nueMandaluyongCityMetroManilaPhilippinesTelFax62444ISBN978-92-9269-904-8(print);978-92-9269-905-5electronic);978-92-9269-906-2(ebook)PublicationStockNo.TCS220542-2DOI:/10.22617/TCS220542-2areaThisworkisavailableundertheCreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO)/licenses/by/3.0/igo/.Byusingthecontentofthispublication,youagreetobeboundeadtheprovisionsandtermsofuseat/terms-use#openaccess.utedrslesFiguresandBoxvForewordviiPrefaceixAbbreviationsxiExecutiveSummaryxiiiIntroduction1tationTradeFacilitationAgreements7ntSouthAsianFreeTradeArea9TradeAreaBilateralAgreements11ImpactofCOVIDontheTradeEnvironment13AdvancingSoftInfrastructure16ImprovingHardInfrastructure35ChangesinTradeLogistics40InstitutionandCapacityBuilding41reContentandMonitoringMechanismsoftheStrategicFrameworkStructureofRegionalStrategicPlans43StrategicFrameworkComponents50GuidingPrinciples52ProposedMonitoringMechanisms53ivContentsIntroductionandBackground55FrameworkScopeandStructuralLogic56TradeFacilitationConstraints58onStrategicFrameworkImplementationandMonitoring77AppendixesStatusofTradeFacilitationintheBIMSTECRegion80ImplementationLevelsofTradeFacilitationAgreementasofOctober18anceStatusofBIMSTECCountriesTradeFacilitationAgreementDocumentsRequiredforImportClearanceinBIMSTECCountries21ntsRequiredforExportClearanceinBIMSTECCountriesaintsMentionedinTradeFacilitationPlansinBIMSTECRegionaintsMentionedinTradeFacilitationPlansinBIMSTECRegionAPrioritizationofTradeFacilitationAgreementArticlesforReforminBhutan86usoftheTradeFacilitationAgreementinIndiaAImplementationStatusoftheTradeFacilitationAgreementinMyanmar97itationAgreementinNepalAImplementationStatusoftheTradeFacilitationAgreementinSriLanka106BOrganisationforEconomicCooperationandDevelopment116esDifferentApproachestoDefiningTradeFacilitation42NationalSingleWindow24OverviewofThailandSingleWindow25iaSubregionalEconomicCooperationTradeFacilitationityintheBIMSTECRegionFrameworkLogic57rkntriesBTimetoComplywithDocumentaryRequirementstoExportandImport121edAsianCountrieshoursintmCrdeerordtvetesfAsianDevelopmentBankAuthorizedeconomicoperatorASEANFreeTradeAreaAsia-PacificEconomicCooperationAssociationofSoutheastAsianNationsAutomatedSystemforCustomsDataBhutanAutomatedCustomsSystemBayofBengalInitiativeforMulti-SectoralTechnicalandEconomicCooperationCentralBoardofIndirectTaxesandCustomsContainerfreightstationCoronavirusdiseaseEuropeanUnionFreeTradeAgreementGreaterMekongSubregionGlobalvaluechainInlandclearance/containerdepotIndianCustomsElectronicGatewayIndianCustomsElectronicDataExchangeSystemintegratedcheckpostInformationandcommunicationtechnologyInternationalfinancialinstitutionLogisticsPerformanceIndexMutualrecognitionagreementMicro,small,andmedium-sizedenterprisesNorthAmericanFreeTradeAgreementNationalBoardofRevenueNationalsinglewindowNontariffbarrierNationalTradeandTransportFacilitationCommitteeOrganisationforEconomicCo-operationandDevelopmentPortcommunitysystemPublic-PrivatePartnershipPeople’sRepublicofChinaRevenueAdministrationandManagementInformationSystemRegionalComprehensiveEconomicPartnershipRevisedKyotoConventionontheSimplificationandHarmonizationofCustomsSouthAsianAssociationforRegionalCooperationxiiAbbreviationsSouthAsiaFreeTradeAreaSouthAsiaSubregionalEconomicCooperationSimplificationandHarmonizationofTradeProceduresSingleWindowInterfaceforFacilitatingTradeSmallandmediumenterprisesTradeFacilitationAgreementUnitedNationsEconomicCommissionforEuropeUnitedNationsEconomicandSocialCommissionforAsiaandthePacificUnitedStatesUnitedStatesAgencyforInternationalDevelopmentWCOWorldCustomsOrganizationWTOWorldTradeOrganizationeThetradefacilitationenvironmentdifferssignificantlyamongBIMSTECmembercountries.LankaionaindtsnterstseersueicadeSoftInfrastructureon?Directinterfacebetweenborderauthoritiesandbrokers.Currentmethodologiesstillrequiretinesnvestmentinautomatedsystemssomememberstatesnalapplication?Rationalizingclearancedocumentation.Themaindocumentationrequiredforimportandies?Limiteduseofriskmanagementandnumbersofapprovedeconomicoperators.Inspectionandexaminationlevelsremainhighinmostmemberstatesdespitethewidespreadintroductionofriskmanagementandtheadoptionofchannelingtechniques.Thereremaintoofewapprovedeconomicoperatorsandriskmanagement–supportingpost-clearanceaudits;?Lackofpre-arrivalprocessingandapplicationofadvancedrulings.Borderauthoritieshysicales?Compliancewithinternationaltradefacilitationagreements.Memberstatesareatdifferingnationalbestpractices?Limiteduseofinlandtransitsystems.Mostcargoescontinuetobeclearedatpointsofentryratherthanclosetopointsoffinaldelivery,duetoexpensivetransitcontrolsystemsandincidenceofalmost“doubleclearance”proceduresontransitcargo;?Poorinstitutionalcooperation.Borderagenciesoftenoperateinisolation,focusingontheir?Outdatedcustomslegislation.Becausetradefacilitationneedstorespondtochangesintradedemands,datedcustomslegislationcaninhibitthecomprehensiveuseofautomatedprocessingandtheintroductionofadvancedprocessingtechniques;?Lackofmutualrecognitionagreements.Certainimportedproducts,suchasfoodstuffsand?Limitedperformancemonitoring.Thelowuseorabsenceofmonitoringtools,suchasrmanceisHardInfrastructured?Needforadditionalborderfacilities.Theimportantinvestmentsinlandborderinfrastructure?Demandformoreinlandcontainerandclearancedepots.Mostimportscontinuetoclearat?Landportexpansion.Thosefacilitieslocatedadjacenttobordersoftenmerelymovethepointofcongestionfromthebordercontrolzonetoafewkilometersinlandwithoutexpeditingoveralltransittimes.SomeBIMSTECcountriesalsolevyachargetousetheselandportswithoutprovidinganyadditionaladded-valueservices.ntainerfreightstationsThisisoftenthecaseoutsideseaportareasandterminals.?Insufficientnumbersoftestlaboratories.Productsarrivingatlandandseabordersrequiringsle?Adaptabilityoftradefacilitationtoadvancedlogisticalconcepts.Innovativelogisticalapproachespracticedbystakeholders,suchasvendor-managedinventory,e-commerce,just-in-time,andtheapplicationofnewtradingterms,arenotalwayscompatiblewithtraditionalborderprocessingapproachesandcanmeettheevolvingdemandsofstakeholders;and?Constraintsinlinkingnationalsinglewindowstoportcommunitysystems.WherethesexistthereisoftennodirectonlineinterfacenstitutionandCapacityBuildingonnts?Duplicationofprocessingwhenautomatedandmanualsystemsoperateinparallel.e?Insufficientskillsupgrading.Changesintradefacilitationrequirenewskillsetsandupskilling,butborderauthoritiesoftenhavelimitedtrainingprogramsandcansufferskillslossesfromhighstaffturnoverandtheadoptionofpersonnelrotationregimes.?Shortageofexperiencedinformationtechnologypersonnel.Borderagenciesfinditdifficultpetitionfromtheprivatesector?Limitedcooperationbetweenauthoritiesinmemberstates.Thestatusoftradefacilitationlitationtinueofgome?Visionstatement—defineswhattheframeworkisexpectedtoaccomplishandwhy;?Missionstatement—identifieshowthevisionwillbeachievedandisaction-based;?Strategicstatement—indicatesthemethodstofulfilltheframework’smission;needstobedonetobeabletomonitorprogressbeingachieved;?Components—definestheareastobeaddressedundertheframework;andeesonceSoftInfrastructure?AutomationatstodHardInfrastructuretyntraffic.smsgth?Countryownership;?Resultsorientation,combinedwithpragmatism;?Flexibilityandresponsivenesstoindividualcountryneeds;?Reformandmodernization;?Activeparticipationandinvolvementoftheprivatesector;?Partnershipswithinternationaldevelopmentpartners;and?Mutualcooperation.n1INTRODUCTION2estradefacilitationastheofproceduresandassociatedinformation?TheWorldTradeOrganization(WTO)definesitasthe“simplification,modernizationandharmonizationofexportandimportprocesses.”2?TheWCOalsodefinesitasthe“avoidanceofunnecessarytraderestrictivenessbysed123tradfa_e.htm#I.ksisintyes?developborderinfrastructureatthemainBIMSTEClandbordercrossings,?developinlandclearancedepotsatappropriatelocations,?reviewandrationalizedocumentationrequirementsforimportandexportclearanceandpromotemutualrecognitionagreements,?upgradeautomatedsystemswithinnationalcustomsadministrations,?establishnationalsinglewindows,andesn3tn?Progressiveandsubstantialeliminationoftariffandnontariffbarriersinalltradeingoods;?Progressiveliberalizationoftradeinserviceswithsubstantialsectoralcoverage;?EstablishmentofanopenandcompetitiveinvestmentregimethatfacilitatesandpromotesinvestmentwithintheBIMSTECFreeTradeArea;?Establishmentoftradeandinvestmentfacilitatingmeasures,includingbutnotlimitedtothesimplificationofcustomsproceduresandestablishingmutual-recognitionarrangements;and?EstablishmechanismsforimplementationoftheFrameworkAgreement.ts?Agreementontradeingoods;?Agreementontradeinservices;?Agreementoninvestment;?Agreementoncooperationandmutualassistanceincustomsmatters;?Agreementonrulesoforiginandoperationalcertificationprocedures;?Agreementontradefacilitation;and?Protocoltoamendtheframeworkagreement.lAchievecompetitiveandefficientmovementofgoodswithintheregiontoenhance?Addressdevelopmentgapsbetweenandwithinthepartiesandtheneedtofacilitatetheincreasingparticipationofallparties,especiallytheleastdevelopedcountrypartiesinimplementingBIMSTECtradefacilitationprograms;?EnhanceinstitutionalcoordinationbetweentheBIMSTECsectoralbodiestoimplementtradefacilitationmeasuresundertheiroversight;?Improvethemonitoringmechanismforimplementingtradefacilitationmeasures;andsincludingtheWCOandWTOandinlightofotherrelevantnr?ThecommitteeshallbesupportedbyNationalTradeFacilitationCommitteesformedbytheparties,andthesewillactinclosecollaborationwiththesecommittees;andeshallreviewandfacilitatetheimplementationandnustrialdevelopmentthepatternoftheirexternal?Step-by-stepnegotiationoftariffreforms,improvingandextendingtheminsuccessivestagesthroughperiodicreviews;?Recognitionofthespecialneedsofleast-developedmemberstatesandagreeingonpreferentialmeasuresforthem;andedutiesappliedonlyonimportsandnotondomesticproductionThesetariffsSAFTAertondee45PPPPPSPSSSNSNPSNPNNrinh4ntalimedicueedseoadCTdAdvancingSoftInfrastructuresofd?Transparencyandpredictabilityofcustomsactions;?Standardizationandsimplificationofgoodsdeclarationandsupportingdocuments;?Simplifiedproceduresforauthorizedpersons;?Maximumuseofinformationtechnology;?Minimumnecessarycustomscontroltoensurecompliancewithregulations;?Useofriskmanagementandaudit-basedcontrols;?Coordinatedinterventionswithotherborderagencies;and?Partnershipwiththetradecommunity.yOsCleTable2.ImplementationLevelsofTradeFacilitationAgreement,(asofOctober2021)sry?CategoryB:provisionsthatsignatorieswillimplementafteratransitionalperiodaftertheagreementcomesintoforce;andhond00omeoftheseditionald?Article10.1Formalitiesanddocumentationrequirements;?Article10.2Acceptanceofcopies;?Article10.7Commonborderproceduresanduniformdocumentationrequirements;?Article10.4Singlewindow;?Article1.2Informationavailablethroughtheinternet;?Article7.4Riskmanagement;?Article7.5Postclearanceaudit;?Article7.7Tradefacilitationforauthorizedoperators;?Article7.1/2Pre-arrivalprocessing;?Article3Advancedrulings;?Article11Freedomoftransit;?Article8Borderagencycooperation;?Article12Customscooperation;?Article23Institutionalarrangements;and?Article7.6Averagereleasetimes.heomsarationXXXXXXXXXX aXXXXXaXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXBIMSTECBayofBengalInitiativeforMultiSectoralTechnicalandEconomicCooperation,VAT=value-addedtax.aRequiresbankauthorization/stampWhereappropriatearationXXXXXXXXXXX aXXXXXXXXXXXXXXXaXXXXXXXXXXX cXXXXXXXXXXXXXXXXXX cXXBIMSTECBayofBengalInitiativeforMultiSectoralTechnicalandEconomicCooperation,VAT=value-addedtax.aRequiresbankauthorization/stampbRequiresbankauthorization/stampwhereappropriate.cforselectedcommoditiesforselectedcountriesonly.lcustomswebsitesECAnotherconstraintistheneedtoproduceoriginaldocumentationatthetimeofinitiallodging.msdiris??n?IndiaIndianCustomsElectronicDataExchangeSystem(ICES);?MyanmarMyanmarAutomatedCargoClearanceSystem;?NepalAutomatedSystemforCustomsData(ASYCUDA)World;?SriLankaAutomatedSystemforCustomsData(ASYCUDA)Worldandntheiroptimumcapabilities.tssquarantineAnimalquarantinekleannThecoverageofIndia’ssinglewindowinterfacefortradehasexpandedrapidlyandnowcoversontheneedforninedifferentdocuments.todevenyorsuty?Green:Shipmentclearedwithouttheneedforphysicalinspection;?Amber:Examinationofdocumentationrequiredbeforedecidingongreenorredchannel;and?Red:Shipmentrequiresfurtherdocumentaryandphysicalinspection.shhgomlfrhekgstysaltrsndfromseaportsInastheveInstitutionalCooperationCooperationbetweenborderagenciesisvitaltoachievingoptimalclearanceperformance.entingNSWshouldhelprtiesnternalsngohengghtodsalniononImprovingHardInfrastructureolyderInfrastructureortnfdyerdanssndangapandemicproductscancesradeaccommodateponsiblefortradefacilitationparticularlycustoms.stitutionandCapacityBuildingmeirdel5?Ayeyawady-ChaoPhraya-MekongEconomicCooperationStrategy—Cambodia,LaoPDR,GMSCambodiaLaoPDRMyanmarPRC(specificallyYunnanProvinceandGuangxiZhuangAutonomousRegion),Thailand,andVietN