Procurement, Trade Barriers, and ASEAN Single Window

Procurement, Trade Barriers, and ASEAN Single Window

With a combined GDP of over US$2.4 trillion in 2015, ASEAN is a growing economic powerhouse with global ambitions. A crucial part of enabling that growth can be found in the area of rapidly expanding intra-ASEAN trade.

Intra-ASEAN trade has outpaced global growth over recent years, and as of 2016 accounted for almost one quarter of ASEAN’s total cumulative trade. The ASEAN Single Window aims to promote and facilitate that trade, removing trade barriers, and open up significant regional opportunity. So what is ASEAN Single Window, and what might it mean for procurement?

What is the ASEAN Single Window?

ASEAN Single Window is a regional initiative that aims to integrate the National Single Window customs requirements of individual member states. Its goal is to provide an integrated electronic platform and legal framework that removes trade barriers, reduces paperwork, and eliminates customs delays between member states.

How widely implemented is ASEAN Single Window?

As of January 2018 the ASEAN Single Window had been adopted by 5 ASEAN member states; Indonesia, Malaysia, Singapore, Thailand and Vietnam.

Organisations and individuals looking to arrange cross-border trade between these nations can now process all customs documentations through the online platform, greatly accelerating cargo clearance times.

Why is the ASEAN Single Window important?

Intra-ASEAN trade was worth US$521 billion in 2016

Intra-ASEAN trade was worth US$520.96 billion in 2016, and that figure is widely predicted to grow in future. Financial analysts PWC predict that intra-ASEAN exports alone will exceed US$375 billion by 2025, with export volumes increasingly at roughly 1.5% annually in recent years. A secure, digitally-enhanced customs procedure that enables simpler and more efficient trade will be vital to unlocking the greatest possible value from this growing intra-ASEAN opportunity.

What does ASEAN Single Window mean for procurement?

The improved harmonisation of customs procedures should help unlock wider procurement savings for our businesses. Global supply chains are increasingly complex, so reducing paperwork and removing barriers between ASEAN member states is certain to speed up processes and help improve opportunity for procurement professionals. What does that mean for you?

  • Reduced paperwork – the digital nature of the system reduces paperwork, enabled by a simple, accessible online platform for customs documentation
  • Improved legal protection – ASEAN Single Window’s legislative framework also helps support better legal protections around data security, as well as providing digitally documented evidence of your intra-ASEAN procurement
  • Enhanced supply chain oversight – Analysis suggests that ASEAN Single Window should facilitate better track-and-trace of supply chains across borders
  • Reduced costs – Overall efficiency improvements, reduced trade barriers and smoother customs transitions should reduce costs of intra-ASEAN trade

What’s the future of ASEAN single window?

With 5 key economies in the region now enjoying the benefits of ASEAN Single Window, it’s likely that the other member states will soon follow. Greater economic integration has long been a goal of ASEAN, but like many initiatives, the more evidence is displayed for its success, the more persuasive the opportunity becomes.

The ASEAN Single Window promises a regional trade environment that is supported by reduced paperwork, improved efficiency and wider operational savings. At Procurehere, we’re well aware of the significant opportunity that improved efficiency can unlock in operational savings. What’s more, with our cloud-based Procurehere Version 7.0, we’re working to promote an operational environment that travels with you wherever you go.

While the ASEAN Single Window offers up a more positive customs environment for the physical movement of goods, Procurehere is focussed on opening up our own digital window to the world of global opportunity.

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