Chinese government certification puts Filter Pro in elite company

 (It is currently only available in English, we will update it later!)

Filter Pro has received recognition from the Chinese government for the high standard of its customs operations, earning certification that places the company in the top 2% of equivalent businesses in the country. 

Filter Pro’s new status as an ‘Authorized Economic Operator’ (AEO) delivers wide-ranging benefits, from a more streamlined and efficient customs process to commercial advantages against competitors in the market. 

Established in 2010 as part of Culligan-owned Paragon Water’s expansion into China, Filter Pro is based in Zhongshan, in the southeast corner of the country, and operates from its 200,000 square foot (18,580 square meters) facility that opened in 2015. The company manufactures water treatment and filtration products sold to commercial and residential customers worldwide. 

Four-year Journey 

Henry Chen, General Manager, joined Filter Pro in August 2019 and set about improving compliance, organizational development, culture, and business results following an audit by China Customs earlier that year. The key target was to achieve the ‘Double A’ by 2023: a grade A for taxation/financial accounting and the AEO for customs. 

The subsequent audit in 2022 saw a 99% improvement rating, giving Filter Pro the confidence that it could achieve AEO status. Fara Feng, Senior Supply Chain Manager, then began preparation for the certification by conducting internal assessments in April 2023 to identify any gaps requiring improvement. A team from Chinese Customs were then invited to Filter Pro to carry out training related to attaining the AEO standard. Eight months later, after further changes were made, the AEO goal was achieved in December 2023 after an intensive one-day full site audit. 

Only 2% of import/export businesses in China have achieved AEO certification, underscoring the outstanding work of the Filter Pro team. For context, Filter Pro’s main competitors, Runner and Kemflo, are both at ‘grade B,’ a level below AEO. 

Benefits of AEO 

The AEO certification reduces the inspection rate by customs of Filter Pro’s finished goods/materials from approximately 80% in 2019 to 2% in 2023 and potentially 0.5% in 2024 and beyond provided the AEO is maintained. So, for every 1,000 items in a shipping container, fewer than 5 will need inspection and will be given priority. This speeds up the process of exports receiving the ‘green light’ for shipping, reducing delivery times, and avoids our shipments being blocked. 

The estimated cost saving is 10-15% per day for the import/export side of the business due to a reduction in fees related to docking, warehousing, and inspection of goods. 

China Customs has established mutual recognition with 26 economies and 52 regions regarding the AEO, helping businesses obtain VIP customers. It also confirms that Filter Pro is meeting the highest standards regarding anti-terrorism and trade security, something that is a priority for U.S.-based customers Amazon, Costco, and General Electric (GE). 

“Receiving the AEO certificate has taken a significant commitment of time and work from the team at Filter Pro,” said Henry Chen. “To be in the top 2% of companies in this field who have satisfied the criteria is a special feeling, and we can now benefit from all the cost and commercial advantages this brings us. I want to thank everyone who has helped get us here. Our focus now turns to maintaining these very high standards for 2024 and beyond.”

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