The experience of

Mexico: evaluation of its

effects
Course: Authorized Economic Operator
Unit 1: Origin and aims of the AEO program
 Contents

1. Evaluation of the AEO Program in Mexico ............... 2

2. Preliminary results .................................................. 2
2.1. Growth in external sales ...................................................... 2
2.2. Greater frequency of shipments ........................................... 3
2.3. Positive influence of the program ........................................ 3
2.4. Positive overall balance ....................................................... 3
2.5. Other findings related to the NEEC program ........................ 3

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1. Evaluation of the AEO Program in Mexico
The Integration and Trade Sector of the Inter-American Development Bank has
performed an assessment of the impact of the Mexican Authorized Economic
Operator (AEO) program, known as the NEEC (New Scheme for Certified Companies),
on the exports of companies in the country.

The main questions the study addresses are:

• To what extent do the security programs of the supply chain facilitate trade?
• What are the effects of the AEO certification on the exports of companies and, in
particular, on the amounts exported, prices (unit values) and frequency of the
shipments?
You can access the full study (in English) via the following link:

https://publications.iadb.org/handle/11319/7684

2. Preliminary results
The preliminary results of the above study suggest that the Program has had a
positive effect on the external sales of NEEC companies.

2.1. Growth in external sales

In particular, according to the estimates obtained by means of a variant of the

differences method, which also controls the products and export destinations which
vary over time depending on the features of the firms and specific factors, the growth
rate of the external sales of the NEEC firms stood 2.8% higher than that of the
external sales of comparable companies and, specifically, those which have other
certifications from the Mexican Tax Administration Service (SAT) but do not have the
NEEC certification. The impact on exports amounted to 6%.
2

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©2016 Inter-American Investment Corporation, all rights reserved, may only be used with authorization.
2.2. Greater frequency of shipments

The main channel through which this export growth is materialising is the increase in
the frequency of the number of shipments.

2.3. Positive influence of the program

The econometric evidence also indicates that the improved export performance is
linked to the following two factors:

1. The trade facilitation associated with the program and, in particular, the lower
rate of physical inspection of the shipments and fewer customs delays.
2. The reduction in the asymmetric information problems faced by firms abroad.

More specifically, the effects appear to be greater for time-sensitive goods which are
transported by air.

2.4. Positive overall balance

Finally, we should highlight that the results reveal that the increase in the exports of
the certified firms is not at the expense of their corresponding non-certified peers, as
a result of which the program has a net positive impact on the country’s total external
sales.

2.5. Other findings related to the NEEC program

 The NEEC certification has enabled companies to provide a better response to the
demands of their foreign buyers by means of faster shipments and higher
predictability levels (just in time) and therefore, export more. At the same time,
the volatility in terms of the frequency and size of the shipments has increased.

 The NEEC certification has helped companies to export to new markets.

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©2016 Inter-American Investment Corporation, all rights reserved, may only be used with authorization.
  The NEEC certification appears to have served as a quality signalling mechanism
and, therefore, led to a reduction of the information barriers which adversely
affect exports.

 The NEEC certification has also had a positive impact on imports.

 The effects are greater on exports of textiles, industrial products, capital assets
and consumer goods, which are generally regarded as sensitive to the passage of
time.

 The NEEC program has generated a net annual saving of nearly 100,000 American
dollars for the SAT.

The FINPYME and CII brands, names, and logos are the intellectual property of CII.

©2016 Inter-American Investment Corporation, all rights reserved, may only be used with authorization.
 5

The FINPYME and CII brands, names, and logos are the intellectual property of CII.

©2016 Inter-American Investment Corporation, all rights reserved, may only be used with authorization.