On 18 January 2024, Singapore and Malaysia signed the Mutual Recognition Arrangement (“MRA“) of Authorised Economic Operator (“AEO“) programmes (see the Singapore Customs’ press release dated 23 January 2024 titled “Certified Companies to Enjoy Reduced Customs Checks for Goods Traded between Singapore and Malaysia”).
On 22 July 2024, the Singapore Customs issued Circular No. 05/2024 titled “Implementation of Malaysia – Singapore Mutual Recognition Arrangement”, stating that the Malaysia-Singapore MRA on AEOs will be operational with effect from 30 July 2024.
Under the MRA, companies certified under the Singapore Customs’ Secure Trade Partnership-Plus (“STP-Plus“) programme will benefit from facilitated clearance for their goods exported to Malaysia, e.g. reduced customs documentation checks and/or physical cargo inspections. Likewise, companies accredited under Malaysia’s AEO programme will similarly enjoy facilitated clearance on their goods exported to Singapore.
To enjoy a higher level of facilitated clearance in Singapore and Malaysia, companies will need to declare the relevant AEO codes in their import/export declarations. As such:
(a) Singapore companies that are exporting to or importing from Malaysia AEO companies should obtain the AEO code from their business partner in Malaysia (a Malaysia AEO company) for declaration to Singapore Customs.
(b) STP-Plus companies who are exporting to or importing from Malaysia should provide their STP code to their business partner in Malaysia (who need not be a Malaysia AEO company) for declaration to the Royal Malaysian Customs Department.
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