production hub for the world. At present, the international ranking on the quality of customs services of
ASEAN Member States as reflected in the World Bank’s Logistics Performance Index 2010 is divergent
(from the world’s number 2 to the world’s number 146 out of a total of 155 countries). Among
the ASEAN Member States, the percentage of imports subjected to physical inspection ranges from
1 percent to 50 percent while the percentage of imports subjected to multiple physical inspection
ranges from 1 percent to 15 percent of imports. The extremely wide range of performances of customs
services in the ASEAN region, among others, effectively illustrates the significant challenge of providing
institutional connectivity towards an integrated and interconnected ASEAN region.
26. The implementation of the National Single Windows and the ASEAN Single Window together with the
reform and modernisation of customs will jointly redress the highly disparate customs environments in
the region, thereby engendering faster and more predictable flow of goods within the region and from
the region and the rest of the world. This initiative requires a change of essential features of customs
control, expressed in customs procedures and practices. Foremost of all, making them compatible and
interoperable is a key to enhanced ASEAN connectivity. Indeed, the deepening and widening of the
regional production networks in the region, which means larger volume of time sensitive imports moving
within the region, necessitates more efficient and consistent customs service in the ASEAN Member
States. However, a more efficient and consistent customs service demands a more efficient and effective
coordination of related government agencies with the customs service in each of the ASEAN Member
States. The implementation of the National Single Windows and the ASEAN Single Window facilitates
the streamlining of processes and procedures, engenders tight coordination of related government
agencies and trade-related service providers in the private sector, and fosters greater transparency
and predictability on trade-related rules, regulations and procedures. All these redound to faster, easier,
more predictable, and more cost effective movement of goods that would ultimately benefit the ASEAN
Member States and lead to deeper ASEAN economic linkages.
27. The development and operationalisation of the National Single Windows has proven to be more
complex than earlier anticipated; hence, the delays in the implementation in the original ASEAN-6
countries beyond the original target. Nonetheless, given the critical importance of the National Single
Windows and the ASEAN Single Window for ASEAN Connectivity, there is a need to forge ahead on the
implementation of the Single Window initiative in the whole ASEAN region with greater resolve.
Key actions:
(i) Accelerate the full implementation of the National Single Windows (NSWs) for ASEAN-6 as soon as
possible, noting that the deadline for the establishment of NSWs in ASEAN-6 was 2008, and for CLMV
in 2012.
(ii) Activate and operate the ASEAN Single Window in selected ports as early as possible for Member States
who are ready to implement it, and for all ASEAN Member States, by 2015.
(iii) Simplify customs procedures, formalities and practices of all Member States with priority on those serving
to a single market and single production base (such as design and operation of outward processing,
inward processing, temporary admission) by 2013 with the target of reducing processing costs by 20
percent by 2013 and by 50 percent by 2015.
(iv) Develop a comprehensive and compatible regulatory framework on customs procedures and border
management operations by 2014.