The challenge for customs nowadays is to offer the best possible service to traders and citizens in a planet characterised by economic globalisation, by rapidly increasing trade flows and by worldwide security concerns. Despite having enormous potential, South Asia is in an economically disadvantageous position, compared to other regional blocs. This is further aggravated by related bottlenecks that exist within the public administration, particularly the customs. Lack of adequate infrastructure at ports, complex rules and regulations concerning international trade, ambiguities related to customs valuation and tariff classification, pervasiveness of corruption among a section of customs personnel, inefficiency of government bureaucracy, and lack of cooperation among the various government agencies pose serious threat to the region's external sector performance. Raising effectiveness of trade facilitation measures within the Saarc region is crucial to supporting global integration of Saarc countries and promote their trade and commerce. Such an endeavour will largely depend on adopting and implementing a number of measures including the following. The Saarc Secretariat could play a key role in it.
Saarc Single Window initiative
Saarc leaders should work towards endorsing a Single Window initiative to share information on single windows, and develop a strategic action plan to implement single windows in Saarc. The Saarc Secretariat may set up a special working group to carry forward this initiative. The Apec Single Window initiative can be a reference point. Besides, more productive use of information technology has to be made to increase efficiency, effectiveness and transparency of revenue collections by expediting customs clearance procedures. Such a measure will be a step forward towards effective utilisation of the automated system. Furthermore, this will enhance transparency and help eliminate corruption among customs officials.
Customs-to-customs cooperation
Harmonisation of customs procedures in Saarc countries will largely depend on the degree of cooperation among the customs authorities in the region. A mechanism will need to be put in place to ensure proper and adequate exchange of information among the customs authorities. Policy should also be developed to implement periodic training programmes, in which customs authorities in one country -- individually or jointly with another customs administration -- will train officials from customs and other border agencies from Saarc countries on latest relevant developments both within and outside Saarc. Such measures are crucial to ensure supply chain security not only within the region, but also with regard to extra-Saarc trade performance of these countries.
Customs-to-business cooperation
To ensure effective utilisation of the automated system, Saarc members need to set up required infrastructure and provide training to customs officials and representatives of the private sector including traders, shipping agents and freight forwarders. This is important not only to ensure 'informed compliance' on the part of the business community, but also to strengthen their relationship with the customs authorities. A sound and effective customs-to-business consultation mechanism should also be developed to ensure adequate participation of all relevant stakeholders.
Authorised economic operator
The concept of 'authorised economic operator' (AEO) or 'authorised traders' relates to businesses sufficiently known and trusted by the customs authorities to be exempted from the ordinary controls and subject to much lighter or flexible procedures and requirements. Such businesses correspond to frequent and reliable users, having a good compliance record of accurate declarations and timely payments. All the members of the Saarc should work out a common set of criteria to determine traders' eligibility as AEOs. The underlying objective of the initiative is to benefit both importers and exporters of South Asia with expedited clearance and increased security for shipments entering or leaving the region. Such benefits may also include option of periodic payment of duty for the compliant traders. The AEO programme was officially launched in Europe on January 1. The 'SAFE Framework', developed by the World Customs Organisation (WCO), details out the conditions and requirements for the AEOs.
Strengthened regulatory framework
Saarc members need to undertake a review of the existing laws and regulations to modernise the legal and regulatory framework. The approach will be to initially focus on priority amendments and eventually to rewrite the laws to ensure clarity, transparency and predictability. Such exercises should be carried out in light of the standards and practices set out by the Revised Kyoto Convention.
Enhanced risk management
State of the art automation system has to be put in place to ensure customs 'data mining'. This is critical not only in terms of simplifying document lodgement, but also to ensure effective risk management procedures including (i) screening shipments against pre-determined risk criteria based on documents lodged, (ii) identifying the nature and level of risk, and prioritising accordingly, and (iii) treating the risk.
Greater political will
Saarc leaders have to have a strategically well-designed political will among themselves to transform the differences into common interests. They must strive towards creating an economically strong region while recognising the specific trade related capacity building needs of individual member states. To this end, the Saarc Secretariat may act as a platform to devise a common voice that needs to be raised at various international fora (such as the World Trade Organisation) to attract trade related technical assistance. Such political will is also crucial to establish an integrated transport system within the South Asia region. This will play an important role in promoting greater intra-regional connectivity within Saarc procedures to facilitate and ease intra-Saarc trade flows.

The writer is a senior research associate for the Centre for Policy Dialogue (CPD). Views expressed here do not necessarily reflect those of CPD.