PART I. ASEAN Single Window The ASEAN Connectivity Towards ASEAN Economic Community

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1 PART I ASEAN Single Window The ASEAN Connectivity Towards ASEAN Economic Community

2 OUTLINE What is ASW Implementation Plan Status of Development Critical Success Factors Challenges Conclusion

3 What Is ASW ASW is the environment where national Single Windows (NSWs) of ASEAN Member States operate and integrate, providing an infrastructure for electronic data/information/document exchange and communication among Member States. NSW as the single point of connectivity and communication with other Member States NSWs in the ASW environment. Trade data reside in the national domain under the purview of the respective Member State.

4 Implementation Plan ASW in phases: Component 1 to identify and develop the ASW Architecture design. Component 2 to set up the ASW architecture endorsed in Component 1 for pilot implementation. (Component 2 is split into 2 stages: Scaled-down and Fullfledged due to constraint of funding). Component 3 to carry out an evaluation on the ASW Architecture implemented under the ASW Pilot Project Component 2 (Full-fledged)

5 Status of Development..cont. Major Activities Completed ASW Pilot Project (Component 1) to develop the ASW architecture design. Innovation Workshop on ASW for public and private sectors. The ASW Sustainability Study. The ASW Pilot Project Component 2 (Scaled-down) The ASW Web Portal (official launching scheduled in May 2013).

6 Architectural Environment of the NSW and ASW Coexistence

7 Status of Development..cont. Work In Progress The ASW Cross-Border Business Process Analysis Project started in December 2012 and is scheduled to complete in August ASW Legal Framework Agreement is still in progress. Review recommendations of the Study for the ASW Sustainability Work on the content of the ASW web portal Finalization of the TOR (Terms of Reference) of the ASW Pilot Project Component 2 (Full-fledged)

8 Critical Success factors Development and finalization of the business processes with related documents and information to be exchanged in the ASW. Implementation of the ASW Pilot Project Component 3 Finalization of the ASW Legal Framework. Establishment of an effective governance structure and business model for the operation and sustainability of the ASW. On-going consultation with Economic Operators and Private Sector. On-going collaboration with other ASEAN working groups on works related to ASW.

9 Challenges ASEAN s decision making based on consensus and compromise solutions takes time; Member States have their own customs regime and legislation as well as different levels of automation; Planning and preparation costs could be high and financial constraints remain an issue and implementation of the ASW Pilot, for example, is very much dependent on external funding; Operating and maintaining the ASW at the regional level will require sustainable source of revenue, a budget to manage expenditures, and agreed location(s) to house staff and the Regional Services server, etc.;

10 Challenges..cont. Effective regional and NSW Legal Frameworks need to be in place and such legal matters tend to be complex; The NSW is one of the pre-requisites in the ASW; implementation and its implementation has its own many sub-challenges; and Business process reengineering needs to be carried out to streamline the cross-border processes.

11 Conclusion The ASW has taken the best features of a regional mechanism The hybrid of a hub-less (NSW-to-NSW) data exchange approach combined with common Regional Services for better synchronization of data exchange would allow both increased economic integration within ASEAN and support Member States who wish to participate in the WCO s Globally Networked Customs initiative.

12 PART II National Single Window The Malaysian Experience

13 BACKGROUND NSW PROJECT National Single Window (NSW) is one of the initiatives under the trade facilitation program Commitment of Malaysia at ASEAN level to put in place its NSW to be later integrated with ASW NSW Project not a green field project based on existing EDI infrastructure provided by EDI service provider DNT since 1995 CIS-DNT Interface System implemented in 1995 allows electronic data exchange between CIS and its clients through a value-added network

14 NSW BASIC SERVICES Existing Services Under CIS-DNT Interface System e-declare e-permit : Import/Export EFT : Payment of duties E-Manifest : Sea mode e-pco : Preferential Certificate of Origin ASEAN Single Window Exchange EF T e-permit e-declare NSW Service s e-manifest e-pco ASW Exchange

15 Portal MyTradelink Single Sign On Homepage

16 Issues & Challenges Faced Implementation Complexity of Project Cooperation & commitment from all parties Inadequate telecommunication infrastructure Lack of in-house expertise

17 Summary 1 Malaysia NSW Project is still evolving 2 NSW with a new Operating model is underway 3 Success of NSW/ASW Project needs commitment from all parties 4 NSW/ASW Exchange pilot is in progress under the ASW Pilot Project

18 Thank You