ASEAN members sign deal to streamline trade customs clearance

In a move set to revolutionise trading practices within the Southeast Asian region, all 10 Customs Administrations of ASEAN Member States (AMS) have inked the Mutual Recognition Arrangement (MRA) for their Authorised Economic Operator (AEO) Programmes. The agreement, known as ASEAN AEO MRA (AAMRA), aims to facilitate a predictable and transparent trading environment among the member states.

The AAMRA aligns with the principles and standards set by the World Customs Organisation (WCO) SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework). The deal ensures that the certification standards implemented by AMS customs administrations are compatible with each other. Certified AMS AEOs are set to reap the benefits of faster cargo clearance and priority treatment for cargo inspections, thereby enhancing the overall trade efficiency within the ASEAN community, the Association said in a press release.

This initiative is also a step towards fulfilling the aspirations laid out in the ASEAN Economic Community Blueprint 2025, which seeks to develop a seamlessly integrated and cohesive ASEAN economy. With reduced regulatory burdens and streamlined customs procedures, AAMRA is anticipated to significantly bolster intra-ASEAN trade.

Brunei Darussalam, Indonesia, Malaysia, the Philippines, Thailand, and Singapore have announced that they will embark on a six-month pilot implementation of the AAMRA by the end of 2023. The goal is full implementation across these countries by the third quarter of 2024. The remaining four AMS are scheduled to commence their participation in the second pilot implementation in 2024.

Secretary-general of ASEAN Dr Kao Kim Hourn said, “The AAMRA demonstrates AMS’ strong cooperation to enable the seamless movement of goods within ASEAN in order to enhance intra-ASEAN trade and promote economic development and growth. It will play a vital role in strengthening supply chain connectivity as businesses would enjoy increased cost savings due to reduced administrative burdens and better predictability of cargo movement.”

Fibre2Fashion News Desk (KD)