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.