Customs Agents and Trade Facilitation

Administrative barriers to trade such as customs procedures are well-documented sources of delays and costs in cross-border commerce, often prompting firms to outsource these tasks to specialist customs agents. This paper examines the role of customs agents in a key global trade facilitation policy—the Authorized Economic Operator Mutual Recognition Agreement (AEO-MRA)—which enables certified traders to benefit from simplified customs procedures with partner countries. Focusing on the 2012 EU-US AEO-MRA, and using UK transaction-level customs data from HMRC that uniquely identify the AEO status of agents filing on behalf of firms, we document the widespread use of customs agents in UK exports. Guided by a theoretical framework, we show that non-certified firms benefited indirectly from the policy through certified agents, leading to more US market entry, fewer product exits, and higher export values. These findings highlight the role of intermediaries in extending the reach of trade facilitation and offer timely evidence to inform policy design in an era of rising administrative frictions.