Improving the Border Agency Cooperation
Among the OIC Member States for Facilitating Trade
93
Malaysia is the first country to pilot the IATA Secure Freight program. The country’s main
motive for participating the program is the lack of international mutual recognition of air cargo
security controls. Some countries require extra security for air freight flying into their
territory. These measures go beyond the requirements of the ICAO Annex 17, so Malaysian
operators must comply with the more stringent requirements of these countries. If there were
agreements on mutual recognition of air cargo security regimes, international air cargo
logistics could be made much faster and less complicated. The Malaysian participation in the
IATA’s Secure Freight program is a way to demonstrate that the Malaysian government is
committed to pursue high levels of air cargo security. This demonstrated commitment is likely
to facilitate negotiations when Malaysia enters bilateral discussions regarding establishing
mutual recognition arrangements.
Towards regional e-clearance systems
Malaysia is currently developing a new electronic single window system called “uCustoms.”
This national single window will connect all relevant Malaysian border control agencies,
providing trading companies a single-point access to government services. The Malaysian
national single window paves the road towards a future regional ASEAN single window. The
ASEAN member countries are developing some elements of the regional single window, but
the project is at an early state. Capacity building efforts of the World Customs Organization
(WCO) are strongly supporting the development of the ASEAN single window.
Mutual recognition (MRAs) of Authorized Economic Operator (AEO) programs
The Malaysia customs has run a fully operational Authorized Economic Operator (AEO)
program since January 2010. Currently, there are 56 AEO-compliant companies: exporters,
importers, and manufacturers. The current Malaysian AEO focuses exclusively on customs
matters, not on security that is a part of many AEO programs worldwide (e.g., the US Customs-
Trade Partnership Against Terrorism and the EU AEO-S). At the ASEAN level, many member
countries already have operational national AEO programs, and those few countries without
AEOs have pledged to launch their own programs soon166. Although there are no practical
projects pursuing regional recognition (MRA) of these AEO programmes, the ASEAN countries
are, in principle, committed to promoting mutual recognition of AEO status and customs
controls167. So far, however, the Malaysian customs does not have MRAs with any ASEAN
country. Even so, Malaysia signed MRAs with Japan168 in 2014 and Hong Kong169 in 2016.
Malaysian customs expect to have more MRAs soon, with Thailand for example, and they are
also negotiating with the US, China and the EU.
4.3.3. Summary and discussions
The Malaysian approach to BAC has many interesting elements. The Malaysian authorities put
a great emphasis on government-industry cooperation on trade facilitation matters. A special
task force to facilitate business (PEMUDAH) provides a platform for communication between
the Malaysian government and the local private sector. As another key element in the BAC
16 accessed 1 June
2016)
167 Article 35 of the ASEAN Agreement on Customs 2012, ASEAN Strategic Plan of Customs Development (SPCD) 2010-
2015 on AEO Programmes
168 (accessed 25 July 2016)
169 (accessed 25 July 2016)