The TRS 2020 was conducted in the midst of COVID-19 pandamic. National and global economy was adversely affected. To mitigate cross-border spread of COVID-19, the Government decided to impose several measures to control cross-border movement of goods and passengers. As result, the volume of cross-border trade decreased significantly at some border checkpoints and totally suspended at some other border checkpoints.

Nevertheless, to impletement 2017 – 2022 National Trade Faciliation Road Map, WTO Trade Facilitation Agreement and AEC Blueprint, the Secretariat of National Trade Facilitation utilized personnel mobilized by relevant authorities and financial support provided by the LCT to conduct TRS 2020. The study was carried out essentially based on the WCO TRS Guide and experience gained from previous studies.

This Time Release Study (TRS) analyzes the means and standard deviations of the key time intervals in order to understand efficiencies and delays in import/export permit application process and border clearance process, as well as provide brief recommendations on how to improve such processes.

Key Findings:

  1. The processes of application for import/export permits or certificates are different among government regulatory authorities. Some have simplified their processes and in turn, are able to grant the permits or certificates in pretty short time. While some others still maintain their conventional processes, which seemed complicated and took much longer time to complete the processes.
  2. DIMEX of MOIC has introduced automated system to process applications for issuing import permits by joining the LNSW project. At present, the system supports applications for issuing permits to import automobiles at Friendship Bridge-1 Checkpoints only, while applications for permits to import or export other commodities at other border checkpoints are processed manually. In manual process, it took 1 day 5 hours and 50 minutes on average to get the permits at DIMEX. The processing time varied from 30 minutes as a minimum to 5 days and 25 minutes as a maximum.

In electronic process using the LNSW, it took 1 day 2 hours and 15 minutes on average which is marginally shorter than the average time of manual process by 3 hour and 35 minutes. Introduction of the electronic system seemed to meet its optimal goal of accelerating the application process. It was observed that the internet connection was unstable, and some of the steps seemed irrelevant.

  1. DOT of MPWT also joined the LNSW pilot project. The electronic system was introduced to process applications for technical certificate for automobiles imported at Friendship Bridge-1 as a pilot site. To import the automobiles at other border checkpoints however, applications are still subjected to manual processing. The manual process took 1 day 12 hours and 8 minutes on average. It varied from a minimum of barely 23 minutes to a maximum of 6 days 3 hours and 55 minutes. It was observed that administrative staff took long time to deliver the document from technical divisions to the DG/DDG. The process of providing outbound reference number and official stamp seemed complicated and took a long time.

The electronic process, in comparison took 1 day 16 hours 22 minutes on average, which was surprisingly longer than the average time of manual process by 4 hours and 14 minutes. It was observed that the system was unstable; some key functions have not been developed; and some officers did not fully familiarize themselves with the system.

  1. Application for import/export permits at DOM of MEM was processed in 23 hours and 42 minutes on an average. The processing time varied from a minimum of 2 hours and 12 minutes to a maximum of 2 days 18 hours and 59 minutes. It was observed that the delivery of the document from the technical division to the DG/DDG took a long time, which constituted 32% of the overall mean time. The approval of DG/DDG also took a long time as they were often busy in meetings and discussions etc.
  2. Processing of applications for import/export permits at DOLF of MAF took 4 days 9 hours and 35 minutes on average. It could take a minimum of 2 days 30 minutes and a maximum of 6 days 23 hours and 55 minutes. It was observed that on registration, the application must be sent to the DG/DDG for assigning a technical division to conduct technical validation. This took a long time. The process of providing outbound reference number and official stamp seemed complicated and also took a long time.
  3. Processing of applications for import/export permits at FDD of MOH took 3 days 7 hours and 52 minutes on average. This processing time varied from a minimum of 4 hours and 52 minutes to a maximum of 9 days 21 hours. It was observed that some of the processes, like delivery of document from the technical division to the DG/DDG, getting approval of DG/DDG and providing outbound reference number and official stamp took inordinately long.
  4. Peocessing of applications for import/export permits at DSM of MOST took 1 day 3 hours and 34 minutes on average. It could take a minimum of 19 hours and 30 minutes and a maximum of 1 day 22 hours and 30 minutes. It was noticed that applicants could directly submit the application at the technical division. However, the time taken on delivery of the document from the technical division to the DG/DDG covered 42% of the total time.
  5. The average time taken for goods clearance at border checkpoints reduced by 40% from 8 hours 10 minutes in 2019 to 5 hours and 7 minutes in 2020. Six border checkpoints could release the goods faster, while four checkpoints, namely Friendship Bridge-2, Nam Heuang, Nam Phao and Vang Tao took longer time to clear the goods.
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