Singapore, Wednesday, 8 July 2009 - ASEAN is looking at the implementation of a streamlined ASEAN Customs Transit System (ACTS) that aims to boost the bottom-line of businesses in the region, leading to greater economic competitiveness. With ACTS, faster customs clearance of goods will lead to significant savings in logistical time and cost for companies.
Some 110 participants from the business community representing the aerospace, construction, engineering, logistics and lifestyle sectors amongst others learnt about this at an ACTS workshop organised today by the Singapore Business Federation (SBF) at its premises at Keppel Towers.
This workshop came at an opportune time as ASEAN countries are close to agreement on the implementation of an International Customs Transit System. This system will be one of the key pillars towards the realization of the ASEAN Economic Community (AEC) by 2015. Its objective is to ease current procedures for movement of goods to and from and through the border posts, ports and airports of the ASEAN countries, leading to significant savings in logistical time and cost for companies.
Assisting the ASEAN countries to implement the International Customs Transit System is the ASEAN-EU Programme for Regional Integration Support - Phase II (APRIS II). Collaborating with APRIS II, SBF organised the half-day workshop to give companies involved in the movement of goods across the ASEAN region a clearer understanding of the planned operational customs practice.
Two experts from the ASEAN-EU team for APRIS II, Mr Des Grimble and Mr Gordon Linington, briefed the Singapore business community on the proposals and the position reached so far in the drive towards more efficient movement of goods within the ASEAN region. The experts are to gather feedback from the business community in order to forward such input to the ASEAN countries' Customs authorities for their consideration and approval.
Both experts noted that when taken together the implementation of the package of measures under the ASEAN Transit Framework Agreement will deliver real and significant benefits to regional trade through reduced costs and shorter, more reliable, journey times but it still requires active commitment from all parties to turn this opportunity into a reality. The Transit Framework is, after all, a key component of the proposed ASEAN Economic Community.
Mr Grimble elaborated that "the ASEAN Region desperately needs a modern Customs Transit system that employs the latest risk management technology to maximise the trade facilitation benefits to the private sector whilst providing a secure environment which protects national interests and revenues. The technology exists and feasibility studies have shown that it can be readily introduced throughout the ASEAN region without any adverse impact on existing National Customs Systems".
Additionally, Mr Linington said, "With solutions for technical and legal obstacles to the introduction of an ASEAN Regional Customs Transit system achieved, there must now be a renewed effort to review and implement those protocols which are intended to ensure the free movement of vehicles and containers throughout the ASEAN region without unloading or trans-shipment."
The likely beneficial outcomes from having an International Customs Transit System in ASEAN is a simplified but controlled borderless business environment for the movement of goods amid the different ASEAN nations, for example, delivering goods seamlessly from Vietnam, bypassing the customs at Thailand and Malaysia to final destination, Singapore; a more stable supply chain, and reduced business costs. Currently, businesses operating in the region face considerable time lag when their goods pass through the customs of various ASEAN countries. The uncertainty over how long it takes to clear customs leads to inefficiencies in business planning and operations.
During the Question and Answer session, representatives from the logistics sector raised issues regarding the effective implementation of ACTS. From TNT Express Worldwide, Mr. Lok Hwee Chong, Regional Customs & Regulatory Affairs Manager, Asia, noted, in relation to the Transit Framework, that the Blue Card Insurance Scheme has been agreed upon by the ASEAN Insurance Council but there remains the question of implementation of whether it is restricted only to vehicles specified under the Transit Framework or for the entire transport industry. Both Mr. Grimble and Mr. Linington replied that the key factor lies in implementation of agreements to achieve the declared aims.
On a query from DHL Express (Singapore), Mr. Raymond Yee, Vice President, Customs & Regulatory Affairs, Asia Pacific, it was indicated that the proposed transit procedures will currently not provide for simplified clearances for de minimis/low value shipments typically carried by express carriers though this would not be discounted in the future where further improvements could be sought. In addition, it was clarified that the proposed procedures cover movement of transit goods between two customs offices through a third country. This, in theory, could include transfers between bonded zones through third countries, including airport bonded zones. Highly compliant traders could have their transit documents discharged at their premises.
Under AEC, customs integration involves the implementation of an ASEAN Single Window (ASW) to strengthen the coordination and partnership among ASEAN Customs Administrations. From a broader perspective, this is of the utmost importance for ASEAN to ensure and sustain its economic development and place in global competition, where better connectivity of goods will allow ASEAN businessmen to compete with their manufacturing competitor, China, which does not face customs problems as their manufacturing components can move seamlessly from state to state.
Other than intra-trading, foreign investment, as well as imports to and exports from the region, can only be increased if competitive advantages are offered; one of which is the speedy, cost-effective and safe transport of goods among ASEAN countries as well as into and from the region.
The next steps to implement the ASEAN Customs Transit System are the completion of the technical documentation, detailed work programme, and inauguration of the pilot system over the North-South corridor starting with Thailand, Malaysia and Singapore.
For more information please contact:
Ms. Paulna Tan
Executive, ASEAN
Singapore Business Federation
Email: market.asean@sbf.org.sg
Tel: 6827 6850
Annex
ASEAN Green Lane project
Regarding the role of the ASEAN business community in promoting intra-ASEAN movement of goods, SBF Assistant Executive Director Ms. Edith Cheong highlighted the ASEAN Green Lane project under the ASEAN Pioneer Project Scheme advocated by the ASEAN Business Advisory Council (ASEAN-BAC), of which SBF serves as the secretariat for ASEAN-BAC Singapore. Leading the project is ASEAN-BAC Co-chairman Dr. Robert Yap, SBF Council Member and Chairman & CEO of YCH Group.
The ASEAN-BAC Green Lane project is a private sector initiative and its objectives are in line with the ASEAN governments' aim to establish an ASEAN Customs Transit System to facilitate movement of goods and means of transport.
Ms Cheong said "When realised, the ASEAN Green Lane project will create a seamless movement of goods within the ASEAN region. This will lead to cost reduction and time saving arising from faster transit time for cross-border trade, greater trade flows towards establishing a seamless ASEAN manufacturing value chain."
About ASEAN ECONOMIC COMMUNITY (AEC)
ASEAN Economic Community (AEC) Blueprint was signed in November 2007 to transform ASEAN into a single market and production base by 2015. The aim is to achieve free movement of goods, services, investment, skilled labour and freer flow of capital within a pro-business environment. The ASEAN Charter was ratified by all ASEAN countries by December 2008, marking a milestone in giving ASEAN the legal basis to implement its various agreements.
Under AEC, Strategic Plan of Customs Development is to:
-- integrate customs structures
-- modernise customs techniques, guided by simple and harmonised
customs procedures and formalities through the implementation of
regional models of processing of cargoes and shipments (ASEAN
Cargo Processing Model and ASEAN Customs Declaration Document
in 2007) as committed;
-- establish ASEAN Customs Transit System to facilitate movement of
goods and means of transport;
-- establish ASEAN Customs systems deal with special customs regimes
such as Temporary Admission, Outward Processing and Inward
Processing with the view to facilitate integration of production and
supply chains;
-- modernise tariff classification, customs valuation and origin
determination and establish ASEAN e-Customs;
-- adopt international standards and practices to secure a uniform system
of tariff classification, a synchronised system of value assessment for
customs purposes and a harmonised system of origin determination
(origin conferring), and information exchange, where possible;
-- smoothen customs clearance;
-- strengthen human resources development;
-- implement ASEAN e-Customs;
-- promote mutual assistance for better customs efficiency and
effectiveness.
ASEAN Customs Vision 2020
Over recent years, ASEAN customs co-operation has been gradually intensifying and the integration of customs systems within the region is a key element in the ASEAN Customs Vision 2020. The 2005 - 2010 ASEAN Strategic Plan for Customs Development (SPCD) sets out the concrete issues to be addressed.
One of the core components of the SPCD is the implementation of an ASEAN Customs Transit System (ACTS) that will put into place the most efficient environment possible for the movement of goods and means of transport across national borders.
National Single Window and ASEAN Single Window
The National Single Window (NSW) is a system which enables a single submission of data and information; a single and synchronous processing of data and information; and a single decision-making for customs release and clearance. Establishing a single point of decision to release cargoes by the Customs on the basis of decisions, if required, taken by line ministries and agencies and communicated in a timely manner to the Customs.
The NSW provides a legal framework to establish and implement the ASEAN Single Window (ASW); ensures the implementation of regional commitments by ASEAN to establish and implement the ASW; strengthens the coordination and partnership among ASEAN Customs Administrations and relevant line ministries and agencies, and economic operators (importers, exporters, transport operators, express industries, customs brokers, forwarders, commercial banking entities and financial institutions, insurers, and those relevant to the international supply chain) to effectively and efficiently implement the ASW.
The ASW is the environment where National Single Windows of ASEAN Member Countries operate and integrate. ASW involves:
-- implementation of measures of simplifying, harmonizing and standardising trade and customs, processes and procedures;
-- standardisation of data elements based on WCO data model, the WCO data set and United Nation Trade Data directory (UNTDED) and acceleration and introduction of information, communication and technology (ICT) for digitalized processing and exchange;
-- application of ICT in all areas related to trade facilitation and customs management are paramount in the ultimate creation of an ASEAN Single Window.
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