Midea Residential Air Conditioner to Eye Business Expansion in SE Asia After AEO Sino-Thai Mutual Agreement


On Oct 28 Beijing Time, as an enterprise representative, Midea Residential Air Conditioner Division (“Midea RAC”) participated in an online certification observation meeting as part of the Authorized Economic Operator (AEO) Mutual Recognition Action Plan between the customs of China and Thailand (“the Plan”).

The purpose of the virtual meeting, as part of the protocols of the Plan, was to allow Thai Customs to better understand the field certification process carried out by China Customs and conduct face-to-face communication between the customs authorities of the two countries. In addition, it helped Thai Customs to gain comprehensive knowledge of China’s benchmark enterprises and contributed to the optimization of the AEO mutual recognition process between the two countries.

During the meeting, Midea RAC demonstrated to Thai Customs its compliance and standardized management capabilities as a Chinese AEO benchmark enterprise in enterprise management, IT-based control, trade security control and other aspects.

Midea RAC has met pre-determined standards under the AEO program and has been certified by China Customs as an “Advanced Certified Enterprise” (ACE) in 2016. In April this year, it was selected by China Customs as one of the first batches of AEO international mutual recognition enterprises for observation purposes, to serve as a benchmark for other companies on how to conduct themselves regarding the AEO mutual recognition process.

Liu Quanfa, Head of Global Customs Affairs, Midea Group, said, “As a leading large-scale Chinese foreign trade firm, Midea RAC exports products to ThailandMalaysia, and many other Southeast Asian countries. Thanks to the AEO system, the customs clearance process has been vastly simplified and accelerated and enables us to expand our business in Southeast Asia without the obstacle of bureaucratic red tape.”

The AEO system is supported by the World Customs Organization, in which customs authorities of member countries certify manufacturers that have demonstrated higher levels of compliance, credit status, and security, and provides prioritized and accelerated customs clearance for those who pass the certification. An AEO can enjoy reduced customs inspection and prioritized customs clearance when shipping goods between the two countries who reached mutual recognition agreements.

Specializing in the R&D, production, and sales of household air conditioners, Midea RAC has in place a complete industrial chain. In line with the group’s mission of creating a digital and intelligence-driven firm that provides technology leadership and direct access to users in addition to being a technology innovator, Midea is committed to becoming a global leader in the home air conditioning sector, exporting products to nearly 400 million users in 200 countries and regions worldwide.

As Customs of both China and Thailand have pledged to accelerate talks on AEO mutual recognition under the Plan, Midea RAC is expected to reduce trade-related expenses such as port, insurance, and logistics costs, boost production at its factory in Thailand, enhance international competitiveness, and streamline its development roadmap which includes participation in the Regional Comprehensive Economic Partnership (RCEP).