• When goods arrive at the Port, a transit declaration is issued by the Customs authorities, and existing seals are inspected for integrity;

• additional security seal is attached, if necessary by Customs authorities; and

• Once the good arrive the border crossing, the seal and transit document is checked and cleared

• Once, it is cleared the vehicle carrying the goods in transit proceeds toward its next destination.

Trade FacilitationTrade Facilitation

The Main ObjectiveThe Main Objective

Economy Integration and Promotion Economy Integration and Promotion

In order to enhance efficiency of transportation, reduce transaction cost

and address the special needs of our neighbors who do not have exit to the sea

Transit system is necessary and further improvement is still needed

Trade FacilitationTrade Facilitation

Thai economy could not be growing alone. We together with our neighbors as a region need to be growing together in order to have sustainable economy.

Therefore, Transit system is necessary

Economy Integration and PromotionEconomy Integration and Promotion

• Thailand and Lao PDR road transport agreement (signed in 1999) together with subsidiary agreement specifying road transport arrangements (signed in 2001)

• Popularly used• Most of the goods pass through

Mukdaharn border crossing point to Lao PDR through the designated route

• 1 million baht guarantee per one transport operator

• MOU on the movement in transit of perishable goods by Road from Thailand through Malaysia to Singapore

• MOU was signed in 1979• Only for perishable goods (fresh, chilled or

frozen fish,crustracean,molluscs,fruits, vegetable and chilled or frozen meat)

• Using Malaysian transport operator• Limit to 30,000 metric tons per year

• ASEAN Framework Agreement on the Facilitation of goods in Transit

• Framework Agreement has been signed since December 1998

• There are 9 protocols that have to be signed

• Protocol 1 Designation of Transit Transport Routes and Facilities

• Protocol 2 Designation of Frontier Posts• Protocol 3 Types and Quantity of Road

Vehicles• Protocol 4 Technical Requirements of

Vehicles• Protocol 5 ASEAN Scheme of Compulsory

Motor Vehicle Third-Party Liability Insurance

• Protocol 6 Railways Border and Interchange Stations

• Protocol 7 Customs Transit System

• Protocol 8 Sanitary and Phytosanitary Measures

• Protocol 9 Dangerous Goods

Present situation

• Protocol 1,3,4,5,8 and 9 have already been signed

• Protocol 2,6 and 7 are not yet signed

• Therefore, Transit within ASEAN is still not yet entered into force

• Initiated in 1992

• Fundamental coordinated by ADB

• 6 Contracting parties : Cambodia, China, Lao PDR, Myanmar, Thailand and Vietnam

• Joint development of 7 economic branches i.g., transport, energy, trade and investment etc.

Mukdaharn-SavanakhetMukdaharn-SavanakhetAranyaprathet-PoipetAranyaprathet-Poipet

Maesai-TachilekMaesai-TachilekMaesot-MyawaddyMaesot-Myawaddy

7

6

54

32

1 TransportTransportEnergyEnergy

TourismTourismTelecommunicationTelecommunication

Human Resource DevelopmentHuman Resource DevelopmentEnvironment and natural Resource DevelopmentEnvironment and natural Resource Development

Trade and InvestmentTrade and Investment

GMS Cross Border GMS Cross Border Transport AgreementTransport Agreement +

AttachmentAttachment

Annexes Annexes & &

ProtocolsProtocols

MOU for IICBTA MOU for IICBTA (bilateral)(bilateral) +

Pilo

t P

ilot

Pro

ject

Pro

ject

• Within CBTA, there are 17 annexes and 3 protocols

• ADB supports in drafting the Agreement, its annexes and protocols

• The main purpose of this Agreement is to facilitate transit transport through establishment of Single Window and Single Stop Inspection at the border where customs, immigration and quarantine are performed jointly and simultaneously

Export/Transit Cargo

As required

As required

Export/Transit Cargo

PhysicalPhysicalInspectionInspection

PhysicalPhysicalInspectionInspection

C-L, C-TC-L, C-T Q-L, Q-TQ-L, Q-T

PhysicalPhysicalInspectionInspection

PhysicalPhysicalInspectionInspection

C-T, C-LC-T, C-LQ-T, Q-LQ-T, Q-L

I-L+TI-L+T Q-L+TQ-L+T C-L+TC-L+T

C-L+TC-L+T Q-L+TQ-L+T I-L+TI-L+T

Lao PDRLao PDR ThailandThailand

Release And

Clearance

Others

Fishery

Food & Drug

Agriculture

Trader

Integrated electronic single point of entry

Internet

Licensing Single

WindowFacilities

Licensing AgencyWindow

Customs Window

Port Window

CustomsEnforcement

CustomsClearance

• 1Annex CCCCCCCC CC CCCCCCCCC CCCCC• 2Annex Registration of Vehicles in International Traffic• 3Annex Carriage of Perishable Goods• 4Annex

CCCCCCCCCCCC CC CCCCCCCC CCCCCCCC CCCCCCCCCCC• 5Annex - Cross Border Movement of People

• 6Annex Transit and Inland Clearance Customs Regime

• 7Annex Road Traffic Regulation and Signage

• 8Annex CCCCCCCCC CCCCCCCCCCC CC CCCCC CCCCCCCC• 9Annex CCCCCCCC CCC CCCCCCCCC CC CCCCCCCCC

CCCCCCCCC• 10Annex Conditions of Transport• 11 CCCC CCC CCCCCC CCCCCC CCC CCCCCCCCCCCC CCCCCCCCC CCC CCCCCCCCCCCCC• 12 Border Crossing and Transit Facilities and Services• 13Annex a Multimodal Transport Liability Regime - for Cross Border Transport Operations• 13 Criteria for Licensing of Mulitimodal - Transport Operators for Cross Border Transport Operations

• 14Annex CCCCCCCCC CCCCCCC CCCCCC• 15 Commodity Classification System• 16 Criteria for Driving Licenses• CC CCCCCCCCCC CCCCCCC CCC 1, ,

Points of Entry And Exit (Border Crossings)

• 2Protocol Charges Concerning Transit Traffic

• 3Protocol Frequency and Capacity of ServicesCCC

Issuance of Quotas and Permits

Present situation• Annex1,2,3,4,5,7,9,10,11,12,13a,13b,15,

16 and protocol 1, 2 have already been signed

• There are still 3 annexes and 1 protocol left to be signed

• MOU between Thailand and Lao PDR, and Thailand and Cambodia have already been signed ( IICBTA)

• Mukdaharn-Savanakhet

• Aranyaprathet-Poipet

• MOUs are already signedbut not yet rectified

• Expected to implement in 2008

Thailand and Lao PDR

Thailand and Cambodia

Electronic seal and Radio Frequency Identification (RFID) system will be implemented in order to facilitate international trade supply chain and enhance security control