IBI reflects on the impact of the ASEAN Policy Implementation Activity
The recent closeout event for the USAID ASEAN Policy Implementation (API) project provided an opportunity to reflect on the project's achievements throughout the ASEAN region. The event showcased a number of API activities, including the successful development of the ASEAN Customs Declaration Document (ACDD) Management System by the Philippines' Bureau of Customs. This system supports the live exchange of the ACDD with other ASEAN Member States (AMS) via the ASEAN Single Window (ASW), enhancing visibility and fostering cross-border cooperation. This advancement has opened new opportunities for ongoing trade facilitation initiatives and deepened economic ties across ASEAN. Our work with the Philippines Bureau of Customs (BOC) is a powerful testament to the transformative impact of USAID and ASEAN’s visionary leadership in trade facilitation and digitalization of custom procedures leading to broader goals of sustainable and inclusive development.
The USAID ASEAN Policy Implementation (API) project, which ran from November 2019 through February 2024, was strategically designed to assist ASEAN Member States (AMS) in implementing critical ASEAN initiatives. These initiatives were carefully chosen to align with the broader objectives of both the US and ASEAN, ensuring mutual benefits and cooperative progress. Guided by the comprehensive Indo-Pacific Strategy, the USAID/ASEAN Development Cooperation Framework, and the visionary ASEAN Community Vision 2025, the API project represented a concerted effort to enhance regional integration and collaboration effectively.
The project played a pivotal role in promoting the ASEAN-wide self-certification (AWSC) scheme by translating the guidebook into six local languages—Khmer, Laotian, Indonesian, Malay, Burmese, and Thai. This initiative significantly enhanced accessibility and awareness, encouraging broader adoption across the region.
Despite facing several hurdles, such as the delayed ASEAN endorsement and the impacts of the COVID-19 pandemic which disrupted travel and shifted operations to virtual platforms, the project persevered. These challenges, while significant, underscored the project's resilience. The API team adapted to new ways of working remotely, overcoming the geographical and interpersonal barriers to ensure continued progress. Navigational complexities in securing government buy-in, particularly in AMS like Laos and Cambodia, and managing the uncertainties of funding and project timelines, were handled with strategic finesse. Each of these challenges brought lessons on adaptability and the importance of maintaining clear communication channels and stakeholder engagement.
A significant part of API's efforts focused on supporting the governmental operations of the Philippines. In the Philippines, notable achievements include the deployment of the ASEAN Customs Declaration Document (ACDD) Management Portal, the establishment of a robust electronic Certificate of Origin (e-CO) Backup system, and the electronic Phytosanitary (ePhyto) Management System. These initiatives have greatly enhanced visibility, strengthened cross-border cooperation, and boosted trade efficiency within ASEAN: Enhanced Revenue Collection: The integration of the National Single Window (NSW) with the ASEAN Single Window (ASW) system enabled the BOC to exceed its revenue collection targets impressively. In 2021, the BOC collected over USD 12 billion, surpassing its target by 104.3%, with the preliminary total for 2023 reaching approximately USD 15.79 billion. This performance highlights the BOC's role as a model for modern customs administration.
· Introduction of the e-Phyto System: In partnership with the Department of Agriculture and USAID, the BOC introduced the Electronic Phytosanitary (ePhyto) Certificate Management System in June 2022. This system enhances the security and efficiency of agricultural trade by facilitating the swift cross-border exchange of phytosanitary certificates, aligning with global standards and significantly reducing the risks associated with document fraud and loss.
· Global Recognition: The Philippines has earned global praise for its digitalization efforts. In 2023, the country ranked second in the United Nations Global Survey on Digital and Sustainable Trade Facilitation, reflecting its significant advancements in trade processes and customs operations.
The successful implementation of the ASW and the digital transformation initiatives have not only spurred export growth and attracted foreign investment but also positioned the Philippines as a leader in digital trade facilitation within ASEAN. By moving from manual to electronic processes, the BOC has achieved a digitalization rate of 96.99%, covering most customs procedures. This shift has resulted in faster cargo clearance, reduced document backlogs, and improved operational efficiency, contributing to the Philippines' improved position in the World Bank Logistics Performance Index.
Another significant focus of activity was in Indonesia, where the API project collaborated with the Ministry of Trade to undertake a detailed regulatory analysis, assessing the country's readiness to implement the ASEAN Digital Economy Framework Agreement (DEFA). This essential evaluation, which aligns with ongoing DEFA negotiations, provides crucial insights into Indonesia’s regulatory environment. These insights are critical for navigating the complexities of modern digital trade agreements effectively IBI help the Government of Indonesia conduct a regulatory analysis. This analysis is integral to broader efforts aimed at enhancing digital cooperation and bridging the digital development gaps among ASEAN Member States. IBI facilitated meetings with key stakeholders to assess the current state of digital governance and identify regulatory gaps to fill to meet ASEAN policies. This technical assistance has refined areas crucial for the negotiations of the DEFA, ensuring alignment with internationally recognized standards and practices. The resulting study now serves as a living document, an enduring resource for Indonesia as it continues to engage with ASEAN on digital governance issues. This not only guides current negotiations but also underscores Indonesia's commitment to sustainable economic growth in the digital era.
Looking ahead, the advancements in digital trade infrastructure and regulatory frameworks achieved by the USAID ASEAN Policy Implementation (API) project are set to drive further integration among ASEAN Member States. This integration promises to streamline trade processes and open up new opportunities for economic growth and development across the region.
As ASEAN moves towards a more connected and digitally equipped future, the lessons learned, and successes achieved through the API project will undoubtedly influence ongoing and future initiatives aimed at enhancing the region's trade and digital capabilities.
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