Trade Tech, Inc., a global logistics platform, and TradeWaltz Inc., a SaaS-based collaborative trade facilitation platform, have announced that they have signed a Memorandum of Understanding (MoU) to promote the GRACE (Global Reliable Authorized Commerce Express) project. The MOU is aimed at digitising and streamlining trade procedures for Authorized Economic Operators (AEOs) between Japan and the U.S.
The Authorized Economic Operator (AEO) system certifies trade operators who meet certain security and compliance standards, granting them benefits such as simplified and expedited customs procedures. Recently, Japan and the U.S. have signed a Mutual Recognition Arrangement (MRA) for the AEO system. This will be advancing trade facilitation between the two countries based on mutual trust.
The MoU confirms the commencement of discussions on the mutual integration of the trade platforms provided by Trade Tech and TradeWaltz. A system will be developed to fully leverage the benefits of the AEO mutual recognition through the collaboration of both the platforms. Trade Tech, TradeWaltz sign MOU that enables the immediate and seamless sharing of trade-related document data required between exporters and importers between Japan and the U.S.
Furthermore, Trade Tech, TradeWaltz Sign MOU that aims to enable customs brokers in both countries to utilise this data to submit customs declarations to the relevant Customs authorities. This will significantly reduce inefficient processes such as the exchange of paper documents and manual data entry. This facilitates the Customs clearance of cargo shipments well in advance of vessel arrival.
Bryn E. Heimbeck, President and Co-Founder of Trade Tech, noted that, “The combination of regulatory compliance tied to transportation, logistics, and supply chain management creates a significant drive to digitization of the global supply chain. Effectively, this will create a Pan-Japan / USA data standard for global supply chain management. AEO Operators, as mutual trading partners on both sides of the ocean, will be able to closely collaborate in the movement of goods. By aligning compliance and logistics, the partnership represents an important step in reducing friction, improving efficiency, and supporting the seamless flow of cargo across borders.”
Takahiro Sato, President & CEO, TradeWaltz Inc., said, “Through this initiative, we aim to expand the adoption of the AEO system by helping more companies realize its convenience and value. At the same time, we will accelerate the digitalization and efficiency of trade procedures between Japan and the U.S., contributing to the optimization of international logistics.”
Notably, for AEO operators under the AEO Mutual Recognition Arrangement (MRA)*, this will result in reduced Customs processing times. This will help to make the Customs clearance of cargo shipments smoother. Further contributing to shorter cargo lead times, optimised logistics costs, and overall supply chain efficiency.
Both Trade Tech and TradeWaltz will continue to promote the digitalisation of trade and international data collaboration in a manner that ensures security and reliability. This will help in strengthening global supply chains.
