Samsung BioLogics obtains an Authorized Economic Operator (AEO) certificate
Incheon, South Korea, October 22, 2018- Samsung BioLogics, a global leading biopharmaceutical Contract Development and Manufacturing Organization (CDMO) based in South Korea, announced today that it has obtained an Authorized Economic Operator (AEO) issued by the World Customs Organization (WCO).
The AEO certification is granted by the customs authorities of each country to an excellent company that meets the four core criteria of compliance and internal control based on the World Customs Organization (WCO) export and import supply chain safety management standards. It is an international certification system which will enhance the business environment and further facilitate customs procedures.
By acquiring an AEO certification, Samsung BioLogics has been able to reduce inventory costs by speeding up customs clearance including the reduction of inspection rate, elimination of document submission and so on since Oct. 15.
In particular, Samsung BioLogics is expected to make contracts more through its improved import and export competitiveness as a global CDMO which imports most raw materials and exports all biopharmaceutical products.
Temperature-sensitive biopharmaceutical raw materials can be damaged if the customs procedure is prolonged, and if there is a sudden need for supply of the necessary raw materials, the production schedule may be disrupted.
For this reason, smooth customs clearance is essential for the improvement of production competitiveness in the case of the contract manufacturing organization (CMO), which receives mainly raw materials from overseas.
Companies that received AEO certification take advantages such as expedited shipment and customs simplification. AEO accredited companies can enjoy the same level of benefits in 19 countries around the world, including the United States, China, and Japan, which have signed the AEO MRA (Mutual Recognition Arrangement) agreement.
Samsung BioLogics prepared the certificate with its internal task force (TF) for about 14 months. The TF team documented about 135 supplementary documents and 23 work standards in accordance with the AEO guidelines for the document review.
In May of this year, Korea Customs Service and the US Customs Trade Partnership Against Terrorism (C-TPAT) jointly held on-site inspection to examine cargo safety management, security systems, and procedures.
The joint inspection team highly evaluated Samsung BioLogics’ employees understanding and executing procedures, systematic access control, personnel management, and information security.
Tae Han Kim, President and CEO of Samsung BioLogics, said “With the acquisition of AEO certification, Samsung BioLogics becomes more competitive in global business as rapid customs clearance is available.” He added “We will constantly endeavor for more stable supply chain management and innovate to provide biopharmaceuticals in timely manners for our clients and patients.”