ASEAN told to expedite customs harmonization

JAKARTA (JP): ASEAN Secretary-general Dato Ajit Singh yesterday urged member states to work expeditiously to harmonize customs procedures to keep up with the rising competition from other regional trading blocks.

"ASEAN (the Association of Southeast Asian Nations) should not lag behind others in its regional integration and trade facilitation processes, but take the measures necessary to remain ahead of the field," he said.

Speaking at the opening of the fourth meeting of ASEAN customs director generals, Dato Ajit pointed to the Mercusor common market of South American countries as an area which has successfully standardized customs codes and developed common tariff nomenclature and rules for customs valuations.

"ASEAN faces increasing competition from other countries, particularly from emerging developing economies in other regional trading blocks," he said at the start of the two-day meeting.

Formed in 1967, ASEAN comprises Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Dato Ajit pointed to the growing need to simplify bureaucracies to allow the region to remain competitive in business.

Environment

"We need an environment in ASEAN which will enable the private sector to transform our region into an important hub serving international and regional markets," he remarked.

He then suggested that ASEAN director generals consider initiating a reform and modernization process to take into account both the need for customs control and trade facilitation.

By strengthening management capabilities and improving both customs service performances and the use of computers, Dato Ajit believes business overheads can be reduced and more effective and efficient customs administrations developed.

Similarly, Indonesian Minister of Finance Mar'ie Muhammad, in his written address at the meeting's opening, also stressed the need for customs improvements.

"As the ASEAN economies prepare to meet the challenges of the next century, it is important that we initiate improvements in our customs administration to ensure that we reap the full benefits from increased international and intra-regional trade," the minister said in his speech which was read by Ministry of Finance Secretary-general Dono Iskandar Djojosubroto. (mds)