INFORMAL WORKING GROUP ON MSMES

WCO-WTO-ICC Joint Draft Study Report on Integration of MSMEs
into Authorized Economic Operator (AEO) programmes

The following communication, dated 20 February 2025, is being circulated at the request of the Coordinator of the Informal Working Group on MSMEs for consideration at the next meeting of the Group.

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1  Introduction

1.1  Importance of MSMEs in global trade

1.1.  Micro, Small, and Medium Enterprises (MSMEs) are recognized as the backbone of global economies, accounting for approximately 90% of businesses and more than half of employment worldwide. In emerging markets, formally registered MSMEs contribute up to 40% of gross domestic product (GDP)[1] with a similar share of GDP from informal businesses[2], which are generally small. MSMEs also account for a significant share of international trade, 36% of exports and 41% of imports in developed economies. MSMEs in developing economies also rely on trade, with one tenth (11%) of MSME income generated by direct exports, i.e. exports that do not make use of a middleman, for those MSMEs that trade and one third (33%) of inputs for production coming from abroad.^[3], [4]

1.2.  MSMEs also participate in Global Value Chains (GVCs) as suppliers, with evidence that the digital economy has opened additional opportunities for MSMEs to provide inputs and source intermediate goods from abroad. Measures to facilitate trade are therefore especially helpful for smaller businesses with fewer resources to navigate cumbersome trade procedures.[5]^, [6]^, [7]

1.2  Difficulty of MSMEs integrating into global trade

1.3.  Despite their significance, MSMEs can face substantial challenges in integrating into global value chains and participating in international trade, which hinders their growth potential and the inclusivity of the global economy. The main challenges for MSMEs trying to integrate into global trade include:

·_              Limited access to finance: globally, 40% of formally registered MSMEs face unmet financing needs, amounting to USD 5.2 trillion annually.[8] This financing gap is especially pronounced in emerging markets, where 70% of MSMEs lack adequate financing, often struggling to meet high collateral requirements or establish creditworthiness with financial institutions. Without adequate financing, these enterprises are unable to invest in the resources necessary for international expansion. Despite the low-risk nature of small trade shipments of MSMEs, the trade finance gap disproportionately affects MSMEs. The trade finance gap is estimated at upwards of USD 1.5 trillion and the rejection rate of MSME proposals for trade finance is estimated at 45%.[9]

·_              Regulatory complexity: Navigating complex trade regulations and requirements is resource-intensive and often beyond the human and financial capacity of smaller businesses. MSMEs are disproportionally impacted by a high administrative burden, resulting in high trade costs. Divergent product and process standards across markets further complicate their efforts, deterring many from entering global trade.

·_              Infrastructure deficits: MSMEs in developing and emerging economies are also confronted with poor transportation networks, high shipping costs, and unreliable delivery systems, severely restricting their ability to connect with international buyers. In addition, inadequate digital infrastructure limits the adoption of e-commerce and modern supply chain technologies, preventing MSMEs from capitalizing on the opportunities of the digital economy.[10]

·_              Market knowledge gaps: Many MSMEs lack information about foreign market demand, consumer preferences and competitive trends, making it difficult to tailor products for international markets or develop effective export strategies. This is exacerbated by the digital divide, with many MSMEs lacking the technological tools and skills that could help them acquire better knowledge of global markets.[11]

·_              Competitive disadvantage: 'The smaller scale of operations also presents a competitive disadvantage. Often higher per-unit costs prevent MSMEs from achieving the economies of scale that larger firms enjoy. Additionally, tariff and non-tariff trade barriers disproportionately affect MSMEs, which often lack the resources to understand and comply with changing trade policies or absorb increased costs.

·_              Skills gaps: A shortage of skills in areas such as business management, negotiation, and international standards compliance further limits the capacity of MSMEs to engage in global trade. Moreover, these enterprises often lack access to global business networks, which are crucial for building partnerships, sharing resources, and integrating into value chains.[12]

·_              Vulnerability to shocks: MSMEs are particularly vulnerable to global economic shocks and supply chain disruptions. Events such as financial crises, geopolitical tensions and pandemics disproportionately impact smaller enterprises due to their limited financial buffers and operational flexibility.[13]

1.4.  Addressing these challenges requires targeted policy interventions and multilateral cooperation. Efforts to improve access to finance, including trade finance, simplify regulatory frameworks, enhance infrastructure and promote digital literacy are critical. By tackling these barriers, governments, financial institutions and international organizations can empower MSMEs to contribute to and benefit from global trade.

1.3  Overview of Authorized Economic Operator (AEO) programmes

1.5.  Authorized Economic Operator (AEO) programmes allow certified businesses to benefit from simplified procedures, such as periodic declaration, comprehensive guarantees, fewer physical inspections at Customs, and reduced documentation and data requirements, provided that these operators comply with specific requirements, such as a demonstrated compliance record, good management of commercial records, financial viability, or, for security purposes, records of securing transport conveyances, premises, personnel movement across logistics partners.

1.6.  The WCO Revised Kyoto Convention establishes the basis for traders to obtain simplification as trade facilitation partners. The WCO SAFE Framework of Standards (SAFE FoS) establishes the foundational criteria for businesses in the supply chain to achieve AEO status as security partners. These criteria encompass threat assessment, the formulation of adaptive security measures, effective communication protocols, and procedural safeguards to prevent the introduction of irregular or undocumented goods into the international supply chain. Additionally, it emphasizes the importance of maintaining secure facilities, vetting personnel and safeguarding information systems.

1.7.  The WCO SAFE Framework aims to standardize AEO criteria, particularly under Pillar 2, which focuses on Customs-to-Business partnership. By drawing from innovative national programmes, the SAFE FoS AEO programme provides a holistic and globally aligned approach to secure and facilitate international trade. Harmonizing security and compliance standards across Member administrations ensures consistency, while promoting mutual recognition agreements (MRAs) enhances the global interoperability of AEO benefits. Furthermore, the SAFE Fos AEO programme supports compliance with international legal instruments such as Article 7.7 of the WTO Trade Facilitation Agreement (TFA) on Authorized Operators [14] and Transitional Standard 3.32 of the Revised Kyoto Convention (RKC) on Authorized Persons.

1.4  Objectives and scope of the Report

1.8.  The primary objective of this Report is to explore the integration of MSMEs into Authorized Economic Operator (AEO) programmes under the WCO SAFE FoS. MSMEs form the backbone of global trade, contributing significantly to economic growth, job creation and innovation. Despite their pivotal role, these businesses face unique challenges in accessing the trade facilitation benefits offered by AEO programmes.

1.9.  The scope of the Report encompasses an analysis of the current participation levels of MSMEs in AEO programmes, insights from the WCO 2024 SAFE Implementation Survey and the WCO-WTO MSME Group Joint Compendium of MSME provisions in AEO programmes[15], and case studies from WCO Member administrations. The Report aims to serve as a resource for Customs administrations, policymakers and stakeholders, providing some insights for advancing a more inclusive and equitable approach to global trade facilitation.

2  Challenges preventing MSMEs from entering AEO programmes

2.1  The findings in this section draw from extensive consultations over the past three years with the ICC Global Customs & Trade Facilitation Commission and ICC's global business network, representing all continents, sectors and levels of development.

2.2  Lack of information and awareness

2.1.  Most MSMEs are unaware of the existence of AEO programmes. Those who have heard of the programmes and are interested in learning more have difficulty accessing and understanding what information is available. For example, the section on AEO programmes on many Customs websites only sets out the legal provisions, without any explanation or guiding notes. This deters MSMEs who rarely have dedicated Customs compliance resources or in-house legal departments. Without support, they often perceive the process as too complicated and cumbersome. Moreover, in many instances the information provided does not speak to MSMEs. This might be because Customs often does not understand or take into account the specific needs of MSMEs in designing and marketing their AEO programmes and have not developed tailored outreach efforts.

2.2.  Finally, the challenge of limited information is often worsened by reliance on outdated, paper‑based processes, which require time and cost to navigate.

2.3.  First, to ensure companies find out about AEO programmes and see the benefits, Customs should conduct concerted marketing and awareness raising efforts. All opportunities for Customs to interact with the private sector should be used to raise awareness, e.g. fairs, trade venues, or post-clearance audits (PCA).

2.4.  This process requires a good internal understanding and full ownership of AEO programmes by all Customs officers – not just the dedicated AEO department. This is particularly important for Customs agencies applying staff rotation or with high staff turnover. Well-informed Customs officers who understand what their AEO programme can bring to MSMEs will be more effective at marketing, wherever they work.

2.5.  Many economies have identified specific targets and trade initiatives for MSMEs in their government programmes. Customs should align their AEO awareness and information efforts with any existing initiatives and piggyback on the activities planned in cooperation with other agencies and trade groups. This is a simple, low-resource and cost-effective way to raise awareness of AEO programmes among MSMEs, and does not require much research or planning from Customs. If no national targets exist, Customs can ask the national Ministry of Trade (or equivalent) or national export promotion agency for advice on where to focus MSME recruiting efforts.

2.6.  To communicate more effectively to MSMEs and attract greater participation in AEO programmes, it is essential for Customs authorities to better understand the specific needs of MSMEs and the barriers they perceive when considering entering AEO programmes.

2.7.  Finally, modern digital systems are key to improved communication. Implementing a digitalized AEO application and management system that provides a transparent and structured approach makes information more accessible. This also reduces costs for both governments and companies, with MSMEs who are disproportionately impacted by trading costs benefiting the most. In practice, self-assessment questionnaires, explanatory notes and other documentation should be easily accessible online.

2.3  Difficulties in navigating the application process and compliance

2.8.  One of the key challenges MSMEs face in entering AEO programmes is the complexity of the application process and the ongoing compliance requirements. Many MSMEs lack the in-house resources to manage the time-intensive processes associated with obtaining and maintaining AEO certification, such as handling various licences, permits, certificates and other authorizations (LPCO) needed for cross-border trade.

2.9.  Some Customs authorities have addressed this challenge by offering facilitated AEO application processes and simplified requirements for MSMEs. These measures have proven highly effective in addressing compliance, but their success depends on AEO validators (auditors) fully understanding and consistently implementing them.

2.10.  A system-based approach is more beneficial, as it enables Customs to partner with businesses and improve compliance over time: it is better to include a MSME in the AEO programme and work on its long-term compliance than exclude it from the programme entirely due to rigid transaction-focused assessments.

2.11.  Furthermore, Customs AEO validators should consider the context and specific risk levels of MSMEs during the assessment process. Well-structured AEO programmes use a risk model, recognizing that the risks posed by MSMEs may differ from those of large multinational companies.

2.12.  Improved compliance through AEO programmes not only saves costs and time for both MSMEs and Customs but also improves their overall understanding and relationships with each other.

2.13.  Finally, providing training on regulatory standards and self-assessment processes tailored to MSMEs provides MSMEs with the knowledge of the requirements of AEO programmes prior to starting the certification process, reducing its perceived complexity.

2.4  Resource and capacity constraints

2.14.  Most AEO programmes require substantial resources and capacities for initial certification. In addition, companies must make ongoing investments for continuous compliance and potentially costly audits to maintain certification. Smaller businesses often struggle to allocate sufficient financial and human resources to meet these demands, which include financial solvency tests, supply chain security protocols and periodic self-assessment reports.

2.15.  To address these challenges, AEO programmes that provide a dedicated contact person can offer free advice and guidance on how MSMEs can improve their processes. These mechanisms are particularly valuable for MSMEs, helping them navigate requirements and make informed decisions. Yet MSMEs are often unaware that contact points exist, once again highlighting the need for better communication and outreach from Customs authorities.

2.16.  Better outreach is particularly important for MSMEs located further away from the actual points of shipping, such as ports. These companies often have little contact with Customs officers, relying primarily on intermediaries or brokers for clearance. As a result, they miss opportunities to build trust and partnerships with Customs authorities. Establishing dedicated contact points and an improved partnership with Customs will promote compliance and enable MSMEs to lower costs over the long-term.

2.17.  Financial assistance programmes, fee reductions or lower audit criteria for MSMEs can also enhance access to AEO programmes. They can help alleviate the financial burden associated with the initial certification, ongoing compliance and potentially costly audits to maintain certification.

2.5  Perceived cost-benefit imbalance

2.18.  Certification and renewal processes can place a financial strain on smaller businesses that may not see immediate returns on their investment. Many companies have expressed concerns about the cost-benefit ratio of becoming AEO-certified, with some perceiving that the tangible advantages realized through the simplification measures offered do not justify the associated costs.

2.19.  It is also important to review the simplification measures offered to MSMEs to ensure that they cater to the needs of MSMEs and are financially viable for them. Stopping at a marketing exercise may not be sufficient, and a real discussion is needed of which benefits matter to whom. For example, an MSME importing 30 containers annually may not view fewer inspections as the key benefit.

2.20.  To address this perception, it is essential for Customs to engage directly with MSMEs to fully understand their specific concerns. Based on this feedback, Customs could create business cases using concrete data and examples that help illustrate what MSMEs gain from joining AEO programmes. Review of measures already in place to support MSME participation in AEO programmes would also ensure that they cater to MSME needs.

2.21.  Showcasing positive examples of MSMEs that have successfully navigated the AEO process is a powerful tool. Allowing these AEOs to tell their story, including challenges, user experiences and benefits of AEO status, will resonate better with other small businesses than communications from a purely Customs perspective. Such testimonials should be a central part of MSME-focused marketing activities.

2.22.  Critically, while obtaining and maintaining AEO status will inherently carry costs, it is imperative for Customs to ensure that the actual benefits outweigh the costs. This will only be the case when Customs listens to the private sector and creates benefits perceived as valuable enough to match the resources required for AEO participation.

2.6  Lack of capacity within Customs

2.23.  A key aspect of well-functioning AEO programmes is adopting good client management practices and embracing public-private partnership. However, this can sometimes be challenging due to historic approaches and entrenched office cultures.

2.24.  Furthermore, many Customs authorities face resource constraints, which lead to the inadequate allocation of resources to this critical aspect of AEO management. One contributing factor is the lack of internal understanding of AEO programmes, particularly among middle management. This often leads to precedence being given to other priorities (e.g. revenue collection and law enforcement activities).

2.25.  Many Customs authorities do not provide enough capacity-building to help officers understand the importance of compliance management and the public-private partnership aspects of AEO programmes. In addition, frequent staff rotations further exacerbate this challenge.

2.26.  To address these issues, Customs should prioritize capacity-building efforts. In particular, these should highlight the role of compliance management within AEO programmes and emphasize their connection to risk management, which is increasingly recognized as vital for both Customs revenue and enforcement. By "piggybacking" on the established importance of risk management, this approach will lead to better resource allocation, enhanced cooperation and stronger public‑private partnerships.

3  Participation and current status of MSMEs in AEO programmes around the world

3.1  Results of the WCO Survey on monitoring the implementation of the SAFE Framework of Standards: analysis of responses to MSME-related questions

3.1.  Based on the decision made by the 29^th Meeting of the WCO SAFE Working Group (SWG) in November 2023, on 26 March 2024 the WCO launched the survey to monitor the implementation of the SAFE Framework of Standards (FoS). The key priorities of the survey included questions related to the harmonization of Advance Electronic Cargo Information (ACI), Automated Risk Management, Collaboration with Other Government Agencies, the use of the Trader Identification Number (TIN), as well as the benefits provided to Authorized Economic Operators (AEOs).

3.2.  In addition to these core elements, the survey specifically explored the inclusion of MSMEs within AEO programmes. With responses received from 109 Members, representing 94% of administrations with established AEO programmes, the survey provided a detailed assessment of the current landscape of AEO implementation, identifying existing practices and barriers to MSME participation.

Key findings from Customs authorities

3.3.  One of the significant findings from the survey was that slightly more than half of the respondents confirmed that their Customs-to-Business partnership programmes incorporated flexible and customized security plans tailored to the specific needs of AEOs based on their business models.

3.4.  These flexible validation approaches include customized assessments of perimeter security, capacity evaluations, and the adaptation of criteria according to the size and operational model of businesses. This flexibility aims to make the programmes more accessible, particularly for smaller economic operators.

3.5.  Less than one third of respondents indicated that their AEO programmes did not offer tailored approaches to accommodate different types of economic operators. A similar proportion of respondents selected "not applicable" when asked whether their programmes included such flexibility.

Benefits for MSMEs in AEO programmes

3.6.  A small minority of respondents indicated that their administrations offered specific benefits to MSMEs participating in AEO programmes.

3.7.  These benefits include:

·_              reception of goods at their premises;

·_              direct handling of seals;

·_              choice of shipment routes;

·_              priority in Customs processing;

·_              flexible financial standards;

·_              simplified cargo transportation; and

·_              reduced lead times

3.8.  Moreover, some respondents highlighted additional advantages such as exemptions from inspections, priority in tax procedures, and guidance on compliance and trade regulations. The AEO certification process itself enhances MSMEs' reputation and market credibility, which can lead to greater business opportunities. Several administrations also reported offering tailored training programmes, reduced bank guarantee requirements and improved access to international trade practices to further support MSME participation. In some cases, credit cultivation services, online training modules and interactive sessions are provided to help facilitate the certification process and expedite Customs clearance.

Challenges and Future Developments

3.9.  Despite these positive developments, more than two thirds of respondents indicated that they did not currently provide specific benefits to MSMEs participating in their AEO programmes. This finding underscores a significant gap in the integration of smaller businesses into these initiatives. However, there are signs of progress, as a small number of respondents reported that they were in the process of developing specific benefits tailored to MSMEs. Most of these administrations anticipated implementing these new measures within the next one to three years.

3.10.  The survey results highlight the ongoing need for further efforts to enhance the inclusivity of AEO programmes and to address barriers that may prevent MSMEs from fully participating. By fostering more flexible approaches and providing targeted benefits, Customs administrations can better support the participation of MSMEs, ultimately contributing to more robust global trade practices and economic growth.

3.2  Insights from the WTO's Compendium of special provisions for MSMEs in AEO programmes

3.11.  In 2024, the WCO and WTO MSME Group compiled a Compendium of special provisions for MSMEs in AEO programmes (WTO document INF/MSME/W/47/Rev.2)[16] to provide examples of good practices and insights on the options different economies have explored to facilitate MSME AEO programme participation. Actions taken include special flexibilities, outreach, tiered systems, financial support, capacity-building and consultation, with feedback mechanisms all enhancing the participation of MSMEs. Each of these elements plays a crucial role in making AEO programmes more accessible and beneficial for MSMEs.

3.12.  Special flexibilities within AEO programmes, especially when it comes to capital or security requirements, have been used to accommodate the reduced capacities of smaller businesses. For instance, in Argentina the solvency criteria have been adjusted to be less stringent for MSMEs and in Indonesia MSMEs benefit from facilities designed to ease financial requirements, acknowledging 'their often more limited financial resources. From a non-financial angle, the Republic of Korea has established specialized security criteria with lower eligibility requirements for small businesses, while other Members, like Japan, allow for general flexibility in how to meet AEO requirements based on company circumstances, and the Philippines' AEO programme can provide tailored models and benefits for MSMEs.

3.13.  The use of AEO programmes by MSMEs relies on effective outreach and capacity-building, and economies have taken different measures to increase awareness and provide training. Australia allocates specific budgets for AEO outreach, fostering greater understanding and participation. Brazil has offered lectures and seminars, along with a comprehensive website with information on becoming an AEO, thereby enhancing knowledge about the programme. China has established an online service system which includes training courses and FAQ interactions to simplify access to information on becoming an AEO, and Fiji's MSME Support Centre provides free advisory services to support MSME capacity.

3.14.  Tiered systems with different levels of requirements allow for varying levels of certification based on an enterprise's capabilities. For example, Hong Kong, China's two-tier certification system encourages MSMEs to engage by simplifying requirements with two fewer security criteria in Tier 1. The Dominican Republic launched a simplified Economic Operator programme in 2021, and India's 'Liberalized MSME AEO Package' has relaxed compliance criteria for smaller enterprises.

3.15.  The Republic of Korea has also used direct financial support to help MSMEs access its AEO programme, offering consulting and training funds to MSMEs that demonstrate a lack of manpower and financial resources. Additionally, the Republic of Korea takes on 80% of the costs associated with consulting and educational support to enable these businesses to acquire AEO certification.

3.16.  Consultations with MSMEs, especially when AEO programmes are under development, are important for accessibility. Australia engaged MSMEs during the design phase of its AEO programme and Hong Kong, China conducted a pilot scheme to collect MSME inputs. Brazil similarly conducted public consultations that included MSME voices to inform the development of its AEO programme.

3.17.  Beyond development phase consultations, methods to ensure regular feedback from MSMEs also serve as an important tool in refining AEO programmes to better suit their needs. For example, in India MSMEs are regularly contacted for their feedback and suggestions on the AEO programme, thereby ensuring the programme evolves in line with the requirements of small enterprises. The European Union has also established a trade contact group involving industry stakeholders, including MSMEs, to maintain ongoing dialogue about the programme's development.

3.18.  These examples highlight the range of options developed so far to address the unique challenges faced by MSMEs for AEO programme access. Such dedicated efforts can lead to increased MSME participation and support trade inclusiveness.

4  Key takeaways

4.1  Summary of major findings

4.1.  The study confirms that while MSMEs are essential players in global trade, they continue to face significant challenges in accessing AEO programmes and their benefits. The WCO's 2024 SAFE Implementation Survey and various case studies demonstrate that Customs administrations are beginning to recognize the need for greater inclusivity in AEO programmes. However, progress is uneven, with many programmes still lacking tailored approaches for smaller businesses.

Key findings include the following:

·_              Despite representing a large portion of global trade, MSMEs remain underrepresented in AEO programmes. Many smaller businesses lack awareness of these programmes or perceive them as too complex and costly.

·_              MSMEs face challenges in navigating complex application processes, meeting financial and security requirements and understanding compliance obligations.

·_              Few Customs administrations offer specific benefits to MSMEs, although some have started implementing flexible approaches such as reduced security criteria, simplified application processes and tiered certification systems.

·_              Many MSMEs are unaware of the advantages of AEO certification. More targeted outreach efforts, combined with training and capacity-building programmes, are critical to improving their participation.

4.2  Lessons learned from existing initiatives

4.2.  A review of successful AEO programmes highlights several insightful practices that can be adopted to enhance the participation of MSMEs.

4.3.  For example, introducing tiered certification systems or reduced compliance requirements for smaller businesses can lower the entry barriers.

4.4.  On the other hand, effective outreach campaigns that clearly articulate the benefits of AEO certification for MSMEs are essential.

4.5.  Providing financial assistance or reducing the costs associated with AEO certification can encourage more MSMEs to participate.

4.6.  Regular training sessions and capacity-building initiatives tailored to the specific needs of MSMEs can empower smaller businesses to meet AEO requirements.

4.7.  Engaging MSMEs in the design and refinement of AEO programmes helps ensure that these programmes meet their needs.

4.3  Key considerations for Customs authorities

4.8.  The WTO TFA Article 7.7 requires Members to adopt authorized operator programmes. 61 developing and LDC Members have placed this Article or parts of it in the category C commitment, signalling the need for technical assistance and capacity-building. A major effort is underway to support these Members in addressing their capacity needs. Whilst the TFA does not have MSME‑specific language, a MSME-friendly adoption or reform of Members' authorized operator programmes should be supported by providing technical assistance and sharing MSME‑oriented practices in the Committee on Trade Facilitation.

4.9.  Many Customs administrations today actively strive to increase the numbers of MSMEs in their AEO programmes by providing various targeted facilitation efforts. For Customs to understand what MSMEs want or what holds them back from applying requires communication. Communication is key for a good AEO partnership, which the ICC has found is one of the most important benefits for MSMEs.

4.10.  ICC's experience shows that one main challenge for not getting MSMEs on board is poor marketing. Additionally, AEO programmes are often introduced without a national strategy taking into account aspects other than those Customs, or without thorough consideration of how to make the programme successful, which means attracting the right kind of participants.

4.11.  If a Customs administration aspires to attract greater AEO participation or target MSMEs, it needs an AEO strategy with a concrete plan that includes communication.

4.12.  These governing documents need to be developed by Customs in cooperation with various other relevant government entities tasked with trade, commerce and economic development, as well as collecting and considering the opinions of AEOs and non-AEOs. Specifically, the following aspects are critical in improving the attractiveness of AEO programmes for MSMEs:

i._          The need for more tangible benefits, such as priority Customs clearance or cost reductions for inspections, to make the programme more appealing to smaller enterprises.

ii._         Flexible compliance options: for MSMEs, establishing scalable or flexible compliance measures that consider their limited resources could reduce entry barriers. For example, the Plurinational State of Bolivia's AEO programme includes different certification categories, which could serve as a model for supporting smaller businesses at various compliance levels.

iii._        Interagency collaboration: promoting the recognition of AEO certification across government agencies would facilitate the integration of MSMEs. This recognition could streamline their interactions with Customs and other regulatory bodies, making certification more advantageous.

5  Conclusion

5.1.  The integration of MSMEs into AEO programmes is a critical step towards making global trade more inclusive and resilient. While these enterprises form the backbone of the global economy, they remain underserved in many Customs-to-Business partnership initiatives.

5.2.  This study highlights that a one-size-fits-all approach to AEO programmes does not adequately address the unique challenges faced by MSMEs. To unlock their potential, Customs administrations should consider adopting more flexible and inclusive AEO models, enhance outreach efforts, and provide tailored support that accounts for the financial and operational constraints of smaller businesses.

5.3.  Customs administrations can improve the participation of MSMEs in global trade facilitation frameworks, including AEO programmes. A successful partnership between Customs authorities and the private sector in the context of AEO programmes will not only foster economic growth but also strengthen supply chain security and

5.1  Key findings

·_              The global landscape shows that starting and managing a small business involves complex regulatory hurdles that can deter entrepreneurs and stifle economic innovation.

·_              UNCITRAL's legislative guides provide essential support by facilitating easier access to business registration, offering a digital and centralized process, and improving registry systems with updates and unique identifiers.

·_              These measures are particularly beneficial for start-ups and informal MSMEs transitioning to the formal economy. Key benefits include:

o_      Enhanced access to publicly accessible registration data, including cross-border information.

o_      A fully electronic registration process centralized in a single online location.

o_      An improved registry system that is regularly updated and includes unique identifiers for users.

o_      A flexible business form that can be adapted to the specific needs of MSMEs and supported by standalone national legislation.

5.2  Way forward

5.4.  Based on these findings, Mexico proposes that the Informal Working Group on MSMEs continue discussions on these issues, either in dedicated sessions or as a designated agenda item. The discussions should include the sharing of experiences to help raise awareness and promote the implementation of UNCITRAL's legislative guides among WTO Members, with a view, where relevant, to developing policy guidance.

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