Asean_e Trade Chalenge

8/3/2019 Asean_e Trade Chalenge

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Customs-Related Trade Facilitation in ASEAN

Lee Tiow YongChair, ASEAN Customs Procedures & Trade Facilitation Working Group

WTO Trade Facilitation Symposium

8-9 Nov 2011


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Outline

I. Overview of ASEAN

II. ASEAN Economic Community

III. Comparison of WTO TF Agreement and ASEAN TFMeasures

IV. Updates on Key ASEAN Customs-related TF Initiatives

V. Conclusion

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Growth in ASEAN Trade

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Sources: ASEAN Finance and Macroeconomic Surveillance Database and IMF-WorldEconomic Outlook April 2010, ASEAN Trade Statistics Database as of September 2010


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Basic Data of ASEAN Member States

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Country Land area

(sq km)

Population

(thousand)

GDP per capita Total Trade

(US$) (PPP$) (US$ million)

BruneiDarussalam

5,765 406 26,486 49,411 9,568

Cambodia 181,035 14,958 693 1,801 8,887

Indonesia 1,860,360 231,370 2,364 4,180 213,339

Lao PDR 236,800 6,128 910 2,350 2,962

Malaysia 330,252 28,307 6,822 13,594 280,221

Myanmar 676,577 59,534 419 1,093 10,191

Philippines 300,000 92,227 1,750 3,525 83,869

Singapore 710 4,988 36,631 49,766 515,617

Thailand 513,120 66,903 3,951 8,072 286,267

Viet Nam 331,051 86,025 1,120 3,111 125,922

ASEAN 4,435,670 590,844 2,533 4,840 1,536,843

Diversity does not stop ASEAN from pursuing trade facilitation


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Becoming Easier to Trade

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Improvement inrankings for TradingAcross Borders in

World BankDoingBusiness 2012 report

Out of the 9 countriessurveyed, 6 haveimproved in theirrankings

Rankings for

Trading AcrossBorders

Country 2010 2012

Brunei Darussalam 48 35

Cambodia 127 120Indonesia 45 39

Malaysia 35 29

Philippines 68 51

Viet Nam 74 68

Lao PDR 168 168

Singapore 1 1

Thailand 12 17

Myanmar - -

Source: Doing Business 2012: Doing Business in a More Transparent World, The World Bank, , publishedon Oct 20, 2011


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The Declaration of ASEAN Concord II(signed by ASEAN Leaders inBali, Indonesia, 7 Oct 03) mandated the establishment of an ASEANCommunity with 3 pillars: the ASEAN Security Community, theASEANEconomic Community (AEC) and the ASEAN Socio-CulturalCommunity

The end goal of the AEC is to create a stable, prosperous and highlycompetitive ASEAN economic region in which there is a free flow ofgoods, services, investment, skilled labour and a freer flow of capital,equitable economic development and reduced poverty and socio-economic disparities by 2015 (original date was 2020; subsequently

brought forward to 2015) Declaration on the AEC Blueprint was signed by ASEAN Leaders in

Singapore on 20 Nov 07

AEC is not a customs union

ASEAN Economic Community

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TheAEC Blueprintoutlines economic integration measures to beimplemented by ASEAN Member States

The AEC has 4 key characteristics:

(i) single market & production base;

(ii) a highly competitive economic region;(iii) a region of equitable economic development; and

(iv) a region fully integrated into the global economy

Strategic Schedule details the implementation timelines for themeasures

To monitor compliance, anAEC Scorecard has been developed;detailing timelines, implementation bodies (the ASEAN sectoralcommittees) and tracking implementation status (at ASEAN-level andnational-level)

ASEAN Economic Community

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Single market and production base

5 core elements

Free flow of goods Free flow of services

Free flow of investment Freer flow of capital Free flow of skilled labour

In addition, the single market and production base also include twoimportant components, i.e. the priority integration sectors, and food,agriculture and forestry.

Key Components

o Elimination of Tariffso

Elimination of Non-Tariff Barrierso Rules ofOrigino Trade facilitationo Customs Integrationo ASEAN Single Windowo Standards and Technical Barriers to Trade

AEC Blueprint

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WTO TF Agreement ASEAN TF Measures

Article 1: Publication AndAvailability ofInformation

Articles 12 (Publication and Administration of TradeRegulations), 65 (Transparency) and 66 (EnquiryPoints) of ASEAN Trade in Goods Agreement(ATIGA)

Article 48 (Availability ofInformation) of ASEANAgreement on Customs (AAC) (to be signed)

Article 3: Advance Rulings Article 62 (Advance Rulings) of ATIGA Article 34 (Advance Rulings) of AAC

Article 4: Appeal/ReviewProcedures

Article 69 (Review and Appeal) of ATIGA Article 52 (Right of Review and Appeal) of AAC

Article 6: Disciplines on FeesAnd Charges

Article 7 (Fees and Charges Connected withImportation and Exportation) of ATIGA

Article 7.1: Pre-arrivalProcessing

Article 55 (Pre-arrival Documentation) of ATIGA Article 10 (Lodging and Registering of the Goods

Declaration) of AAC

Article 7.2: Separation of Releasefrom Final Determination andPayment of Customs Duties,

Taxes, Fees and Charges

Articles 16 (Release of Goods) and 23 (Customs Dutiesand Taxes) of AAC

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Comparison of WTO TF Agreement and

ASEAN TF Measures


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Article 7.3: Risk Management Article 56 (Risk Management) of ATIGA Article 27 (Risk Management) of AAC

Article 7.4: Post-clearance Audit Article 61 (Post Clearance Audit) of ATIGA Article 28 (Post Clearance Audit) of AAC

Article 7.6: Authorized Operators

Article 59(Authorised Economic Operators) of ATIGA Article 35 (Authorised Economic Operators) of AAC

Article 7.7: Expedited Shipments Article 36 (Express Consignments) of AAC

Article 9: Border AgencyCooperation

Articles 46 (Partnership with Other GovernmentalAgencies for Coordinated Border Management) and 47

(Joint and Coordinated Border Control) of AACArticles 10.1/10.2: Review,Reduction of Formalities andDocumentation Requirements

Article 54 (Customs Procedures and Control) of ATIGA Article 6 (Customs Procedures) of AAC

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ASEAN TF Measures


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Article 10.3: Use ofInternationalStandards

Articles 9 (Goods Declaration) and 38 (Data andInformation Parameters) of AAC

Article 10.4: Single Window Agreement to Establish and Implement the ASEANSingle Window (ASW)

Protocol to Establish and Implement the ASW Memorandum ofUnderstanding on theImplementation of the ASW Pilot Project

Article 10.10: TemporaryAdmission of Goods/Inward andOutward Processing

Article 32 (Temporary Admission of Goods) of AAC

Article 11: Freedom of Transit ASEAN Framework Agreement on the Facilitation of

Goods in Transit

Article 12: Customs Cooperation Article 85 (Co-operation) of ATIGA Articles 43 (Areas of Cooperation) and 44 (Mechanismsfor Cooperation) of AAC

Article 14: National Committeeon Trade Facilitation

Article 50 (Implementation Arrangement) of ATIGA

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ASEAN TF Measures


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ASEAN Directors-General of Customs

CustomsProcedures &

TradeFacilitation

Working Group

Customs

Enforcement &ComplianceWorking Group

Customs

CapacityBuildingWorking Group

CoordinatingCommittee OnCustoms

ASW TechnicalWorking Group

ASWLegal Working

Group

ASWSteering

Committee

Senior Economic Officials Meeting

ASEAN Finance Ministers Meeting ASEAN Economic Ministers Meeting

Structures for Customs Cooperation

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Strategic Plan of Customs DevelopmentStrategic Plan of Customs Development (SPCD) under the

Customs Procedures and Trade Facilitation WorkingGroup

SPCD 1 Tariff Classification

SPCD 2 CustomsValuation

SPCD 3 Origin Determination

SPCD 4 ASEAN e-Customs & ICT Customs Applications

SPCD 5 Customs Clearance

SPCD 6 Customs Transit

SPCD 7 Partnership with Businesses and the Trading Community

SPCD 8 Authorised Economic Operator Programme

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ASEAN Harmonized Tariff Nomenclature

ASEAN Customs Transit System

ASEAN Self-Certification

ASEAN Single Window

Examples of ASEAN TF Measures

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ASEAN Harmonized Tariff Nomenclature

Implementation of the AHTN 2007

Implemented by all Member States

Number of tariff lines reduced from 10,689 to 8,300

CEPT and MFN lines included in the AHTN 2007

Supplementary Explanatory Notes to the AHTN also strengthened

Review of the AHTN 2007

AHTN Task Force Meetings conv

ened to rev

iew AHTN 2007 Develop AHTN 2012 (in line with WCO HS 2012 amendments)

Agreed to use AHTN for intra-ASEAN and extra-ASEAN trade

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ASEAN Customs Transit System

Based on 5 key elements:

1. Fully computerised: electronic messages used for (i) communicationsbetween traders and Customs for the lodgement of transit declarations

and the discharge of completed transit mov

ements; and (ii) the exchangeof transit movement data between customs authorities

2. System open to all "suitable" traders irrespective of their type ofbusiness based on an assessment by the Competent Authorities accordingto minimum agreed criteria based on international best practice

3. Risk profiling scheme: To allow reliable traders "simplifications or

exemptions from a range of standard requirements

4. One guarantee valid in all countries to cover the goods throughout theentire journey

5. Single regional customs documentfor transit

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ASEAN Self-Certification of Origin

23rd AFTA Council in Aug 2009 endorsed the work plan towards theoperationalisation of self-certification in ASEAN

Exporters able to self-certify that the goods meet the rules of origin

criteria and enjoy the preferential treatment

Promote utilisation of the ASEAN rules of origin and facilitate trade byreducing the upfront administrative burden of applying for theconventional certificate of origin Form D

MOU to implement pilot project signed by participating AEM in August2010 (Brunei, Malaysia and Singapore)

Pilot project commenced 1 Nov 2010

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ASEAN Single Window

Definition of ASW under the ASW Agreement

the environment where National Single Windows (NSW) of MemberCountries operate and integrate

ASW Agreement Timeline for Implementation of NSW

ASEAN-6 by 2008

ASEAN-4 by 2012

Implementation status of NSW:

ASEAN-6 in varying phases of implementation: basic system in place,

expand to more ports, increase no. of government agencies connected toNSW, add new functionalities, etc

ASEAN-4 (CLMV) in the preparatory stages of NSW development:steering committees formed

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ASEAN Single Window

ASW Pilot Project

Component 1: Study the establishment of the most feasible networkarchitecture; does not involve a central server

Component 2: Set up the network infrastructure to implement the PilotProject

Component 3: Evaluation of outcomes of the Pilot Project and formulaterecommendations for the eventual ASW

7 AMS as participants, 3 AMS as observers

Use of test data for exchanging ASEAN Customs Declaration DocumentCertificate ofOrigin Form D

Development of legal framework agreement for ASW

Alignment of ASEAN Data Model to WCO Data Model

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Examples of Technical Assistance

from Dialogue Partners

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TA Provider: Areas:

ASEAN- EU Programme for RegionalIntegration Support Programme (APRIS)

ASEAN Customs Transit System ASEAN Enhanced Air Cargo Processing Model Self-certification of origin Training Needs Analysis Implementation of ASEAN Customs Declaration Document Development of Risk Management Framework

USAID ASW Pilot Project Review of AHTN 2007 for the establishment of AHTN 2012

ASEAN-China Cooperation Fund (ACCF) Training course on Risk Management for CLMV Training course on Customs Reform and Modernization

for CLMV

Japan-ASEAN Integration Fund (JAIF) Regional survey of customs procedures and customs

Clearance Capacity building to strengthen implementation of the

preferential ROOs

Australia ASEAN Cargo Processing Model

Korea Various capacity building workshops for customs officials


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Conclusion Strong commitments and clear mandates from Leaders

Striking a balance between flexibilities in implementation andachieving uniformity

Role of technical assistance

Need to progress from capacity building to actual implementation proper follow through from regional commitments to national levelimplementation

Take into account different state of readiness of AMS pilot projectapproach, differentiated timeline, etc

Need strong institutional capacity (ASEAN Secretariat) to supportimplementation of TF measures

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Thank You

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