An efficient and integrated transport network, measures for trade facilitation and more streamlined customs procedures, as well as improved connectivity, are vital building blocks for Asean’s economic integration and competitiveness.
European business strongly supports the objectives of the Asean Logistics Roadmap and the Master Plan on Asean Connectivity in contributing to the Asean Economic Community, through liberalization and facilitation measures in the area of logistics services and the creation of the integrated Asean logistics environment, including for maritime services.
However, market access and foreign-ownership restrictions hinder the inflow of trade and investment, and limit the growth of the logistics industry.
The Asean Logistics Roadmap and other Asean agreements include procedures for facilitating trade, simplifying and harmonizing cross-border procedures, streamlining of processes and automating customs procedures.
Improved security procedures in the global supply chain are important. However, cargo security schemes in many countries consist of inappropriate and complex requirements and multiple, uncoordinated security programs, with little contribution to security. The European Union (EU) logistics industry therefore advocates a practical, risk-based approach that balances security and trade/investment objectives.
Key issues and recommendations:
Asean economic integration
European business believes that effective public-private sector engagements in the policy formulation and mplementation would be mutually beneficial. The industry therefore supports regular formal policy dialogues on logistics between the private sector and government.
Market access
Restrictions on logistics providers not only adversely affect the efficiency of logistics companies, but also undermine the country’s economic competitiveness. Appropriate steps taken to remove restriction and facilitate cross-border movement of shipments will encourage trade and investment, improve productivity and lower business costs. The EU industry urges Asean member-countries to commit a clear target toward full foreign ownership in all logistical sectors, including supporting services such as customs brokerage.
Market access is vital for regional economic integration and connectivity. Technical barriers to trade and services need to be avoided by governments.
Cross-border transport
Expedite ongoing efforts to have one common transit system, including customs, transportation and transit licensing. These transit procedures should be simplified, for example, in reporting requirements or paperwork. Common transit procedures should be available and applicable to intermodal and interstate transport, and border crossings should be open on a 24/7 basis. Important in this context is that the Philippine Customs does not improve overtime charges again as (unfortunately allowed in the CMTA); business was extremely happy when the Aquino administration decided to provide 24/7 services for customs, immigration and quarantine at government’s expense!
Maritime integration
To facilitate trade and economic development within Asean, the EU logistics industry urges Asean member-countries to liberalize the maritime transport sector by allowing international shipping companies to carry out international relays and transport international cargo. The industry encourages Asean to relax cabotage laws and allow international shipping companies to operate within domestic maritime, to the benefit of local and Asean business. In the Philippines, we are glad that international ships can carry international cargo to and from various ports in the Philippines.
As a step toward Asean’s commitment to an integrated and competitive maritime transport, member-countries should exercise nondiscriminatory procedures in maritime trade and services within Asean countries.
Customs procedures
Simplify customs documentation procedures, adopt electronic data interchange for customs declaration and clearance, adopt risk-assessment systems and rely increasingly on pre-arrival clearance and post customs audits.
Implement the WCO immediate Release Guidelines and encourage the application of standardized trade data and documents for trade facilitation.
Implement 24/7 operations in major ports, airports and land border crossings with costs carried by the respective governments.
Implement the agreed upon Asean Single Window.
Supply-chain security
Security screening should be based on an effective threat-based risk-managed approach with a focus on unknown high-risk customers and the ultimate shipper (without established business history). Businesses with good compliance track records and security practices should be subjected to lower rates of screening.
A common approach to supply-chain security would help promote mutual recognition between counties. This includes recognition of the status of Authorized Economic Operator or Regulated Agents within Asean, as well as between the EU and Asean.