The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB) or its Board of Directors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this 1 paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. • Initiated in 1992 • Fundamental coordinated by ADB • 6 Contracting parties : , China (yunnan), Lao PDR, , Thai and Cambodia • Jointy development of 7 economic branches i.g., transport, energy, trade and investment etc.

2 7 Trade and Investment 6 Environment and natural Resource Development 5 Human Resource Development 4 Telecommunication 3 Tourism 2 Energy 1 Transport

GMS Cross Border Transport Agreement + Annexes & Protocols

MOU for IICBTA + Attachment (bilateral)

Mukdaharn-Savanakhet - Maesai-Tachilek Maesot- 3 First Step (signed on 30 Apr 2004)

• Annex 2 Registration of Vehicles in International Traffic • Annex 4 Facilitation of Frontier Crossing Formalities • Annex 7 Road Traffic Regulation and Signage • Annex 11 Road and Bridge Design and Construction Standards and Specification • Annex 12 Border Crossing and Transit Facilities and Services • Annex 13a Multimodal Transport Liability Regime • Annex 15 Commodity Classification System • Procotol 1 Designation of corridors, Routes, and Points of Entry And Exit (Border Crossings)

4 Second Step (signed on 16 Dec 2004) • Annex 1 Carriage of Dangerous Goods • Annex 9 Criteria for Licensing of Transport Operators for Cross-Border Transport Operations • Annex 13b Criteria for Licensing of Mulitimodal Transport Operators for Cross-Border Transport Operations • Annex 16 Criteria for Driving Licenses

5 Third Step signed on 4-5 Jul 2005 • Annex 3 Carriage of Perishable Goods • Annex 5 Cross-Border Movement of People • Annex 10 Conditions of Transport • Protocol 2 Charges Concerning Transit Traffic Ongoing • Annex 6 Transit and Inland Clearance Customs Regime • Annex 8 Temporary Importation of Motor Vehicles • Annex 14 Container Customs Regime • Protocol 3 Frequency and Capacity of Services and

Issuance of Quotas and Permits 6 7 8 Single Stop Inspection & China Kunming One Stop Service (OSS) of Main Cross Border Points Xiengrung OSS & SSI Cross Myanmar Border Points Hanoi Tachilek Lao OSS Pilot Cross Hyfong Border Points Maesai Center of Country Myawaddy Maesot South China Sea Development Yangon Danung Tak North-South Economic Corridor Andaman Sea Aranyaprathet Viet Nam Cambodia East-West Poipet Economic Corridor

Ranong Gulf of Hojimin City Southern Economic Corridor

Sa Dao

9 • The GMS countries should take measures to achieve – “one stop clearance under joint supervision”, – “application through one window”, and – “customs documents in accordance with international standards and procedures”

10 For the implementation of the Agreement,

• the GMS countries have selected four customs houses on the borders of Thailand, Cambodia, , and Vietnam

as the pilot sites for one stop Customs clearance

11 • Chinese government has also selected the Hekou (Yunnan, China) • Lao Cai (Vietnam) Customs for the experiment of one stop clearance • The negotiations between relevant authorities of China and Vietnam have already been launched

12 • Thai Customs have implemented One Stop Service : OSS Plan for the main cross-border points since December 2004 . There are – Maesai Customs House (N-S Eco Corridor) – Maesot Customs House (E-W Eco Corridor) – Aranyaprathet Customs House* (S-Eco Corridor) – Mukdaharn Customs House * (E-W Eco Corridor) – Sadao Customs House (N-S Eco Corridor) * agreed cross border regarding to the MOU for the IICBTA

13 • Integrated Services online

• Integrated Office

14 Integrated Services online

• To connect Information Technology (IT) between Customs and other relevant government agencies , aims to facilitate import and export license system.

15 Browser Services through Counter Service Abroad at the Service Network Center such as One-Stop Export Service Center Other government agency DataData Network Network System System

Web-based CA Application Form Internet InternetInternet Internet M P & C an r i o f & C e Consular Department d er s a e t Center Service t u ti D n r fi a a o t c c t i i t at a D t f (GDX) i D io t a c n Single c c a a i u f t t i i a Private individual d t o o r n & Service r e Is Importer and Exporter P C Can entry data on web browser Customs Department

Ministry of Agriculture (Department of Livestock Development, Former Ministry of Commerce Department of fisheries etc) 16 (Department of Foreign Trade) Customs Customs(BO) Airlines (BO) Customs SITA/ (BO) ARINC Customs ICT (BO) Shippers Center Port Customs(HQ) Customs Authority (BO) Loaders EDI VAN Customs EDIEDI VANVAN Bonded (BO) Warehouses InternetInternet Industrial Government Estate Agencies Traders Free ZoneInspection Customs Quarantine Approval Brokers Offices Agencies Banks 17 Integrated Office

• To integrate the respective Competent Authorities (i.e., Customs, Food and Drug Administration and Quarantine) in the same office, aims to manage cargo release.

18 19 “ Customs House”

20 “OSS at Mae Sai Customs House”

21 22 “ Cross Border”

23 “Mae Sot Customs House”

24 25 The second Bridge at Mukdaharn

26 “Mukdaharn Customs House”

27 “Port at Mukdaharn”

28 “Mukdaharn”

29 30 “Aranyaprathet Cross Border”

31 32 • The Agreement for Facilitation of Cross-Border Transport of Goods and People between and among the governments of six parties. – Article 4 (a) and Article 4 (b) of Part II of the Agreement on Facilitation of Border Crossing Formalities

33 • Provision of Annexes and Protocols which are considered as the part of the Agreement. – Article 4 and Article 5 of Annex 4 (Single –Window Inspection and Single-Stop Customs Inspection )

34 • MOU for the Initial Implementation of GMS Cross Border Transport Agreement (IICBTA)at the agreed cross-border points of : – Aranyaprathet - Poipet (Thailand - Cambodia) ; – Mukdaharn - Savannakhet (Thailand - Lao PDR) ; (Signed at Kunming, China on 4 July 2005)

35 – Tachilek - Mae Sai (Thailand - Myanmar); – Maesot - Myawaddy (Thailand-Myanmar) (1 st Tripartite Meeting in Bangkok, Thailand on 24-26 May 2005 and suppose to finish the final draft in next meeting)

36 Part II of the Agreement on Facilitation of Border Crossing Formalities

Article 4 : Facilitation of Border Crossing Formalities • The Contracting Parties shall gradually adopt the following measures in order to simplify and expedite border formalities, in accordance with Annex 4 : – Single-Window Inspection – Single-Stop Inspection

37 • The different inspections and controls of –people (passport/visa, driving license, foreign exchange, customs, health/epidimiological), –vehicles (registration, roadworthiness, insurance), and –goods (customs, quality, phytosanitary/plant protection, veterinary) • shall be carried out jointly and simultaneously by the respective Competent Authorities involved (e.g., customs, police, immigration, trade, agriculture, health department).

38 • The officials of the country pairs shall assist one another to the extent possible in performance of their duties. • The two adjacent national authorities will carry out their inspections jointly and simultaneously. • Where the local configuration does not allow the installation of physical adjacent back-to-back frontier control posts, the control officials from one Contracting Party shall be allow to perform their duties on the territory of the other Contracting Party.

39 (from Attachment 1 of the MOU for the IICBTA) • border crossing clearance formalities conducted jointly and simultaneously by the respective Competent Authorities of each Party to the MOU; • Competent Authorities of the Country of Exit shall jointly perform their duties with the Competent Authorities of the Country of Entry in the CCA in the Country of Entry; (CCA = Common Control Area)

40 • only incoming people, vehicles, and goods (except live animals) shall be subject to border crossing clearance formalities jointly and simultaneously undertaken in the Country of Entry by Competent Authorities of the two Parties to the MOU, and not in the Country of Exit;

41 • live animals shall be subject to border crossing clearance formalities that may be jointly and simultaneously undertaken in the Country of Exit by Competent Authorities of the two Parties to the MOU, and not in the Country of Entry;

42 • border formalities shall be processed through streamlined and harmonized documents (e.g., immigration and customs declaration forms); • relevant Competent Authorities shall implement risk management systems and procedures in the conduct of their inspection

43 • Competent Authorities shall facilitate, to the extent possible, the provision of information in advance of the arrival of the goods and vehicles at the border crossing points leading eventually to pre-arrival processing of goods, in order to improve – risk management and – selectivity to reduce the level of inspection

44 • goods in transit shall be exempt from physical inspection , except when irregularities are suspected, in which case inspection is performed in the Country of Entry;

45 • Step 1 which will – commencing on 31 December 2005, – the Parties to the MOU shall adopt minimal inspection of outgoing goods, and – observation in foreign territory by Customs and Quarantine Authorities of the Country of Exit, as required, in the common control area (CCA) of the Country of Entry, as an interim measure, which will be accompanied by key facilitation measures.

46 • Step 2 which will – commence following the amendment/promulgation of relevant laws to allow extraterritorial performance of duties by Competent Authorities of both Parties to the MOU expected to take place in the period to 2008, – build on Step 1 and involve a combination of performance in foreign territory, and joint and simultaneous performance of duties at the Country of Entry by all relevant Competent Authorities of both Parties to the MOU.

47 Lao PDR Thailand Country of Entry Country of Exit Export Cargo arrival

C I Q border crossing C I Q

C,I,Q perform C,I,Q perform by sequence by sequence

48 • Core concepts : – minimal inspection on outgoing goods – observation at the country of entry in common control area (CCA)

49 Lao PDR Thailand Observe C-T Q-T C-L Q-L Minimal Physical Physical Physical Physical Inspection Inspection Inspection Inspection

As required Export/Transit Cargo

C-L Q-L I-L I-T Q-T C-T C-L Q-L I-L I-T Q-T C-T

Export/Transit Cargo As required

Q-L C-L Q-T C-T Physical Minimal Physical Physical Inspection Physical Inspection Inspection Inspection Observe 50 • without enforcing its laws in the Country of Entry (i.e., if a violation is detected by the Customs or Quarantine Authorities of the Country of Exit while “observing” the customs inspection being performed in the Country of Entry, • they shall not exercise their authority in the Country of Entry, and will have to do so in their territory; • in this regard, the Customs or Quarantine Authorities of the Country of Entry shall exert all its efforts to assist the Customs or Quarantine Authorities of the Country of Exit to subsequently exercise their authority in the Country of Exit, including providing the necessary documents and

information). 51 Lao PDR Thailand

C-L,C-T Q-L,Q-T Physical Physical Inspection Inspection Export/Transit Cargo As required

C-L+T Q-L+T I-L+T I-L+T Q-L+T C-L+T

Export/Transit Cargo As required Q-T, Q-L C-T,C-L

Live animals will be Physical Physical inspected jointly in the Inspection Inspection Country of Exit 52 • Training and Human Resource Development • Public Information • Harmonization, Coordination, and Synchronization • Institutionalizing Mutual Assistance • Legal/Regulatory Framework • Infrastructure • Procedures for Risk Management • Performance Benchmark for Border Clearance Times 53 54 For Goods in Transit :

Thailand Lao PDR

overseas exit formalities as transit cargo entry formalities arrangement (if any)

exit Party to the MOU Party to the MOU through the for which the goods are goods are transiting destined

55 For Goods in Transit : • a transit declaration is issued by the Customs authorities of the Party to the MOU through whose country the goods are transiting, and existing seals are inspected for integrity by the authorities of the Party to the MOU through which the goods are transiting; • additional security seal is attached, if necessary, to the goods by the Customs authorities of the Party to the MOU through which the goods are transiting; and • once cleared, the vehicle carrying the goods in transit proceeds toward its next destination.

56 For Goods in Transit :

• case 1 C, I, Q of both parties perform jointly and simultaneously overseas entry formalities transit cargo CCA

exit

Party to the MOU Party to the MOU through the for which the goods are goods are transiting destined Thailand Lao PDR 57 For Goods in Transit : C, I, Q of both parties • case 2 perform jointly and simultaneously

overseas exit formalities as entry formalities transit cargo arrangement CCA (if any) exit exit

Party to the MOU The other Party Other Party to through the goods to the MOU for the MOU for are transiting which is the which the goods second country are destined of exit Thailand Lao PDR China 58 For Goods in Transit : • case 3

exit formalities as overseas entry formalities transit cargo arrangement (if any) exit

Party to the MOU Non Party to the through the MOU for which goods are the goods are transiting destined

59 60