Digital connectivity will enhance trade processes across Asean

AS AN outward looking and trade-dependent region, Asean depends on efficient movement of goods across borders to strengthen the economic integration among member economies and to link itself to the rest of the world. To that end, Asean has devoted attention to reforming and modernising the customs procedures of its member countries.

In 2005, it established the Asean Single Window (ASW), for trade facilitation, that simultaneously required 10 National Single Windows (NSW) in each of the Asean member economies. The objective was to allow traders a single submission of import and export data generally needed by national regulators via an electronic system, instead of submitting paper documents to multiple government agencies.

The logic for adopting the ASW is simple. Border clearance is not the purview of one but multiple government entities in each Asean country. Although the primary responsibility of border clearance of goods lies with the customs agency, the latter is not always the cause of delay or lack of efficiency. The Logistics Performance Index published by the World Bank, as well as the Enabling Trade Index published by the World Economic Forum, have suggested that professionals have often given higher rating to customs agencies compared to other border management entities or processes for most of the Asean countries. Moreover, a number of Asean customs agencies are guided by international standards as prescribed by the World Trade Organisation and World Customs Organisation. Hence it could be the other border management agencies in the Asean nations that need to become efficient in trade procedures.