1. Customs Automation System

Prior to the introduction of an automated system, trade-related documents were manually processed by Customs officers. Given the constraints faced by Thai Customs because of the increasing volume of international trade and limited number of officers, Customs implemented Electronic Data Interchange (EDI) to control all Customs commercial operations by introducing computer clearance system for exports in 1998. The system has been expanded to cover imports and fully implemented at seaports and airports nationwide in 2000.

1.2 e-Customs

In recent years, Customs shifted its focus from EDI to an open system philosophy that would enable it to electronically exchange information by different means with all of its clients (commercial and non-commercial), partners (other government departments/agencies, both national and international) and employees. This project required the redesign of all existing client server applications to shift the existing service delivery to a Web based application, applying ebXML (electronic business using eXtensible Markup Language) as a standard message.

To build on earlier success, Thai Customs implemented a new generation of Customs computer automation system known as “e-Customs”. e-Customs utilizes Internet services, and is consistent with the standards and guidelines expressed in the Revised Kyoto Convention (RKC). The principal Customs process and procedures redesigned as part of the e-Customs system included various main application areas, like cargo control, goods declaration processing, and revenue accounting. Furthermore, the new Customs computer automation system was also integrated with the systems of other government agencies and clients, including transport operators, banks, free zone and warehouse operators. The new system is able to handle various types of Customs services and clients, provide high security, high availability and quick response times. Apart from integration at the national level, there is also a project under the framework of ASEAN Strategic Plan for Customs Development (SPCD) to integrate automation systems among ASEAN members. Ultimately, a “Single Window” system will make the regulatory process seamless for both import and export both at the national and regional levels.

The “e-Customs” was implemented on 1 January 2007, comprising of e-Import, e-Export, e-Manifest, e-Payment, and e-Warehouse. It provides clients such as exporters, importers, Customs brokers and shipping companies with a paperless environment and a one stop service. Clients no longer submit hard copies of the Customs declaration as well as the air waybill, bill of lading, invoice, packing list and other supporting documents with some exceptional cases such as licenses with other government agencies. Under the EDI scheme, several steps such as verification of classification and valuation were processed by Customs officers; however e-Customs eliminates any intervention of Customs officers, that is, all the procedures from submission of Customs declaration to decision of screening under selectivity are processed automatically.

2. e-Import Procedures

Goods imported into Thailand are subject to Customs control until released into “home consumption” or otherwise treated. The Customs procedures for clearance of imports whether arriving by land, air, or sea are similar with some slight differences in specific areas. Customs uses computer technology to carry out its import processing. By using a system called e-Import, Customs brokers and importers create Customs Declarations in their offices direct from commercial invoices. The minimum amount of documentation required for Customs clearance comprises :

• An Import Declaration
• An airway bill or bill of lading
• An invoice
• A packing list
• Other documents as required e.g. certificates of origin, licenses or permits for restricted goods

Under the e-Import system, there is no need for relevant parties to submit paper documents as all data is transmitted electronically from an importer computer system to a Customs computer system via either VAN or the Internet. Prior to the arrival of cargo or upon the arrival of cargo, a shipping company/agent forwards a ship arrival report, manifest and container list to the Customs’ computer system. The Customs computer system then validates the data and reports any error for immediate online correction. If there is no error, the ship arrival report number is automatically generated by the system and the response message is forwarded to the shipping company/agent. When the cargo arrives at the port or place of entry, an importer or a Customs broker forwards an Import Declaration to the Customs computer system. Again, the Customs computer system validates the given data and issues a Declaration and Payment Numbers within a minute in conjunction with the electronic fund transfer payment system or e-payment.



Figure 6: e-Import Procedures

After that the importer contacts a warehouse owner for the release of goods. At this stage, cargo data is screened against predetermined selectivity criteria in order to indicate whether the declaration is under a Red Line (requiring thorough physical checking) or a Green Line (permission of release). Green Line Declaration is cleared within a minute. Then, the cargo status is electronically forwarded to both the Port Authority and the importer/Customs broker. In cases where the cargo status is categorized as the Green Line, the cargo is released from the warehouse or container yard. However, in cases where the predetermined selectivity criteria indicates that the cargo is subject to the Red Line, the Port Authority removes the cargo container for physical inspection by Customs before the release of the cargo.