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ASEAN – Australia Development Cooperation Program

Program Stream

Enhanced Customs Capacity

Building Project

Project Design Document

AusAID &

ASEAN Secretariat

July 2003

AADCP Program Stream - Enhanced Customs Capacity Building Project- PDD

Table of Contents ABBREVIATIONS............................................................................................................ I GLOSSARY OF TERMS.................................................................................................... II

1 BACKGROUND .....................................................................................................1 1.1 PROJECT ORIGIN................................................................................................. 1 1.2 REGIONAL DEVELOPMENT CHALLENGE TO BE ADDRESSED .................................... 1

2 PRIOR AND ONGOING INITIATIVES.................................................................3 2.1 ASEAN CONTEXT.............................................................................................. 3 2.2 INTERNATIONAL CONTEXT.................................................................................. 4

3 SCOPE AND JUSTIFICATION FOR PROPOSED INTERVENTION..................7 3.1 GAPS IN ONGOING INITIATIVES............................................................................ 7 3.2 OPTIONS FOR A PROJECT INTERVENTION.............................................................. 8 3.3 JUSTIFICATION FOR PROPOSED INTERVENTION................................................... 10

4 PROJECT DESCRIPTION...................................................................................11 4.1 GOAL AND OBJECTIVES .................................................................................... 11 4.2 COMPONENT OUTPUTS AND INDICATIVE ACTIVITIES........................................... 13 4.3 INPUTS ............................................................................................................ 18 4.4 COSTS ............................................................................................................. 20 4.5 PHASING, DURATION AND LOCATION................................................................. 20

5 MANAGEMENT AND COORDINATION ARRANGEMENTS...........................22 5.1 MANAGEMENT RESPONSIBILITIES...................................................................... 22 5.2 COORDINATION AND REVIEW............................................................................ 24

6 PROJECT MONITORING AND EVALUATION................................................24 6.1 OVERVIEW ...................................................................................................... 24 6.2 KEY PERFORMANCE INDICATORS AND MEANS OF VERIFICATION.......................... 25

7 RISK MANAGEMENT.........................................................................................25

8 PROGRAM LEVEL ISSUES................................................................................26 8.1 LINKS TO SUB-PROGRAM OBJECTIVES................................................................ 26 8.2 LINKS TO OTHER PROJECTS............................................................................... 26 8.3 SUGGESTED APPROACH TO ACTIVITY CONTRACTING .......................................... 27

ANNEXES....................................................................................................................28 A1 LOGICAL FRAMEWORK..................................................................................... 29 A2 RISK MANAGEMENT MATRIX............................................................................. 34 A3 IMPLEMENTATION AND RESOURCE SCHEDULE.................................................... 35 A4 COST SCHEDULE .............................................................................................. 40 A5 DRAFT SCOPE OF SERVICES FOR AIP................................................................. 47 A6 DRAFT BASIS OF PAYMENT............................................................................... 54 A7 SUMMARY OF ASEAN CUSTOMS REFORM PRIORITIES ....................................... 56 A8 ASEAN MEMBERSHIP OF CERTAIN INTERNATIONAL ORGANISATIONS................ 57

AADCP Program Stream - Enhanced Customs Capacity Building Project - PDD

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Abbreviations

AADCP ASEAN Australia Development Cooperation Program

AADCP-PS ASEAN-Australia Development Cooperation Program-Program Stream

ACCTC ASEAN Coordinators of Customs Training Centres

ACS Australian Customs Service

ACVG ASEAN Customs Valuation Guide

AFTA ASEAN Free Trade Area

AHTN ASEAN Harmonised Tariff Nomenclature

AIP Australian Implementing Partner

AMC Australian Managing Contractor

ANZECP ASEAN New Zealand Economic Cooperation Programme

APEC Asia Pacific Economic Cooperation

ARO WTO Agreement on Rules of Origin

ASEAN Association of South East Asian Nations

ASEC ASEAN Secretariat

ASEM Asia-Europe Meeting

AusAID Australian Agency for International Development

CAP APEC Sub-committee on Customs Procedures Collective Action Plan

CAPEC Conference of Asia Pacific Express Carriers

CER Australia New Zealand Closer Economic Relations Agreement

CEP AFTA-CER Closer Economic Partnership

CLMV Cambodia, Laos, Myanmar and Viet Nam

Customs Roadmap Roadmap for Integration of ASEAN in Customs

ECCM ASEAN Expert Committee on Customs Matters

EDI Electronic Data Interchange

HPA Hanoi Plan of Action

HS Harmonized Commodity Description and Coding System

IECC International Express Carriers Conference

JICA Japan International Cooperation Agency

MFAT New Zealand Ministry of Foreign Affairs and Trade

NZCS New Zealand Customs Service

PCA Post Clearance Audit

PIWP ASEAN Customs Policy and Implementation Work Programme

RKWG Regional Kyoto Working Group


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SCCP APEC Sub-committee on Customs Procedures

TRIPS Trade Related Intellectual Property Rights

UN/EDIFACT United Nations/Electronic Data Interchange for Administration, Commerce and Transport

WCO World Customs Organization

WTO World Trade Organization

Glossary of Terms

Kyoto Convention Revised WCO International Convention on the Simplification and Harmonisation of Customs Procedures

Express Clearance Guidelines WCO Guidelines which may be applied to simplify and harmonize Customs formalities in respect of consignments for which immediate clearance is requested

HS Convention WCO Convention on the Harmonized Commodity Description and Coding System, which forms the basis of Customs tariff classification

Exchange Rate

Australian $1 = US$ 0.65


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Project summary table

Project Name: Enhanced Customs Capacity Building Project

Program and project ref no:

INT 2 Economic Integration Sub-Program

Link to program objectives

The Project is designed to enhance the institutional capacity of regional Customs administrations

Expected duration: 3 years

Indicative Cost: $1.4 million (includes $0.4 million of ASEAN participation costs)

Problem(s) to be addressed:

Impediments to international and regional trade arising from inefficient and disparate Customs policies and procedures

Target group(s): ASEAN Customs Administrations

Key performance indicators:

• Output 1.1: Regional Cargo Processing Model developed.

• Output 1.2: 6 training modules and materials developed.

• Output 1.2: Assessment of competence at conclusion of Cargo Processing Change Management Workshops.

• Output 2.1: ACVG training program and materials developed.

• Output 2.2: Assessment of competence at conclusion of ACVG training workshop.

Expected inputs • 482 person days consulting for research, program development, workshop facilitation, mentoring and review

• 34 person-days of Project management inputs

• Project administration inputs.

• Travel and accommodation for 7 workshops and consultation sessions

• Venue and materials costs for 7 workshops


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GOALTo enhance the capacity of ASEAN Customs

Administrations to develop and maintain aregulatory framework that is efficient and

transparent to investors, traders andmanufacturers across the region

PURPOSETo achieve regional harmonisation,integration and reform in identified

priority areas of Customsadministration

Component Objective 1: Toprogress regional

harmonisation, integration andreform in relation to cargoprocessing policies and

procedures

Output 1.1: ASEAN MemberCountry agreement on bestpractice import and export

cargo clearance policies andprocedures for introduction

across the region

Component Objective 2: Toprogress regional

harmonisation, integration andreform in determining the

Customs Value ofinternational trade

Output 2.1: ASEAN MemberCountry access to a

comprehensive trainingprogram that will provide

Customs staff with thenecessary skills and

competencies to effectivelyimplement and apply the

principles and practices of theASEAN Customs Valuation

Guide (ACVG)

Output 2.2: Sustainableresource capacity among

ASEAN Member Countries toprovide high quality intra-

regional training, advice andsupport in applying the

principles and practices of theACVG

Output 1.2: Enhancedcapacity of ASEAN Member

Countries to effectivelyimplement best practice cargo

clearance policies andprocedures

Component Objective 3:Toeffectively and efficiently

manage and monitor projectimplementation.

Output 3.1: Project activitieseffectively and efficientlyplanned, coordinated and

managed by the AIP

Output 3.2: AMC andASEAN informed of Projectprogress through effective

monitoring, review andreporting of Project plans and

achievements.


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1 Background

1.1 Project origin The development of the ASEAN Australia Development Cooperation Program (AADCP) commenced in 1999. One of the three agreed components was the Program Stream, which was designed in October 2002 with an Australian Managing Contractor (AMC) appointed in May 2003.

As part of the agreement between the Australian Agency for International Development (AusAID) and the ASEAN Secretariat (ASEC) to pursue the development of the AADCP – Program Stream (AADCP-PS), a planning mission was undertaken in late 2000 to evaluate and select ASEAN and Australian-sourced project concept papers. This resulted in two documents - Strengthening ASEAN Economic Integration (INT) and Enhancing ASEAN Competitiveness (COMP) defining two broad sub-program areas. Five projects were selected for inclusion in the INT group, including INT2 – Enhanced Customs Capacity Building.

AusAID mobilised a design mission in March 2003 to progress preparation of four design documents for projects in the COMP and INT sub-program areas including INT 2.

The AADCP-PS aims to promote sustainable development within ASEAN by providing assistance with priority regional development challenges through regional cooperation. One such priority is to enhance the capacity of ASEAN member countries to implement and refine the key policies and processes embodied in ASEAN agreements, in order to assist regional Customs authorities to develop and maintain a regulatory framework that is efficient and transparent to investors, traders and manufacturers across the region.

The principal ASEAN agreement of relevance to Customs Administration is the ASEAN Agreement on Customs, which was signed by member countries on 1 March 1997. The agreement espouses the principles of consistency, simplicity, transparency, efficiency, effectiveness, mutual assistance and cooperation and the availability of appropriate appeal mechanisms in the administration of Customs matters. Specifically, the Agreement on Customs seeks to:

• simplify and harmonise Customs valuation, tariff nomenclature and procedures; • ensure consistency, transparency and fair application of Customs laws and regulations,

procedures and other administrative guidelines within each ASEAN member country; • ensure efficient administration and expeditious clearance of goods to facilitate intra-regional

trade and investments; and • explore other appropriate intra-ASEAN cooperation arrangements in the field of Customs,

particularly in the prevention and repression of all forms of smuggling and other Customs fraud.

The context in which the objectives are being progressed is articulated in the ASEAN Customs Vision 2020, which was adopted at the meeting of ASEAN Directors-General of Customs, held in Bandar Seri Begawan, Brunei Darussalam on 23 May 1997:

An ASEAN Customs Partnership for World Class Standards and Excellence in efficiency, professionalism and service, and uniformity through harmonised procedures, to promote trade and investment and to protect the health and well-being of the ASEAN community.

This theme also appears in the broader ASEAN Vision 2020 Statement, which was adopted by the ASEAN Leaders at their Second Informal Summit held on 15-16 December 1997 in Kuala Lumpur, Malaysia.

1.2 Regional development challenge to be addressed Having established the ASEAN Customs agenda, the challenge facing member countries is one of achieving the broad range of regional objectives by implementing and refining their policies and procedures, both individually and collectively. In this regard, the ASEAN Customs Vision 2020


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resolved that, to ensure realisation of the Vision, appropriate benchmarks, milestones and performance standards would be established and regularly reviewed. To this end, the ASEAN Customs Policy Implementation and Work Programme (PIWP) was developed.

The PIWP represents the ASEAN Customs Plan of Action for managing the implementation of the ASEAN Customs Vision 2020. The PIWP in turn represents the Customs element of the broader Hanoi Plan of Action (HPA), which is the first in a series of plans of action to achieve the ASEAN Vision 2020, and has a six-year timeframe covering the period 1999 to 2004. The PIWP covers fifteen areas of Customs administration that will be collectively and cooperatively developed in order to achieve the ASEAN Vision. They comprise:

• tariff classification; • customs valuation; • cargo processing; • post clearance audit; • transit; • temporary admission; • enforcement; • mutual assistance; • automation; • strategic planning and management; • transparency enhancement; • training and human resources development; • technical assistance to Cambodia, Laos, Myanmar and Viet Nam (CLMV); • international customs fora; and • partnership with the business community.

For the purposes of managing and controlling the implementation of the PIWP, it was agreed that the development of detailed plans for each element would be undertaken in cycles of 5-6 years, with the first such cycle covering the years 1999-2004. At the time of its initial development, the PIWP priority areas for funding included:

• Customs post clearance audit (PCA), including implementation planning, formulation of guidelines and training;

• cargo processing, including selectivity, performance monitoring and in-depth country studies of procedures;

• Customs valuation, including implementation of the WTO Agreement and regional consistency in its application;

• ASEAN Harmonised Tariff Nomenclature (AHTN), including final development and implementation;

• Protocol on the Facilitation of Goods in Transit; • automation, including country studies and the development of a blueprint for implementation; • enforcement, including the implementation of risk management principles and practices; • temporary admission; and • strategic planning and management, including Customs reform and modernisation.

The PIWP was further refined in October 2002 at the Ninth Meeting of the ASEAN Expert Committee on Customs Matters (ECCM), in the context of regional achievements and shifting priorities. As a consequence, the ECCM produced a Roadmap for Integration of ASEAN in Customs, which identifies the current priorities of ASEAN member countries for achieving the Customs Vision 2020 (a summary of ASEAN Customs reform priorities is presented in Annex 7). The priorities identified in the Customs Roadmap comprise:

1. harmonising the tariff nomenclature; 2. harmonisation of customs procedures and formalities; 3. customs valuation;


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4. post clearance audit; 5. customs automation; 6. technical assistance to Cambodia, Laos, Myanmar and Viet Nam; and 7. customs reform and modernisation.

The areas of priority identified in the Customs Roadmap reflect those aspects of Customs reform that member countries are seeking to progress in the short- to medium-term, in the context of achieving the ASEAN Customs Vision 2020. In order to achieve this, ASEAN member countries, both individually and collectively, are seeking to develop and/or enhance their capacity to implement and manage the required reforms, and therein lies the regional development challenge.

Linkages between key policy documents are presented in Figure 1.

Figure 1: Key Policy Documents

ASEAN Agreement on Customs

Customs PIWP

Customs Roadmap

ASEAN Framework Agreement

Hanoi Plan of Action

ASEAN Vision 2020ASEAN Customs Vision 2020

2 Prior and ongoing initiatives

2.1 ASEAN context Considerable progress has been made towards the achievement of some elements of the PIWP, particularly in the areas of WTO Valuation, the ASEAN Harmonised Tariff Nomenclature and assistance for CLMV. Some progress has also been made in relation to Post Clearance Audit.

World Trade Organisation (WTO) Valuation

The New Zealand Ministry of Foreign Affairs and Trade (MFAT) commissioned the New Zealand Customs Service (NZCS) to provide training on the WTO Valuation Agreement to the Customs Administrations of Laos, Myanmar and Viet Nam. The assistance was provided in early 1999, under the auspices of the ASEAN-New Zealand Economic Cooperation Programme (ANZECP) and as a component of the AFTA/CER linkage (see below).

A Korean-sponsored seminar was held in Seoul, Korea in late 2000 with the objective of facilitating the implementation of the WCO Valuation Agreement in ASEAN member countries. The workshop provided a forum for ASEAN member administrations to share their experiences on implementation of the WTO Valuation provisions.


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The WCO sponsored an expert mission to Viet Nam in early 2001, to conduct a workshop on WTO Valuation. Vietnam, being the country coordinator for technical assistance to CLMV, extended the scope of the technical assistance to include participants from Cambodia, Laos and Myanmar.

NZCS provided further training and advisory assistance for Cambodia (completed in 2001) and Myanmar (completed in 2002) to assist these administrations to implement the WTO Valuation Agreement. Similar training for Laos is pending.

Of particular significance is the development of the ASEAN Customs Valuation Guide (ACVG), which addresses both legislative and administrative issues relating to the WTO Valuation Agreement. The ACVG is expected to be finalised and endorsed in mid-2003, and will form the basis of Customs harmonisation throughout ASEAN. Development of the ACVG is being sponsored by Japan, and includes input from ASEAN, Japan and Canada.

ASEAN Harmonised Tariff Nomenclature

Japan has provided a range of assistance measures to facilitate implementation of the ASEAN Harmonised Tariff Nomenclature (AHTN). This has included a number of workshops to discuss the text of the AHTN, a train-the-trainers course in AHTN and the development of an AHTN electronic index.

In addition, the APEC Sub-committee on Customs Procedures (SCCP) conducted an ASEAN seminar on Pre-entry Tariff Classification in early 2000 for senior officials with responsibility for managing the tariff classification function of their administration. All ASEAN member countries were represented.

Post Clearance Audit (PCA)

The Japan International Cooperation Agency (JICA) is providing assistance to ASEAN member countries in the area of PCA. This was originally intended to include a review of member countries’ existing PCA systems, recommendations for their improvement, the development of an ASEAN PCA manual, PCA trainer training and development of a PCA implementation blueprint. These activities are ongoing.

Assistance for CLMV

In addition to the assistance provided to CLMV under the above initiatives, training on Automation and Electronic Data Interchange (EDI) was provided to the newer ASEAN member countries in late 2000, with an emphasis on preparing for the implementation of electronic systems. Contributors to the initiative include Japan, New Zealand and Sweden.

AFTA-CER

Under the auspices of ASEAN Free Trade Agreement (AFTA)-Closer Economic Relations (CER), the Australian Customs Service (ACS) and NZCS participated in the inaugural ASEAN Experts Committee on Customs Matters (ECCM)-CER consultations in October 2002. During these discussions the ECCM agreed to prepare papers for the CER Customs administrations outlining the specific capacity building/technical assistance they would like to receive and in what form. ASEAN Customs administrations have also expressed an interest in engaging Australia’s assistance in relation to Supply Chain Security.

The goals of the AFTA-CER Closer Economic Partnership (CEP) include issues of particular relevance to Customs administration, including the promotion of greater trade and investment flows, contributing to trade and investment facilitation through minimising impediments, reducing costs, and related capacity building, and promoting transparency of regulations and cooperation among relevant authorities.

2.2 International context Development assistance has also been provided to member administrations under a variety of non-ASEAN initiatives, both multilateral and bilateral. Little or no information is available on some of


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these initiatives, as member countries are not obliged to inform ASEC of activities that are being provided through arrangements that have no ASEAN involvement. Whilst recognising the benefits of assistance that may be provided directly to individual countries, assistance that is provided on a regional basis is more capable of addressing the fundamental issues of regional uniformity, consistency, harmonisation and integration. In this regard, the more relevant international initiatives are those sponsored by the World Customs Organization (WCO) and Asia Pacific Economic Cooperation (APEC). In addition, the Asia -Europe Meeting (ASEM) is progressing cooperative initiatives in the area of Customs enforcement. ASEAN member country membership of the WCO, APEC and ASEM is shown at Annex 8. Benefits of membership include access to information and expertise, as well as participation in development initiatives.

Regional Organisations

Asia Pacific Economic Cooperation

The APEC Sub-committee on Customs Procedures (SCCP) is addressing the APEC objective of harmonising and simplifying customs procedures under the framework of the SCCP Collective Action Plan (CAP). In progressing its regional initiatives, the SCCP seeks to:

• facilitate legitimate trade and investment in the APEC region; • maintain its role in protecting the community; • simplify and harmonize customs procedures; • improve the speed, accuracy and transparency of customs transactions; • establish levels of service to provide traders with certainty; • promote the professionalism and integrity of Customs Administrations; • encourage voluntary compliance in APEC member economies; • consult regularly with the APEC business community to ensure its activities meet their needs; • form strategic partnerships with interested APEC business representatives; • provide members with the required technical assistance to promote efficiency, effectiveness

and equity; and • tailor the pace of progress to the diverse needs and abilities of APEC member economies.

APEC initiatives involving ASEAN member countries are examined below.

World Customs Organization

The World Customs Organization (WCO) is similarly seeking to enhance the effectiveness and efficiency of Customs administrations in the areas of compliance with trade regulations, protection of society and revenue collection. Regionally, the WCO is progressing a range of initiatives to enhance member countries’ effectiveness and efficiency through mutual cooperation, assistance, exchange and sharing of information and implementation of best practices. Its goals are to:

• maximise the harmonisation, simplification and uniform application of Customs procedures relating to the facilitation of goods and passengers;

• ensure compliance with Customs laws and the protection of community interests of Customs administrations of the region, through maximum mutual cooperation and assistance, in particular, in the sphere of border security, combating commercial fraud, and trafficking in illicit drugs and firearms; and

• improve the working methods and capacity and capabilities of the Customs administrations of the region, by promoting communication and cooperation between Members, and by fostering integrity, human resource development and transparency.

The key WCO activities in the Asia Pacific Region for 2003-2004 are to:

• encourage and assist members with accession to and/or implementation of the revised Kyoto Convention;

• encourage and assist members to implement and uniformly apply the WTO Valuation Agreement;

• encourage and assist members to apply the HS in an accurate and uniform way;


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• assist members to prepare for the implementation of the WTO Agreement on Rules of Origin (ARO);

• encourage contact between members and the business sector for sharing of mutual concerns; • encourage and assist members to participate in the review of the WCO Data Model; and • assist regional members to respond to the demands of electronic commerce in the global

marketplace, including the use of information technology.

WTO initiatives involving ASEAN member countries are examined below.

ASEAN Priority Issues

WTO Valuation

A range of initiatives are being progressed by the WCO to encourage and assist its members to implement and uniformly apply the WTO Valuation Agreement. These are essentially initiated at the request of member administrations, and take account of the special needs of those members who are in the early stages of implementing the Agreement. A technical assistance training program also operates under the auspices of the SCCP to assist APEC member administrations to adopt the principles of the WTO Valuation Agreement.

Tariff

The SCCP provides workshops, expert missions and technical advice to facilitate accurate, consistent and uniform application of the HS Convention by all APEC member administrations, to provide greater predictability for traders. Technical assistance has also been provided to APEC member administrations seeking assistance with the implementation of an Advanced Classification Ruling System. Similarly, initiatives are being developed by the WCO to encourage and assist its members to apply the HS in an accurate and uniform manner.

Kyoto Convention

The WCO is progressing a range of initiatives aimed at encouraging and assisting its members with accession to and/or implementation of the revised Kyoto Convention. Indonesia is a member of the Regional Kyoto Working Group (RKWG), which has responsibility for coordinating the initiative. Activities include the development of a Kyoto Process Facilitation Tool, development and circulation of Kyoto accession and implementation experience papers, developing and promoting a mentor system within the region, creating and maintaining a contact group of regional Kyoto managers, as well as a range of other awareness raising strategies.

SCCP also assists its member administrations to implement the principles of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures through regional seminars and technical workshops. In addition, SCCP is currently progressing a two-stage technical assistance program that is designed to enhance the capacity of APEC economies as a whole to accede to the revised Kyoto Convention. This includes the development of a Kyoto guidebook; an awareness workshop based on the guidebook; situational and gap analyses by economies of their status in relation to the revised Kyoto Convention; and planning and implementation assistance missions.

Risk Management

SCCP has provided extensive technical assistance throughout the region on risk management principles and techniques, including study missions to assess management commitment, advise on the development of an appropriate supporting infrastructure, develop priorities and establish timelines for implementation. All APEC member countries have received technical assistance under this initiative.

Express Clearance

The SCCP has provided experts for advisory and assessment missions on express clearance, and seminars have been conducted for APEC member administrations to assist with the implementation and application of the WCO Guidelines which may be applied to simplify and harmonize Customs


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formalities in respect of consignments for which immediate clearance is requested (Express Clearance Guidelines). The goal is to implement seven principles of the WCO Express Clearance Guidelines, which represents the international standard for Customs clearance of express goods, with particular focus on issues including automation, risk management and alternative procedures that meet the WCO Guidelines and satisfy the needs of the business community. All activities are conducted in partnership with express industry associations, including the International Express Carriers Conference (IECC), the Conference of Asia Pacific Express Carriers (CAPEC).

Automation

SCCP has provided support in the form of training, pilot projects and on-the-job assistance to assist member administrations to adopt paperless trading through the use of the standards of United Nations/Electronic Data Interchange for Administration, Commerce and Transport (UN/EDIFACT).

Enforcement

The WCO is progressing a comprehensive control and enforcement program in the areas of security, commercial fraud, smuggling and intelligence. In addition, a range of initiatives are being progressed to enhance cooperation between members in the fight against Customs offences and other trans-national crime, and to strengthen the enforcement capabilities of regional members to respond to emerging Customs crime and border security trends. These include regional workshops on the security and facilitation of international trade.

ASEM is also progressing initiatives in the area of Customs enforcement. The first ASEM Customs Enforcement Seminar, in March 2003, was designed to further improve and enhance trade facilitation within the latest security requirements. It focussed on the issues of the Business Anti-Smuggling Coalition, Intellectual Property Rights, and Security and Facilitation in International Trade.

Other Areas of Assistance

Technical assistance is also available through a range of forums for economies requesting assistance in implementing the border enforcement aspects of the WTO Trade Related Intellectual Property Rights (TRIPS) Agreement, implementation of transparent appeals provisions, temporary importation provisions, integrity initiatives, implementation of the WTO Agreement on Rules of Origin (ARO), client service, communication with the business sector, training coordination, regional cooperation and information exchange and dissemination.

3 Scope and justification for proposed intervention

3.1 Gaps in ongoing initiatives The ASEAN Customs Roadmap identifies seven key priority areas which member countries are seeking to progress in order to achieve the ASEAN Customs Vision 2020 (see Section 1.2). Of the seven regionally agreed priorities, technical assistance is already being provided and/or sought from donor agencies in five of the areas including:

• post-clearance audit; • technical assistance to Cambodia, Laos, Myanmar and Viet Nam; • tariff nomenclature harmonisation; • Customs reform and modernisation; and • Customs automation for newer ASEAN member countries.

The remaining two areas of regional priority have a significant impact on the ability of ASEAN member countries to enhance the regional facilitation of trade and to provide the international trading community with an efficient and transparent regulatory framework that is consistently applied across the region. These areas are:


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• harmonisation of Customs procedures and formalities; and • implementation of the WTO Valuation Agreement.

In terms of Customs procedures and formalities, the most significant issues that impact on trade facilitation are the various policies and procedures associated with cargo processing. Currently there exists a disparate range of cargo processing regimes within ASEAN, and consequently considerable regional reform is required to achieve the intended levels of harmonisation and integration espoused by the ASEAN Customs Vision.

In relation to Customs Valuation, it is recognised that significant progress has already been achieved in progressing the regional implementation of the WTO Valuation Agreement, with the imminent finalisation of the ASEAN Customs Valuation Guide (ACVG). However, no funding options currently exist outside of AADCP to progress the Valuation initiatives to the next level, i.e. providing Customs staff throughout the region with the knowledge, skills and competencies to implement the policies and procedures of the ACVG. This next step is critical to ensuring that the principles of the WTO Valuation Agreement are appropriately and consistently applied in all ASEAN member countries, thereby increasing the degree of clarity and certainty for the international trading community and enhancing regional trade facilitation.

3.2 Options for project intervention Potential areas of assistance for ASEAN member countries under AADCP were originally identified in December 2000. Since that time, however, ASEAN member countries have refined their regional priorities in the light of world events and regional achievements, and it is evident that the current regional development challenges and priorities requiring assistance are:

• the introduction of harmonised, integrated best-practice cargo processing procedures throughout the region; and

• the further development of the capacity of regional member countries to effectively implement and apply the principles of the WTO Valuation Agreement.

The achievement of harmonised cargo processing procedures across the region is somewhat problematic, since the current stages of development of the ASEAN Customs administrations are quite disparate. Some administrations have sophisticated electronic systems, highly trained staff, and policies and procedures based on the principles of the revised Kyoto Convention, including risk management, pre-arrival clearance and post-transaction audit. Others, however, rely heavily on manual processing systems and real-time physical control mechanisms, and their staff have relatively little knowledge of contemporary Customs procedures and techniques.

One method of addressing this issue is to independently develop specific interventions for individual member countries. Whilst this may appear to be an attractive option given the broad range of regional practices and capabilities, it is less likely to achieve a harmonised approach for the region than would an intervention, which addresses the ASEAN member countries as a whole.

Consequently, the proposed approach is to develop an agreed cargo processing model that is not only regionally attainable in the longer term, but is of immediate relevance to all ASEAN member countries. In this regard, in addition to developing a harmonized regional strategy for the longer term, it will be necessary to identify complementary policies and procedures that are relevant and of benefit to all member countries, including less-developed member countries, in the short- to medium-term. This implies the development of best-practice cargo processing policies and procedures that are equally relevant to those administrations which have yet to develop an effective IT infrastructure as they are to the highly automated administrations of the region. The model should represent best practice and be fully consistent with the principles of the revised Kyoto Convention.


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Active participation in such an initiative will provide all member countries with significant benefits, including:

• inclusion of country-specific issues in the consideration and development of a regional cargo processing model;

• access to information and expertise in implementing identified reform requirements; • access to regionally-developed reform enablers, including relevant software packages, training

programs, procedural manuals and related documentation; • facilitation of process re-engineering prior to automation for those administrations operating in

a manual processing environment; • eligibility to participate in subsequent ASEAN-sponsored capacity building initiatives that may

flow from the development of the regional model; and • assistance with accession to the revised Kyoto Convention and implementation of the

Convention’s practices and procedures.

In terms of progressing the valuation initiative, one option is to adopt a traditional train-the-trainer approach, which seeks to train key personnel in each member country and to subsequently rely on them to implement training arrangements within their respective administrations. Such an approach, however, does not take account of the fact that not all administrations may be able to provide suitable training staff, nor does it adopt a regional view of the resultant training capability. The proposed approach is designed to develop a cadre of highly experienced Valuation Trainers that may be utilised as a regional resource. In this way, it will not be essential for all member countries to establish their own training capability, as they will be able to draw on a pool of qualified regional trainers. Such an approach also provides an ideal platform on which to build a professional network of experienced Valuation advisers with a broad regional perspective. It will also serve to ensure a high degree of consistency in regional training.

Baseline Studies

It would be desirable to establish some definitive baseline measures relating to the performance of individual member country administrations in processing cargo, including costs to industry. This would not only provide a snapshot of the current regional situation, but also serve to measure changes in performance over time. Attempting to absorb such a study in the present Project would severely limit its capacity to focus on activities that will deliver sustainable outcomes. However, a study of this nature is considered to be a very worthwhile initiative, and it would therefore be prudent to seek funding under the AADCP Policy Support Facility to undertake the suggested baseline research.

Similarly, a baseline research study into the application of the WTO Valuation Agreement in ASEAN member countries would represent a very worthwhile initiative under the AADCP Policy Support Facility. Such a study should be designed to independently assess the extent to which the principles of the WTO Valuation Agreement are being observed in the region, and the estimated revenue impact for government and industry.

Customs Education Program

ASEC has indicated a desire to seek funding under the AADCP Regional Partnerships Scheme to achieve recognition of the proposed ASEAN Customs Valuation Guide (ACVG) training program by a tertiary institution. The intention is to explore the possibility of establishing a vocational award for ASEAN Customs officials that may be co-badged by ASEAN and an educational institution, which may then articulate into a tertiary customs award program. In this regard, the ACVG training program would represent the first of several modules of a Customs education program that may lead to a tertiary award of, say, Diploma in Customs Administration. This would serve to raise the level of Customs education and training in ASEAN, thereby enhancing the professionalism of member administrations and enhancing the capacity for quality service and reform.


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3.3 Justification for proposed intervention Regionality

The requirement for Customs authorities to process cargo and assess the Customs value of traded goods is fundamental to the effective performance of their legal and administrative responsibilities. Such activities are international in their application, and the achievement of regionally consistent policies and procedures is fully consistent with the principles of the ASEAN Agreement on Customs principles, including regional uniformity, harmonisation and integration in the administration of Customs matters.

Target groups and ASEAN participation

The Project itself is pr imarily targeted at Customs officials responsible for implementing and managing cargo processing activities and the principles of the WTO Valuation Agreement. This includes senior Customs officials with responsibility for overseeing the change management processes associated with introducing best practice cargo processing procedures and Valuation officers who are required to provide regional training, advice and support in implementing and applying the principles of the ACVG. ASEAN participation will occur throughout the Project in the form of researching and developing regional initiatives, workshop participation and Project review.

Sustainability of benefits

The Project objectives have been designed to facilitate the achievement of key elements of the Hanoi Plan of Action as articulated in the ASEAN Customs Policy Implementation and Work Program (PIWP), with a particular emphasis on sustainability. All components of the Project are strategic in outlook, designed to assist Customs authorities throughout ASEAN to develop and maintain a regulatory framework that is efficient and transparent to investors, traders and manufacturers across the region.

The cargo processing initiatives achieve this by providing ASEAN member countries with both a best practice model for regional application and the knowledge, skills and competencies to implement and apply the model. Similarly, the valuation initiatives builds on the achievements that have already been realised by ASEAN member countries, and provide a means to establish and maintain high quality valuation practices across the region.

The ongoing benefits to both ASEAN member countries and the international trading community include enhanced trade facilitation, regional consistency, greater transparency and improved efficiency in the administration of Customs matters.

Impact on poverty, gender and the environment

Improved methods of cargo identification will enhance the ability of Customs administrations to identify contaminants and other potentially environmentally hazardous products, and to minimise the likelihood of such items entering the economies of the region. Providing member countries with an ability to detect potential risks prior to arrival will further facilitate the ability of relevant government authorit ies to effect timely interventions in situations where potentially high risk cargo is identified.

Streamlined cargo clearance arrangements, including pre-arrival clearance, will also serve to facilitate the movement of goods at points of arrival and departure, therefore minimising the incidence of cargo wastage and improper disposal, particularly in respect of perishable products.

Implementation of cargo processing reforms based on the principles of the revised Kyoto Convention will appropriately position member countries that currently employ manual processing methods to automate their procedures, which in turn will facilitate implementation of paperless trading across the region.

Whilst the Project will not have any direct impact on poverty, in the longer term the Project will help to enhance the global competitiveness of regional enterprises. The regulation of international trade within the region, including the way in which the law is applied in an administrative context,


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has a significant impact on the overall operation and efficiency of the supply chain. Development of a regulatory infrastructure in ASEAN member countries that facilitates the creation of a more competitive environment for international trade will directly benefit ASEAN importers and exporters by enhancing their competitiveness in the global marketplace.

The Project is unlikely to have an impact on gender issues, as its principal focus is on documentary methods of managing trade compliance, including research, analysis and audit. Gender imbalance is generally not prevalent in such areas of Customs operation, unlike those activity streams that have a traditionally male bias such as control point activities and investigation. Care should, however, be taken to ensure that an appropriate gender balance is achieved when determining workshop attendees.

AADCP capacity to contribute

Whilst several of the ASEAN member countries have the capacity to progress the objectives of the Project within their respective Customs administrations, this is not the case for all member countries. Recognising the existence of such capacity within ASEAN, the provision of assistance at the regional level provides the opportunity for AADCP-PS to bring together Australian and ASEAN expertise to develop and implement best practice cargo clearance and valuation policies and procedures for introduction across all member countries. In this regard, Australia is recognised as a world leader in the development and implementation of modern Customs management techniques, and is actively involved in examining such issues at the international level, both from a government and private sector perspective. The AADCP-PS can bring such knowledge and expertise to the Project.

4 Project Description

4.1 Goal and objectives The Project Goal is:

To enhance the capacity of ASEAN Customs Administrations to develop and maintain a regulatory framework that is efficient and transparent to investors, traders and manufacturers across the region.

The Project Purpose is:

To achieve regional harmonisation, integration and reform in identified priority areas of Customs administration.

Component Objective 1: To progress regional harmonisation, integration and reform in relation to cargo processing policies and procedures.

The WTO has indicated that the costs of import tariffs are often exceeded by the losses incurred by the international trading community as a result of slow cargo clearance procedures, opaque and unnecessary documentary requirements and lack of automated procedural requirements. In June 1999 the Council of the WCO approved the revised International Convention on the Simplification and Harmonization of Customs Procedures (the revised Kyoto Convention). The Convention has been developed in the face of mounting pressure from the international trading community to minimise the level of customs intervention in cargo movements and to maximise the level of trade facilitation. It represents the international blueprint for prudent, innovative customs management, and is designed to maintain the relevance of customs procedures at a time when technological developments are revolutionising the world of international trade and travel.

Essentially, the Convention is intended to achieve a highly facilitative international travel and trading environment while maintaining appropriate levels of control across all member administrations. It is designed to provide the underlying conditions and instruments to help the Contracting Parties to achieve a modern customs administration and to make a major contribution to the facilitation of international trade by:


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• eliminating divergence between the Customs procedures and practices that can hamper international trade;

• meeting the needs of both international trade and Customs for trade facilitation, simplification and harmonisation of Customs procedures and practices;

• ensuring appropriate standards of Customs control; • enabling Customs to respond to major changes in business and administrative methods and

techniques; • standardising and simplifying goods declarations and supporting documents; • minimising Customs intervention through the use of risk management and post-transaction

compliance techniques such as post-clearance audit; • enabling “fast track” procedures for authorised persons with good compliance records; and • providing Customs with efficient procedures, supported by appropriate and effective control

methods.

It is proposed to develop best practice cargo clearance procedures, based on the principles of the WCO revised Kyoto Convention, which are appropriately tailored to suit the unique geographic, economic and political trading environment, which the ASEAN region represents. Development and implementation of the procedures will provide an appropriate basis on which ASEAN member countries may enhance the regional facilitation of trade and provide investors, traders and manufacturers with a regulatory framework that is efficient, transparent, consistently applied and capable of full integration across the region. Having identified an agreed ASEAN Cargo Processing Model, implementation strategies would be developed for each Member Country, and the implementation process would be facilitated by enhancing the capacity of member countries to manage change. Figure 2 outlines the expected Component outputs and activities.

Component Objective 2: To progress regional harmonisation, integration and reform in determining the Customs Value of international trade.

The uniform, predictable and transparent application of international instruments facilitates international trade whilst ensuring compliance with national laws and regulations. The WTO Valuation Agreement is the sole valuation system having international application, and all ASEAN member countries have committed to adopting the Agreement as the basis for Customs valuation throughout the region. The Agreement adopts a positive approach to Customs valuation by providing a direct link between the collection of duties and commercial reality. The clarity of the Agreement and its instruments can also serve to minimise disputes between traders and Customs administrations, thus expediting cargo clearance operations, provided that the Agreement is implemented and administered in an appropriate manner. As such, the effective and uniform administration of the Agreement on a regional basis is a prerequisite to the full achievement of trade liberalisation and the associated objectives espoused in the ASEAN Customs Vision.

Considerable work has already been undertaken by ASEAN member countries in developing the ASEAN Customs Valuation Guide (ACVG), which addresses in detail both the technical aspects of the WTO Valuation Agreement and a range of administrative principles, practices and techniques to ensure its efficient and effective implementation and operation. The ACGV provides a sound basis for ASEAN Customs administrations to adopt a harmonised, integrated approach to the valuation of international trade. What is now proposed is the development of a comprehensive training course based on the ACVG and the development of a cadre of expert Valuation Trainers within ASEAN, in order to provide a sustainable capacity within the region to conduct high quality valuation training on an ongoing basis. This in turn will enable high quality ACVG training to be conducted throughout the region on a needs basis, and provide officers at all levels with the necessary skills and knowledge to assess the Customs value of goods in full accordance with the WTO Valuation Agreement, thereby providing traders with the certainty and clarity required to effectively compete in the global marketplace. Figure 3 outlines the expected Component outputs and activities.


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Component Objective 3: To effectively and efficiently manage and monitor Project implementation.

The successful attainment of Objectives 1 and 2 requires effective management and monitoring strategies to ensure that the Project is responsive to its changing operating environment. This component is aimed at ensuring that Project activities are effectively and efficiently planned, coordinated and managed and that the AMC and ASEC (and associated committees and working groups) are kept informed of Project progress through effective monitoring, review and reporting of Project plans and achievements.

4.2 Component outputs and indicative activities Component 1

Output 1.1: ASEAN Member Country agreement on best practice import and export cargo clearance policies and procedures for introduction across the region.

It is proposed to develop best practice import and export cargo clearance procedures that will be implemented by all ASEAN member countries. In recognition of the fact that not all member countries are at the same stage of development, particularly in the area of information technology, the principles and practices identified in the best practice model will be capable of being applied in both a manual and automated processing environment. In this regard, the implementation of the best practice model in a manual processing environment will provide a sound base from which to subsequently automate procedures, as the initiative will serve to re-engineer the relevant procedures prior to automation, in accordance with the standards of the revised Kyoto Convention.

The six principal elements of cargo processing to be addressed are:

1. Customs and other Government Authority Documentary requirements;

2. selectivity and profiling;

3. Customs processes, including physical and documentary checks and examinations;

4. revenue payment;

5. special schemes (e.g. special economic zones, warehousing, temporary admission); and

6. cargo release.

The indicative activities required to achieve this output comprise:

• jointly (AIP and ASEAN representatives) researching and developing a Draft Cargo Processing Model, based on information and materials held by ASEC, contributions from member countries and international research;

• conducting a three-day high level regional workshop to debate the Draft Model, and arrive at an agreed Cargo Processing Model including benchmarks and performance indicators, for implementation across ASEAN; and

• jointly (AIP and ASEAN representatives) developing Draft Country Implementation Plans to achieve an effective transition to the agreed best practice cargo processing arrangements.

Output 1.2: Enhanced capacity of ASEAN member countries to effectively implement best practice cargo clearance policies and procedures.

Implementation of best practice cargo clearance procedures by the Customs administrations of ASEAN member countries will require high level change management skills and a knowledge and understanding of methods and techniques that may assist to achieve a smooth transition, whilst achieving and maintaining appropriate levels of both regulatory control and trade facilitation. It is therefore proposed to develop a tailored training workshop and materials to provide participants with the necessary knowledge, skills and competencies to effectively implement the identified best practice arrangements.


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• jointly (AIP and ASEAN representatives) developing comprehensive training modules and materials which address specific implementation and change management strategies for each of the six elements, including relevant case studies;

• delivering four training workshops, each with 25 participants from member countries with responsibility for implementing the best practice cargo processing arrangements;

• jointly (AIP and ASEAN representatives) refining member country implementation plans; • providing support and advice to member country change management champions; and • jointly (AIP and ASEAN representatives) conducting an implementation review, which will

involve circulating questionnaires and a joint meeting to review the results.

Component 2

Output 2.1: ASEAN member country access to a comprehensive training program that will provide Customs staff with the necessary skills and competencies to effectively implement and apply the principles and practices of the ASEAN Customs Valuation Guide (ACVG).

In order provide ASEAN Customs staff with the knowledge, skills and competencies to apply the principles, practices and techniques espoused in the ACVG, it is proposed to develop a comprehensive training program that may be used as the basis for Customs valuation training in all ASEAN member countries. The program and its associated materials, which should include relevant case studies, will serve to facilitate the consistent application of the ACVG throughout the region, thereby providing the international trading community with certainty and clarity when trading within the ASEAN region. The indicative activity required to achieve this output is:

• jointly (AIP and ASEAN representatives) developing a two-week intensive training program that may be used as the basis for Customs valuation training in all ASEAN member countries.

Output 2.2: Sustainable resource capacity among ASEAN member countries to provide high quality intra-regional training, advice and support in applying the principles and practices of the ACVG.

It is proposed to develop a group of expert trainers from within the region who are capable of delivering the ACVG training program to a very high standard. Whilst ideally all member countries should be represented in the proposed cadre of expert Valuation trainers, this is not essential to the successful achievement of the Project objective. It is recognised that not all member countries may be able to provide or develop Valuation training personnel with the level of knowledge and skills required to deliver ACVG training. For this reason, and to maximise the flexibility of ACVG training arrangements, it is proposed that the expert trainers will be available to conduct ACVG training in any Member Country requiring such assistance. In this way, Customs personnel throughout the region will have access to the same high quality of valuation training, thereby maximising its regional effectiveness.


• delivering a two-week ACVG Trainer training workshop, with 20 participants from member countries;

• undertaking an assessment of competence of the participants at the conclusion of the training workshop;

• providing support and advice as a “mentor” to ACVG Trainers, by providing them with access to experts by phone, fax and email throughout the course of the project; and

• conducting a three-day refresher training workshop, with 20 participants from member countries, incorporating a 12 month implementation review, which will involve circulating questionnaires and a joint meeting to review the results.


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Component 3 Output 3.1: Project activities effectively and efficiently planned, coordinated and managed by the AIP As a precursor to Project implementation, the lead consultant will travel to Jakarta to meet with the relevant ASEC desk officer and the AMC in-country personnel. A key outcome of this meeting will be agreement on any suggested changes to the Project approach and the AIP’s workprogram for the period up to approval of the first Annual Plan. The AIP has the overall responsibility for the successful implementation of the Project and will provide dedicated resources to facilitate the delivery of Project activities. To this effect, the AIP, will be responsible for: • workshops -

o the identification of the ‘host’ country for the workshop and discussion of this with the ASEC Desk Officer and the Regional Focal Point (the Regional and National Focal Points are explained in further detail in Section 5.1);

o the identification of the skill requirements of workshop participants and discussion of these with the ASEC Desk Officer;

o confirmation of member country involvement and the number of participants with the ASEC Desk Officer, the Regional Focal Point and National Focal Points;

o discussion with participants in the ‘host’ country regarding workshop logistics – gaining suggestions on workshop venue, accommodation etc.;

o booking of the workshop venue, arrangement of catering, arrangement of domestic travel (in the country where the workshop is being held) and booking of participant accommodation;

o distribution of workshop materials directly to the participants (not through the ASEC Desk Officer);

o all logistical arrangements for the consultants conducting the workshop; o conduct of the workshop as per the logframe and workplan; o preparation of draft and final workshop reports; and o obtainment of letters or other supporting documents that verify ‘Performance Indicators’;

• other activities: o arrangement of all inputs to implement identified activities; o confirmation of member country, partner agency and participant involvement in the activ ity

with ASEC Desk Officer; and o preparation of reports or obtainment of other ‘Verifiable Indicators’.

Further details of management and coordination requirements are presented in Section 5. Output 3.2: AMC and ASEAN informed of Project progress through effective monitoring, review and reporting of Project plans and achievements. The AIP will prepare annual plans and other reports as specified in Section 6. Monitoring and evaluation responsibilities include: • preparation of a draft Annual Plan within 3 months of signing the contract with the AMC; • preparation of subsequent draft Annual Plans which are to be submitted to the AMC by the end

of February each year; • preparation of a six month report every year (only 1 per year which will be submitted six

months after the Annual Plan); • organisation of Project Coordinating Group (PCG) meetings either by phone or as part of

Project activities (details of the PCG are outlined in Section 5.2); • taking of minutes of PCG meetings and distribution to PCG participants; • submission of quarterly cash flow estimates for the Project including the identification of

ASEAN Participation Trust Fund amounts;


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• preparation of a draft completion report at least 3 months prior to Project conclusion with the final report to be submitted at least 1 month prior to Project conclusion;

• distribution of management and milestone reports as necessary to national focal point personnel; and

• liaison with the ASEC Desk Officer and the AMC regarding Project implementation issues. Further details of monitoring and evaluation requirements are presented in Section 6.


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Figure 2: Component 1 outputs and activities.

Jointly research best practice cargo processing procedures through: q Information and materials held by ASEC q Contributions from member countries q International research

Conduct a three-day high level regional workshop to debate the Draft Model and arrive at an agreed Cargo Processing Model, including benchmarks and performance indicators, for implementation across ASEAN

Jointly develop a Draft Cargo processing Model addressing six principal elements: q Customs & Other Government Authority

Documentary requirements q Selectivity and Profiling q Customs Processes (including physical &

documentary examination) q Revenue Payment q Special Schemes (e.g. Special Economic Zones,

Warehousing,Temporary Admission) q Cargo Release

Jointly develop Draft Member Country Implementation Plans to achieve an effective transition to the agreed best practice cargo processing arrangements

Output 1.1

ASEAN Member Country agreement on best practice import and export cargo clearance policies and procedures for introduction across the region

Jointly develop comprehensive training materials that address specific implementation and change management strategies for each of the six principal elements of cargo processing, including relevant case studies

Output 1.2

Enhanced capacity of ASEAN member countries to effectively implement best practice cargo clearance policies and procedures

Deliver four training workshops, each with 25 participants from member countries with responsibility for implementing the best practice cargo processing arrangements

Jointly conduct an implementation review

Provide support and advice as a “mentor” to the Member Country change management champions

Jointly refine Member Country Implementation Plans


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Figure 3: Component 2 outputs and activities.

4.3 Inputs Detailed inputs are provided in the attached implementation and resource schedule (Annex 3). In summary these are:

Personnel

The Project will involve input of 482 days by consultants. The Project is likely to involve several consultants with significant experience and expertise in the development and implementation of major Customs reform programs, compliance management, risk management and adult education. Consultants should also possess an extensive knowledge and understanding of the revised Kyoto Convention and WTO Valuation Agreement, particularly in relation to implementation issues; and a broad knowledge of contemporary international cargo management policies and procedures.

ASEC will be expected to contribute through the provision of background information, coordinating the nomination of workshop participants, identifying counterparts and coordination of information gathering from ASEAN member countries. Provision has been made for ASEC Desk Officer participation in workshop activities. At several stages of the Project, the ASEC Desk Officer will be required to forward outputs to relevant working groups for endorsement.

ASEAN member countries are expected to nominate key personnel to actively participate in workshop and related activities, including the nomination of counterpart personnel to work closely with the AIP in jointly researching and developing a Draft Cargo Processing Model and conducting a joint implementation review, which will involve circulating questionnaires and a joint meeting to review the results.

Jointly develop a comprehensive training program and materials that may be used as the basis for Customs valuation training in all ASEAN member countries

Output 2.1

ASEAN Member Country access to a comprehensive training program that will provide Customs staff with the necessary skills and competencies to effectively implement and apply the principles and practices of the ASEAN Customs Valuation Guide (ACVG) Deliver a two-week ACVG Trainer training workshop, with

20 participants from member countries

Output 2.2

Sustainable resource capacity among ASEAN member countries to provide high quality intra-regional training, advice and support in applying the principles and practices of the ACVG

Undertaking an assessment of competence of the participants at the conclusion of the training workshop

Conduct a refresher training workshop, incorporating a 12 month implementation review

Provide support and advice as a “mentor” to the ACVG Training team


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Provision is also made for AIP administrative inputs to facilitate the conduct of Project activities and also for the lead consultant to:

• Undertake a 4 day input at the commencement of the Project for discussions with ASEC; • Prepare documentation for PCG meetings (Annual Plans and six monthly reports); and • Meet with ASEC or the regional focal point up to twice per year.

Procurement

No procurement costs are involved in this Project.

Training resources

Provision is made for

• workshop materials and participant travel (within the country that the workshop is being held);

• workshop venue hire and catering; and

• printing of course and subject materials (Outputs 1.2 and 2.1).

ASEAN Participation Costs

A total of seven workshops are proposed for the Project. These comprise:

• 4 x four-day training workshops, with a total of 100 participants from ASEAN member countries, of which the travel expenses of 48 participants and per diems of 100 participants will be funded from the ASEAN Participation Trust Fund.

• 1 x three-day high-level regional workshop, with a total of 32 participants from member countries, of which the travel expenses of 29 participants and per diems of 32 participants will be funded from the ASEAN Participation Trust Fund.

• 1 x two-week train-the-trainer workshop, with a total of 20 participants from member countries, of which the travel expenses of 18 participants and per diems of 20 participants will be funded from the ASEAN Participation Trust Fund.

• 1 x three-day implementation/refresher workshop, with a total of 20 participants from member countries, of which the travel expenses of 18 participants and per diems of 20 participants will be funded from the ASEAN Participation Trust Fund.

The difference between the number of participants for which travel expenses will be incurred, and those for which accommodation expenses will be incurred, arises from the assumption that, while no travel costs will be incurred for host country participants, accommodation costs will be incurred for such attendees as residential participants at the workshops.

In addition, it is proposed that the AIP will work closely with National Focal Points in developing best practice cargo processing procedures and implementation plans, developing ACVG course materials and in conducting the implementation reviews, for which ASEAN participation costs will be incurred. These inputs comprise:

• 1 x two-week activity to finalise the development of a Draft Cargo Processing Model, involving two ASEAN counterparts, one of which will incur travel and per diem expenses that will be funded from the ASEAN Participation Trust Fund.

• 1 x one-week activity to finalise documentation of the agreed Cargo Processing Model and Draft Implementation Plans, involving two ASEAN counterparts, one of which will incur travel and per diem expenses that will be funded from the ASEAN Participation Trust Fund.

• 1 x one-week activity to finalise the Implementation Review for Component 1, involving two ASEAN counterparts, one of which will incur travel and per diem expenses that will be funded from the ASEAN Participation Trust Fund.


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• 1 x two-week activity to finalise preparation of the ACVG workshop materials, involving two ASEAN counterparts, one of which will incur travel and per diem expenses that will be funded from the ASEAN Participation Trust Fund.

The ASEAN Participation Trust Fund is a cost sharing fund established to support the direct participation costs of ASEAN member countries in AADCP activities. The primary purpose of this fund is to help ensure program and project relevance to ASEAN and promote the sustainability of benefits.

The fund will be established in Jakarta and managed by ASEC. AusAID will provide up to 80% of the estimated ASEAN direct participation costs, with ASEAN responsible for funding the balance. Direct participation costs will consist of participant air travel and perdiems (including accommodation).

By meeting a proportion of the direct costs of their participation in the Project, ASEAN member countries will be better placed to assess the relative importance of the Project to their national priorities.

While the fund is managed by ASEC, the AIP will provide quarterly budget statements to the AMC that specify the anticipated direct participation costs of the Project.

Other costs

Provision is made for:

• communication costs for arranging workshops and mentoring activities; • printing and courier costs; and • management travel to Melbourne (for meetings with the AMC)

4.4 Costs The overall Project cost is estimated to be $1.476 million, of which $0.416 million are ASEAN direct participation costs. Under the cost sharing arrangement ASEAN’s contribution to the direct participation costs would be $0.083 million, leaving a total contribution from AusAID of $1.393 million.

Project costs are summarised in Table 1.

Table 1: Project costs Description Costs in A$ ‘000 Personnel 830.550 Procurement 0 Training 56.427 Other 173.916 ASEAN Participation costs 415.590

Of which AusAID will meet 80% 332.472 Of which ASEAN will meet 20% 83.118

Sub-total AusAID Project Costs 1,393.365 Sub-total ASEAN Project Costs 83.118 Total Project Costs 1,476.483

Details are provided at Annex 4.

4.5 Phasing, duration and location The Project is expected to commence in 2004. It has two technical components which, from a project management perspective, are mutually exclusive and may therefore proceed concurrently.


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The Implementation and Resource Schedule at Annex 3 is based on Component 1 of the Project having a duration of three years, and Component 2 having a duration of two years.

Soon after the AIP is appointed it will be necessary for the lead consultant to visit ASEC and meet with relevant ASEC personnel and nominated counterparts to ensure that all parties have a shared understanding of the Project’s objectives, to agree on the proposed schedule for the Project and to settle the administrative arrangements. Whilst a formal Inception Report is not envisaged, the AIP will need to prepare an annual plan, including a detailed work plan within three months of Project commencement.

The suggested phasing of the Project is also shown at Annex 3. Both components will require extensive travel to the region, and the mid-term training workshops in Component 1 will require travel to four ASEAN countries. All workshops will be undertaken within the ASEAN region, and it is proposed that finalisation of research and review activities will be undertaken at the ASEC office.

An overview of phasing proposals is shown in Figure 4.

Figure 4: Overview of Phasing

Component 1

Cargo

Component 2

Valuation

Research Best Practice Procedures

Draft Cargo Processing Model

High Level Regional Workshop

Agreed Cargo Processing Model

Draft Implementation Plans

ACVG Training Workshop

Competence Assessment

Develop Training Program

Training Materials Development

Training Workshops

Refine Implementation Plans

Refresher Training

Implementation Review

Implementation Review

Q1

Q2

Q3

Q7

Q6

Q5

Q4

Q8

Q10

Q9

Q11

Q12

Support and Advice

Support and Advice

Component 3

Management

Activities Coordinated, Planned and

Managed

Project

Management and Monitoring

Reports


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5 Management and coordination arrangements

5.1 Management responsibilities The AIP will report to the AMC on the overall performance of the Project. In addition to this direct contractual relationship, there are Project specific stakeholders who the AIP will interact with on Project implementation issues, including the:

• ASEC Desk Officer; • National Focal Points (with a nominee as the Regional Focal Point); and • Partner Governments.

The ASEAN Expert Committee on Customs Matters (ECCM) and the ASEAN Coordinators of Customs Training Centres (ACCTC) are also major stakeholders, however the AIP will have limited direct contact with these groups as all communications are to be channelled through the Regional Focal Point (a member of the ECCM) or the ASEC Desk Officer.

While the Project is designed to involve all ASEAN member countries, it is recognised that it is the prerogative of each country whether they become involved or not. Within each member country that elects to become involved in the Project, a National Focal Point will be nominated. The National Focal Points will collectively elect a Regional Focal Point who will act as the main point of contact for the AIP.

A generic overview of stakeholder relationships within the overall Program Stream is provided in Figure 5.

1. ASEAN Committees

9. Partner Governments 10. Australian Implementing Partners

(AIPs) and sub-contractors

6. Australian Managing Contractor

(AMC)

3. AusAID

4. ASEC PC & External Relations

PROJECT IMPLEMENTATION

POLICY & PROGRAM COORDINATION

5. ASEC Technical Bureaux

Participation Fund

PROGRAM FACILITATION

8. ASEC Desk Officers

7. ASEAN Working Groups / Sub-Committees

Figure 5: AADCP Program Stream – Stakeholder diagram

11. National and Regional Focal

Points

Joint Planning Committee

2. Program Coordination Committee

The management responsibilities of the AIP, as they relate to specific Project activities, are presented in Output 3.1. The success of the Project will however also require the involvement of the


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ASEC Desk Officer, National Focal Points (and the Regional Focal Point), and Partner Governments. The anticipated roles and responsibilities of these stakeholders include:

ASEC Desk Officer

• for workshops - o liaison with the AIP on timing of the workshop, ensuring that it meets the requirements of

ASEC and the partner countries; o coordination of the identification of workshop participants, including their contact details,

in consultation with National Focal Point representatives (based on criteria prepared by the AIP);

o coordination of the organisation and payment of participant airfares (from the ASEAN Participation Trust Fund) with support from the trust fund support team in the Program Coordinators office; and

o coordination of the payment of participant per diems - including accommodation (from the ASEAN Participation Trust Fund) with support from the trust fund support team in the Program Coordinators office.

• for other activities - o liaison with the AIP on timing of the activity ensuring that it meets the requirements of

ASEC and the partner countries.

• for Project management and monitoring - o distribution of relevant milestone and management documents to the ASEAN working

group / sub committee members as required; and o liaison with the AIP on Project technical and implementation issues (the Desk Officer will

provide guidance to the AIP on issues pertaining to the overall implementation of the Project).

National Focal Point Group

• appointment of a Regional Focal Point by National Focal Point Group members who will chair PCG meetings (noting that the Regional Focal Point is to be a member of the ECCM);

• for workshops - o identification of Project participants in their home country (in discussion with the ASEC

Desk Officer).

• for other activities - o identification of Project partners and participants in their home country (in discussion with

the ASEC Desk Officer).

• for Project management and monitoring - o approval of key Project reports and milestones – as per the logframe (either collectively or

through a letter from the Regional Focal Point).

Partner Governments

• identification of a representative to be the National Focal Point.

• for workshops and other activities - o the release of Project participants for workshops and other Project activities; o domestic travel costs of participants (in their home country); and o all visa and departure tax costs (in their home country).

• when an activity is held in the partner country - o assistance to the AIP in organisation of the activity (i.e. recommendations pertaining to

preferred venues etc).


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5.2 Coordination and review The AIP will be responsible for producing an overall work plan and budget as well as annual work-plans and budgets. Given that some outputs are dependent on verification of performance indicators by the noting in ECCM minutes (or a letter from the ECCM chairperson), the AIP will need to ensure that work plans link with scheduled meetings of the ECCM.

A key Project coordination and review requirement is involvement by the Project Coordinating Group (PCG) in verifying that key Project activities meet the requirements of the ECCM and ASEC. PCG meetings should be held on a six monthly basis with membership including:

• the AIP; • the ASEC Desk Officer; • a National Focal Point representing each implementing partner (up to 10); and • a member of the ECCM who is the nominated ‘Regional Focal Point’.

The role of the PCG is to:

• discuss and agree on the details of the forward workplans; • ensure roles and responsibilities of Project stakeholders are clearly defined and understood; • review Project progress and work to resolve any problems/constraints impacting on Project

implementation; and • through the Regional Focal Point member of the PCG, report to the overarching Program

Coordinating Committee on Project implementation issues.

The PCG will be organised by the AIP in consultation with other members and it is anticipated that meetings will either be held by phone or in conjunction with Project activities. The AIP should ensure that:

• the PCG discussion documents (draft Annual Plan or 6 monthly report) are distributed to PCG members 2 weeks prior to the meeting; and that

• the PCG minutes will be taken and distributed to PCG members.

6 Project monitoring and evaluation

6.1 Overview Project monitoring will be based on a comparison of progress against the PDD and Project Annua l Plans. The AIP will be responsible for the preparation of these documents and the provision of ad-hoc updates to the AMC and ASEC as required.

Project activities will not be implemented in a static operating environment. This will require the AIP to maintain open and effective communication channels with all stakeholders (ASEC, National Focal Points and the AMC) to ensure that Project activities and management systems continue to meet their needs.

It is envisaged that the individual activity reports will serve as the basis for assessment of activity effectiveness and their associated ability to contribute to the achievement of associated outputs. While participant evaluations will be informative, they will not be enough. The AIP is expected to provide rigorous analysis of activity implementation and suggest outcomes that may negatively affect the achievement of follow-on activities.

The AIP formal reporting requirements are presented in Table 2.


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Table 2: Project reports which are the responsibility of the AIP

Report Name / Type Submitted To

Quarterly budget statements which include cashflow projections for the following quarter and expenditure statements for the reporting period including identification of ASEAN Participation Trust Fund amounts (4 per year)

AMC & ASEC

Annual plans – the first Annual Plan is to be prepared and submitted within 3 months of contract signing. Subsequent Annual Plans are to be submitted in draft form prior to the 1st of February each year.

AMC & PCG

Six monthly reports (1 per year) are to include an assessment of progress against the Annual Plan and a revised forward six month workplan and associated budget.

AMC & PCG

Performance indicators and means of verification AMC & PCG

Invoices with attached payment milestone reports / receipts AMC

A draft completion report at least 3 months prior to Project completion and a final completion report at least 1 month prior to Project completion.

AMC & PCG

Apart from activity reports and formal management reports, there is no requirement for additional reporting on progress. It should be noted however that it is the responsibility of the AIP to closely monitor Project implementation and notify the AMC and ASEC of issues through ad-hoc exception reports.

6.2 Key performance indicators and means of verification Performance indicators and means of verification are set out in the Project logframe (Annex 1). It is expected that the AIP will submit the identified reports and documents to the AMC and/or the PCG within one month of activity completion.

7 Risk management The Project risk management matrix is at Annex 2. Several potential risks to the achievement of Project objectives have been identified, together with proposed methods of mitigating the risks. These are summarised below.

Achieving Regional Solutions

An inability to reach agreement on a preferred regional cargo processing model would inhibit the progression of harmonisation and integration of policies and procedures in all member countries, although a high degree of harmonisation/integration could still be achieved. A key mitigation strategy is to ensure that a rigorous analysis of options is developed for consideration by member countries, with all member country concerns being fully addressed prior to or at the high-level regional workshop.

The valuation component (Component 2) has been designed to provide a regional resource of ACVG Training Staff. Failure of member countries to make such staff available for intra-regional training activities will limit the flexibility of intra-regional valuation training and support. In order


26

to mitigate this risk it is proposed to reach agreement with member countries that the provision of personnel to conduct such activities is to be a condition of their attendance at the training workshop.

Personnel

Assignment of inappropriate key personnel to progress the cargo processing reforms would significantly impede the progression of those reforms in some member countries. It is proposed that the AIP will prepare detailed selection criteria for member country reference in selecting participants. Similarly, the nomination of inappropriate participants to attend cargo workshops would result in the development of ineffective implementation plans, and it is therefore proposed to advise the ASEC Desk Officer on the need to assign appropriate personnel to participate in the workshops, and to provide clear selection criteria for their reference.

Similarly, if inappropriate participants were nominated to attend valuation workshops, the quality of regional valuation training and support would be lowered. The overall quality of the regional ACVG training resource would also be lowered in the event that those who were participated in the initial training workshop failed to complete refresher training. To mitigate this risk, it is proposed to reach prior agreement with member countries, through the National Focal Points regarding the ongoing availability of personnel for the duration of the Project.

Phasing

Failure to finalise the ACVG prior to Project inception would delay implementation of regional valuation training. However, the likelihood of this risk occurring is low, as it is understood that ECCM will be obtaining formal endorsement of the ACVG by Directors-General in mid-2003.

Sustainability

An inability to fund ongoing intra-regional ACVG training activities would impede the capacity to provide intra-regional valuation training and support. Similarly, the failure of member countries to progress the cargo processing implementation plans would impede the capacity to establish regional harmonisation and integration of policies and procedures, although a high degree of harmonisation/integration could still be achieved. The mitigation of such risks essentially relies on the importance placed on progressing the agreed ASEAN Customs reforms both regionally and in individual member countries. It will therefore be necessary for ASEC to reinforce the need for and implementation in all member countries in order to achieve the full regional benefits of the program.

8 Program level issues

8.1 Links to sub-program objectives This Project fits under the Integration Sub-Program of the overall AADCP Program Stream. The Project goal and purpose corresponds to the goal of the Sub-Program, namely ‘to assist ASEAN in its efforts at integrating into one market for goods, services and investments including the development of appropriate labour market and HRD policies’ and third Trade objective, ‘to support the harmonisation and strengthening of customs administration’.

The Project focuses on the harmonisation, integration and reform in priority areas of Customs administration, specifically cargo processing and Customs valuation.

8.2 Links to other projects The Project does not have any direct links to other projects in the Program Stream. However, the harmonisation of customs terminology may provide input into the Standards project (INT1). The Project will have indirect impacts on projects in the Competitiveness Sub-Program through the improvement of Customs clearance activities in the region.


27

8.3 Suggested approach to activity contracting Australia has a number of private and public sector organisations with skill sets that match the requirement of the Project. To this effect, it is suggested that the Project is suitable for open tender in accordance with the attached Scope of Services and Basis of Payments.


28

Annexes


29

A1 Logical Framework Project Description Indicators Means of Verification Assumptions

Goal To enhance the capacity of ASEAN Customs Administrations to develop and maintain a regulatory framework that is efficient and transparent to investors, traders and manufacturers across the region

Purpose To achieve regional harmonisation, integration and reform in identified pr iority areas of Customs administration

Customs cargo processing policies and practices that are simple, effective, efficient, transparent and consistent throughout ASEAN Regional compliance with WTO Valuation Agreement

ECCM status reports ASEAN Customs Administration Guide Feedback from the international trading community Independent research and analysis

Political and organisational will to achieve regional harmonisation, integration and reform

Component Objective 1 To progress regional harmonisation, integration and reform in relation to cargo processing policies and procedures

Customs cargo processing policies and practices developed that are simple, effective, efficient, transparent and consistent throughout ASEAN


Political and organisational will to achieve regional harmonisation, integration and reform in relation to cargo processing policies and practices


30

Output 1.1 ASEAN Member Country agreement on best practice import and export cargo clearance policies and procedures for introduction across the region

Regional Cargo Processing Model developed and agreed Member Country Draft Implementation Plans developed

Letter from Chairperson of ECCM endorsing Cargo Processing Model Member Country Draft Implementation Plans

ASEAN member countries collectively support the concept of harmonisation Agreement can be reached on a preferred regional model ASEAN member countries assign appropriate key personnel to progress the reforms

Output 1.2 Enhanced capacity of ASEAN member countries to effectively implement best practice cargo clearance policies and procedures

Six training modules and associated materials developed Four training workshops delivered to a total of 100 Member Country participants Assessment of competence conducted at conclusion of Cargo Processing Change Management Workshops Member Country Implementation Plans refined Support and advice provided to Change Management Champions through mentoring role

Training modules and materials ECCM reports identifying D-G endorsed Country Implementation Plans Workshop reports Member Country Implementation Plans Mentoring service arrangements Implementation review report

Political support for legislative change, where required ASEAN member countries assign appropriate key personnel to progress the reforms. At least one member of each delegation should have good English skills ASEAN member countries nominate appropriate personnel to participate in workshops, i.e. those with responsibility for implementing the necessary reforms


31

Assessment conducted of Member Country progress in implementing Plans

Full implementation by less-developed Member countries may only be achieved in the longer term

Component Objective 2 To progress regional harmonisation, integration and reform in determining the Customs Value of international trade

Regional consistency in applying the principles of the WTO Valuation Agreement


Political and organisational will to achieve regional harmonisation, integration and reform on issues of Customs Valuation

Output 2.1 ASEAN Member Country access to a comprehensive training program that will provide Customs staff with the necessary skills and competencies to effectively implement and apply the principles and practices of the ASEAN Customs Valuation Guide (ACVG)

ACVG training program and associated materials developed

Training program and materials ACVG will be finalised prior to Project inception

Output 2.2 Sustainable resource capacity among ASEAN member countries to provide high quality intra-regional training, advice and support in applying the principles and practices of the ACVG

Two-week ACVG Trainer training workshop conducted for 20 Member Country participants Assessment of competence undertaken at conclusion of Training Workshop Support and advice provided to ACVG

ASEAN Valuation Resource Staff Register of trained personnel Workshop report Mentoring service arrangements Refresher training workshop report

ASEAN member countries support the use of shared regional valuation training and support resources ASEAN member countries nominate appropriate personnel to participate in


32

Training Team Refresher Training Workshop conducted Assessment conducted of regional progress in implementing ACVG training

12 month implementation review report

workshops Failure of participants to complete refresher training ASEAN Valuation Resource Staff will be made available for intra-regional training activities by their respective administrations Funding will be available for ongoing intra-regional ACVG training activities

Component 3 To effectively and efficiently manage and monitor Project implementation

Project activities completed according to Annual Plans and amendments outlined in Six monthly reports

Activity reports

Output 3.1 Project activities effectively and efficiently planned, coordinated and managed by the AIP

Workshop participants provided with materials at least one week prior to workshop and activity reports confirm satisfactory planning, coordination and management of Project activities

Activity reports

Output 3.2 AMC and ASEAN informed of Project progress through effective monitoring, review and reporting of Project plans and achievements

Project inception meeting with ASEC Annual Plans

Agreement to proposed work program by ASEC Acceptance of Annual Plan by AMC


33

Six monthly monitoring reports Completion report

Acceptance of Six Monthly report by PCG Acceptance of Completion Report by AMC


34

A2 Risk management matrix LF ref. Risks Potential Adverse Impact Risk

likelihood Risk impact

Risk management strategy Respons-ibility

1.1 Inability to reach agreement on a preferred regional cargo processing model or progress its implementation

Harmonisation and integration of policies & procedures would not extend to all member countries, although a high degree of harmonisation/integration could still be achieved

Medium Medium AIP with assistance of counterparts to analyse options for consideration by member countries; AIP with assistance of counterparts and ASEC to address Member Country concerns fully prior to or at the high-level regional workshop

AIP, ASEAN counterparts and ASEC

1.2 Inappropriate key personnel are assigned to progress the cargo processing reforms

Progression of reforms would be significantly impeded in some member countries

Medium High AIP with assistance from ASEC/National Focal Points to advise D-Gs of the need to assign appropriate personnel; AIP to prepare selection criteria

AIP, ASEC, National Focal Points

1.3 Inappropriate participants are nominated to attend cargo workshops

Implementation Plans would be ineffective

Medium Medium AIP to advise National Focal Points of the need to assign appropriate personnel; AIP to prepare selection criteria


2.1 Failure to finalise ACVG prior to project inception

Implementation of regional valuation training would be delayed

Low Medium ECCM/ASEC to finalise ACVG for formal endorsement prior to 2004

ECCM, ASEC

2.2 Inappropriate participants are nominated to attend valuation workshops

Quality of regional valuation training and support would be lowered

Medium High AIP to advise National Focal Points of the need to assign appropriate personnel; AIP to prepare selection criteria


2.2 Failure of participants to complete refresher training

Quality of regional valuation training and support would be lowered

Medium Medium AIP to obtain agreement from Member Administrations re ongoing availability of personnel for the duration of the project


2.2 Failure of member countries to make Valuation Resource Staff available for intra-regional training activities

Flexibility of intra-regional valuation training and support would be limited

Medium Medium AIP to obtain agreement from Member Administrations on provision of personnel (subject to financial resource considerations) as a condition of their attendance at training workshop


2.2 Inability to fund ongoing intra-regional ACVG training activities

Capacity to provide intra-regional valuation training and support would be impeded

Low High Proposed arrangements will provide training at minimal cost to member countries. AIP to ensure project progresses in accordance with design proposals

AIP, ASEC


35

A3 Implementation and resource schedule

Code Narrative summary Unit Cost Year 1 Year 2 Year 3note Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

COMPONENT 11 To progress regional harmonisation, integration and

reform in relation to cargo processing policies andprocedures.

1.1 ASEAN Member Country agreement on best practiceimport and export cargo clearance policies andprocedures for introduction across the region.

P1.1 Personnel resourcesP1.1.1 Consultant fees days N1 64.00 24.00 24.00P1.1.2 Consultant airfares airfare N3 2.00 2.00 2.00P1.1.3 Consultant per diems days N2 28.00 14.00 14.00

Consultant other travel costs trip N4 2.00 2.00 2.00

E1.1 Procurement resources

T1.1 Training resourcesT1.1.1 Workshop materials and travel participant N9 32.00T1.1.2 Workshop venue days N7 3.00T1.1.3 Workshop catering participant day N8 96.00

O1.1 Other

A1.1 ASEAN participation costsA1.1.1 Participant airfares airfare N6 2.00 29.00 2.00A1.1.2 Participant per diems days N5 28.00 96.00 14.00

1.2Enhanced capacity of ASEAN member countries toeffectively implement best practice cargo clearancepolicies and procedures.

P1.2 Personnel resourcesP1.2.1 Consultant fee mentoring days N16 5.00 5.00 5.00 5.00P1.2.2 Consultant fee days N16 60.00 60.00 56.00 24.00P1.2.3 Consultant airfares airfare N3 4.00 2.00P1.2.4 Consultant per diems days N2 56.00 14.00P1.2.5 Consultant other costs trip N4 4.00 2.00


T1.2 Training resourcesT1.2.1 Printing subject N14 5.00T1.2.2 Workshop materials and travel participant N9 100.00T1.2.3 Workshop venue days N7 16.00T1.2.4 Workshop catering participant day N8 400.00

Implementation and Resources Schedule

Annex 3: Implementation and Resource Schedule 1 of 4


O1.2 Other

A1.2 ASEAN participation costsA1.2.1 Participant airfares airfare N6 48.00 2.00A1.2.2 Participant per diems days N5 192.00 14.00

COMPONENT 22 To progress regional harmonisation, integration and

reform in determining the Customs Value of internationaltrade.

2.1

ASEAN member country access to a comprehensivetraining program that will provide Customs staff with thenecessary skills and competencies to effectivelyimplement and apply the principles and practices of theASEAN Customs Valuation Guide (ACVG).

P2.1 Personnel resourcesP2.1.1 Consultant fees days N1 78.00P2.1.2 Consultant airfares airfare N3 2.00P2.1.3 Consultant per diems days N2 28.00P2.1.4 Consultant other travel costs trip N4 2.00


T2.1 Training resourcesT2.1.1 Printing of Course materials course N15 5.00

O2.1 Other

A2.1 ASEAN participation costsA2.1.1 Participant airfares airfare N6 2.00A2.1.2 Participant per diems days N5 28.00

2.2Sustainable resource capacity among ASEAN membercountries to provide high quality intra-regional training,advice and support in applying the principles andpractices of the ACVG.

P2.2 Personnel resourcesP2.2.1 Consultant fees - mentoring days N16 5.00 5.00 5.00 5.00P2.2.2 Consultant fee days N16 28.00 24.00P2.2.3 Consultant airfares airfare N3 2.00 2.00P2.2.4 Consultant per diems days N2 28.00 14.00P2.2.5 Consultant other costs trip N4 2.00 2.00




T2.2 Training resourcesT2.2.1 Workshop materials and travel participant N9 20.00 20.00T2.2.2 Workshop venue days N7 14.00 3.00T2.2.3 Workshop catering participant day N8 280.00 60.00

O2.2 Other

A2.2 ASEAN participation costsA2.2.1 Participant airfares airfare N6 18.00 18.00A2.2.2 Participant per diems days N5 280.00 60.00

COMPONENT 33 Project Management and Monitoring

3.1 Project activities effectively and efficiently planned, coordinated and managed by the AIA

P3.1 Personnel resourcesP3.1.1 Project administrator quarter N10 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.50 0.50 0.50 0.50


T3.1 Training resources

O3.1 OtherO3.1.1 Communication costs quarter N11 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.50 0.50 0.50 0.50O3.1.2 Postage and courier costs quarter N12 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.50 0.50 0.50 0.50

A3.1 ASEAN participation costs

3.2 AMC and ASEAN informed of Project progress through effective monitoring, review and reporting of Project plans and achievements

P3.2 Personnel resourcesP3.2.1 Lead consultant days N1 4.00 6.00 6.00 6.00 6.00 6.00P3.2.2 Lead consultant per diems days N2 4.00 4.00 4.00 4.00 4.00 4.00P3.2.3 Lead consultant international travel flight N3 1.00 1.00 1.00 1.00 1.00 1.00P3.2.4 Lead consultant misc travel costs trip N4 1.00 1.00 1.00 1.00 1.00 1.00





O3.2 OtherO3.2.1 Management travel to Melbourne flights N13 1.00 1.00 1.00




40

A4 Cost schedule

Code Narrative summary Unit Cost Unit Cost Year 1 Year 2 Year 3 Total

note 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 000

COMPONENT 11 To progress regional harmonisation,

integration and reform in relation to cargo processing policies and procedures.

1.1 ASEAN Member Country agreement on best practice import and export cargo clearance policies and procedures for introduction across the region.

P1.1 Personnel resourcesP1.1.1 Consultant fees days N1 1 64 24 24 112P1.1.2 Consultant airfares airfare N3 4.5 9 9 9 27P1.1.3 Consultant per diems days N2 0.25 7 3.5 3.5 14

Consultant other travel costs trip N4 0.5 1 1 1 3


T1.1 Training resourcesT1.1.1 Workshop materials and travel participant N9 0.02 0.64 0.64T1.1.2 Workshop venue days N7 0.4 1.2 1.2T1.1.3 Workshop catering participant

dayN8 0.025

2.4 2.4

O1.1 Other

A1.1 ASEAN participation costsA1.1.1 Participant airfares airfare N6 1.8 3.6 52.2 3.6 59.4A1.1.2 Participant per diems days N5 0.25 7 24 3.5 34.5

1.2 Enhanced capacity of ASEAN member countries to effectively implement best practice cargo clearance policies and procedures.

P1.2 Personnel resourcesP1.2.1 Consultant fee mentoring days N16 1 5 5 5 5 20P1.2.2 Consultant fee days N16 1 60 60 56 24 200P1.2.3 Consultant airfares airfare N3 4.5 18 9 27P1.2.4 Consultant per diems days N2 0.25 14 3.5 17.5P1.2.5 Consultant other costs trip N4 0.5 2 1 3



Cost Schedule

Annex 4 - Cost Schedule and Assumptions 1 of 6



T1.2.1 Printing subject N14 1 5 5T1.2.2 Workshop materials and travel participant N9 0.02 2 2T1.2.3 Workshop venue days N7 0.4 6.4 6.4T1.2.4 Workshop catering participant

dayN8 0.025

10 10

O1.2 Other

A1.2 ASEAN participation costsA1.2.1 Participant airfares airfare N6 1.8 86.4 3.6 90A1.2.2 Participant per diems days N5 0.25 48 3.5 51.5

COMPONENT 22 To progress regional harmonisation,

integration and reform in determining the Customs Value of international trade.

2.1 ASEAN member country access to a comprehensive training program that will provide Customs staff with the necessary skills and competencies to effectively implement and apply the principles and practices of the ASEAN Customs Valuation Guide (ACVG).

P2.1 Personnel resourcesP2.1.1 Consultant fees days N1 1 78 78P2.1.2 Consultant airfares airfare N3 4.5 9 9P2.1.3 Consultant per diems days N2 0.25 7 7P2.1.4 Consultant other travel costs trip N4 0.5 1 1


T2.1 Training resourcesT2.1.1 Printing of Course materials course N15 2 10 10

O2.1 Other

A2.1 ASEAN participation costsA2.1.1 Participant airfares airfare N6 1.8 3.6 3.6A2.1.2 Participant per diems days N5 0.25 7 7

2.2 Sustainable resource capacity among ASEAN member countries to provide high quality intra-regional training, advice and support in applying the principles and practices of the ACVG.




P2.2 Personnel resourcesP2.2.1 Consultant fees - mentoring days N16 1 5 5 5 5 20P2.2.2 Consultant fee days N16 1 28 24 52




P2.2.3 Consultant airfares airfare N3 4.5 9 9 18P2.2.4 Consultant per diems days N2 0.25 7 3.5 10.5P2.2.5 Consultant other costs trip N4 0.5 1 1 2


T2.2 Training resourcesT2.2.1 Workshop materials and travel participant N9 0.02 0.4 0.4 0.8T2.2.2 Workshop venue days N7 0.4 5.6 1.2 6.8T2.2.3 Workshop catering participant

dayN8 0.025

7 1.5 8.5

O2.2 Other

A2.2 ASEAN participation costsA2.2.1 Participant airfares airfare N6 1.8 32.4 32.4 64.8A2.2.2 Participant per diems days N5 0.25 70 15 85

COMPONENT 33 Project Management and Monitoring

3.1 Project activities effectively and efficiently planned, coordinated and managed by the AIA

P3.1 Personnel resourcesP3.1.1 Project administrator quarter N10 10 10 10 10 10 10 10 10 10 5 5 5 5 100



O3.1 OtherO3.1.1 Communication costs quarter N11 3 3 3 3 3 3 3 3 3 1.5 1.5 1.5 1.5 30O3.1.2 Postage and courier costs quarter N12 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.3 0.3 0.3 0.3 6


3.2 AMC and ASEAN informed of Project progress through effective monitoring, review and reporting of Project plans and achievements

P3.2 Personnel resourcesP3.2.1 Lead consultant days N1 1 4 6 6 6 6 6 34P3.2.2 Lead consultant per diems days N2 0.25 1 1 1 1 1 1 6P3.2.3 Lead consultant international travel flight N3 4.5 4.5 4.5 4.5 4.5 4.5 4.5 27P3.2.4 Lead consultant misc travel costs trip N4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 3






O3.2 OtherO3.2.1 Management travel to Melbourne flights N13 0.6 0.6 0.6 0.6 1.8


Estimated Management Fee 11.6 13.12 30.19 7.52 7.92 9.56 26.14 11.86 1.24 1.18 1.18 6.34 127.834TOTAL UNESCALATED PROJECT COSTS (A$000) excl management fee

127 144.3 332.1 82.72 87.12 105.2 287.5 130.5 13.64 12.98 12.98 69.74 1406.174




UNESCALATED COSTSPersonnel 101 117 92.5 64.5 75 87 105 64.5 10 10 10 54.5 791ProcurementTraining 27.24 5 18.4 3.1 53.74Other 15.8 16.72 33.79 11.12 12.12 13.16 29.74 15.46 3.64 2.98 2.98 8.14 165.634ASEAN Costs 10.6 10.6 178.6 7.1 134.4 47.4 7.1 395.8

of which AusAID will meet 80% 8.48 8.48 142.9 5.68 107.5 37.92 5.68 316.64of which ASEAN will meet 20% 2.12 2.12 35.72 1.42 26.88 9.48 1.42 79.16

Escalation factor 5.00%

ESCALATED COSTSPersonnel 106 122.9 97.13 67.73 78.75 91.35 110.3 67.73 10.5 10.5 10.5 57.23 830.55ProcurementTraining 28.6 5.25 19.32 3.255 56.427Other 16.6 17.56 35.48 11.68 12.73 13.82 31.23 16.23 3.822 3.129 3.129 8.547 173.9157ASEAN Costs 11.1 11.13 187.5 7.455 141.1 49.77 7.455 415.59

of which AusAID will meet 80% 8.9 8.904 150 5.964 112.9 39.82 5.964 332.472of which ASEAN will meet 20% 2.23 2.226 37.51 1.491 28.22 9.954 1.491 83.118

TOTAL ESCALATED AusAID PROJECT COSTS (A$000) 132 149.3 311.2 85.37 91.48 110.4 273.7 127 14.32 13.63 13.63 71.74 1393.365TOTAL ESCALATED ASEAN PROJECT COSTS (A$000) 2.23 2.226 37.51 1.491 28.22 9.954 1.491 83.118

per annum

NOTE: Costs are 2003 figures. The escalated figures assume escalation in both years 1 and 2


Cost AssumptionsAll costs in AUD

Cost References Description Unit Unit Number Cost calc'nnote in cost cost & unit cost

schedule '000'sN1 P1.1.1,

P1.2.2, P2.1.1, P2.2.2, P3.2.1

Consultant fee day 1000 1 1.000

N2 P1.1.3, P1.2.4, P2.1.3,

P2.2.4, P3.2.2

Consultant per diems (incl hotel and allowance) day 250 1 0.250

N3 P1.1.2, P1.2.3, P2.1.2,

P2.2.3, P3.2.3

Consultant international travel airfare 4500 1 4.500

N4 P1.1.4, P1.2.5, P2.1.4,

P2.2.5, P3.2.3

Consultant other travel costs trip 500 1 0.500

N5 A1.1.2, A1.2.2, A2.1.2, A2.2.2

Participant per diems day 250 1 0.250

N6 A1.1.1, A1.2.1, A2.1.1, A2.2.1

Participant travel (economy class) trip 1800 1 1.800

N7 T1.1.2, T1.2.3, T2.2.2

Workshop venue day 400 1 0.400

N8 T1.1.3, T1.2.4, T2.2.3

Workshop catering participant day 25 1 0.025

N9 T1.1.1, T1.2.2, T2.2.1

Workshop materials and travel participant 20 1 0.020

N10 P3.1.1 Admin costs (40% input per year incl overheads) quarter 10000 1 10.000

N11 O3.1.1 Communications quarter 3000 1 3.000

N12 O3.1.2 Postage and courier quarter 600 1 0.600

N13 O3.2.1 Management travel to Melbourne trip 600 1 0.600

N14 T1.2.1 Printing of subject materials subject 1000 1 1.000

N15 T2.1.1 Printing of course materials course 2000 1 2.000

N16 P1.2.1, P2.2.1 Consultant fees mentoring day 1000 1 1.000

General AssumptionsPartner countries will cover the cost of participant domesic travel, international insurance, passport costs and visa costsWhere a workshop/training activity is held in a partner country, the participants from that partner country will not receive a per diem from the project

Annex 4: Cost Schedule and Assumptions Page 1 of 1


47

A5 Draft Scope of Services for AIP PROJECT DESCRIPTION

The Project Goal is:

To enhance the capacity of ASEAN Customs Administrations to develop and maintain a regulatory framework that is efficient and transparent to investors, traders and manufacturers across the region.

The Project Purpose is:

To achieve regional harmonisation, integration and reform in identified priority areas of Customs administration.

The Project components and outputs are based on priorities that are in line with ASEAN planning documents including the Vision 2020, the Hanoi Plan of Action and various other meeting outputs from the ASEAN ECCM.

The Project has three components, namely:

Component Objective 1: To progress regional harmonisation, integration and reform in relation to cargo processing policies and procedures.

Component Objective 2: To progress regional harmonisation, integration and reform in determining the Customs Value of international trade.

Component Objective 3: To effectively and efficiently manage and monitor Project implementation.

Component 1 aims to develop best practice cargo clearance procedures, based on the principles of the WCO revised Kyoto Convention, which are appropriately tailored to suit the unique geographic, economic and political trading environment which the ASEAN region represents. Development and implementation of the procedures will provide an appropriate basis on which ASEAN member countries may enhance the regional facilitation of trade and provide investors, traders and manufacturers with a regulatory framework that is efficient, transparent, consistently applied and capable of full integration across the region. Having identified an agreed ASEAN Cargo Processing Model, implementation strategies would be developed for each Member Country, and the implementation process would be facilitated by enhancing the capacity of member countries to manage change.

Component 2 aims to develop a comprehensive training course based on the ASEAN Customs Valuation Guide (ACVG) and the development of a cadre of expert Valuation Trainers within ASEAN, in order to provide a sustainable capacity within the region to conduct high quality valuation training on an ongoing basis. This in turn will enable high quality ACVG training to be conducted throughout the region on a needs basis, and provide officers at all levels with the necessary skills and knowledge to assess the Customs value of goods in full accordance with the WTO Valuation Agreement, thereby providing traders with the certainty and clarity required to effectively compete in the global marketplace.

Component 3 responds to the overarching management and monitoring requirements required to successfully implement the technical components and keep Project stakeholders advised of progress and performance.

PROJECT MANAGEMENT AND COORDINATION

The Project is part of the overarching ASEAN Australia Development Cooperation Program – Program Stream. To this effect, the AIP will report to the AMC on all matters pertaining to the implementation and performance of the Project.


48

At the commencement of the Project the AIP will undertake a 4-day inception visit to Jakarta (including travel time) to meet with ASEC personnel. This meeting will provide an opportunity for the AIP to discuss their proposal with key sectoral personnel and finalise arrangements for the initial activity.

The AIP Project implementation responsibilities include: • workshops -

o the identification of the ‘host’ country for the workshop and discussion of this with the ASEC Desk Officer and the Regional Focal Point;

o the identification of the skill requirements of workshop participants and discussion of these with the ASEC Desk Officer;

o confirmation of member country involvement and the number of participants with the ASEC Desk Officer, the Regional Focal Point and National Focal Points;

o discussion with participants in the ‘host’ country regarding workshop logistics – gaining suggestions on workshop venue, accommodation etc.;

o booking of the workshop venue, arrangement of catering, arrangement of domestic travel (in the country where the workshop is being held) and booking of participant accommodation;

o distribution of workshop materials directly to the participants (not through the ASEC Desk Officer);

o all logistical arrangements for the consultants conducting the workshop; o conduct of the workshop as per the logframe and workplan; o preparation of draft and final workshop reports; and o obtainment of letters or other supporting documents that verify ‘Performance

Indicators’; • other activities:

o arrangement of all inputs to implement identified activities; o confirmation of member country, partner agency and participant involvement in the

activity with ASEC Desk Officer; and o preparation of reports or obtainment of other ‘Verifiable Indicators’.

In addition, as a specific requirement of this Project the AIP will also be responsible for acquittal of ASEAN reimbursable costs incurred in proposed in-country exercises associated with Components 1 and 2.

Specific AIP management and monitoring responsibilities include:

• preparation of a draft Annual Plan within 3 months of signing the contract with the AMC; • preparation of subsequent draft Annual Plans are to be submitted to the AMC by the end

of February each year; • preparation of a six month report every year (only 1 per year which will be delivered six

months after the annual plan); • organisation of PCG meetings either by phone or as part of Project activities; • taking of minutes of PCG meetings and distribution to PCG participants; • submission of quarterly cash flow estimates for the Project including the identification of

ASEAN Participation Trust Fund amounts; • preparation of a draft completion report at least 3 months prior to Project conclusion with

the final report to be submitted at least 1 month prior to Project conclusion; • distribution of management and milestone reports as necessary to national focal point

personnel; and • liaison with the ASEC Desk Officer and the AMC regarding Project implementation

issues.


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The AIP is responsible for the liaison with other stakeholders including ASEC Desk Officers, National and Regional Focal Points and Partner Governments. The anticipated roles and responsibilities of other Project stakeholders include:

ASEC Desk Officer

• for workshops - o liaison with the AIP on timing of the workshop ensuring that it meets the

requirements of ASEC and the partner countries; o coordination of the identification of workshop participants, including their contact

details, in consultation with National Focal Point representatives (based on criteria prepared by the AIP);

o coordination of the organisation and payment of participant airfares (from the ASEAN Participation Trust Fund); and

o coordination of the payment of participant per diems - including accommodation (from the ASEAN Participation Trust Fund).

• for other activities - o liaison with the AIP on timing of the activity ensuring that it meets the requirements

of ASEC and the partner countries. • for Project management and monitoring -

o distribution of relevant milestone and management documents to the working group / sub committee members as required; and

o liaison with AIP on Project technical and implementation issues (the desk officer will provide guidance to the AIP on issues pertaining to the overall implementation of the Project).

National Focal Point Group

• appointment of a Regional Focal Point by National Focal Point Group members who will chair PCG meetings (noting that the Regional Focal Point is to be a member of the ECCM).

• for workshops - o identification of Project participants in their home country (in discussion with the

desk officer). • for other activities -

o identification of Project partners and participants in their home country (in discussion with the desk officer).

• for Project management and monitoring - o approval of key Project reports and milestones – as per the logframe (either

collectively or through a letter from the Regional Focal Point).

Partner Governments

• identification of a representative to be the National Focal Point.

• for workshops and other activities -

o the release of Project participants for workshops and other Project activities; o domestic travel costs of participants (in their home country); and o all visa and departure tax costs (in their home country).

• when an activity is held in the partner country -

o assistance to the AIP in organisation of the activity (i.e. recommendations pertaining to preferred venues etc).


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DESCRIPTION OF AIP RESPONSIBILITIES AND DELIVERABLES

Component 1

Output 1.1: ASEAN Member Country agreement on best practice import and export cargo clearance policies and procedures for introduction across the region.

The activities required to achieve this output comprise:

• researching and developing a Draft Cargo Processing Model, based on information and materials held by ASEC, contributions from member countries and international research;

• conducting a three-day high level regional workshop to debate the Draft Model, and arrive at an agreed Cargo Processing Model including benchmarks and performance indicators, for implementation across ASEAN; and

• developing Draft Country Implementation Plans to achieve an effective transition to the agreed best practice cargo processing arrangements.

Output 1.2: Enhanced capacity of ASEAN member countries to effectively implement best practice cargo clearance policies and procedures.


• developing comprehensive training modules and materials, including case studies, which address specific implementation and change management strategies for each of the following elements: o Customs and other Government Authority Documentary requirements; o selectivity and profiling; o Customs processes, including physical and documentary checks and examinations; o revenue payment; o special schemes (e.g. special economic zones, warehousing, temporary admission);

and o cargo release.

• delivering four training workshops, each with 25 participants from member countries with responsibility for implementing the best practice cargo processing arrangements;


• refining member country implementation plans; • providing support and advice to member country change management champions; and • conducting an implementation review, which will involve circulating questionnaires and

a joint meeting to review the results.

Component 2

Output 2.1: ASEAN member country access to a comprehensive training program that will provide Customs staff with the necessary skills and competencies to effectively implement and apply the principles and practices of the ASEAN Customs Valuation Guide (ACVG).

The activity required to achieve this output is:

• developing a two-week intensive training program that may be used as the basis for Customs valuation training in all ASEAN member countries.

Output 2.2: Sustainable resource capacity among ASEAN member countries to provide high quality intra-regional training, advice and support in applying the principles and practices of the ACVG.



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• delivering a two-week ACVG Trainer training workshop, with 20 participants from member countries;


• providing support and advice as a “mentor” to ACVG Trainers, by providing them with access to experts by phone, fax and email throughout the course of the project; and

• conducting a three-day refresher training workshop, with 20 participants from member countries, incorporating a 12-month implementation review, which will involve circulating questionnaires and a joint meeting to review the results.

Component 3 Output 3.1: Project activities effectively and efficiently planned, coordinated and managed by the AIP Output 3.2: AMC and ASEAN informed of Project progress through effective monitoring, review and reporting of Project plans and achievements.

Activities for Outputs 3.1 and 3.2 relate specifically to the overall management of the Project as specified in this Scope of Services. SKILL SET TO BE PROVIDED

The Project will involve input of 482 days by consultants. The Project is likely to involve several consultants with significant experience and expertise in the development and implementation of major Customs reform programs, compliance management, risk management and adult education. Consultants should also possess an extensive knowledge and understanding of the revised Kyoto Convention and WTO Valuation Agreement, particularly in relation to implementation issues; and a broad knowledge of contemporary international cargo management policies and procedures.

The Project design allows for 28 days for the preparation of management and monitoring reports and attendance at PCG meetings. The AIP is to nominate a lead consultant who will have overall responsibility for the implementation of the Project.

The AIP is to also nominate a Project administrator who will assist the Project team in the implementation of the Project.

PLANNING MONITORING AND REPORTING REQUIREMENTS

Project monitoring will be based on a comparison of progress against the PDD and Project Annual Plans. The AIP will be responsible for the preparation of these documents and the provision of ad-hoc updates to the AMC and ASEC as required.

Project activities will not be implemented in a static operating environment. This will require the AIP to maintain open and effective communication channels with all stakeholders (ASEC, National Focal Points and the AMC) to ensure that Project activities continue to meet their needs.

It is envisaged that the individual activity reports will serve as the basis for assessment of activity effectiveness and their associated ability to contribute to the achievement of associated outputs. While participant evaluations will be informative, they will not be enough. The AIP is expected to provide rigorous analysis of activity implementation and suggest outcomes that may negatively affect the achievement of follow-on activities.

The AIP formal reporting requirements are presented in Table 1.


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Table 1: Project reports

Report Name / Type Submitted To

Quarterly budget statements which include cashflow projections for the following quarter and expenditure statements for the reporting period including identification of ASEAN Participation Trust Fund amounts (4 per year)

AMC & ASEC

Annual plans – the first Annual Plan is to be prepared and submitted within 3 months of contract signing. Subsequent Annual Plans are to be submitted in draft form prior to the 1st of February each year.

AMC & PCG

Six monthly reports (1 per year) are to include an assessment of progress against the Annual Plan and a revised forward six-month workplan and associated budget.

AMC & PCG

Performance indicators and means of verification AMC & PCG

Invoices with attached payment milestone reports / receipts AMC

A draft completion report at least 3 months prior to Project completion and a final completion report at least 1 month prior to Project completion.

AMC & PCG

Apart from activity reports and formal management reports, there is no requirement for additional reporting on progress. It should be noted however that it is the responsibility of the AIP to closely monitor Project implementation and notify the AMC and ASEC of issues through ad-hoc exception reports.

While the AMC is responsible for the overall monitoring of the Program and specific projects implemented under the Program, project specific Project Coordinating Groups (PCGs) will play an active role in verifying that key milestones have been met and that the Project is being implemented to the satisfaction of key stakeholders. PCG meetings will be held on a six monthly basis with membership including:

• the AIP; • the ASEC Desk Officer; • a National Focal Point representing each implementing partner (up to 10); and • a member of the relevant working group/sub-committee who is the nominated ‘Regional

Focal Point’.

The role of the PCG is to:

• discuss and agree on the details of the forward workplans; • ensure roles and responsibilities of Project stakeholders are clearly defined and

understood; • review Project progress and work to resolve any problems/constraints impacting on

Project implementation; and • through the Regional Focal Point member of the PCG, report to the Program

Coordinating Committee on Project implementation issues.

The PCG will be organised by the AIP in consultation with other members and it is anticipated that meetings will either be held by phone or in conjunction with Project activities. The AIP should ensure that:


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• the PCG discussion documents (draft Annual Plan or 6 monthly report) will be distributed to PCG members 2 weeks prior to the meeting; and that

• the PCG minutes will be taken and distributed to PCG members.

KEY PROJECT PERFORMANCE INDICATORS

Performance indicators and means of verification are set out in the Project logframe. A number of these performance indicators will become payment milestones as specified in draft Basis of Payments.

It is expected that the AIP will submit the identified reports and documents to the AMC and/or the PCG within one month of activity completion.


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A6 Draft Basis of Payment Financial Limitation

The amount payable by the AMC to the AIP shall not exceed the sum of A$????, plus any GST, if any, up to an amount of ???.

Milestone Payments

All personnel costs (including consulting fees, per diems and travel), the nominated management fee percentage and nominated ‘other costs’ will be paid on the basis of milestones. An amount equivalent to 85% of these costs will be payable upon submission of the milestone (Table 1) and 15% will be payable upon acceptance of the milestone by the AMC. The means of verification for each milestone is specified in the Project Logframe.

Table 1: Milestone Schedule

Milestone Month of Submission

Submission (85%)

Acceptance (15%)

Output 1.1: Regional Cargo Processing Model developed.

From tender From tender From tender

Output 1.1: Member Country Draft Implementation Plans developed


Output 1.2: 6 training modules and materials developed.


Output 1.2: Four training workshops delivered From tender From tender From tender

Output 1.2: Assessment of competence at conclusion of Cargo Processing Change Management Workshops.


Output 1.2: Member Country Implementation Plans refined


Output 1.2: Support and advice provided to Change Management Champions


Output 2.1: ACVG training program and materials developed.


Output 2.2: Two-week ACVG Trainer training workshop conducted


Output 2.2: Assessment of competence at conclusion of ACVG training workshop.


Output 2.2: Support and advice provided to ACVG Training Team


Output 2.2: Refresher training workshop conducted


Output 2.2: Regional implementation assessment conducted


Output 3.2: First Annual Plan From tender From tender From tender

Output 3.2: First Six Monthly Report From tender From tender From tender

Output 3.2: Second Annual Plan From tender From tender From tender


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Output 3.2: Second Six Monthly Report From tender From tender From tender

Output 3.2: Third Annual Plan From tender From tender From tender

Output 3.2: Third Six Monthly Report From tender From tender From tender

Output 3.2: Project Completion Report From tender From tender From tender

TOTAL From tender From tender

Reimbursable Payments

Invoices for reimbursable costs will be submitted quarterly covering:

• Training resources (venue and catering costs, materials, subject and course material printing etc) for provision of Project services will be reimbursable at cost up to a limit of A$????. Claims for payment will provide suitable supporting documentation.

ASEAN Participation Costs

The AIP will include anticipated ASEAN Participation Costs in the Project Annual Plan and will submit quarterly budget statements which include cash flow projections for the following quarter and expenditure statements for the reporting period. After agreement to the quarterly budget statements, ACIL Australia Pty Ltd will transfer the allocated funds to the Project’s ASEAN Participation Trust Fund.

Claims for Payment

The AIPs claims for payment shall be submitted in a form identifiable with the Services.

All Claims for payment shall be made to:

The Program Manager AADCP – Program Stream ACIL Australia Pty Ltd


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A7 Summary of ASEAN Customs Reform Priorities

Issue Customs Roadmap

PIWP Priorities PIWP

Harmonising the Tariff Nomenclature/Tariff Classification ü ü ü

Harmonisation of Customs Procedures & Formalities/Cargo Processing ü ü ü

Customs Valuation ü ü ü

Post Clearance Audit ü ü ü

Customs Automation ü ü ü

Technical Assistance to Cambodia, Laos, Myanmar & Viet Nam ü ü

Customs Reform & Modernisation/Strategic Planning & Management/Transparency

ü ü ü

Transit ü ü

Temporary Admission ü ü

Enforcement ü ü

Mutual Assistance ü

Training and Human Resources Development ü

International Customs Fora ü

Partnership with the Business Community ü


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A8 ASEAN Membership of Certain International Organisations

Country APEC WCO ASEM

Brunei Darussalam ü ü ü

Cambodia ü

Indonesia ü ü ü

Lao Peoples Democratic Republic

Malaysia ü ü ü

Union of Myanmar ü

The Philippines ü ü ü

Republic of Singapore ü ü ü

Thailand ü ü ü

Viet Nam ü ü ü