1. WTO Trade Facilitation Symposium 8-9 Nov 2011
Customs-Related Trade Facilitation in ASEAN
Lee Tiow Yong
Chair, ASEAN Customs Procedures & Trade Facilitation Working Group

2. Outline Overview of ASEAN ASEAN Economic Community
Comparison of WTO TF Agreement and ASEAN TF Measures
Updates on Key ASEAN Customs-related TF Initiatives
Conclusion

3. Growth in ASEAN Trade
Sources: ASEAN Finance and Macroeconomic Surveillance Database and IMF-World Economic Outlook April 2010, ASEAN Trade Statistics Database as of September 2010

4. Basic Data of ASEAN Member States
Country
Land area (sq km)
Population (thousand)
GDP per capita
Total Trade
(US$)
(PPP$)
(US$ million)
Brunei Darussalam
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

5. Becoming Easier to Trade
Rankings for
Trading Across Borders
Country
2010
2012
Brunei Darussalam 48 35
Cambodia
127
120
Indonesia 45 39
Malaysia 29
Philippines 68 51
Viet Nam 74
Lao PDR
168
Singapore 1
Thailand 12 17
Myanmar -
Improvement in rankings for “Trading Across Borders” in World Bank Doing Business 2012 report
Out of the 9 countries surveyed, 6 have improved in their rankings
Source: Doing Business 2012: Doing Business in a More Transparent World, The World Bank, , published on Oct 20, 2011

6. ASEAN Economic Community
The Declaration of ASEAN Concord II (signed by ASEAN Leaders in Bali, Indonesia, 7 Oct 03) mandated the establishment of an ASEAN Community with 3 pillars: the ASEAN Security Community, the ASEAN Economic Community (AEC) and the ASEAN Socio-Cultural Community
The end goal of the AEC is to create a stable, prosperous and highly competitive ASEAN economic region in which there is a free flow of goods, 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

7. ASEAN Economic Community
The AEC Blueprint outlines economic integration measures to be implemented 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 the measures
To monitor compliance, an AEC Scorecard has been developed; detailing timelines, implementation bodies (the ASEAN sectoral committees) and tracking implementation status (at ASEAN-level and national-level)

8. AEC Blueprint 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
Key Components
Elimination of Tariffs
Elimination of Non-Tariff Barriers
Rules of Origin
Trade facilitation
Customs Integration
ASEAN Single Window
Standards and Technical Barriers to Trade
In addition, the single market and production base also include two important components, i.e. the priority integration sectors, and food, agriculture and forestry.

9. Comparison of WTO TF Agreement and ASEAN TF Measures
Article 1: Publication And Availability of Information
Articles 12 (Publication and Administration of Trade Regulations), 65 (Transparency) and 66 (Enquiry Points) of ASEAN Trade in Goods Agreement (ATIGA)
Article 48 (Availability of Information) of ASEAN Agreement 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/Review Procedures
Article 69 (Review and Appeal) of ATIGA
Article 52 (Right of Review and Appeal) of AAC
Article 6: Disciplines on Fees And Charges
Article 7 (Fees and Charges Connected with Importation and Exportation) of ATIGA
Article 7.1: Pre-arrival Processing
Article 55 (Pre-arrival Documentation) of ATIGA
Article 10 (Lodging and Registering of the Goods Declaration) of AAC
Article 7.2: Separation of Release from Final Determination and Payment of Customs Duties, Taxes, Fees and Charges
Articles 16 (Release of Goods) and 23 (Customs Duties and Taxes) of AAC

10. Comparison of WTO TF Agreement and ASEAN TF Measures
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 Agency Cooperation
Articles 46 (Partnership with Other Governmental Agencies for Coordinated Border Management) and 47 (Joint and Coordinated Border Control) of AAC
Articles 10.1/10.2: Review, Reduction of Formalities and Documentation Requirements
Article 54 (Customs Procedures and Control) of ATIGA
Article 6 (Customs Procedures) of AAC

11. Comparison of WTO TF Agreement and ASEAN TF Measures
Article 10.3: Use of International Standards
Articles 9 (Goods Declaration) and 38 (Data and Information Parameters) of AAC
Article 10.4: Single Window
Agreement to Establish and Implement the ASEAN Single Window (ASW)
Protocol to Establish and Implement the ASW
Memorandum of Understanding on the Implementation of the ASW Pilot Project
Article 10.10: Temporary Admission of Goods/Inward and Outward 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 (Mechanisms for Cooperation) of AAC
Article 14: National Committee on Trade Facilitation
Article 50 (Implementation Arrangement) of ATIGA

12. Structures for Customs Cooperation
ASEAN Finance Ministers Meeting
ASEAN Economic Ministers Meeting
ASEAN Directors-General of Customs
Senior Economic Officials Meeting
Coordinating Committee On Customs
ASW
Steering Committee
Customs Procedures & Trade
Facilitation Working Group
Customs Enforcement & Compliance Working Group
Customs Capacity
Building
Working Group
ASW Technical Working Group
ASW
Legal Working Group

13. Strategic Plan of Customs Development
Strategic Plan of Customs Development (SPCD) under the
Customs Procedures and Trade Facilitation Working Group
SPCD 1 Tariff Classification
SPCD 2 Customs Valuation
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

14. Examples of ASEAN TF Measures
ASEAN Harmonized Tariff Nomenclature
ASEAN Customs Transit System
ASEAN Self-Certification
ASEAN Single Window

15. 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 convened to review AHTN 2007
Develop AHTN 2012 (in line with WCO HS 2012 amendments)
Agreed to use AHTN for intra-ASEAN and extra-ASEAN trade

16. ASEAN Customs Transit System
Based on 5 key elements:
Fully computerised: electronic messages used for (i) communications between traders and Customs for the lodgement of transit declarations and the discharge of completed transit movements; and (ii) the exchange of transit movement data between customs authorities
System open to all "suitable" traders irrespective of their type of business based on an assessment by the Competent Authorities according to minimum agreed criteria based on international best practice
Risk profiling scheme: To allow reliable traders "simplifications” or exemptions from a range of standard requirements
One guarantee valid in all countries to cover the goods throughout the entire journey
Single regional customs document for transit

17. ASEAN Self-Certification of Origin
23rd AFTA Council in Aug 2009 endorsed the work plan towards the operationalisation 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 by reducing the upfront administrative burden of applying for the conventional certificate of origin Form D
MOU to implement pilot project signed by participating AEM in August (Brunei, Malaysia and Singapore)
Pilot project commenced 1 Nov 2010

18. ASEAN Single Window Definition of ASW under the ASW Agreement
“the environment where National Single Windows (NSW) of Member Countries 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 to NSW, add new functionalities, etc
ASEAN-4 (CLMV) in the preparatory stages of NSW development: steering committees formed

19. ASEAN Single Window ASW Pilot Project
Component 1: Study the establishment of the most feasible network architecture; does not involve a central server
Component 2: Set up the network infrastructure to implement the Pilot Project
Component 3: Evaluation of outcomes of the Pilot Project and formulate recommendations for the eventual ASW
7 AMS as participants, 3 AMS as observers
Use of test data for exchanging ASEAN Customs Declaration Document Certificate of Origin Form D
Development of legal framework agreement for ASW
Alignment of ASEAN Data Model to WCO Data Model

20. Examples of Technical Assistance from Dialogue Partners
TA Provider:
Areas:
ASEAN- EU Programme for Regional Integration 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

21. Conclusion Strong commitments and clear mandates from Leaders
Striking a balance between “flexibilities in implementation” and achieving uniformity
Role of technical assistance
Need to progress from capacity building to actual implementation – proper follow through from regional commitments to national level implementation
Take into account different state of readiness of AMS – pilot project approach, differentiated timeline, etc
Need strong institutional capacity (ASEAN Secretariat) to support implementation of TF measures

22. Thank You