This allows companies to be considered low risk, resulting in expedited processing of their cargo, including fewer customs examinations.
[citation needed] Mutual recognition (MR) refers to those activities relates with the signing of a document between foreign customs administration that allows an exchange of information aiming to improve supply-chain security.
The signed document, or MR, indicates that security requirements or standards of the foreign partnership program, as well as its validation procedures are similar.
When customs administrations offer tangible to businesses that meet minimum security standards and follow best practices, those businesses are known as “trusted traders.” This concept is internationally accepted and is entrenched in protocols such as the World Customs Organization SAFE Framework of Standards.
In the US, CBP and the trade have been collaborating for some time to create a design for a holistic, integrated Trusted Trader Program that includes both security and compliance requirements.