SOUTHEAST and East Asia are leading the world when it comes to cross-border paperless trade, a move that has reduced time and costs for movement of goods in the region, according to a recent report by the United Nations Economic and Social Commission for Asia and the Pacific (Unescap).
In its Digital and Sustainable Trade Facilitation: Global Report 2021 released this month, Unescap said the regions mentioned performed better in cross-border electronic exchange of trade-related documents, such as exchange of certificate of origin and sanitary and phytosanitary (SPS) certifications.
“This is due to the continued efforts to develop the Asean Single Window (ASW), which enables the cross-border electronic exchange of Customs declarations, certificates of origin and SPS certificates,” the report noted.
ASW is a regional initiative that seeks to expedite clearance and promote further economic integration among Asean members.
Unescap noted that there has been progress made in crafting laws and regulations for cross-border paperless trade, but the level of implementation remains “very low” for some regions.
According to the report, over 70 percent of the countries surveyed have taken steps to establish legal and regulatory frameworks for electronic transactions.
But only 30 percent have “fully” put them in place.
The UN agency, with this, urged countries to ramp up efforts for cross-border paperless trade given the potential benefits due to digitalization of trade procedures, amounting to $600 billion in the Asia-Pacific.
“It is in the interest of all countries to work together and develop the regulatory framework and technical protocols needed for the seamless exchange of trade-related data and documents in electronic form along the international supply chain,” it noted.
The report said that paperless trade systems have aided the movement of goods across borders in the past two years as the pandemic restricted mobility.
The pandemic, in addition, has also accelerated the regional integration and use of Single Window initiatives in some regions to allow trade flows.
“The regional Single Windows create a mechanism that could handle trade-related regulatory requirements within a given region as well as provide additional levels of functionality for shared trade and customs procedures within a region,” it noted.
Based on the UN global survey, over 50 percent of the countries have fully implemented an automated customs system; electronic submission of customs declarations; internet connection available to customs and other trade control agencies; and electronic payment of customs duties and fees.
“The implementation of electronic application and issuance of preferential certificate of origin as well as electronic application for customs refunds are still a challenge,” it added.
Unescap said that only 50 percent of the respondents can facilitate refunds digitally, noting it was still “common” practice to make such transactions with paper documents.
In 2019, the Philippines acceded to the Unescap Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific. It is the first to do so in the Asean region.
The agreement is aimed at helping the participants better implement the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) and to develop cross-border e-commerce.