Support for Customs, Immigration, Quarantine, and Security by yiq68006

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									Technical Assistance Report

Project Number: 41043
August 2007

Support for Customs, Immigration, Quarantine, and
Security Harmonization in the Brunei Darussalam,
Indonesia, Malaysia, Philippines East ASEAN Growth
(Financed by the Cooperation Fund for Regional Trade and
Financial Security Initiative)

The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
members, Board of Directors, Management, or staff, and may be preliminary in nature.

          ADB                –        Asian Development Bank
          BIMP-EAGA          –        Brunei Darussalam, Indonesia, Malaysia, Philippines East
                                      ASEAN Growth Area
          ASEAN              –        Association of Southeast Asian Nations
          CIQS               –        customs, immigration, quarantine and security
          GMS                –        Greater Mekong Subregion
          ICAO               –        International Civil Aviation Organization
          IMO                –        International Maritime Organization
          RETA               –        Regional Technical Assistance
          RRP                –        rules, regulations and procedures
          SOM                –        senior officials’ meeting
          TA                 –        technical assistance
          UNCTAD             –        United Nations Conference on Trade and Development
          WCO                –        World Customs Organization
          WHO                –        World Health Organization
          WTO                –        World Trade Organization


Targeting Classification     –      General intervention
Sector                       –      Industry and trade
Subsector                    –      Trade
Theme                        –      Regional cooperation
Subtheme                     –      Economic growth


                                 In this report, "$" refers to US dollars.

Vice President        C. Lawrence Greenwood, Jr., Operations Group 2
Director General      A. Thapan, Southeast Asia Department (SERD)
Director              D. Green, OIC, Regional Cooperation and Country Coordination, SERD

Team leader           T. Tamaki, Principal Country Economist, SERD
Team member           J. M. Ferreira, Principal Regional Cooperation Specialist, SERD
                                            I.         INTRODUCTION

1.      The Brunei Darussalam, Indonesia, Malaysia, Philippines East ASEAN Growth Area
(BIMP-EAGA) 1 was launched in 1994 as a key strategy of the participating governments to
accelerate economic growth in their less developed and more remote territories. Following
significant early gains, cooperation initiatives in EAGA weakened in the 1997–2001 period as a
result of a series of economic reverses set off by the Asian financial crisis. As growth returned to
the region, regional leaders meeting at the 7th ASEAN Summit in Brunei Darussalam in
November 2001 reaffirmed their commitment to revitalize BIMP-EAGA. At the same meeting,
Asian Development Bank (ADB) was appointed EAGA‘s Regional Development Advisor. ADB
has since played a supportive role in reviving, revitalizing and repositioning EAGA in the context
of an evolving regional and global economic landscape.

2.      The major thrusts of the BIMP-EAGA cooperation initiative have been to promote trade,
investment and tourism. The importance of trade facilitation in accelerating economic growth
and in sustaining poverty reduction in the subregion was recognized from the beginning by local
business communities and participating governments. Trade facilitation issues identified
revolved around non-physical barriers to the efficient movement of people and goods, including
processing and documentation of transactions generally classified under four interrelated areas:
customs, immigration, quarantine and security (CIQS).2 In 2002, EAGA initiated cooperation in
trade facilitation by creating the CIQS Task Force. At the request of the Philippines, the
designated lead country for the CIQS harmonization efforts, ADB conducted a study of the
CIQS environment in EAGA. The study identified major issues and potential constraints on
harmonization of CIQS rules, regulations and procedures (RRP) in EAGA. The study proposed
measures to hasten the harmonization process using international and regional conventions and
protocols as benchmarks. As a result, bilateral meetings were held between 2003 and 2005 to
discuss specific harmonization issues relating to existing port-to-port arrangements, including
sea and airports. At the second EAGA Summit held in Kuala Lumpur in December 2005, the
participating countries’ leaders agreed to strengthen cooperation and carry out necessary policy
and regulatory reforms to improve the CIQS and trade facilitation environment, in addition to
stepping up the delivery of related infrastructure. As Regional Development Advisor, a key task
for ADB is to facilitate the cross-border harmonization process. The regional technical
assistance (RETA), 3 which was formally endorsed by the CIQS Task Force at a meeting in
Brunei Darussalam on 19-20 April 2007, will provide the means to help EAGA member
countries expedite the formulation and implementation of agreements to streamline and
eventually harmonize CIQS RRP. See Appendix 1 for the TA framework.

                                                 II.      ISSUES

3.     The BIMP-EAGA focal areas are physically closer to each other than to the capitals and
economic centers of their respective countries. EAGA’s geography provides different areas in
the subregion with opportunities to trade with one another or directly with the rest of the world.
However, weak subregional inter-modal transport systems and cumbersome cross-border
procedures have stunted trade and tourism. Various measures have been or are being
undertaken to improve infrastructure, and modest progress has been achieved in creating more
extensive transportation links across the subregion. However, increasing connectivity within

    BIMP-EAGA is also referred to as EAGA. EAGA covers all of Brunei Darussalam; Indonesia’s Sulawesi,
    Kalimantan, Maluku and Irian Jaya provinces; Malaysia’s federal states of Sabah and Sarawak and federal territory
    of Labuan; and Mindanao and Palawan islands in the Philippines. EAGA has an estimated population of 55 million.
    The Asian Development Outlook 2006 identified four sets of issues critical for development. One was security,
    including the need to facilitate the efficient and safe transit of commodities across borders.
    The TA first appeared in ADB Business Opportunities on 17 March 2007.

EAGA and a growing recognition of the complementarities in subregional trade and travel mean
stronger measures are now required to expedite cooperation in harmonizing CIQS RRP.

4.      CIQS harmonization in EAGA is a complex and labor-intensive process because of the
many national and local government agencies as well as private sector organizations across the
four countries, and also because the initiative is being carried out at the subregional and
subnational levels. To be effective, it will require an integrated response from the various CIQS
agencies and extensive consultations with private sector stakeholders. Information exchange
and coordination are critical. An important first step toward harmonization is to establish a
platform for the regular and timely exchange of information and sharing of experience among
CIQS agencies at the national and subregional levels. It is envisoned that the CIQS Task Force
will be the institutional mechanism for this coordination and information exchange. Although
created in 2002, the task force was only formally constituted in 2006 after a series of bilateral
and multilateral discussions about harmonization. The need to strengthen the task force’s role
and capacity as a consultative forum and catalyst for CIQS harmonization is widely recognized,
especially by the private sector. Subregional harmonization efforts need the support of a strong
and functional country-level coordination mechanism that involves CIQS representatives at the
national and provincial levels as well as at border crossings and ports.

5.       The CIQS environment in EAGA is influenced by the degree to which commitments have
been made by individual member governments to various international agreements,
conventions, protocols and treaties. Studies, including the ADB assessment, show that BIMP-
EAGA countries have different levels and modes of compliance with such agreements, resulting
in varying CIQS regimes and documentation requirements. A subregional economic cooperation
initiative that aims to increase the movement of people, goods and services requires
harmonizing the differing CIQS RRP. Recognizing that not all RRP can be fully harmonized
because of differences in national policies (for example, to protect employment, national
security and public morals), the EAGA countries have agreed to adopt more flexible measures
and a phased approach to harmonizing technical regulations and standards as well as CIQS

6.      An important aspect of progress toward harmonization will involve improving
transparency, consistency and predictability in cross-border CIQS procedures and practices.
These have long been recognized by the private sector as problems. These problems are
exacerbated by a lack of awareness and understanding of RRP even among CIQS agencies.
Earlier proposals to compile and widely circulate the CIQS RRP of the member countries need
to be revived and implemented. As a start, CIQS procedures and documentary requirements at
selected priority ports and border crossings will be mapped to identify the major differences in
practices and formalities to enable the CIQS Task Force to discuss the issues and formulate
strategies and action plans to address them.

7.     Recent developments also indicate an increased awareness and greater willingness
among EAGA countries and concerned agencies to implement regulatory and procedural
reforms. For instance, leaders attending the third EAGA Summit in Cebu City, Philippines, on 12
January 2007 (in conjunction with the ASEAN Summit) agreed to use BIMP-EAGA as a test
case for the implementation of ASEAN agreements on transport and trade facilitation. However,
to ensure the sustainability and acceptability of this approach, the first measures and steps to
be undertaken should involve low-level technology with low or no innovation cost. These
measures should be easy to implement and result in immediate benefits. Some of the measures
being discussed include conducting joint customs inspections and setting up one-stop
documentation processing facilities at selected border crossings. ADB can support this by
sharing experience gained and best practices developed from implementing transport and trade

facilitation measures in other subregional cooperation schemes, such as the cross-border
transport agreement in the Greater Mekong Subregion (GMS).

8.      Representatives from EAGA CIQS agencies, as well as development partners who
participated in a CIQS needs assessment workshop in Manila in August 2006,4 all agree that
investing in human capital through continuing training and capacity building is a critical
component for any successful trade facilitation initiative. A lack of technical capacity, especially
among CIQS agencies at the subregional level, as well as limited enforcement of regulations
constrain the implementation of trade facilitation measures and other trade-related reforms.
International organizations 5 with trade-related training capabilities and bilateral partners (for
example, German development assistance through GTZ and AusAID) with a presence in the
subregion will be asked to assess training needs and participate in building the capacity of CIQS
agencies. Regional training institutions will likewise be involved to provide a more regional
perspective to capacity building and training programs.

                                   III.     THE TECHNICAL ASSISTANCE

A.        Impact and Outcome

9.        Overall, the TA is expected to enhance the integration of EAGA economies by
strengthening CIQS operations. This will be done by supporting cooperation in security and
facilitating trade and the movement of people and goods across borders. This is expected to
lead to the expansion of intra-industry and intra-firm economic links, in turn quickening regional
growth and development. The TA aims to assist the EAGA countries to (i) strengthen the role of
the CIQS Task Force as a catalyst for the CIQS harmonization process, (ii) establish or
enhance national institutional mechanisms to coordinate effectively the CIQS harmonization
initiatives, (iii) formulate strategies and implement action plans to streamline, simplify and
harmonize CIQS processes and formalities at ports of entry and border crossings, and (iv) build
the capacity of CIQS focal points in the subregion. Specific outputs of the TA are outlined in
Appendix 1.

B.        Methodology and Key Activities

10.     Consistent with the decision of the concerned BIMP-EAGA member officials, the
approach to harmonization will be phased. While reasonably comprehensive, the geographic
scope of the assistance will be limited to priority ports and border crossings selected on the
basis of the levels of movement of people and goods, to maximize the benefits of CIQS
harmonization of processes and documents. The TA will have two components. The first is to
strengthen subregional and national institutional structures and mechanisms for effective
coordination and sustained implementation of the CIQS harmonization initiatives. The second
and key component is process harmonization, which will address the complexity of institutional,
administrative and regulatory issues. It will do this by undertaking phased activities that lead to
implementation of flexible and mutually acceptable trade facilitation agreements involving
selected ports and border crossings. The emphasis of the TA will be on the second component.
Key TA activities aimed at strengthening subregional and national institutional structures and
mechanisms include the following.
The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
members, Board of Directors, Management, or staff, and may be preliminary in nature.
    The workshop was organized by ADB and GTZ.
    International organizations include ASEAN, the International Civil Aviation Organization (ICAO), the International
    Maritime Organization (IMO), the United Nations Conference on Trade and Development (UNCTAD), the World
    Customs Organization (WCO), the World Health Organization (WHO) and the World Trade Organization (WTO).

       1.      Strengthening Subregional and National Institutional Structures and

11.      Country level. The TA will assist in establishing and enhancing country-level and
subregional institutional structures and mechanisms to coordinate the CIQS harmonization
efforts effectively. At the country level, the TA will assist member countries to establish national
CIQS councils or committees, which will be responsible to ensure consistent national
commitment and responsiveness to the subregional CIQS harmonization initiatives and
inclusion of the subregional CIQS harmonization programs in national development priorities.

12.     Subregional level. The TA will help to strengthen the role of the EAGA CIQS Task
Force by providing technical and logistics support to (i) conduct consultation and policy dialogue
among CIQS agencies, between CIQS agencies and the private sector, and between the CIQS
Task Force and the different clusters and working groups to identify concerns, issues and
actions to facilitate harmonization; (ii) prepare an integrated response and/or subregional
harmonization strategy and work programs; (iii) prepare, negotiate and implement agreements
and protocols; and (iv) prepare and implement a results-oriented monitoring and evaluation
system. The TA will also provide support for the development of networks, information systems
and information dissemination to promote awareness and understanding of issues related to
subregional economic integration. Support for high-level meetings of CIQS agencies will
likewise be provided to ensure that quick decisions are made on the most pressing issues.

       2.      Support for the Harmonization Process

13.    Process Mapping and Analysis of Current CIQS RRP. The TA provides for a
comprehensive mapping and analysis of current CIQS processes and documentary
requirements at major EAGA ports, including regular international ports of entry and designated
EAGA ports of entry. This is aimed at (i) identifying differences and gaps in CIQS procedures
and documents, (ii) facilitating the formulation of solutions to address the gaps, and (iii) building
consensus among member countries on the required regulatory and procedural reforms to
streamline, simplify and harmonize processes, formalities and documentary requirements. The
TA will help to ensure that the proposed reforms are aligned with international conventions,
protocols and best practices. ADB will draw lessons from experience gained in other
subregional growth areas (for example, the GMS and the Indonesia, Malaysia, Thailand Growth
Triangle) and other international organizations (e.g.,            the International Civil Aviation
Organization (ICAO), the International Maritime Organization (IMO), the United Nations
Conference on Trade and Development (UNCTAD), the World Customs Organization (WCO),
the World Health Organization (WHO)) in trade facilitation. The TA will also assist in obtaining
the endorsement of the EAGA Senior Officials’ Meeting (SOM) of the proposed strategies and
work programs.

14.    Formulate Agreements. Once consensus is reached on the nature and scope of
reforms, the TA will provide technical and legal expertise for drafting, negotiating and signing
the necessary legal documents, agreements and protocols to formalize arrangements on the
agreed regulatory, enforcement and procedural reforms. During the process of preparing the
documents, the ASEAN Secretariat’s assistance will be obtained to ensure that the reforms are
compatible and consistent with or complementary to existing regional agreements on security,
transport and trade facilitation.

15.    Pilot Test Implementation of Agreements. The TA will support implementation of the
agreements and provide further assistance to prepare time-bound memorandums of
understanding and/or guidelines for implementation at each of the priority ports. The TA will also

provide assistance in (i) preparing implementation manuals and instructional media, (ii)
monitoring the timely implementation of agreements, (iii) facilitating the resolution of potential
bottlenecks in implementation and gaps in enforcement measures, (iv) fully documenting the
experiences and lessons learned to facilitate possible replication in other EAGA ports, (iv)
conducting comparative “before” and “after” studies on border-crossing clearance time and
effectiveness of security and facilitation measures, and (v) continuing dialogues and
consultations with port users, traders and local CIQS agencies to engage their support in the
implementation and sustainability of the reforms.

16.     Provide Demand-Driven Capacity Building Activities. The RETA will assist in the
assessment and provision of on-site training needs to build the capacity of local CIQS agencies
to sustain the implementation of streamlined, simplified and harmonized CIQS procedures and
border-crossing formalities. The RETA will co-finance the preparation and implementation of
training programs and capacity building activities with relevant international organizations
(including ASEAN, ICAO, IMO, UNCTAD, WCO, WHO, and WTO) and other EAGA
development partners.

C.     Cost and Financing

17.   The total cost of the RETA is estimated at $600,000, to be financed on a grant basis by
the Cooperation Fund for Regional Trade and Financial Security Initiative and administered by
ADB. The cost estimates and financing plan are in Appendix 2.

D.     Implementation Arrangements

18.      ADB will be the Executing Agency responsible for implementing and monitoring the TA.
It will do this in close consultation with the CIQS Task Force, the BIMP-EAGA Facilitation
Center and the national secretariats of the BIMP-EAGA member countries.

19.    The TA will finance about 55 person-months of consultant services—35 international and
20 national. Consultants will also be engaged to conduct short-term studies. The consultants will
be hired as individuals and engaged by ADB in accordance with its Guidelines on the Use of
Consultants (2006, as amended from time to time). See Appendix 3 for the consultants’ outline
terms of reference. ADB will be actively involved in implementing the TA, including the conduct
of workshops facilitated by it. ADB staff will be used as resource persons when appropriate.

20.    The TA will be implemented over 18 months from July 2007 to December 2008.

                              IV.     THE PRESIDENT'S DECISION

21.     The President, acting under the authority delegated by the Board, has approved ADB
administering the technical assistance not exceeding the equivalent of $600,000 to be financed
on a grant basis by the Cooperation Fund for Regional Trade and Financial Security Initiative for
the Support for Customs, Immigration, Quarantine, and Security Harmonization in the Brunei
Darussalam, Indonesia, Malaysia, Philippines East ASEAN Growth Area, and hereby reports
this action to the Board.
The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
members, Board of Directors, Management, or staff, and may be preliminary in nature.
6                                                                                                            Appendix 1

                                    DESIGN AND MONITORING FRAMEWORK

Design                             Performance              Data Sources/Reporting                Assumptions
Summary                          Targets/Indicators              Mechanisms                        and Risks
Impact                                                                                   Assumptions
Accelerated integration of   • Increase in intra-regional   • Progress reports to the    • Continued political
EAGA economies through         trade and tourism by 5%        SOM/MM/Leaders                commitment of participating
strengthened cooperation       per annum                      Meeting by various            governments to regional
in security and trade        • Development of trade           working groups, BEBC,         cooperation
facilitation.                  hubs and consolidating         BIMPFC                     • Regional economic stability
                               ports for import/export      • Statistical databases of      and growth at least
                               activities                     the member countries          maintained
                             • New private sector             including of BIMP FC       • Participating Governments
                               investments in transport                                     remain committed to
                               services                                                     implementing the strategies
                                                                                            and undertaking reforms
                                                                                         • Resources must be
                                                                                            adequately devoted to
                                                                                            problems. Progress must
                                                                                            be sustained.
                                                                                         • Complementary
                                                                                            improvements in the
                                                                                            regulatory environment may
                                                                                            not be adequately
                                                                                            forthcoming reducing the
                                                                                            impact of CIQS reforms and
                                                                                         • Slow development of
                                                                                            transport connectivity within
                                                                                            the subregion

Outcome                                                                                  Assumptions
                             • CIQS harmonization           • Progress reports to the    • Increased support from
Movement of people,            strategy and action plans      SOM/MM by the CIQS           other development partners
goods and vehicles across      completed                      Task Force and               (WCO, IMO, WHO,
borders facilitated by       • Implementation of action       relevant working             ASEAN) obtained
streamlining and               plans initiated                groups
simplification of CIQS                                      • ADB review missions        Risks
rules, regulations and                                      • Feedback from private      • Lack of capacity among
procedures at selected                                        sector through BEBC           local CIQS agencies and/or
priority ports and border                                                                   border crossing facilities to
crossings implemented.                                                                      implement improved

Outputs                                                                                  Risks
1. Subregional and           • Country CIQS focal           • Progress reports to        • Lack of continuity and
national institutional         points designated at both      SOM/MM/Leaders                appropriate levels of
structures and                 local and national levels      Meeting by the various        country representation
coordination mechanisms      • Directory of contacts          working groups and            could unduly delay decision
established                    compiled and                   BIMPFC                        making
                               disseminated                 • Consultants’ reports
                             • Mechanisms for national      • Working Group and
                               and subregional                CIQS Task Force
                               coordination among             reports
                               CIQS agencies
                               operationalized including
                               the creation of in-country
                               CIQS advisory councils

2. CIQS processes            • Compilation of CIQS          • Analytical studies used    • Resources in the TA
mapped, harmonization          RRPs at least 80%              as inputs, database           insufficient to support the

Design                              Performance               Data Sources/Reporting               Assumptions
Summary                          Targets/Indicators                Mechanisms                       and Risks
issues and priorities          completed by end of TA           developed for                 compilation, printing and
identified, and strategy     • Detailed mapping of              monitoring indicators,        dissemination of the CIQS
developed to address           CIQS processes in                and consultant reports        RRPs
priority issues.               priority international ports
                               of entry completed
                             • Relevant ASEAN trade
                               and transport facilitation
                               agreements for pilot-
                               testing in EAGA identified
                             • CIQS strategy and action
                               plans finalized and
                               endorsed by SOM/MM

3. Subregional               • Priority border crossings      • Signed agreements          • Resources in the TA
agreements formulated          identified and agreed          • Reports of CIQS Task          insufficient to support the
and signed.                    upon by the four                 Force                         compilation, printing and
                               countries                      • Progress Report to            dissemination of the CIQS
                             • Agreements and                   SOM/MM and Leaders            RRPs
                               protocols on uniform             Summit by various
                               CIQS procedures signed           working groups
                                                              • Consultants’ reports

4. Pilot-testing of          • Implementation of trade        • Reports of CIQS Task       • Lack of capacity among
agreements initiated in        and transport facilitation       Force                         local CIQS agencies and/or
selected land border           agreements initiated in        • Progress Report to            border crossing facilities
crossings, airports and        selected border crossings        SOM/MM and Leaders            could delay implementation
sea ports                                                       Summit by various             of agreements
                                                                working groups and by
                                                                BIMP FC
                                                              • Feedback from private
                                                                sector through BEBC
                                                              • Consultants’ reports

5. Capacity and skills of    • Training needs assessed        • Assessment/feedback        • Commitment from relevant
CIQS staff to implement        and capacity gaps                of training participants     development partners
harmonized RRPs                identified                     • Feedback from private        obtained for the capacity
upgraded.                    • Training program                 sector through BEBC          building of the CIQS
                               designed and                   • Reports of CIQS Task         agencies
                               implementation initiated         Force

Activities with Milestones                                                                Inputs
1.1 Develop directory of CIQS contact persons at the national, subregional, local and     International Consultants: 35
    port levels and publish on relevant BIMP-EAGA websites (e.g., BIMP FC website)        person months
    (December 2007)                                                                       Domestic consultants: 20
1.2 Assist CIQS Task Force in drafting the in-country and subregional level institutional person months
    and coordination mechanisms among national and local agencies. (December
    2007)                                                                                 Financing for subregional
 The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
1.3 Assist CIQS Task Force and BIMP FC conduct extensive consultations with local         workshops, conferences,
    and national CIQS agencies to build consensus staff, and may implement the
 members, Board of Directors, Management, orand agreement tobe preliminary in nature.     consultations, and training
    institutional and coordination mechanisms, including the creation of in-country       activities
    CIQS councils. (March 2008)
1.4 Provide technical and logistics support to the conduct of at least two regular
    meetings each of the CIQS Task Force in 2007/2008.

Activities with Milestones                                                                   Inputs
2.1 Obtain agreement from the four countries on the priority border crossings to pilot-
    test the trade and transport facilitation agreements. (October 2007)
2.2 In collaboration with the ASEAN Secretariat and relevant regional working groups,
    identify relevant ASEAN agreements on security, trade and transport facilitation for
    pilot-testing in EAGA. (October 2007)
2.3 Compile CIQS RRPs and conduct detailed mapping of CIQS processes
    implemented including documents used at priority international ports of entry
    (seaports, airports, and land border crossings) in EAGA. (December 2007)
2.4 Identify differences in CIQS processes and formulate strategies and action plans to
    harmonize and/or standardize procedures and documents. (December 2007)
2.5 Obtain endorsement from the SOMM of the strategy and implementation system.
    (March 2008)

3.1 Draft and negotiate appropriate security, trade and transport facilitation
    agreements and protocols. (April-July 2008)
3.2 Engage short-term CIQS experts to provide technical assistance and guidance on
    the preparation of agreements that comply with regional and international
    conventions and protocols. (April-July 2008)
3.3 Consult with relevant CIQS agencies at the national, local and port levels. (April-
    July 2008)
3.4 Sign bilateral and/or multilateral trade and transport facilitation agreements. (June-
    August 2008)

4.1 Pilot-test implementation of agreements in selected priority partner ports. (July-
    December 2008)
4.2 Seek the assistance of relevant international organizations in the implementation of
    the agreements, e.g., enforcement. (June-December 2008)
4.3 Engage short-term experts to provide technical assistance and guidance on
    specific issues arising from the implementation of the agreements. (July-December

5.1 Conduct training needs assessment. (July-August 2008)
5.2 Identify capacity and skills gaps and design training program. (July-August 2008)
5.3 Conduct coordination meetings and explore areas of coordination and
    complementarities with other development partners on matters relating to the
    provision/delivery of training activities (e.g., WCO, WHO, IMO, ICAO).
    (Throughout the TA life)
5.4 Implement training programs. (September-December 2008)

ADB = Asian Development Bank, BIMP-EAGA = Brunei Darussalam, Indonesia, Malaysia, Philippines East ASEAN
Growth Area, CIQS = Customs, Immigration, Quarantine, and Security, AFTA = ASEAN Free Trade Area, APEC =
Asia Pacific Economic Cooperation, WTO = World Trade Organization, WCO = World Customs Organization, WHO =
World Health Organization, IMO = International Maritime Organization, ICAO = International Civil Aviation
Organization, RRP = Rules, Regulations, and Procedures, CSP = country strategy and program, RCSP = regional
cooperation strategy and program, TA = technical assistance.

Cleared by:        _____________________                                            ___________________
                   Kuniki Nakamori                                                  Arjun A. Thapan
                   Officer-In-Charge                                                Director General
                   Country Coordination and                                         Southeast Asia Department
                   Regional Cooperation Division
Appendix 2

                               COST ESTIMATES AND FINANCING PLAN

               Item                                                                 Cost

               A.         Cooperation Fund for Regional Trade
                          and Financial Security Initiative a
                     1.   Consultants
                          a. Remuneration and Per Diem
                              i. International Consultants                          270.0
                              ii. National Consultants                               80.0
                          b. International and Local Travel                          70.0
                     2.   Training, Meetings, Seminars, and                         100.0
                     3.   Miscellaneous Administration and
                          Support Costs including Communications,
                          Reports and Information Materials                          20.0
                     4.   Equipment b                                                10.0
                     5.   Contingencies                                              50.0
                                                              Total                 600.0
                   Administered by the Asian Development Bank (ADB).
                   In the form of basic office equipment (for example, computers and printers), procured in
                   accordance with ADB's Procurement Guidelines (2006, as amended from time to time). The
                   equipment will be turned over to the Customs, Immigration, Quarantine, and Security Task Force
                   and/or another appropriate Brunei Darussalam, Indonesia, Malaysia, Philippines-East ASEAN
                   Growth Area subregional organization or, if used at ADB, will be turned over to ADB as ADB
                   property upon completion of the Technical Assistance report.

               Source: ADB estimates.

      The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s
      members, Board of Directors, Management, or staff, and may be preliminary in nature.
10     Appendix 3


1.      A team of individual consultants will be engaged to provide advice and technical
assistance. A total of 55 person-months of consulting services (35 person-months of
international consultants’ inputs and 20 person-months of national consultants’ inputs) is
required. The indicative person-month allocations and outline terms of reference follow.

A.     Trade Facilitation Expert and Team Leader (international, intermittent, 15

2.     As team leader, the expert will be responsible for the following.

       (i)     Coordinating the activities of the team and assuring the quality and
               timeliness of project deliverables.

       (ii)    Coordinating and preparing reports (i.e., inception, midterm and final
               reports, and various sector reports as needed) to be submitted to ADB
               and the Customs, Immigration, Quarantine, and Security (CIQS) Task

       (iii)   Organizing various training and capacity building activities.

3.     As trade facilitation expert, he or she is expected to have extensive knowledge and
experience in trade facilitation issues, particularly related to areas such as transport
logistics, customs, immigration, quarantine, and trade and port security. Related work
experience in an ASEAN context is highly advantageous. Specific responsibilities
include the following.

       (i)     Coordinate the mapping of CIQS processes and documentary
               requirements in ports as prioritized by East ASEAN Growth Area (EAGA);
               identify constraints in CIQS operations and enforcement, and recommend
               actions to alleviate them; review relevant studies, reports, minutes of
               meetings and other documents on transport and trade facilitation in EAGA;
               analyze in detail issues pertaining to people and goods mobility in the
               subregion; identify immediate opportunities to improve trade facilitation;
               and recommend for the consideration of the EAGA countries practical
               trade facilitation and logistics support projects to improve and facilitate the
               freer movement of people and goods across borders.

       (ii)    Coordinate the assessment of the EAGA member countries’ national and
               local-level institutional structures and coordination mechanisms among
               CIQS agencies; provide inputs to the CIQS Task Force to develop
               acceptable mechanisms to enhance coordination and the exchange of
               information between national and local-level CIQS agencies, between
               countries in the subregion and between CIQS agencies and EAGA
               business communities. The consultant will likewise evaluate the proposal
               to set up national CIQS councils or committees for the purpose of
               improving coordination and provide inputs to facilitate decisions by the
               CIQS Task Force on whether to pursue this initiative.
                                                                              Appendix 3   11

       (iii)   Assist in strengthening the role of the CIQS Task Force as a consultative
               forum and catalyst for the harmonization process by establishing
               mechanisms for regular participatory consultations and dialogues with
               EAGA stakeholders. Provide advice on institutionalizing the active and
               effective participation of private sector trade groups and associations as
               well as local governments in the identification of issues and solutions
               related to transport and trade facilitation in EAGA.

       (iv)    Provide inputs to the preparation of a transport and trade facilitation
               strategy and its corresponding results-oriented action plans and
               monitoring framework.

       (v)     In consultation with the CIQS Task Force, explore options and
               institutional arrangements for working more closely with international
               organizations and bilateral development partners such as the ASEAN
               Secretariat, World Trade Organization (WTO), World Customs
               Organization (WCO), World Health Organization (WHO), International
               Civil Aviation Organization (ICAO) and International Maritime
               Organization (IMO), among others.

       (vi)    Assist in preparation of resource papers for subregional meetings,
               conferences, workshops and seminars and participate in consultations
               and monitoring missions to the subregions.

       (vii)   Support the conduct of problem-specific and issues-focused transport and
               trade facilitation studies for the subregion and participate in ADB missions
               as required.

B.     Resource Persons and Experts (4 international, 20 person-months combined)

4.     Resource persons in the areas of customs, immigration, quarantine and security
will be engaged, as needed, to undertake the following.

        (i)    Prepare quick, pragmatic and results-focused studies to address
               emerging CIQS and enforcement issues and problems, in consultation
               with countries or raised by them during regional technical assistance

       (ii)    Prepare recommended actions to address the issues and problems
               quickly and practically.

       (iii)   Facilitate discussion, endorsement and adoption of the studies’ results
               and recommendations by the countries.

       (iv)    Document and synthesize findings for useful and easy reference.

      National Consultants (4 national, 20 person-months necessarily
C. views expressed herein are those of the consultant and do notcombined) represent those of ADB’s
members, Board of Directors, Management, or staff, and may be preliminary in nature.
5.    National consultants will be engaged to undertake the following.
12   Appendix 3

     (i)     Review the compliance of their country with key international standards
             and conventions on customs, immigration, quarantine and security (for
             example, the revised Kyoto Convention 2000); relevant ASEAN
             agreements on harmonized tariff nomenclature, customs harmonization,
             goods-in-transit and trade facilitation; and standards and conventions
             relating to the WCO, WTO, WHO, and ICAO.

     (ii)    Map CIQS processes, including enforcement measures, and
             documentary requirements in pre-selected priority ports in EAGA and
             assist the Team Leader in identifying immediate and specific measures to
             improve the harmonization, streamlining and standardization of CIQS
             procedures and related trade facilitation measures at these ports.

     (iii)   Assist the CIQS Task Force and the team leader to conduct consultations
             and dialogues with local governments and local private sectors on
             transport and trade facilitation and encourage their active and effective
             support to identify and implement CIQS measures to enhance people and
             goods mobility across borders.

     (iv)    Liaise with CIQS agencies in their respective countries on RETA activities;
             assist the team leader and RETA consultants with field visits, including
             arranging meetings with relevant agencies and stakeholders; assist the
             consultants in arranging for training, workshops and conferences; and
             serve as resource persons for meetings, training and conferences.

     (v)     Participate in ADB missions, as needed.

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