ARISE Plus
The movement of goods is time consuming and costly due to inspections and documentation at every national border. As a result, consumers pay more for goods. This is one of the challenges that the ASEAN Economic Community seeks to address. Through the ASEAN Customs Transit System (ACTS), developed with and supported by the European Union, ASEAN facilitates trade in the region by allowing traders to transport goods freely between participating countries. This means that a truck can travel from its point of loading (departure) to its destination in a different country with fewer obstacles and delays.
Customs officers of Lao PDR flagging-off the inaugural ACTS transit through Lao PDR at the Savannakhet border as part of the first Malaysia to Vietnam ACTS movement.
Credit: Mr Canda, Lao PDR Customs Department
A solution developed with ASEAN stakeholders
At the onset, ACTS looked to address blockages in the movement of goods across borders in ASEAN. To do this, extensive consultations were held with businesses and relevant government authorities. A system was then designed to reduce paperwork, speed up customs clearance formalities, and decrease the cost of moving goods between ASEAN Member States (AMS). In due time, ACTS was installed in customs authorities of the participating AMS namely Cambodia, Lao PDR, Malaysia, Singapore, Thailand, and Viet Nam [1]. The system linked designated customs offices at points of departure, border crossing, and destination countries. Since then, goods could travel in a single truck across ASEAN borders as against the previous practice of having to transfer goods to different trucks for each country along a given trade route.
[1] There are plans to expand the use of ACTS to the remaining ASEAN Member States according to business needs.
ACTS works – feedback from industry players
Mr. S Prithviraj of the City Zone Express, a logistics company in Malaysia, summarised the benefits of the ACTS aptly, “I would describe ACTS benefits as seamless clearance, faster transit, precise timing and cost reduction. My motto for ACTS is perfect logistics and digital connectivity for present-day supply chain needs.”
ACTS supports ASEAN manufacturers and logistics companies to undertake live movement of goods. It records the transit time required from one border to the next. In 2022, increased use of the ACTS among the private sector resulted in a total of 67 movements across multiple ASEAN borders by December. The private sector also reported 30-40% cost reduction when using ACTS as compared to other modes of transit available in the region. ACTS eases connectivity between the key supply chains in the region. Three transit routes have been used: 1) Singapore – Malaysia – Thailand, 2) Malaysia – Thailand – Cambodia, and 3) Malaysia – Thailand – Cambodia – Lao PDR – Viet Nam. Among the goods transported were advance materials for health care and manufacturing, mechanical and electronic components, and printer components.
Cambodian customs officer performing final inspection of the seals on the containers for movement, as facilitated by ACTS
Credit: General Department of Customs and Excise (GDCE) of Cambodia
Unloading of goods facilitated by ACTS at the point of destination
Credit: General Department of Customs and Excise (GDCE) of Cambodia
Representing one of the logistics companies, Mr. Witoon Santibunyarat of Amazing Logistics & Supply Chain Co. Ltd in Thailand witnessed the benefits of ACTS, “I discovered under ACTS that we can shorten the transit time from Bangkok to Singapore. It takes only two and half days now[1]. This has never happened before!”
ACTS contributes to significant cost savings, reduced distribution times, and increased efficiency in supply chains. These benefits are felt across a wide-spectrum of stakeholders—from governments to traders, and ultimately, to ASEAN consumers.
