G/TFA/W/9  
 
27 September 2018  
(18-5974) Page: 1/4 
Committee on Trade Facilitation  Original: English  
 
 
AUSTRALIA'S AUTHORIZ ED ECONOMIC OPERATOR  PROGRAM (AEO):  
AUSTRALIAN TRUSTED T RADER  
COMMUNICATION FROM A USTRALIA  
The following communication, dated 26 September 2018, is being circulated at the request o f the 
delegation from Australia, for Members' information.  
 
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1  INTRODUCTION  
Australia's Authorized Economic Operator (AEO) program is known as Australian Trusted Trader 
(ATT). Australian Trusted Trader is open to all Australian businesses that import, export or provide 
services that sup port traders in the international supply chain, and demonstrate both a secure supply 
chain and compliant trade practices.  
 
Australian Trusted Trader is consistent with the World Customs Organization SAFE Framework of 
Standards to Secure and Facilitate Glob al Trade, which promotes:  
 
• supply chain security and trade facilitation at a global level to allow certainty and 
predictability of trade moving across international borders; and  
 
• standards that enable a harmonised and integrated approach to supply chain ma nagement 
for all participants in the international supply chain.  
 
The program introduces a differentiated trust -based framework at the border for entities that meet 
or exceed international supply chain security and trade compliance standards. Entities that  meet 
these standards and qualify for participation in the program are deemed low risk and benefit from 
reduced regulatory burden and streamlined customs processes.  
 
Trusted Traders are assessed and accredited based on their trade compliance, operating sys tems, 
communication and information quality, and international supply chain security. Accreditation is 
enacted through a Trusted Trader Agreements between the Australian Border Force (ABF) and 
qualifying entities which sets out further detail of the benefi ts and expectations.  
 
Participation in the program is voluntary and provides Trusted Traders with benefits that facilitate 
trade, such as an Account Manager and priority treatment at the border. The efficiencies gained by 
the program have reduced impedimen ts to trade. The development of new benefits for Trusted 
Traders is an ongoing priority for Australia.  
 
It is estimated the total benefit of Australian  Trusted Trader is $3.5  billion1 in nominal terms over a 
ten-year period (2015 -2025). Mutual Recognition Arrangements (MRAs), which allow recognition of 
Trusted Trader status, are estimated to ac count for $2.8  billion of this.  
 
Australian Trusted Trader has been co -designed with industry through the Trusted Trader Industry 
Advisory Group (IAG). The IAG provides a structured way for Trusted Trader representatives to 
interact with Government. It meets three times a year and informs  the agenda for change and 
                                                
1 All dollar figures in this paper are in Australian dollars . As at 21 September 2018, AUD1 =USD0.7296.  G/TFA/W/9  
 
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  enhancement of the program. The IAG includes a cross -section of representatives  Australian 
business (including small to medium size enterprises), and Government agencies.  
 
Australia has more than 220 accredited Trusted Traders (a nd another 100 applications being 
progressed) with a goal for this to rise to 1000 by 2020, covering 30% of trade by volume and 50% 
by value. Membership has increased 269% over 2016 -2017, with a steady increase in both the 
volume and value of two -way trade  conducted by Trusted Traders.  
 
2  BENEFITS  
Australian Trusted Traders receive a range of benefits including:  
 
Account Manager  
An ABF Officer acts as the Account Manager, being a single point of contact on border matters and 
to assist with improvements in co mpliance and resolving any border clearance issues.  
 
Mutual Recognition Arrangements  
A number of AEOs recognise Australian Trusted Trader status under Mutual Recognition 
Arrangements. Trusted Trader exporters will receive trade facilitation benefits at the  border of our 
MRA partners, providing faster access to international markets. As noted above, these MRAs  are 
estimated to be worth $2.8  billion over 2015 -2025. The Australian Government continues to pursue 
MRAs with other trading partners.  
 
Australia has MRAs with:  
 
• Canada  
• China  
• Hong Kong, China  
• Republic of Korea  
• New Zealand  
• Singapore  
• Chinese Taipei  
 
A 'seat at the table'  
Trusted Traders participate in a range of exclusive forums with Government decision makers and 
influence th e future design of the progr am. 
 
Use of logo  
Trusted Traders can use the internationally recognised Australian Trusted Trader logo. The logo 
builds confidence in Australian traders, and the security of their supply chain.  
 
Priority processing  
Priority processing – including for advance rulings on tariffs, valuation and origin, reviews, duty 
drawback claims, and refund and remission applic ations for customs import duty.  
 
Priority treatment of goods at the border  
Trusted Traders are seen as low risk businesses and given priority tr eatment at the border. This 
means faster customs processing and fewer interventions. If a cargo examination is required, priority 
processing is provided. It is estimated that Trusted Traders will save an average of 1,500 inspection 
hours each year.  
 
Data r eports  
Each month, the Account Manager can email to Trusted Traders a report on all goods imported and 
exported under their Australian Business Number (ABN).  G/TFA/W/9  
 
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  Simpler visa process  
Trusted Traders can use a streamlined process to become an accredited sponsor  under the 
Temporary Skilled Shortage (subclass 482) visa. Trusted Trader status also makes the process of 
applying for an APEC Business Travel Card (ABTC) simpler. The ABTC helps facilitate short -term 
business  travel within the APEC region.  
 
Duty Deferral  
If a Trusted Trader is entitled to defer payment of Goods and Services Tax (GST) und er the Australian 
Tax Office' s Deferred GST Scheme, the Trusted Trader is also entitled to defer the payment of duty 
on most goods to a consolidated monthly payment. This benefit assists Trusted Traders through 
increased cash flow and a reduction in administrative processes. By only making one payment for 
an entire month' s imports, Trusted Traders are expected t o make savings in excess of $15  million 
each year.  
 
Australian Trusted Trader (ATT) Origin Advance Ruling for imports from China  
Following a pilot scheme, Trusted Traders now have access to streamlined origin documentation 
requirements for imports from China. Since August, Trusted Traders who import goods from China 
under the China Australia Free Trade Agreement (ChAFTA) can apply for a single advance ruling for 
goods under multiple tariff classifications and consignments. This provides a significant advantage 
to Trusted Traders over the standard application for an adv ance origin ruling, which may cover goods 
under only one tariff classification. Participants in the pilot scheme estimated  their business would 
save $1.6  million each year from this new approach.  
 
Consolidated cargo clearance  
Trusted Traders can lodge a si ngle import declaration for consignments covered by multiple cargo 
reports for all sea and air cargo types, and pay only a single Import Processing Charge (IPC).  This 
has demonstrably reduced red tape, with between 130 and 150 fewer import declarations fro m 
Trusted Traders each month since implementation. It is anticipated this will result in  a potential 
saving of $154  million ove r 10 years for Trusted Traders.  
 
3  LESSONS LEARNT  
The program commenced in July  2015 with a 12 -month pilot scheme  to test and refin e the program' s 
processes and design. Following complet ion of the pilot scheme in July  2016, program 
implementation was phased, with each phase showing growth in membership and a greater 
complexity in the business models and supply chains accredited and be nefiting from a larger range 
of benefits.  
 
An independent study undertaken after the completion of the first year of the program highlighted 
the following:  
 
• Trusted Traders saw priority trade services as the most important benefit.  
 
• Account Managers were rated highly by Trusted Traders.  
 
• There is no 'one size fits all'  approach to supply chain risk assessment. Rather, there is a 
need to have regard to each business and its structure individually.  
 
Other insights from the first two years of operation includ e: 
 
• Refining the application process helped to grow the program significantly. The initial 
application was difficult for business to complete, taking months, and sometimes more 
than a year. The refined application is easier to interpret. This has reduced t he time cost 
of application for applicants and imp roved the quality of responses.  
 
• Service providers are important influencers of decisions of importers and exporters about 
becoming a Trusted Trader. The ABF now encourages service providers to become Trust ed 
Traders, whereas initially the focus was on importers and exporters.  G/TFA/W/9  
 
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• Communication – in order to ensure credibility, the Government identified the need to 
respond consistently to industry feedback and suggestions, including when industry  
suggestions we re not feasible.  
 
In 2017, there were around 30, 000 ABF inspections of consignments for Trusted Traders, based on 
standard risk profiles. Not one of these inspections revealed prohibited or illicit goods. On average, 
these inspections took around 11 days e ach. The implementation of a risk management approach 
for inspection of Trusted Trader cargo has eliminated this delay and enabled the  goods to get to 
market faster.  
 
4  CONCLUSION  
Trusted Traders are given premium service by virtue of their accreditation – this underpins the 
program. Their participation is valued, including any suggestions for change and improvement. We 
are committed to further improving and growing the pr ogram.  
 
This partnership with industry helps to create a better trading system. It facil itates trade and helps 
to secure our borders as it enables us to focus our ef forts in areas of greater risk.  
 
Links with other AEO programs are strengthening with more MRAs being entered into and applied. 
Australia values these relationships and the expert ise it can access through them.  
 
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