Export Procedures in ASEAN: Best Practices

The Association of Southeast Asian Nations (ASEAN) is a regional group of countries formed to promote economic, political, social, and security cooperation amongst its member states which are – Brunei, Cambodia, Indonesia, Vietnam, Laos, Myanmar, Philippines, Thailand, Vietnam, and Singapore. The ASEAN group has a population of around 650 million people and a GDP of around $3 trillion. The ASEAN Bloc has played an important role in the economic integration of South Asian countries and is now considered one of the largest Free Trade Blocs in the world.

Trade between ASEAN Member states:

Member states of the ASEAN Bloc have abolished all import and export duties on any trade between group member states.

Also, ASEAN has signed several Free Trade Agreements (FTAs) between members and countries outside of the Bloc like India, China, Japan, New Zealand, etc.

The combination of Free Trade between members and FTAs with external countries is altering the global supply chain and manufacturing landscape, allowing free flow of goods and services between ASEAN member states and their FTA partner nations.

Once the tariff reduction schedules of the above-mentioned FTAs are completed, the ASEAN Bloc will offer almost zero export-import tariffs for almost all of South Asia, including economic giants like China and India, having the two largest population groups between them.

Exports between the ASEAN Member States

For quicker clearance of exports and imports between ASEAN Member states, the ASEAN export documentation procedure includes the following :

An Export Declaration

An Invoice

A Packing List

Export License (if applicable), and

Other relevant documents, as applicable

All of the above procedures are fully automated and processed automatically, end-to-end, finally resulting in the release of the cargo/shipment to the importer.

Additionally, with the explosive growth in internet banking, modern FinTech companies like Tazapay also help in implementing fast, simple, and completely secure B2B transactions between ASEAN member states.

Best Practices Implemented in ASEAN Trade:

Each Member State in ASEAN has implemented some best practices that are followed diligently for all trade and trade-related activities within the Bloc. They are –

Publish and make available all relevant trade-related information (inquiry points, for instance)

Advance rulings

Appeal and review procedures

Discipline and control over fees and charges imposed on, or in connection with exports and imports

Release and final clearance of goods

Risk management

Post-clearance audits

Expedited shipments

Cooperation by border security agencies

Single-window clearance for exports and imports

Temporary admission of goods

Freedom of transit, and

Customs department cooperation

Apart from the above, each member nation is mandatorily required to notify the group of any new feature/development that has been implemented at its end so that the wider group can modify and adapt it according to their individual requirements.

Conclusion:

As a Trade Bloc, ASEAN is committed to promoting and nurturing an outstanding, simple, and zero-complexity business environment for businesses operating in Southeast Asia. ASEAN also promotes developing an investment framework targeted at enticing new investors and helping those already doing business in the region.