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1. LOB 30203 -
EXPORTING & IMPORTING
ASSIGNMENT 2

2. Introduction
1. What is trade facilitation?
2. How trade facilitation can
be achieved?
3. The benefit of trade facilitation?
4. How implication towards
Malaysian Customs Practice in Trade
Facilitation?
Conclusion
Reference
s
Table of
Content

3. Introduction
- Trade is the action of buying and
selling goods and services.
- Facilitation is helping other people to
deal with a process or reach an
agreement or solution without getting
directly involved in the process.

4. What is trade facilitation ?
- According to World Trade Organization (WTO),
trade facilitation is the simplification,
modernization and harmonization of export and
import processes - has therefore emerged as an
important issue for the world trading system.
- According
Commission
to United Nations Economic
for Europe (UNECE), trade
facilitation is the simplification, standardization
and harmonization of procedures and associated
information flows required to move goods from
seller to buyer and to make payment.

5. The importance of Trade Facilitation
- Over the last few decades, all countries
are making progress to lowering trade
tariff and dismantling quota system.
- The primary goal of trade facilitation is
to help make trade across borders
(imports and exports) faster, cheaper
and more predictable, whilst ensuring
its safety and security.

6. 2. How trade facilitation can be achieved?
- Can be achieved when implement the:
A) Trade Facilitation Principles - Four
Pillars
B) Supply Chain Perspective

7. A.) Trade Facilitation Principles - Four
Pillars
I. Transparency
- entails disclosure of information in a way
that the public can readily access and use it.
- This information may include laws,
regulations and administrative decisions of
general application, budgets, procurement
decisions and meetings
II. Simplification
- Eliminating all unnecessary elements and
duplications in trade formalities, processes
and procedures.

8. III. Harmonization
- The alignment of national procedures,
operations and documents with international
conventions, standards and practices.
IV. Standardization
- Process of developing formats for practices and
procedures, documents and information
internationally agreed by various parties.
A.) Trade Facilitation Principles - Four
Pillars

9. B.) Supply Chain Perspective
- A supply chain embraces all
activities necessary for goods to be
produced and delivered to the final
consumer.
- Provides the framework to logically
connect different actors, procedures
and requirements in one picture of the
trade environment.

10. B.) The Buy-Ship-Pay Model (BSP)
developed by UN/CEFACT
- The Buy-Ship-Pay model describes
the main processes and parties in the
international supply chain.
- It ensures that goods are ordered,
shipped and paid for while complying
with regulatory requirements
- The Buy-Ship-Pay model identifies the
key activities and payment procedures
involved in the international supply
chain

11. 3. The benefit of Trade Facilitation
There are great potential gains from trade facilitation
such as :
I. Government
Public entities will profit in terms of enhanced trade tax
collection, better use of resources and increased
trader compliance
II. Business community
Traders will gain in terms of higher predictability and
speed of operations and lower transaction costs,
resulting in more competitive exports on global
markets.

12. 3. The benefit of Trade Facilitation
III. Economic
- Promote export growth
- Improve competitiveness in global market
- Increase participation of (SMEs) in
international trade
IV. Trader
- Cut cost and reduce delays
- Faster custom clearance
- Enhanced effectiveness
- Provide simple framework for domestic and
international trade

13. 1. Malaysia's shift from clearance-based controls to
post-clearance audit controls (PCA).
2. The Customs Department has engaged in an intensive
review of its Customs Act to further simplify and
harmonize its legislation in line with APEC and ASEAN
programmes.
3. A Customs Intelligence Centre (CIC) was established in
August 2003 to coordinate all information and
intelligence compiled from domestic and foreign sources.
All import and export declaration information is collected
and analysed to help identify low risk goods.
4. How implication towards
Malaysian Customs Practice in Trade
Facilitation

14. 4. How implication towards
Malaysian Customs Practice in Trade
Facilitation
4. In 2014, the implementation of the
Container Security Initiative (CSI) to
facilitate the movement of goods.
5. Importers and exporters of goods, and
manufacturers of excisable goods are
required to submit Customs and Excise
declaration forms and other supporting
documents in metric measures.

15. 6. Border agencies coordination - Malaysian
Customs cooperates with neighbouring countries
to have Customs presence to ensure compliance
with import and export requirements.
Currently, Malaysia and Thailand have been
coordinating on a single inspection system,
information technology interfacing and sharing of
cost for equipment.
How implication towards Malaysian Customs Practice in Trade
Facilitation

16. 7. Standardization and simplification of trade /clearance
procedures -
- Malaysian Customs forms are aligned according to the
UN layout key.
- Most of the Customs procedures and documentations
for import/export are done electronically via the (EDI)
system.
- Import permits from MITI are transmitted electronically
to the Malaysian Customs.
8.Immediate release based on categorization of
consignments.
Malaysia has done some improvements to expedite the
process of Customs clearance such as:
a. Direct release of non-dutiable express shipments below
RM2,000.00 without formal declaration.
b.Express consignments with de minimus value of
RM500.00 exempted from payment of duties
How implication towards Malaysian Customs Practice in Trade
Facilitation

17. Conclusion
- Trade facilitation is a concept directed towards
reducing the complexity and cost of the trade
transaction process and ensuring that all these
activities take place in an efficient, transparent and
predictable manner.
- There are two ways to achieve trade facilitation by
using the fourth pillar principal and supply chain
perspective.
- The benefit of trade facilitation spills to economy,
country, trader and business community.
include the sharing country border
- The implication towards Malaysian Customs
agencies
coordination and immediate release based on the
categorization of consignments.

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