Customs authorities from China and the European Union began accepting each other's trade management programs on Nov 3. The agreement was made to improve efficiency and make services more secure for traders.

Over 3,000 Chinese Advanced Certified Enterprise certificate holders (issued under the Classified Management of Enterprises program) are subject to fewer security controls as a result. They can also benefit from priority treatment at customs clearance services in 28 EU member countries.

Holders of EU Authorized Economic Operator certificates will receive reciprocal facilitation at China's customs clearance services.

According to preliminary estimates quoted in China's state-run Economic Daily, the mutual recognition of AEOs between China and the EU will reduce the customs check ratio by 70 percent and improve customs clearance efficiency by 50 percent.

The move is also expected to cut the costs of logistics, insurance and port service fees for traders.

China is the second-largest trade partner with the EU, while the EU has been China's largest trade partner for 11 consecutive years.

In 2014, bilateral trade between China and the EU topped $600 billion.

China's Classified Management of Enterprises program - the country's answer to EU's Authorized Economic Operator program - was established in 2008. Since then, the Chinese mainland has established mutual AEO status recognition with Singapore, South Korea, China's Hong Kong SAR and the European Union.

Additionally, China's General Administration of Customs is speeding up negotiations in mutual recognition of AEO status with US, India, Japan, Switzerland, and the Association of Southeast Asian Nations.

China is also pushing forward with AEO cooperation with Russia, Kazakhstan, Egypt and other nations under the Belt and Road Initiative.

AEO cooperation helps to raise connectivity between global economies, strengthen the security level of the international supply chain and promote cross-border trade.

By Liu Sitong and edited by Jacob Hooson