About BIMP-EAGA

The Brunei Darussalam-Indonesia-Malaysia-

Philippines East ASEAN Growth Area (BIMP-

EAGA) was launched in 1994 as a cooperation ini-

tiative by the four national governments to close the

development gap across and within the EAGA

member countries as well as across the ASEAN-6

member states. The subregion covers subnational

areas, except for Brunei

Darussalam, and repre-

sents a historical trading

community dated back a

few centuries. However,

ongoing trade remains

predominantly subsistence

-level and has not trans-

lated into significant eco-

nomic and social develop-

ment, therefore lagging

behind respective national

centres.

BIMP-EAGA’s goal is to

accelerate economic de-

velopment in its focus ar-

eas which, although geo-

graphically distant from

their national capitals, are

in strategic proximity to

each other. It aims to in-

crease trade, tourism and

investments by facilitating

the free movement of peo-

ple, goods, and services; making the best use of

common infrastructure and natural resources; and

taking the fullest advantage of economic comple-

mentation.

Facilitating Efficient

and Secure Trade in

BIMP-EAGA

For more information, please contact:

Nguyen Ba Hung

Regional Cooperation Specialist

Tel.: +632-632-5907

E-mail: bhnguyen@adb.org,

Asian Development Bank

6 ADB Avenue, Mandaluyong,

Metro Manila, Philippines

www.adb.org

Philippine wooden-hulled vessels (Kumpits) call at a Barter Trade Jetty in Sandakan,

Indonesian traders at Tawau Barter Jetty, Malsyaia, load up this Jongkong boat with consumable goods before sailing back to Tarakan, Indonesia.

Fishermen unload tuna catch at General Santos Fishport Complex, Philippines.

Vehicles from Labuan, Malaysia roll-off at Serasa Terminal, Brunei Darussalam

In 2006, the BIMP-EAGA Customs, Immigration,

Quarantine and Security (CIQS) Task Force was es-

tablished as a platform for regular and timely ex-

change of information, sharing of experience among

CIQS agencies at the national and subregional levels

and as a coordinating body for the development and

implementation of CIQS reforms and trade facilitation

measures for the subregion. The CIQS Task Force

meets annually ever since, while separate heads of

sector meetings in Customs, Quarantine and Security

have also been held regularly to monitor and coordi-

nate the implementation of this initiative.

In 2007, the BIMP-EAGA Leaders endorsed an

ASEAN test-bed approach, whereby the subregion

will pioneer in implementing ASEAN agreements that

EAGA member governments endorsed, which in-

cludes the Single Window and various other trade

facilitation agenda, including enhancing risk manage-

ment (RM), and post-clearance audit (PCA).

Recognising the importance of trade facilitation,

BIMP-EAGA countries have proactively improved

CIQS facilities in various locations in the subregion,

as well as embarked on enhancing efficiency of cross

-border clearance.

Strategic Directions and Action Planning

The outcomes of the mapping and gap analy-

sis led to the formulation of the CIQS MoU and,

subsequently, the CIQS Action Plan which laid

out priority reforms and measures for each pri-

ority entry point with corresponding time-frame

(2011-2013) and resources for implementation.

The strategic directions and action planning

have been conducted with extensive consulta-

tion with various CIQS agencies at both national

and local levels, as well as private sector stake-

holders including brokers, forwarders and the

trade community.

Consequently, the implementation of practical

measures and best practices in trade facilitation

will address both ends of the spectrum, i.e. gov-

ernment agencies and private operators, to im-

prove service delivery for CIQS agencies while

increasing the awareness and lowering the cost

of private sector compliance to international

trade requirements.

Capacity Building for Implementation

Implementation of the CIQS Action Plan is

coordinated at the sub-regional level by the

CIQS Task Force. ADB is providing technical

expertise and logistical support for specialized

training and capacity building activities to pave

in the integration of international standards and

best practices.

3rd BIMP-EAGA Heads of Customs Meeting, September 2009, Brunei Darussalam.

ADB Support

The Asian Development Bank (ADB) as the

Regional Development Advisor has been ac-

tively supporting BIMP-EAGA’s trade facilitation

agenda as requested by its Leaders. A regional

technical assistance of USD 600,000 to

strengthen the role of the BIMP-EAGA CIQS

Task Force as a platform for developing and

implementing trade security and facilitation pro-

grams was provided during 2007-2010. The TA

assisted the Task Force in formulating a Memo-

randum of Understanding for CIQS Harmoniza-

tion and conducting various diagnostic exer-

cises to identify

practical interven-

tions that could ef-

fectively make legiti-

mate trade in the

subregion easier.

To sustain the momentum of trade facilitation

initiative in BIMP-EAGA, ADB further provided a

USD1.5M follow-on regional policy advocacy

technical assistance entitled “Support for Trade

Facilitation in BIMP-EAGA” for 2010-2013 to

help the Task Force implement practical meas-

ures identified. The project aims to improve

CIQS services at priority entry points and en-

hance private sector’s compliance.

Trade Facilitation Diagnostics

With ADB technical assistance, the CIQS

Task Force has undertaken a series of consul-

tations and diagnostic

activities to identify

the constraints and

bottlenecks to trade

growth in the sub-

region, leading to the

Bottom-up Approach

Given the subregional nature of BIMP-

EAGA, the trade facilitation initiative fol-

lows a phased and bottom-up approach to

implementing reforms, with an aim to sim-

plify and enhance the efficiency of local-

level CIQS practice and strengthen the

trade supply chain security in the subre-

gion to complement national efforts. This

will be achieved by bridging local develop-

ment gaps vis-à-vis the progress achieved

at national levels and catching up with

international standards and conventions

on trade facilitation and supply chain se-

curity.

The CIQS Task Force has therefore iden-

tified eight priority entry points, through

which trade is ongoing, to fast-track the

implementation of its trade facilitation

measures, namely:

Muara Port (Brunei Darussalam);

Bitung Port and Entikong Checkpoint

(Indonesia);

Sandakan Port, Labuan Port and Te-

bedu Checkpoint (Malaysia); and

Zamboanga Port and General Santos

Port (Philippines).

formulation of the final draft Memorandum of

Understanding for CIQS Harmonization in

BIMP-EAGA.

Mapping and Gap Analysis

ADB assisted the conduct of a compre-

hensive mapping of the CIQS environment

in the sub-region. This exercise docu-

mented the differences in CIQS capacity

and the varying progress of compliance

to international standards. Based on the

mapping results, the member countries

conducted a thorough analysis of gaps

and shortfalls at the entry points using

international benchmarks to identify re-

quired actions and reform measures to

enhance the efficiency and effectiveness

of CIQS services and trade facilitation

programs. The CIQS Task Force also

employed other diagnostic and baseline

setting tools, such as the Time Release

Study; Private Sector Satisfaction Survey;

C u s t o m s

Rate of

Error Sur-

vey; and a

series of

stakeholder

consultations Entikong Checkpoint, West Kalimantan, Indonesia.

Private sector consultation in Sandakan, Malaysia

Officers from Royal Brunei Customs briefed an ADB Mission on cargo clearance procedure at

Muara Port.

Senior Officials from the Indonesian Agricultural Quarantine Agency spear-head discussions on sanitary and phytosanitary issues in BIMP-EAGA during the back-to-back meetings of the 1st Head of Quarantine Meeting and the 3rd CIQS Task Force Meeting.

BIMP-EAGA’s eight priority entry points for trade facilitation.