USASEAN Business Council Dialogue with the ASEAN Customs DirectorsGeneral, Manila, Philippines, July

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US-ASEAN Business Council Dialogue with the
ASEAN Customs Directors-General
Manila, Philippines July 13-14, 2001
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Introduction The US-ASEAN Business Council

• Who we are
• What we do
• How we do it

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The Center for Technology Cooperation (CTC)

• Technology training arm of the Council

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ASEAN-wide customs issues

• AFTA tariff reduction largely in place
• New manufacturing investment in ASEAN
  increasingly determined by cost efficiency -
  customs clearance is a key cost factor
• World-class customs procedures/systems essential
  for ASEAN countries to be competitive
• ASEAN with a single, integrated market, with
  harmonized streamlined customs systems, more
  attractive to foreign investment (than multiple,
  individual markets)
• Consistency, speed, predictability and
  pre-clearance are crucial

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Goal borderless economies in ASEAN

• Where transaction costs are minimized
• Data, documentation and procedures harmonized

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Findings / conclusions

• December 2000 Manila Customs Workshop
• 1. Globalization e-Commerce have important
  implications for Customs
• 2. Harmonization, simplification and streamlining
  of customs procedures have a major impact on a
  countries economic competitiveness
• 3. Electronic Funds Transfer (EFT) can accelerate
  payment of duties/taxes
• 4. Implement use of customs web site for customs
  transactions e.g. tracking of shipments
• 5. Strengthen partnership between customs and
  air express industry (through Project Access)
  in such areas as automation and information
  exchange, risk management, and other modern trade
  facilitation tools/techniques.

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The Automotive Industry
ASEAN Customs
an automotive perspective and call to action
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Automotive Themes and Objectives re Customs

• PREDICTABILITY
• TRANSPARENCY
• CONSISTENCY
• TRADE FACILITATION USING A RISK MANAGEMENT
  APPROACH

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Automotive Themes and Objectives re Customs

• HOW ACHIEVED ?

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Automotive Themes and Objectives re Customs

• Regional Customs Cooperation-Shared resources /
  infrastructure knowledge (e.g.publication of
  positions / rulings through a shared website)
  -Use of a forum for settlement of differing
  interpretations (e.g. the CCC)
• Adherence to ASEAN WTO agreements
• Cooperation with industries use of industry
  resources

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Automotive Themes and Objectives re Customs

• We Want To Help
• What can we do ?
• Next Steps ?
• Workshops ?
• Continued Dialogue ?

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ASEAN CEPT Form D
Balancing Customs Control with Trade Facilitation
Dr. Suthad Setboonsarng Director Worldtrade
Management Services PricewaterhouseCoopers
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ASEAN CEPT Form D

• Topics for Discussion
• Background to the Issues
• Trade vs. Customs
• How Should ASEAN Customs Respond?
• Conclusions

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ASEAN CEPT Form D

• Background to the issues
• AFTA - Implemented since 1993
• By 1 January 2002, almost all products will be
  included (followed by New ASEAN Members)
• Low levels of Form D utilisation currently
• Possible reasons
• implementation and
• overall business uncertainty of the process
• Viability of AFTA

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ASEAN CEPT Form D

• Background - Business Feedback
• Rules of Origin are vague and ambiguous - results
  in differential interpretation across countries
• Companies uncertain of the Rules due to ambiguity
  - possible revenue leakage
• Uncertainty in Form D process due to occasional
  rejections at the border
• Apparent disconnect between issuing and
  (importing) customs authorities

Business prefers a level playing field through
more transparent and better enforcement of the
CEPT Rules of Origin
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ASEAN CEPT Form D

• Trade vs. Customs
• There is a need to build certainty and
  credibility in the CEPT Form D process
• Current discussions on this issue with trade
  officials on-going, but lacks progress
• To address this requires a joint effort between
  trade and customs officials in ASEAN

Issue for Customs is to balance customs control
with trade facilitation - no conflict
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ASEAN CEPT Form D

• How Should Customs Respond?
• Strengthen enforcement via- more post
  importation checks- work closer with issuing
  authorities
• Work with trade officials to- clarify and
  amplify the Rules of Origin- suggest stronger
  enforcement from issuing authority side
• Other alternative procedures- business
  self-declares origin, customs enforces-
  independent third party audit of costings

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Air Express Industry

• Streamlining Customs Procedures
• "Best Practices
• Presented By
• Mr Hoe Wah-Cheng
• General Affairs Advisor, FedEx

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Customs Best Practices

• The Air Express industry plays a significant role
  in economic and social development
• In ASEAN, estimated to contribute
• -US50 billion in economic benefits
• -350,000 jobs
• -approximately 6.5 of GDP

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Customs Best Practices

• Why Change?
• And
• How do we change?

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Customs Best Practices

• Why Change customs clearance procedures?
• GLOBAL TRADE EXPANSION
• SPEED TO THE MARKET

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Customs Best Practices

• How Do We Adapt?
• Some suggestions
• Pre-flight clearance
• Separation of fiscal compliance from the physical
  clearance activity
• Apply diminimis regime and review it periodically
• Use selectivity
• Consolidated manifest customs entries
• Close co-operation between businesses and
  customs, eg, Project ACCESS

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US-ASEAN Business Council Dialogue with the
ASEAN Customs Directors-General
The end
THANK YOU!
American President Lines Avon DaimlerChrysler
Corporation Federal Express Ford Motor Company
General Motors Corporation Kimberly Clark
Corporation PricewaterhouseCoopersUnisys United
Parcel Service