Regional: Support for Trade Facilitation in the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area

Sovereign Project | 41348-012

Summary

The R-PATA will provide technical support for the realization of regulatory reforms, including CIQS measures through the implementation of the MoU and SOPs. It will also seek to develop closer public-private dialogue by engaging various stakeholders including local governments, businesses and communities. A phased approach will be adopted in implementing the proposed R-PATA to adapt to BIMP-EAGA's evolving institutional arrangements and to build on the outcomes achieved in each phase. Lessons learned and best practices from this technical assistance will be exchanged with other subregional groupings, such as in the Greater Mekong Subregion (GMS) and the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) not only to enhance effectiveness but also to create synergies and linkages between the subregions.

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Project Name Support for Trade Facilitation in the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area
Project Number 41348-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7552-REG: Support for Trade Facilitation in the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area
Investment Climate Facilitation Fund under RCIFPF US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Industry and trade - Trade and services

Gender Equity and Mainstreaming
Description The R-PATA will provide technical support for the realization of regulatory reforms, including CIQS measures through the implementation of the MoU and SOPs. It will also seek to develop closer public-private dialogue by engaging various stakeholders including local governments, businesses and communities. A phased approach will be adopted in implementing the proposed R-PATA to adapt to BIMP-EAGA's evolving institutional arrangements and to build on the outcomes achieved in each phase. Lessons learned and best practices from this technical assistance will be exchanged with other subregional groupings, such as in the Greater Mekong Subregion (GMS) and the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) not only to enhance effectiveness but also to create synergies and linkages between the subregions.
Project Rationale and Linkage to Country/Regional Strategy
Impact The proposed R-PATA is expected to contribute to increased trade and tourism in BIMP-EAGA. It is envisaged that CIQS-related reforms would help improve the business environment and facilitate the expansion of an affordable logistics network.
Project Outcome
Description of Outcome The envisioned outcome of this R-PATA is faster movement of goods and people at the eight priority entry points.This is expected to have spillover effects enhancing the efficiency of other entry points and the utilization of transport infrastructure and links connecting subregional markets.
Progress Toward Outcome

Various capacity building activities have been delivered to Customs, Immigration, Quarantine and Security officers at the priority entry points to help them improve their service efficiency.

TA implementation was completed on 30 June 2014. CIQS agencies have noted qualitative improvement in their capacity, while quantitative measurement of CIQS services are being further pursued. Financial closure has been completed in Q1 2015.

Implementation Progress
Description of Project Outputs

Output 1: Improved CIQS systems at the eight priority entry points :

The proposed R-PATA will assist the BIMP-EAGA CIQS Task Force in implementing the SOPs of the MoU on streamlining, simplifying and harmonizing CIQS procedures. It will help the Task Force to achieve two overarching goals: (i) adopt and implement international standards and regional agreements on transport and trade facilitation and (ii) build skills and capacity of local CIQS personnel to effectively implement practical trade facilitation measures. The R-PATA will (i) validate the relevance and practicality of the first-round SOPs and support their implementation; (ii) assist in rationalizing CIQS Rules, Regulations and Procedures (RRPs) toward a simplification process, with a view to streamlining to the best possible different RRPs from the countries; and (iii) build human resource and institutional capacity in CIQS operations to meet agreed international standards and to monitor progress. The assistance will focus on supporting the implementation of measures to implement benchmarks, derived from relevant international standards, which are identified in the SOPs of priority entry points. The need to upgrade communication capability, including application of appropriate ICT facilities and skills, will also be addressed to facilitate more efficient transactions and enhancement of information sharing and cooperation among CIQS authorities, with possible support from the ADB-administered e-Asia Fund.

Output 2: Increased compliance by private sector on CIQS at the eight priority entry points - The R-PATA will support the strengthening of public-private partnership between the CIQS Task Force and local traders, transport operators and logistics service providers with a view to continuously improving CIQS services and, consequently, increasing private sector compliance. Regular consultation meetings will be organized to ensure that CIQS work remains responsive to the needs of the private sector, and obtain immediate feedback on the efficiency of implementation of reform measures. The R-PATA will also support capacity building activities for local business communities to develop authorized economic operators (AEOs) in each priority entry point who will benefit from the fast-tracked clearance process.

Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1.1 - Rationalize, validate, and publish CIQS RRPs in eight priority entry points:

- Consultations with private sector and CIQS agencies have been onducted with Brunei Darussalam, Malaysia and the Philippines, as well as with the CIQS agencies of Indonesia. Confirmed action plans for the development and implementation of SOPs have been updated during the BIMP-EAGA Strategic Planning Meeting in January 2011 and endorsed for implementation at the 5th BIMP-EAGA CIQS Task Force Meeting in May 2011.

- Consultations with CIQS agencies at national and subregional levels have been conducted in various countries. In Customs sector, assistance has been extended to the strengthening of risk management, post clearance audit systems and enhancing accreditation programs. Efforts have also been put in strengthening dialogues with private sector to better provide information and requirements to improve their compliance.

- The project supported the conduct of a BIMP-EAGA Commodities and Quarantine Measures Workshop on 7- 10 May 2012 in Balikpapan, Indonesia, which identified the major commodities traded in EAGAs major entry points, as well as their associated quarantine risks. A Technical Working Group Meeting on the One Borneo Quarantine Program in April 2014 discussed the One Borneo Quarantine initiative which aims to generate technical inputs from member countries as part of an ongoing assessment on the benefits and potentials of an integrated strategy and cooperation program for the protection and development of Borneo Island.

- Implementation arrangements for the Security Action Plan were discussed during the Heads of Security Meeting in July 2011 in Labuan, Malaysia. Assistance provided to the BIMP-EAGA Security Sector in the development of minimum security standards for secondary ports and nonconvention ships involved in informal trading activities in EAGA, which have been endorsed by the BIMP-EAGA member countries at the 3rd Heads of Security (HOS) Meeting. Countries are currently developing their own implementing regulations for the implementation of these measures. To assist the BIMP-EAGA countries on the implementation of the the Simplified Port Facility Security Plan (SPFSP), the SPFSP Common Guidebook was endorsed during the Special Heads of Security Sector Meeting in Davao, Philippine on October 2013 and is being finalized.

Output 1.2 - Build capacity of CIQS officials at eight priority entry points to implement improved CIQS systems and working procedures

In Customs:

- Customs officers from some member countries received training on Post Clearance Audit (PCA) to enhance their audit work as well as the implementation of relevant accreditation programs.

- Customs officers also acquired enhanced skills as trade educators to improve the trade communitys awareness, understanding and compliance to Customs requirements, and regular local trade outreach activities have been conducted by Customs administrations.

- Customs officers also received training on Time Release Studies to enable them to measure the effectiveness of operational procedures of customs and other related agencies during standard processing of imports, exports and transit movements, which will result to informed decision making.

In Immigration:

In collaboration with the International Office for Migration (IOM), a capacity building programme on Detection of Fraudulent Travel Documents and Recognition of Imposters has been developed for the Immigration sector. Frontline immigration officers from four countries have been introduced to utilizing IOMs manual to enhance their performance, and a select group of officers were further trained as trainers to enable them to share their skills and knowledge to others.

In Quarantine:

A Training of Trainer Course on Quarantine and Human Health Operational Risk Management was held on 12-16 November 2012. The course equipped designated EAGA quarantine officials with comprehensive knowledge and skills to introduce a systematic approach to identifying and managing risks of quarantine pests and diseases at the entry-point. A Workshop on Developing Contingency Plan for Quarantine and Human Health held on 1-5 July 2013 also developed capabilities of local quarantine officials to carry out activities for early detection and early response to disease epidemics and animal/plant health emergencies through the development and implementation of local contingency plans. Trained trainers from Malaysia were tapped as sub-regional facilitators in the Sabah-Kalimantan Joint Quarantine Workshop on Operational Risk Management held in Tawau, Malaysia on 12-16 August 2013. Follow-on Workshops on Development and Implementation of Contingency Plan for Quarantine and Human Health (including food safety) were conducted for key local officials managing the trade and border crossing activities across the EAGA focus areas of Malaysia in December 2013 and Indonesia in April 2014 to further enhance capacity in managing risks of pest and disease incursions in BIMP-EAGA s priority entry points. Trained trainers also served as sub-regional facilitators for this workshop.

In Security:

- Numerous capacity building workshops have been conducted on planning and conducting drills and exercises, security training, and audit to enhance relevant security officers capability to maintain compliance with the requirements of the International Ships and Port Facility Security Code and to strengthen the security of cross-border trade activities and local supply chain. Brunei and the Philippines each conducted live exercise in 2013 as an application of the drill and exercise workshops. The Philippine participants to the audit and TOT workshops also conducted audit activities and training on Port Facility Security Officer and Company Security Officer Courses applying their acquired capabilities, which were validated by experts.

- Some of the trained port security officials were engaged as sub-regional facilitators to further enhance their knowledge sharing skills.

Output 1.3 - Strengthen subregional, national, and local institutional mechanisms:

- Conducted project briefings and consultations with national and subregional officials.

- Provided technical inputs for the preparation of various CIQS TF and Heads of Sector Meetings

- Ongoing technical assistance, advisory and capacity building to the CIQS Working Group Secretariat in monitoring progress of CIQS deliverables

Output 1.4 - Upgrade ICT capability at priority entry points:

- To be addressed as appropriate under the action plans.

Output 1.5 - Conduct time release studies in eight priority entry points

- Follow-up with countries possibility of TRS surveys in 2014

Output 1.6 - Coordinate with development partners:

- Discussions and notes exchange on the quarantine sector agenda with the Office of Chief Plant Protection Officer in the Department of Agriculture, Fisheries & Forestry (DAFF) of Australia in February 2011

- Utilized APEC s manual for maritime & port securitytraining & exercises

- Collaborating with IOM in the conduct of the immigration training on Detection of Fraudulent Travel

- Documents and Recognition of Imposters, used and distributed copies of IOM manual on passport examination during the training -Discussions with USAID on the Customs and Security sectors agenda in supporting relevant agencies in the Philippines

Output 2.1, 2.2 - Support the conduct of annual private sector dialogue at the CIQS TF and heads of customs meetings and Support at least two private sector consultations in each priority entry point:

- Various private sector (PS) consultations have been conducted to gather feedback on the effectiveness of trade facilitation measures.

- Conducted private sector survey on Customs trade facilitation. Overall finding was moderately effective, with much room for improvement.

- Conducted Customs survey on rate of errors and omissions by private sector to develop appropriate customs information program. (Also See: Stakeholder Communication, Participation and Consultation)

- Extended technical &/or logistics support to the private sector dialogue with the Heads of Customs in September 2011

- Designed and conducted assessment of private sector performances to inform enhancement measures by CIQS agencies.

All TA activities have been completed. A TA Completion Report is currently being prepared for disclosure.

Geographical Location BIMP-EAGA subregion
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Consultations with Brunei Darussalam: 18-21 Sept 2010; Indonesia: 28-29 September 2011, Malaysia: 9-10 Aug and 23 Sept 2010; Philippines: 12-13 Aug and 11 Oct 2010; Strategic Planning Meeting: January 2011; 6th CIQS Task Force Meeting: 18-19 May 2011; 3rd Heads of Security Meeting: 13-14 July 2011; 3rd Heads of Quarantine Meeting: 06-08 October 2011; 5th Heads of Customs Meeting: 18 October 2011; Strategic Planning Meeting: January 2012; 7th CIQS TF Meeting: May 2012; 4th Heads of Security Meeting: July 2012; 6th Heads of Customs Meeting: October 2012; Consultations with Philippine Bureau of Customs, Brunei's Royal Customs and Excise Department and Royal Malaysian Customs: May 2013; 8th BIMP-EAGA CIQS Working Group Meeting: May 2013; 5th Heads of Security Sector Meeting: July 2013.

Parallel with the consultations with CIQS agencies and private sector stakeholders, the project conducted Private Sector Satisfaction Survey on Customs Efficiency in the ports of Muara, Brunei Darussalam; Sandakan, Malaysia; and General Santos and Zamboanga, Philippines. This was further complemented by a Survey on Private Sectors Errors and Omissions in Muara port (1Mar-1Apr 2011), Tebedu, Sandakan, Labuan (7Mar-6Apr 2011), General Santos (16Feb-17 Mar 2011) & Zamboanga (17Feb-18Mar 2011). These surveys validated the Customs and trade-related issues identified in previous consultations and provided baseline data for the improvement of Customs and trade facilitation services in pilot entry points.

Parallel with the consultations with CIQS agencies and private sector stakeholders, the project conducted Private Sector Satisfaction Survey on Customs Efficiency in the ports of Muara, Brunei Darussalam; Sandakan, Malaysia; and General Santos and Zamboanga, Philippines. This was further complemented by a Survey on Private Sectors' Errors and Omissions in Muara port (1Mar-1Apr 2011), Tebedu, Sandakan, Labuan (7Mar-6Apr 2011), General Santos (16Feb-17 Mar 2011) & Zamboanga (17Feb-18Mar 2011). These surveys validated the Customs and trade-related issues identified in previous consultations and provided baseline data for the improvement of Customs and trade facilitation services in pilot entry points.

Business Opportunities
Consulting Services The TA will finance about 60 person-months of consultant services?11.5 international and 48 domestic. The TA will also engage Resource Persons for about 24 person months.
Responsible ADB Officer Nguyen Ba Hung
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Regional Cooperation and Operations Coordination Div, SERD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 05 Aug 2009
Fact Finding 29 Sep 2009 to 30 Sep 2009
MRM -
Approval 14 Jun 2010
Last Review Mission -
PDS Creation Date 15 Jan 2009
Last PDS Update 30 Mar 2015

TA 7552-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Jun 2010 - 14 Jun 2010 30 Jun 2013 30 Jun 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,000,000.00 0.00 0.00 0.00 0.00 1,000,000.00 14 Jun 2010 1,447,373.22

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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