the on-site audit, its results send to the AEO Deliberation Committee to determine whether the applicant is authorized including whether it is reserved and its level. It is necessity that the top reason when implementing any program. The AEO program has its own necessity as follows:. The first is complicated conditions of trade. The more logistics security in international society is attracting attention recently, the more complicated conditions for trade become.

It means that more companies require not only implementing traditional conditions but also AEO authorization as a trade prerequisite. Therefore, companies which cannot be authorized as an AEO have reduced number of business partners, narrowed scopes of trading, or facing unexpected disadvantages.

The second is enhanced export competitiveness. The biggest interest for exporters is facilitated clearance. Private companies have difficulty controlling clearance, and they also have limits to addressing clearance issues without outside help because they lack understanding local regulations or systems, and Customs administrations or infrastructures are different from each country.

However, there is a silver lining, the AEO program. As AEOs are companies which Customs services trust and international society recognizes, they can tackle trade barriers and enhance export competitiveness through the AEO program.

The third is various benefits for AEOs. As AEOs are faithful companies which certified by the government, they can be guaranteed more facilitated and simplified trade processes at export and import. In addition, once Mutual Recognition Arrangements, MRAs, are concluded with other countries implementing AEO programs, AEOs will provided with diverse benefits in MRA counterpart countries, including reduced inspection rates and other benefits for facilitated clearance.

As a result, AEOs can reduce lead times and various costs from international trade. In addition, Korean Customs are putting much effort to discover further benefits for the purposes of provisioning of more benefits. If you have any brilliant ideas related with benefits, please suggest them to the KCS in order to discover additional benefits.

Post Management should be carried out by an AEO in order to maintain its validity after authorization which means managing activities once authorized, including reporting changes, conducting regular self-assessments and comprehensive audits. As a period of validity is three years from the date when the Commissioner issues an authorization certificate, an AEO who wants to maintain its authorization should renew its authorization.

Post Management activities are as follows:. Completing more than eight hours of training every other year at an designated training agency however, 16 hours for the first training before acquiring AEO certificate. Change in the legal status resulted from sale, acquisition, etc. It is common to hear people talking loudly in restaurants, as a sign of being happy and enjoying the food. Remember never to pour your own drink, but do pour for others. Also, if you notice the slurping of noodles this is actually expected.

It shows that you enjoy the food and you are appreciating the cooking. Money if given as a gift is placed in paper or an envelope. Swastikas are commonly seen in Buddhist temples. This is a religious symbol to the Koreans and does not represent Nazism or anti-Semitism.

It is common that when meeting a Korean business person initially you will be introduced by somebody rather than introducing yourself. Bows may or may not take place but handshaking is now commonplace. It is definitely expected that at an initial meeting business cards will be exchanged.

Role level and rank play a central part in hierarchy within Korean business so here the business card is important as is confirming your title so that status and rank can be understood. Koreans generally prefer to deal with someone of the same rank or level as themselves.

Earlier we mentioned how to take things in terms of your hands. Use two hands when presenting and receiving a business card. If that is not possible, use your right hand and support your right elbow with your left hand. A business card needs to be treated as an extension of the person. Be sure to read it carefully and then place it on the table in front of you. It is seen as disrespectful to put it straight into your pocket and definitely do not write on the business card.

Most business meetings are scheduled mid-morning or mid-afternoon. You must make an appointment in plenty of time so ideally a couple of weeks before you wish to meet.

Punctuality is important as it is a sign of respect. You must call ahead if you will be late. It is also not unusual for Korean executives to cancel appointments with little or no notice. The cancellation may genuinely be due to an unexpected situation.

However if you realise that this has happened before it may be that they either need to delay the business or that they are not really interested. Like in any country it is important to be savvy and read between the lines a little. Gift-giving is very normal when doing business in Korea.

Gifts are given at the first meeting to build relationships. Wait until the host has presented his gift and use both hands to accept it. The gifts given should be of similar value, with the gift of greatest value going to the most senior person from the company within the meeting. Contracts are seen as needing to be flexible by the Koreans.

However, you may want to make sure to also know their Korean name for after the meeting. The decision making process in Korea is done collectively and therefore may take more time than you may be used to. You will need to be patient. The reason being Koreans worry that foreign businesses are only there to make a quick profit and run so it is important to demonstrate long-term commitment to the relationship.

Koreans business people devote a great deal of time and energy into getting to know the people with whom they are dealing in order to build long-term relationships. This section will be particularly helpful if you are relocating to South Korea and intend to work.

There are a number of factors to have in mind when you start managing South Korean employees. There are strict rules that you must be aware of in order to make your employment a success.

You must always retain a formality in the way that you manage people. Additionally, anyone older must be treated with great respect. You will also be expected to take genuine care beyond the workplace for your employees. In South Korean companies people have very distinct roles. The most senior business people make the decisions and these filter down the chain. The rest of the staff then execute the decisions in a practical sense.

It is important to remember this dependant on what level you are going into the business at. The older manager is seen as a family member and so is treated respectfully, and in return the member of staff is given support at all times. Etiquette and social etiquette are also very important.

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Korea is a drinking culture, and their national booze is soju, a clear, vodka-like drink. Soju is drunk out of shot glasses, and like all liquor in Korea, it’s always served with food. For all the details of applicable customs duty and tax rates in English, you can refer to the Duties and Taxes in Korea on the Korea Customs website. Besides customs duties and taxes, some items require licensing and approval procedures with other Korean Government agencies.