Customs-related barriers
4.1.1 Time consuming documentation requirements. LSPs are required to submit the
import/export documentation at the customs border of the respective country.
The inefficiency in documentation arises due to the lack of full automation electronic
data interchange (EDI), a large number of documents that are required to be completed,
the lack of standard documentation format across countries, and the lack of transparent
regulations. As such, documentation consumes a large dwell time.
Some of the documents required to be submitted at the customs office include the
pack list, trade document, shipping document, regulation form and sometimes also the
country of origin. Import shipments to Singapore, Malaysia and Thailand are typically
divided into four categories, namely, documents (no value), low value-shipments,
non-dutiable shipments above a certain country-specific value, and dutiable shipments.
For the last two categories, customs usually require more information. For instance,
in Singapore, documents (such as mail) can be processed quickly, but dutiable
cigarettes are checked very carefully.
The customs authorities of some countries require a large number of documents which
inadvertently increases inefficiency in the documentation process. For example, the
customs authorities of Indonesia and Thailand require a number of different documents,
albeit often repetitive, to be filled which increases inefficiency in the documentation
process. In Indonesia, customs require import licences for any goods as well as the
shipping list. If a company has licences, it can import at any time. Apart from an import
licence, the other documentation needed is the shipping list (item list). In Thailand,
the customs specifically require many details on their documents. Typically, it takes five
to seven days to clear after the goods arrive at the port in Thailand. Similarly, for the cross
border flow between Malaysia and Singapore, several layers of documentation are
required. From Singapore to Malaysia, one needs to fill export documentation from
Singapore and nearly a similar set of import documentation to enter Malaysia.
In Myanmar, it requires at least three weeks to obtain an export/import licence and
other documentation for each shipment. In case a licence cannot be obtained, penalty is
imposed. The procedure is time consuming and this is the greatest impediment to trade in
Myanmar. Likewise, in Vietnam and Laos, customs clearance takes almost the same time.
When the documents are in good order, customs clearance (import) can be less than three
days. For transit goods, it takes three-five days. In Laos, one needs to obtain a number
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of licences. For example, five forms are required to be filled for goods shipped between
Thailand and Vietnam and transiting via Laos. In Brunei, apart from the electronic
documentation, additional manual entry and printed documentation is required, although,
the number of documents required is small as compared to Thailand or Malaysia.
EDI is used for customs documentation in most of ASEAN. However, it is not fully
functional except in Singapore. In Malaysia, for example, documents can be submitted
using EDI, but the payment process is manual. Similarly, in Indonesia, the Philippines and
Thailand, though EDI is in place, the documentation review process is long and uncertain.
For example, in Thailand, after completion of the approval process, one needs to bring the
documents to the customs office for getting the stamp. In the case of Brunei, the documents
can be prepared electronically and then saved into a disk which is then transferred for
further processing. In Myanmar, EDI is not fully functional and the documents need to be
prepared five days ahead of the arrival of the goods. Laos and Cambodia are, however, poor
in EDI. In Laos, while, there is a single-stop-window at the border, the inspection is done
twice, once at the single-stop-window and next with the local customs at the Lao border.
Another comment on documentation is the lack of a standard format across ASEAN.
For crossing the border, two different sets of documentation (import and export) are
required for customs clearance. Different countries have different documentation
templates and working languages (English, Thai) and this makes the process tedious
and difficult and results in inefficiency in cross-border trade