Presented at UNESCAP Workshop, Establishing of Regional ... · Vietnam) ate of Accession r...

Presented at UNESCAP Workshop,

Establishing of Regional Network of Legal and Technical Experts on Transport Facilitation

Phuket 10 February 2014

Chackrit Duangphastra,PhD. Chulalongkorn Business School, Thailand

1

General information of the Agreements; Comparative study provisions in the Agreements

scope of applicationdocument, liability, license/access to market for multimodal transport operator, miscellaneous provisions and final provisions

Analysis of similarities in the relevant provisions of GMS CBTA and ASEAN Framework Agreement on Multimodal TransportExploration of the good practices in implementing GMS CBTA and ASEAN Agreement.


Management of procedures and controls, information flows, and documentation related to the movement of goods across national borders to reduce associated cost burdens and maximize efficiency while safeguarding legitimate regulatory objectives.


Need for structural changes covering new trade and transport practices, especially in the field of customs, immigration, MTO, SPS, MRA, harmonization of procedures, goods in transit, technology, and transport infrastructure.

The transport facilitation is one of outstanding issues which must be addressed to derive full benefits from the implementation of region’s free trade and economic integration

(a) to promote the development of economic and efficient multimodal transport services adequate to the requirements of international trade, (b) to adopt rules relating to the carriage of goods by international multimodal transport contracts, including provisions concerning the liability of multimodal transport operators, and (c) to create a balance of interests between users and suppliers of international transport services.Comprises 41 Articles


Ratified by1. Cambodia2. Philippines3. Thailand4. Vietnam


(a) facilitate transportation of goods in transit, to support the implementation oASEAN Free Trade Area, and to further integrate the region’s economies; (b) simplify and harmonize transport, trade and customs regulation and requirements for the purpose of facilitation of goods in transit; (c) establish an effective, efficient, integrated and harmonized transit transporsystem in ASEANASEAN member countries which are contracting parties shall accord principleof Most Favored Nation Treatment (MFN) to transit transport and National Treatment (NT) to product transited through territory as well as simplifies all transit transport procedures and requirement in ASEAN and make all regulations related transit transport publicly availableComprises 25 Articles

ASEAN Framework Agreement on the Facilitation of Inter-State Transport duplicates foundation established in ASEAN Framework Agreement on the Facilitation of Goods in Transit such as designated routes, frontier posts and facilities and general conditions for road transport, and miscellaneous provisions


Ratified by1.Laos PDR2.Thailand

Agreement on the Recognition of Domestic Driving Licenses Issued by ASEAN Countries (1985)aiming to facilitate the movement of citizens of the ASEAN countries by recognizing domestic driving licenses issued by the respective countries.

Agreement on the Recognition of Commercial Vehicle Inspection Certificates for Goods Vehicles and Public Service Vehicles Issued by ASEAN Member Countries (1998) aiming to facilitate cross border movement of commercial vehicles with regard to goods vehicles and public service vehicles among contracting parties by recognizing commercial vehicle inspection certificates issued by contracting parties.

E-ASEAN Framework Agreement (2000) aiming to promote cooperation in E-ASEAN, liberalization in ICT product, and reduce digital divide in the individual ASEAN member states.

Agreement to Establish and Implement the ASEAN Single Window (2005) aiming to provide a framework for ASEAN Single Window and to strengthen the coordination and partnership among ASEAN Customs Administrations and relevant line ministries and agencies

Roadmap for the Integration of Logistics Services (2007) aiming to realizing of free flow of goods in ASEAN including tariff liberalization, removal of non-tariff barriers, trade facilitation, customs, standards and conformance, and sanitary and phytosanitary measures, facilitation shipment or transportation by having minimal customs operations and processes.


Chackrit Duangphastra,PhD

GMS Cross Border Transport Agreement (CBTA) is an instrument that covers all relevant aspects of cross border transport facilitation

Single Stop / Single Window Customs InspectionCross Border Movement of PersonsTransit Traffic Regimes (exemptions from physical customs inspection, bond deposit, and agriculture and veterinary inspection)Requirements of road vehiclesExchange of commercial traffic rightsInfrastructure

Road, bridge design standards, road signs, and signals

CBTA includes mechanisms that enable vehicles (on designated open routes), drivers (without mutual recognition of driving licenses and visa facilitation), and goods (with regimes for dangerous and perishable goods) to cross national borders through the GMS road transport permit system,

avoidance of costly transshipment through a customs transit and temporary importation system and guarantee system for goods, vehicles, and containers,

reduction of time spent at borders, through single-window inspection, single-stop inspection, information and communication equipment and systems for information exchange, risk management, and advance information for clearance, and

increases in the number of border checkpoints implementing the CBTA in order to maximize its networks effect and economies of scale.

When fully implemented, the CBTA will improve the efficiency of transport services by acilitating cross border transport, complement economic corridors and physical nfrastructure and investment, and create a more favorable environment for cross border ade, investment, and tourism



GMS CBTA has incorporated provisions of ASEAN agreement, especially

ASEAN Framework Agreement on the Facilitation of Goods in Transit,

ASEAN Framework Agreement on the Facilitation of Inter State Transport,

ASEAN Agreement on the Recognition of Commercial Vehicle Inspection Certificates for Goods Vehicles and Public Service Vehicles,

Agreement to establish and Implement the ASEAN Single Window.

GMS CBTA provided linkage to MT by promoting multimodal transport operation via

(a) application of uniform multimodal transport liability regime,

(b) laying down a minimum qualification for MT, and (c) a special container customs regime.

Other important area to address to GMS countries is to accelerate member countries to ratify and implement the signed ASEAN Agreement on Multimodal Transport.



Items AFAMT GMS CBTAOverall

StructureAFAMT comprises 11 Chapters and

42 Articles covering provisions related to scope of application, multimodal transport document,

liability of the multimodal transport operator (MTO),

limitation of liability of MTO, liability of consignor, notices, claims, actions and time bar, jurisdiction and competence,

multimodal transport operators, miscellaneous provisions, and final

provisions

GMS CBTA comprises 10 Parts and 44 Articles covering provisions related to definition and scope of application, facilitation of border crossing formalities, cross border transport of people, cross border transport of goods,

phytosanitary and veterinary inspection, requirements for the admittance of road vehicles, exchange of commercial

traffic rights, infrastructure, institutional framework, miscellaneous provisions, and final provisions

In addition, there are 16 annexed and 3 protocols as integral part of the agreement.

Annexes directly related to multimodal transport are Annex 13a: Multimodal Carrier Liability Regime and

Annex 13b: Criteria for Licensing of Multimodal Transport Operators for Cross-Border Transport

Operations


Date of

Signing

AFAMT

November 17, 2005

GMS - CBTA

November 26, 1999 (Lao PDR, Thailand, and Vietnam)

ate of Accession r Non-Signatory Contracting

Parties

Accession of Cambodia (November 29, 2001): China PRC (November 3, 2002); Myanmar (September 19,

2003)

ate of Entry into Force

Flexibility provided for each member country in implementing the agreement.

Only 4 ASEAN countries already implemented the agreement namely

Philippines (June, 30, 2008); Thailand (July 11, 2008); Cambodia (October 27,

2009); Vietnam (November 1, 2011)

Entry into force when contracting parties have ratified or accepted the agreement

Contracting Parties

10 countries in ASEAN: Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines,

Singapore, Thailand, and Vietnam

6 contracting parties; China and 5 ASEAN countries

Overlapping ASEAN countries who are parties to GMS CBTA are Cambodia, Loa PDR, Myanmar,

Thailand, and Vietnam,


AFAMT GMS CBTA Comments Preamble

To facilitate expansion of international trade between ASEAN and non-ASEAN countries, adopt certain rules to carriage goods by international multimodal transport contracts, create balance of nterests between user and international transport

suppliers

General Provision

To facilitate cross border transport of goods and people, simplify and harmonize

regulations relating to cross border transport, and promote multimodal transport.

Objectives of GMS CBTA cover wider range of

topics compare to those of AFAMT. One of

outstanding objectives of GMS CBTA is to promote

multimodal transport

Chapter 1

Article 1: Definition

Agreement clarified important terms used such as: carrier, consignee, consignor, deliver, delivered, delivery, goods, in writing, international multimodal transport, mandatory law, multimodal transport contract, multimodal transport document, multimodal transport operator (MTO), special drawing right (SDR), and take in charge.

In the Annex 13a of GMS CBTA: Multimodal Transport Liability Regime, it shares the

same definitions and descriptions as AFAMT

Definitions used in GMS CBTA are similar to those of AFAMT. Except having different member countries

which are parties to agreement


AFAMT GMS CBTA Comments Chapter 2: Scope of Application

Article 2

The Agreement shall apply to all ltimodal transport operators under the ister of each competent national body

The Agreement shall apply to all ntracts of multimodal transport if (1) the ce for the taking in charge of the goods the multimodal transport operator as vided for in the multimodal transport

ntract is located in a member country, 2) the place for delivery of the goods the multimodal transport operator as vided for in the multimodal transport

ntract is located in a member country.

Annex 13b of GMS CBTA: Criteria for Licensing of Multimodal Transport Operator for Cross

Border Transport Operations, covers the scope of Article 2(a) of AFAMT i.e Annex 13b apply to

multimodal transport who perform international multimodal transport operations licensed /

registered with national competent authorities.

Annex 13a of GMS CBTA: Multimodal Transport Liability Regime covers the scope of the Article

2(b) of AFAMT i.e. Annex 13a apply to all contracts of multimodal transport if (1) the place

for the taking in charge of the goods by the multimodal transport operator as provided for in the multimodal transport contract is located in a contracting party, or (2) the place for delivery of the goods by the multimodal transport operator

as provided for in the multimodal transport contract is located in a contracting party.

In general, scope of application of multimodal transport in AFAMT is

accommodated in Annex 13a and Annex 13b of GMS CBTA.

However, in practice the applicationof multimodal transport is not wel

established in ASEAN and GMS region due to only a few countries such as Thailand, Cambodia, and Vietnam have ratified and enacted

national laws to accommodated AFAMT. Many ASEAN and GMS member countries have not yet

established MTO laws and registration system.


AFAMT GMS CBTA Comments Article 3

herever in this Agreement and in the rules adopted for the rpose of its implementation, any of the following terms is lized for its application: “Multimodal Transport”, ultimodal Transport Operator”, “Multimodal Transport

ontract”, or “Multimodal Transport Document”, it shall be derstood as being “International” in a nature.

In the Annex 13a of GMS CBTA: Multimodal Transport Liability Regime, it shares the same

scope of application of terms used in the agreement

Terms used in the application in GMS CBTA

are similar to those of AFAMT.

Chapter 3: Multimodal Transport Document

Article 4

When the goods are taken in charge by the multimodal nsport operator, he shall issue a multimodal transport cument which, at the option of the consignor, shall be in her negotiable or non-negotiable form.

The multimodal transport document shall be signed by the ultimodal transport operator or by a person having thority from him.

The signature on the multimodal transport document may in the form of handwriting, print, perforated, stamped,

mbols, or in any other mechanical, or electronic forms, not consistent with the laws of the country where the ultimodal transport document is issued.

In the Annex 13a of GMS CBTA: Multimodal Transport Liability Regime, it shares the same

principles as AFAMT

Principles set out in multimodal transport

document in GMS CBTA are similar to those of

AFAMT.


AFAMT GMS CBTA Comments

Article 5

The multimodal transport document shall contain the following particulars:

) general nature of the goods; the marks necessary for the identification of the goods, and express atement, if applicable, as to the dangerous or perishable character of the goods, the number of

ackages or pieces; and the gross weight of the goods or their quantity otherwise expressed, all such articulars as furnished by the consignor;) apparent condition of the goods;) name and principal place of business of MTO;) name of consignor;) consignee, if named by the consignor;) place and date of taking in charge of the goods by MTO;) place of delivery of the goods;) date of period of delivery of the goods at the place of delivery, if expressly agreed upon between the

arties; statement indicating whether multimodal transport document is negotiable or non-negotiable; place and date of issue of multimodal transport document;) signature of MTO or of a person having authority from him; fright for each mode of transport, if expressly agreed between the parties, or the freight, including its

urrency, to the extent payable by consignee, or other indication that freight is payable by him;m) intended journey route, modes of transport and places of transshipment if known at the time the ultimodal transport document is issued;) any other particular which the parties may agree to insert in the multimodal transport document, if not consistent with the law of the country where the document is issued.

The absence from the multimodal transport document of one or more of the particulars referred to in aragraph 1 of this Article shall not affect the legal character of the document as a multimodal transport ocument.

In the Annex 13a of GMS CBTA: Multimodal

Transport Liability Regime, it shares the same recommended particulars as AFAMT

The recommended particulars

established in multimodal transport document in GMS

CBTA are similar to those of AFAMT.



1) The multimodal transport document shall be prima facie evidence of taking in charge by MTO of the goods as described in that document unless a contrary indication, such as “shipper’s weight, load and count”, “shipper-packed container” or a similar expression, has been made in the printed text or superimposed on the document.

2) Proof to contrary shall not admissible when the multimodal transport document has been transferred, or the equivalent electronic data interchange message has been transmitted to and acknowledged by the consignee, who in good faith has relied and acted thereon.

In the Annex 13a of GMS CBTA: Multimodal Transport Liability Regime, it shares the same principles as AFAMT

Principles set out in multimodal transport document in GMS

CBTA are similar to those of AFAMT.


AFAMT GMS CBTA Comments Chapter 5: Liability of the Multimodal Transport

Operator

Article 7

The responsibility of multimodal transport operator (MTO) for goods under the provisions of this Agreement covers the period from the time MTO has taken the goods in his charge to the time of their delivery

In the Annex 13a of GMS CBTA: Multimodal Transport

Liability Regime, it shares the same principles as

AFAMT

Recognition of liability period in GMS CBTA is

similar to that of AFAMT.

Article 8

MTO shall be responsible for the acts and omissions of his servants or agents, when any such servant or agent is acting within the scope of his employment, or of any other person of whose services he makes use for the performance of the contract, as if such acts and omissions were his own.


Liability Regime, it shares the same principles as

AFAMT

Recognition of liability undertaken by agents or servants in GMS

CBTA is similar to that of AFAMT.



MTO undertakes to perform or to procure the performance of all acts necessary to ensure delivery of the goods:

(a) when the multimodal transport document has been issued in a negotiable form “to bearer”, to the person surrendering one original of the document, or(b) when the multimodal transport document has been issued in a negotiable form “to order” to the person surrendering one original of the document duly endorsed, or (c) when the multimodal transport document has been issued in a negotiable form to a named person, to that person upon proof of his identity and surrender of one original document, if such document has been transferred “to order” or in blank, the provisions of (b) above apply, or (d) when the multimodal transport document has been issued in a non- negotiable form, to the person named as consignee in the document upon proof of his identity, or (e) when no document has been issued, to a person as instructed by the consignor or by a person who has acquired the consignor’s or the consignee’s rights under the multimodal transport contract to give such instructions.


Liability Regime, it shares the same details as AFAMT

Details described in GMS CBTA are similar

to those of AFAMT.



1. MTO shall be liable for loss resulting from loss of or damage to the goods, as well as loss resulting from delay in delivery, if the occurrence which caused the loss, damage or delay in delivery took place while the goods were in his charge as defined in Article 7, unless MTO proves that he, his servants or agents or any other person referred to in Article 8 took all measures that could reasonable be required to avoid the occurrence and its consequences.

2. However, MTO shall be liable for loss following from delay in delivery unless the consignor has made declaration of interest in timely delivery which has been accepted by MTO.

In the Annex 13a of GMS CBTA: Multimodal Transport Liability

Regime, it shares the same details as AFAMT

Details described in GMS CBTA are

similar to those of AFAMT.



1. Delay in delivery occurs when the goods have not been delivered within the time expressly agreed upon, in the absence of such agreement, within the time which it would be reasonable to require of a diligent MTO, having regard to the circumstances of the case.

2. If the goods have not been delivered within 90 consecutive days following the date of delivery determined in accordance with the preceding paragraph, any person entitled to claim the goods may, in the absence of evidence to the contrary, treat the goods as lost.




to those of AFAMT.



otwithstanding provisions of Article 10, MTO shall not be liable for loss, amage or delay in delivery with respect to goods carried if he proves that the vent which caused such loss, damage or delay occurred during that carriage is ne or more of the following circumstances:

) force majeure) Act or neglect of the consignor, the consignee or his representative or agent;) insufficient or defective packaging, marking, or numbering of the goods;) handling, loading, unloading, stowage of the goods effected by the

onsignor, the consignee or his representative or agent;) inherent or latent defect in the goodsstrikes or lockouts or stoppage or restraint of labor from whatever cause,

hether partial or general;) with respect to goods carried by sea or inland waterways, when such loss,

amage, or delay during such carriage has been caused by: (1) at, neglect or efault of the master, mariner, pilot or the servant of the carrier in the navigation

in the management of ship, or (2) fire unless caused by the actual fault or ivity of the carrier

owever, always provided that whenever loss or damage has resulted from nseaworthiness of the ship, MTO can prove that due diligence has been xercised to make the ship seaworthy at the commencement of the voyage.



Details described in GMS CBTA are similar to those of AFAMT.



Assessment of compensation for loss of or damage to the goods shall made by reference to the value of such goods at the place and time y are delivered to the consignee or at the place and time when, in

cordance with multimodal transport contract, they should have been so ivered.

The value of goods shall be determined according to the current mmodity exchange price or, if there is no such price, according to the rent market price, or if there is no commodity exchange price or current rket price, by reference to the normal value of goods of the same kind d quality.



Details described in GMS CBTA are similar to those of

AFAMT.

Chapter 5: Limitation of Liability of the Multimodal Transport Operator

Article 14

ess the nature and value of goods have been declared by the nsignor before the goods have been taken in charge by MT and inserted he multimodal transport document, MTO shall in no event be or come liable for any loss or damage to the goods in an amount ceeding the equivalent of 666.67 SDR per package or unit or of 2.00 R per kilogram of gross weight of the goods lost or damaged, chever is the higher.




AFAMT.



Where a container, pallet or similar article of transport is loaded with more than one package or unit, the packages or other shipping units enumerated in the multimodal transport documents as packed in such article of transport shall be deemed packages or shipping units. Except aforesaid, such article of transport shall be considered the package or unit.

In the Annex 13a Attachment to GMS CBTA:

Multimodal Transport Liability Regime, it shares the same details as AFAMT


AFAMT.

Article 16

Notwithstanding the provisions of Article 14 and 15, if multimodal transport does not, according to the contract, include carriage of goods by sea or by inland waterways, the liability of MTO shall be limited to an amount not exceeding 8.33 SDR per kilogram of gross weight of the goods lost or damaged.


Transport Liability Regime, it shares the same details as

AFAMT


AFAMT.


AFAMT GMS CBTA Comments

Article 17

When the loss of or damage to the goods occurred during one articular stage of the multimodal transport, in respect of which an pplicable international convention or mandatory law would have rovided another limit of liability if a separate contract of carriage had een made for that particular stage of transport, then the limit of

MTO’s liability for such loss or damage shall be determined by eference to the provisions of such convention or mandatory law.

In the Annex 13a of GMS CBTA: Multimodal Transport Liability Regime, it

shares the same details as AFAMT

Details described in GMS CBTAare similar to those of AFAMT

Article 18

MTO is liable in respect of loss following from delay in delivery, or onsequential loss or damage other than loss or damage to the oods, his liability shall be limited to an amount not exceeding the quivalent of freight under multimodal transport.




Article 19

he aggregate liability of the MTO shall not exceed the limits of ability of total loss of the goods





Chapter 6: Liability of the Consignor

Article 21

The consignor shall be deemed to have guaranteed to MT the accuracy, at the time the goods were taken in arge by MTO, of all particulars relating to the general nature of the goods, their marks, number, weight, volume d quantity and, if applicable, to the dangerous character of the goods as furnished by him or on his behalf for ertion in the multimodal transport document.

The consignor shall mark or label dangerous goods in accordance with international conventions or any national islation which may also apply.

Where the consignor hands over dangerous goods to MT or any person acting on his behalf, consignor shall orm him of the dangerous character of the goods, and, if necessary, the precautions to be taken. If the nsignor fails to do so and MTO does not otherwise have knowledge of their dangerous character: (a) consignor all be liable to the MTO for all loss resulting from the shipment of such goods; and (b) the goods may at any e be unloaded, destroyed or rendered innocuous, as the circumstances may require, without payment of mpensation.

The provisions of paragraph 3 of this Article may not be invoked by any person if during the multimodal nsport he has taken the goods in his charge with knowledge of their dangerous character.

f, in cases where provisions of paragraph 3(b) of this Article do not apply or may not be invoked, dangerous ods become an actual danger to life or property, they may be unloaded, destroyed or rendered innocuous, as circumstances may require, without payment of compensation except where there is an obligation to contribute

general average, or where MTO is liable in accordance with provisions of Article 10 and 11.

The consignor shall indemnify MTO against any loss resulting from any inaccuracies in or inadequacies of the ticulars referred to in the preceding paragraphs.

The consignor shall remain liable even if the multimodal transport document has been transferred by him.

The right of MTO to such indemnity shall in no way limit his liability under the multimodal transport contract to y person other than the consignor.



Details described in GMS CBTA are similar to those of AFAMT.


AFAMT GMS CBTA Comments Chapter 7: Notices, Claims, Actions and Time-Bar

Article 22

Unless notice of loss of or damage to the goods, specifying the general ure of such loss or damage, is given in writing by the consignee to O when the goods were handed over to the consignee, such handing-r is prime facie evidence of delivery by MTO of the goods as cribed in the multimodal transport document.

Where the loss or damage is not apparent, the same prime facie effect ll apply if notice in writing is not given within six consecutive days after day when the goods were handed over to the consignee.


same details as AFAMT


AFAMT.

Article 23

ess otherwise expressly agreed, any action relating to multimodal nsport under this Agreement shall be time-barred unless court or tration proceedings are instituted within a period of nine months after delivery of the goods or, if they have not been delivered, after the date which the goods should have been delivered or after the date on ch, in accordance with the provisions of Article 11, paragraph 2, failure eliver the goods would give the consignee the right to treat the goods ost.


same details as AFAMT


AFAMT.



The provision in this Agreement shall apply to all claims against T relating to the performance of multimodal transport contract,hether the claim be founded in contract or in tort.

Similarly, they shall apply whenever claims relating to the erformance of multimodal transport contract are made against ny servant, agent or other person whose services the MTO has sed in order to perform the multimodal transport contract, hether such claims are founded in contract or in tort, and the ggregate liability of MTO and such servants, agents or other ersons shall not exceed the limits in Article 14 to 19.

Notwithstanding paragraph 2, a servant or agent of MTO or ther person of whose services he makes use for the performance f multimodal transport contract is not entitled to the benefit of the mitation of liability if it is proved that the loss, damage or delay in elivery resulted from a personal act or omission of such servant, gent or other person done with the intent to cause such loss, amage, or delay or recklessly and with knowledge that such loss, amage or delay would probably result.



Details described in GMS CBTA are similar to those

of AFAMT.


AFAMT GMS CBTA Comments Chapter 8: Jurisdiction and Competence

Article 25

judicial proceedings relating to international multimodal transport under this ement, the plaintiff, at his option, may institute an action in a court which rding to the law of the country where the court is situated, is competent and n the jurisdiction of which is situated one of the following places:

he principal place of business or, in the absence thereof, the habitual ence of the defendant; or

he place where the multimodal transport contract was made, provided that the ndant has there a place of business, branch or agency through which the act was made; or

e place of taking the goods in charge for the multimodal transport or the e of delivery; or

ny other place designated for the purpose in the multimodal transport act and evidenced in the multimodal transport document.

otwithstanding the provisions of paragraph 1 of this Article, an agreement e by the parties after a claim has arisen, which designates the place where laintiff may institute an action, shall be effective.


Transport Liability Regime, it shares the same details as

AFAMT


to those of AFAMT.



ject to the provision of this Article, parties may provide by agreement evidenced in that any dispute that may arise relating to international multimodal transport under this

ment shall be referred to arbitration.

arbitration proceedings shall, at the option of the claimant, be instituted at one of the ng places:

place in a state within whose territory is situated: (1) the principal place of business of fendant or, in the absence thereof, the habitual residence of the defendant; or (2) the where the multimodal transport contract was made, provide that the defendant has a place of business, branch or agency through which the contract was made; or (3) the of taking the goods in charge for the multimodal transport or the place of delivery; or

y other place designated for that purpose in the arbitration clause of agreement.

arbitrator or arbitration tribunal shall apply the provision of this Agreement.

provision of paragraph 2 and 3 of this Article shall be deemed to be part of every tion clause or agreement and any term of such clause or agreement which is istent therewith shall be null and void.

hing in this Article shall affect the validity of an agreement on arbitration made by the s after the claim relating to the international multimodal transport has arisen.



Details described iGMS CBTA are

similar to those ofAFAMT.



Any stipulation in the multimodal transport document shall null and void and shall produce no effect if it either directly indirectly departs from the provisions of this Agreement or, ecifically if stipulations are made that are prejudicial to the nsignor or the consignee. This shall not affect the other pulations contained in the document

Notwithstanding the provisions of paragraph 1 of this ticle, MTO may, with the consent of the consignor, increase s responsibilities and obligations under the provisions of this reement.

In the Annex 13a of GMS CBTA: Multimodal Transport Liability Regime, it shares the same details as AFAMT


to those of AFAMT.

Article 28

e provisions of this Agreement shall not prevent the plication of the rules pertaining to general average justment contained in the multimodal transport contract or the relevant national law, to the extent that they are plicable.




to those of AFAMT.


AFAMT GMS CBTA Comments Chapter 9: Multimodal Transport

Operators

Article 29

A multimodal transport operator of any member country shall be registered with the competent national body of his country. The competent national body shall maintain the register of duly registered multimodal transport operators.

Article 2 (Basic Eligibility) of Annex 13b of GMS CBTA:

Criteria for Licensing of MTOs for Cross Border Transport

Operations indicates that MTOs shall be licensed by, and/or registered with the national

competent author in home country to perform international

multimodal transport operation provided they meet minimum conditions set out in terms of

reliability, professional competence, and financial

solvency

Principles set out in AFAMT in relation to MTO registration is recognized by GMS

CBTA.



For inclusion in the register of MTO, the person oncerned shall submit an application to the espective competent national body and establish at he fulfils all requirements as prescribed by ational law. As a minimum:

a) He shall possess the legal capacity as required y the provisions of the member country in which e is applying for registration;

b) He shall have domicile in the member country which he is applying for registration;

c) He shall have an insurance policy, a coverage om a protection and indemnity club, or an ternative of a financial character to cover ayment of obligations for loss, damage or delay in elivery of goods under multimodal transport ontracts, as well as contractual risks; and

d) He shall maintain minimum assets equivalent to 0,000 SDR or provide an equivalent guarantee.

Member countries shall ensure transparency of eir respective laws, regulations and dministrative procedures concerning the egistration.

All member countries shall deposit with the ecretary General of ASEAN, not later than six onths after this Agreement has entered into force, eir register of MTO and notify the Secretary eneral of ASEAN any changes thereto. The ecretary General of ASEAN shall promptly inform ach member country of such notification.

Article 3 4 and 5 of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations highlight requirement details to be registered MTO.

Article 3: Reliability

MTO must not have been (a) convicted serious breaches of the criminal, commercial law, or labor law; (b) divested from capacity to exercise the professional of transport operator as a sanction for breach of applicable transport regulation; or (c) declared bankrupt unless the rights, competency, privileges, or financial solvency of transport operator have been restored or rehabilitated, as appropriate according to laws or regulations of home country of transport operator.

Article 4: Professional Competence

Home country contracting party shall verify and make sure of MTO’s ability for sound economic management, supply of quality service, fair competition, and safe operation of the transport enterprise. For that purpose the contracting party shall require MTO to be proficient in the field of multimodal transport, particularly in the following: (a) legal matters (e.g. contracts, carriage contract and carrier liability, multimodal transport contracts, companies, accounting, labor law, fiscal law); (b) transport operations management (e.g. cost and price calculation, payment and financing methods, price regulation, insurance, transport intermediaries, management techniques, marketing), (c) conditions and requirements on access to market, if any (e.g. access to profession, transport documents, fair competition / anti dumping); (d) technical matters relating to transport operations (e.g. size and weight of vehicles, carriage of dangerous and perishable goods, principles of environmental protection in transport operations); and (e) safety and security measures:

Article 5: Financial Solvency

a)MTO shall own sufficient financial means to guarantee proper functioning and management of transport operation enterprise.

b)For the purpose of assessing MTO’s solvency, the following elements may be taken into account: MTO’s balance sheet, asset, bank account credit, capacity to obtain loans, bank guarantees obtained, and liability insurance cover.

c)MTO shall maintain minimum assets equivalent to 80,000 SDR or provide an equivalent guarantee.

d)MTO must carry insurance covering the operator’s contractual liability.

Principles set out in AFAMT in relation to

minimum requirement for MTO registration is recognized by GMS

CBTA.

However, comparing with AFAMT, GMS

CBTA outlines more and rigid details

required to get MTO license, especially in

terms of reliability and professional competency

requirements.

GMS CBTA has no clauses requesting

member countries to deposit the registered MTO with coordinating

unit.


Article 32

. The registration by the competent national body of any of the member countries authorizes MTO to perate in any of the member countries provide that the requirements under paragraph 4(b) of this Article ave been fulfilled.

. During the interim period, when the implementation of paragraph 1 of this Article is not practicable, any member country may, on a reciprocal basis, authorize MTO which are duly registered by the competent ational body of any other member country to operate in its territory.

. Member countries shall notify the Secretary General of ASEAN no later than six months from the time f signing of this Agreement if they are unable to implement paragraph 1 of this Article. Such member ountries shall also notify the Secretary General of ASEAN the reasons thereof who shall promptly inform ach member country of such notification.

. For the member countries whose laws and regulations allow the authorization as set out in paragraph 1 f this Article:

a) the authorization shall remain in effect as long as no official communication is sent in writing by the ompetent national body to the MTO concerning suspension or cancellation of the registration.

b) in order for MTO registered in one member country to operator in other member countries, he shall ubmit a copy of the registration certificate duly issued by his competent national body to the competent ational body of the other member country in which he has legal representation such as through agency greement or branch office in the other member country in which he wishes to operate.

. Member countries who have notified the Secretary General of ASEAN pursuant to paragraph 3 of this Article shall subsequently notify the Secretary General of ASEAN when the implementation of paragraph

of this Article becomes practicable. The interim reciprocal authorization granted pursuant to paragraphs and 4 of this Article shall be automatically withdrawn three months after notifying the Secretary General f ASEAN.

. The provisions in this Article shall not affect the laws and regulations of the member countries which eserve the rights to operate a unimodal transport for their nationals.

Article 6 (Communication) of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations identify that the contracting parties shall periodically communicate their updated register of MTO to the joint committee for dissemination to the other contracting parties, as appropriate.

GMS CBTA has establishegeneral provision of

communications betweenmember countries.

AFAMT set out procedures adetail action required fromASEAN member countries

especially implementation the interim period


AFAMT GMS CBTA Comments Chapter 10: Miscellaneous Provisions

Article 33

ember countries shall endeavor to organize and regulate e their territory all matters necessary to facilitate the acious carriage of goods by various modes of transport or TO under this Agreement.

e provisions of this Agreement do not, in any mstances, involve any restriction on the facilities that tries have granted or may grant one another under bilateral ultimodal agreements or treaties.

othing in this Agreement shall be construed as limiting or gating from the rights and obligations of MTO, carrier, ignee, consignor or any member country provided under estic legislation enacted by any member country or national law through existing of future bilateral, regional or lateral agreements or arrangements entered into by any ber country in order to protect human health, public safety the environment, provided that no member country shall be d by any such agreement or arrangement to which it is not

rty thereto.

Article 10 and 12 of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations

Article 10 Conforming National Law

Where necessary, the contracting parties undertake to conform their relevant national legislation with the contents of the Annex

Article 12 Suspension of the Annex

Each contracting party may temporarily suspend wholly or partly the application of the Annex with immediate effect in the case of emergencies affecting its national safety. The contracting party will inform the other contracting parties as soon as possible of such suspension, which will end as soon as the situation returns to normal.

No provision in GMS CBTA explicitly cover issues raised

by Article 33 of AFAMT except issues related to

suspension of implementationdue to case of emergencies

affecting national safety (Article 33-3) and national

legislation compliance (Article33-1)



The competent national body designated by the member countries shall be responsible for the implementation of this Agreement in their respective territories.

No provision in GMS CBTA explicitly cover

issues raised by Article 34 of AFAMT

Article 35

Without prejudice to the provisions of Article 34 and the other powers conferred on them under this Agreement, the competent national bodies of the member countries shall be responsible forcoordinating all aspects of multimodal transport with the users,operators, authorities and national and international bodies.



Chapter 11: Final Provisions

Article 36

This Agreement or any actions taken thereto shall not affect therights and obligations of the member countries under existing orfuture international conventions applicable to the multimodal transport contract or any part thereof, as well as to the relevant national laws to implement such conventions.





The provisions of the ASEAN protocol on Enhanced Dispute Settlement Mechanism signed in Vientiane, Lao PDR on 29th

November 2004, shall apply to consultation and the settlement of disputes under this Agreement, except when the dispute relates to the application of Article 36.

Article 14 (Dispute Settlement) of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations

Any dispute between or among two or more contracting parties on the interpretation or application of the Annex shall be settled directly or by amicable negotiation in the joint Committee.

Article 38

Any amendment to the provisions of this Agreement shall be effected by consent of all member countries.

Article 7 (Amendment) of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations

Any contracting party may propose amendments to the Annex via the Joint Committee. Such amendments shall be subject to the unanimous consent of the contract parties.

Article 39

This Agreement is subject to ratification or acceptance by the member countries.

Article 8 (ratification or acceptance) of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations

The Annex is subject to ratification or acceptance of the government of contracting parties. The same applies to an amendment to the Annex, if any.


Article 40

The instrument of Ratification or Acceptance shall be deposited with the Secretary General of ASEAN who shall promptly inform each member country of such deposit.

IN GMS CBTA, the communication will be reported to

join committee and contract parties.

Article 41

1. Member countries shall be provided flexibility in the implementation of this Agreement. Two or more member countries may proceed with the implementation first, if other member countries are not ready.

2. This Agreement shall enter into force upon the 30th day after the deposit of the second instrument of Ratification or Acceptance, and shall become effective only among the member countries that haveratified or accepted it. For each member country ratifying or accepting this Agreement after the deposit of the second instrument of Ratification or Acceptance, this Agreement shall enter into force on the 30th day after the deposit of its instrument of Ratification or Acceptance.

Article 9 (Entry into Force) of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations

The Annex will enter into force on the day that at least two contracting parties have ratified or accepted it, and will become effective only among the contracting parties that have ratified or accepted it. The same applies to an amendment to the Annex, if any.

In GMS CBTA and AFAMT, the implementation of MTO can be

started in case two or more member countries accepted.

Article 42

No reservation may be made to this Agreement either at the time of signature, ratification or acceptance.

Article 11 (Reservations) of Annex 13b of GMS CBTA: Criteria for Licensing of MTOs for Cross Border Transport Operations

No reservation to the Annex shall be permitted.

GMS CBTA and AFAMT share the same principle.

Provision related to multimodal transport issues in GMS-CBTA and AFMAT are generally compliment, GMS CBTA has provided a linkage to multimodal transportation by supporting the contracting parties to promote multimodal transport operation via

(a) application of uniform multimodal transport liability regime, (b) laying down a minimum qualification for MT, and (c) a special container customs regime. In addition, GMS CBTA clearly elaborate qualification required to apply for registered MTO including the demonstration of reliability, professional competence, and financial solvency whilst, comparing with AFMAT, GMS CBTA has not explicitly established guidelines of depositing database of region’s MTO database, relationship with international agreements in bilateral, regional, and multimodal level, responsibility of competent national authority to coordinate with joint committee.


hallenges currently faced by public and private takeholders in managing connectivity in ASEAN and GMS onnectivity are to solve the following issues:

Lack of sharing correct and updated information on customs, trade, and transport regulations amongst authorities, logistics serviceproviders, and shippers;

Relatively slow progress made in implementing framework agreement agreed at regional level taking into account of existing complex structure of ASEAN bodies

Lack of awareness and understanding of AEC in some ASEAN countries;

Relatively high cost and long time consumed to move goods and passenger across border;

Shortage of qualified logistics manpower especially at operational level;


Article 2 and 3: Scope of Applicationeement applies to all multimodal transport operators under register ach competent national body and all contract of international modal transport

timodal transport, multimodal transport operator, multimodal sport contract, or multimodal transport document shall be national in nature

Article 4, 5 and 6: Multimodal Transport DocumentO can issue multimodal transport document which shall be in either otiable or non-negotiable form.

multimodal transport document shall be signed by MTO or orized person in form of handwriting, print, stamped, or electronic which consistent with laws of country where the document is

ed.

timodal transport document shall contain recommended 14 items as y as possible ranging from description of goods, details of modal transport operator, details of consignor and consignee, and r particulars which the parties may agree which consistent with

onal laws of country issuing the document.

timodal transport document shall be initial evidence of taking in ge by MTO of goods described in the document.

Article 7, 8, 9, 10, 11, 12, and 13:

Liability of Multimodal Transport Operator

MTO including his employees or agents shall responsible for goods from the time MTO has taken in charge of delivery.

MTO shall be liable for loss of damage to goods including delivery delay caused by his in charge employees or agents unless MTO proves that his employees or agents took all measures that could reasonably be required to avoid the occurrence.

If the goods have not been delivered within 90 days following the date of delivery determined, then persons entitled to claim to goods may treat the goods as lost

MTO shall not be liable for loss, damage or delay in delivery such incidents caused by following circumstances such as force majeure, neglect of consignor or consignee, poor packaging and marking, inherent defect in the goods, strikes, and fire.

Assessment of compensation for loss or damage to goods shall be based on value of goods at place and time they are delivered to consignee.



Article 14, 15, 16, 17, 18, 19, and 20:

Limitation of Liability of Multimodal Transport Operator

TO shall become liable for any loss or damage to ods in amount exceeding the equivalent of 666.67 R per package or unit or 2SDR per kilogram of w weight of goods lost or damaged, whichever is higher.

MTO is liable in respect of loss following from very delay or consequential loss or damage other n loss of or damage to the goods, the liability shall limited to an amount not exceeding the equivalent reight under the multimodal transport contract for multimodal transport

e aggregate liability of MT shall not exceed the ts of liability for total loss of the goods

Article 21, 22, 23, 24: Liability of Consignor

Consignor must guarantee to MTO for the accuracy of all particulars relating to the general nature of goods, their marks, number, weight, volume and quantity and to the dangerous character of goods. The consignor shall indemnity MTO against any loss resulting from any inaccuracies in or in adequacies of the particulars.

Article 25, 26, 27 and 28: Jurisdiction and Competence

Issues related to international multimodal transport under this Agreement may institute an action a court which is competent and accord to laws of the country where is court is situated. Parties may choose to use arbitration

Chackrit Duangphastra,PhD. Chulalongkorn Business School, ThailandChackrit Duangphastra,PhD. Chulalongkorn Business School, Thailand

Article 29, 30, 31 and 32: Multimodal Transport Operators

TO of any member country shall be istered with the competent national body of country.

TO should fulfill requirements by national w. As a minimum (a) has legal capacity as

uired by national registration (b) has micile in the member country in which he is plying for registration, (c) has an insurance icy covering from a protection and emnity club, or an alternative of financial racter to cover payment of obligations for

s, damage or delay in delivery of goods der multimodal transport contracts, as well contractual risks, and (d) has minimum ets of 80,000 SDR or provide an equivalent rantee.

Article 33, 34, and 35 : Miscellaneous Provisions

Member countries shall organize and regulate inside their territory all matters to facilitate carriage of goods by varioumodes of transport or by MTO under this Agreement.

Competent national bodies shall be responsible for the implementation of this Agreement in their respective territory

Article 36, 37, 38, 39, 40, 41: Final Provisions

This agreement shall not affect right of member countries under existing or future international conventions applicableto multimodal transport contract and relevant national laws to implement such conventions.

This Agreement is subject to ratification or acceptance by member countries.

Member countries shall be provided flexibility in the implementation of this Agreement. 2 or more countries mayproceed with the implementation first, if other countries arenot ready.

Chackrit Duangphastra,PhD. Chulalongkorn Business School, ThailandChackrit Duangphastra,PhD. Chulalongkorn Business School, Thailand

Article 5 Grant of Rightsntracting party shall grant the right of transit

nsport, and load and discharge non-party’s ods destined for or coming from contracting ties. ansit transport shall not be subject to any ecessary delays or restrictions and shall be mpted from customs duties, taxes and other rges except charges for specific service dered in connection with such transport such as dling charges and warehousing costs.

oods carried in sealed road vehicles, mbination of vehicles or container shall not be

jected to examination at customs office en te except cases when smuggling and fraud is pected by customs authorities. Article 6 Designation of Transit Transport

Routesntracting party shall adopt a list of designated

nsit transport routes to be specified in Protocol 1 he agreement “designation of transit transport tes and facilities”. In addition, rest areas on the ignated routes should be provided to enhance

nsport safety

Article 7 Frontier FacilitiesContracting party shall designate frontier posts at border

points to facilitate transit transport as specified in Protocol 2 othe agreement “designation of frontier posts”. Frontier posts of neighboring should be physically adjacent

with control areas with checking requirements in order to facilitate the clearance and examination of transport and in transit goods and to avoid repeated unloading and reloading othe goods. Conduct of joint examination by officials of more than two

countries is allowed. Contracting party must ensure the adequacy of manpower

resources for clearance of frontier formalities such as immigration, customs, health, and foreign exchange control. Goods in transit can be temporarily stored in approved placeCooperation of the adjacent posts are demanded in areas of

working hours, parking space for containers, parking space fovehicles awaiting goods clearanceIf possible, contracting parties should be guided by

international treaty “international convention on harmonizationof frontier control of goods” signed at Geneva on 21th Octobe1982, to harmonize frontier facilities for goods in transit

Chackrit Duangphastra,PhD. Chulalongkorn Business School, ThailandChackrit Duangphastra,PhD. Chulalongkorn Business School, ThailandChackrit Duangphastra,PhD. Chulalongkorn Business School, Thailand

Article 8 Traffic Regulationontracting party shall take appropriate asures to ensure harmonization of road traffic ulations as guided by “Convention on Road ffic” signed on 8th November 1968, and

onvention on Road Sign and Signal” signed 8th November 1968.

Article 9 Transit Transport Servicesach contracting party shall allow vehicle istered in other contracting parties to provide

nsit transport service on its country subject to ht granted of transit transport, type and antity of vehicles. pe and quantity of road vehicles to be used transit transport shall be agreed upon ween all contracting parties, to be specific in tocol 3 “types and quantity of road vehicles”ch can be changed from time to time as tually agreed between contracting parties.

Article 10 Road Transport Permits

Contracting party undertake to harmonize road transport permit requirements in order to facilitate transit transport

Article 11 Technical Requirements of Vehicles

Means of transport used in road transit transport shall conform to the technical requirements regarding vehicle dimensions, maximum weights and loads, emission standards and related matters specified in Protocol 4 “Technical Requirement of Vehicles”

Article 12 Mutual Recognition of Inspection Certificate

Contracting Parties will establish periodic inspection of road vehicles registered in each respective territory and used for transit transport operations.

Contracting Parties shall recognize periodic inspection certificate of road vehicles used for transit transport issuedby the other Contracting Parties, in accordance with the Agreement on Recognition of Commercial Vehicle inspection Certification for Goods Vehicles and Public Service Vehicles Issued by ASEAN Member Countries signed on 10th September 1998


Article 13 Mutual Recognition of Driving Licenses

ntracting Parties shall recognize domestic ing licenses issued by all other Contracting ties in accordance with the Agreement on cognition of Domestic Driving Licenses issued ASEAN Member Countries signed on 9th July 5

ticle 14 Motor Vehicle Third-Party Insurance Scheme

ad vehicle entering into other contracting party ll comply with laws and regulations related to d-party insurance.

ntracting parties will harmonize or establish mmon ASEAN scheme of compulsory motor

icle third-party liability insurance to be specified Protocol 5 “ASEAN Scheme of Compulsory tor Vehicle Third Party Liability Insurance” which provide at least all the guarantees required by s and regulations governing such insurance in contracting parties

Article 15 Charges and other Financial Obligations

Contracting parties will simplify, consolidate and harmonize charges and other financial obligations levieon the means of transport

Article 16 Connecting and Transit Services for RaTransport

Connecting and transit services on railway line linking territories of contracting parties shall be done at designated interchange stations.

Border stations, interchange stations and type and quantity of rolling stock shall be designated in protocol “Railways Border and Interchange Stations” which specbasic operational arrangement related to technical inspection of rolling stock.

The contracting parties shall encourage their railways conclude interrailway agreements, including arrangemefor the acceptance of technical inspection of rolling stocwhich are consistent with the provision of this Agreemeand protocol


ticle 17 Harmonization and Simplification of Customs Procedures

stoms control procedures of transit transport ll be simplify and harmonize while complying

h customs laws and regulations.

nt customs inspection is encouraged to duct for transit transport at designated frontier

nts

stoms Transit of the International Convention of Simplification and Harmonization of Customs cedures concluded on 18th May 1973 (Kyoto nvention) under WCO shall be used as dance.

ticle 18 Establishment of a Customs Transit System

ntracting parties shall establish a customs nsit system to facilitate the movement of goods heir territories and agree to apply the customs nsit system to be specified in Protocol 7 stoms Transit System”

Article 19 Establishment of Sanitary and Phytosanitary Measures

Contracting parties shall establish sanitary and phytosanitary measures (SPS) to be specified in Protoc8 “sanitary and phytosanitary measures”to facilitate themovement of goods in their territories while complying with relevant laws and regulations.

Article 20 Special Provision on Transport of Dangerous Goods

Transit transport of dangerous goods as specified in Protocol 9 “Dangerous Goods” will need a special permof contracting party whose territory the transportation isundertaken

Article 21 Special Provision on Transport of Prohibited and/or Restricted Goods

Transit transport of goods prohibited and/or restricted transit territory of a contracting party to be specified in protocol 7 “customs transit system” will not be permitte


rticle 22 Special Provision on Transport of Perishable Goods

bject to the provision of this agreement, contracting parties will facilitate transport perishable goods.

Article 23 Provision of Greater Facilities

is Agreement allows contracting parties to duct transit facilities which are greater n those provided in this Agreement as long the terms and conditions are consistent with nciples of this Agreement

Article 24 Domestic Legislation

mestic laws and regulations related to nsport of goods shall be applied without crimination to transit transport.

ntracting parties will harmonize and plify rules, regulations, and administrative cedures related to transit transport in ordance with provision of this Agreement

Article 25 Working Groups

Working groups are formed and designated to concludthe protocols which are integral parts of this Agreemeincluding Protocol 1 “designation of transit transport routes and facilities”, Protocol 2 “designation of frontposts”, Protocol 3 “types and quantity of road vehicleProtocol 4 “technical requirements of vehicles”, Proto5 “ASEAN scheme of compulsory motor vehicle third-party liability insurance”, Protocol 6 “railways borderand interchange stations”, Protocol 7 “customs transisystem”, Protocol 8 “sanitary and phytosanitary measures”, and Protocol 9 “dangerous goods”

Article 4: Facilitation of Border Crossing Formalities

ntracting party shall grant gradually adopt measures uding single window inspection, single stop inspection, rdination of operations hours, and advance exchange of rmation and clearance to simplify and expedite border

malities.

ngle window inspection: the different inspections and trols of people and goods are carried out jointly and ultaneously by the respective competent authorities olved (e.g. customs, police, immigration, trade, agriculture,

health department)

ngle stop inspection: the officials of the country pairs shallist one another to the extent possible in the performance heir duties. The two adjacent national authorities will carry their inspections jointly and simultaneously. Where the

al configuration does not allow the installation of physically acent back to back frontier control posts, the control cials from one contracting party shall be allowed to form their duties on the territory of the other contracting ty

Article 5 and 6: Cross Border Transport of People

Visas: contractual parties will grant visas to nationals of other contracting parties engaged in transport operations and who are subject to visa requirements, multiple entry, transit, and exit visas for prolonged periods. The conditions and modalities of visa issuance will be described in Annex 5 “cross border movement of people”Transport of people: The

performance of cross border transport of people such as vehicles, transport routes, ticket pricing will be stipulated in Annex 5 “cross border movement of people”.


rticle 7,8,9 and 10: Cross Border Transport of Goods

emption from Physical Customs Inspection, Bond osit, and Escort: contractual parties will exempt cargoes ternational transit from (a) routine customs physical ection at the border (b) customs escort, and (c) bond osit for customs duties guarantee. The transit and inland oms clearance regime will be described in Annex 6 nsit and Inland Clearance Customs Regime”

nsit Traffic: contracting parties shall grant freedom of national transit, exempt from customs duties and taxed as as charges as much as possible.

ytosanitary and Veterinary Inspection: contracting es shall comply with international agreement related to thelation of international organizations namely WHO, FAO, OIE in applying inspection of goods crossing border.

ecial Regimes for the Transport of Particular egories of Goods: the agreement shall not apply to sportation of dangerous goods defined in Annex 1 riage of dangerous goods”. The transport of perishable ds defined in Annex 3 “carriage of perishable goods” shall ranted a priority regime for border crossing clearance.

Article 11, 12, 13, 14, 15,16, 17 and 18: Requirements for theAdmittance of Road Vehicles

Admittance of Road Vehicles in other Contracting parties Left haor right hand drive registered by another contract parties shall be admthe contracting parties.Registration: vehicles in border crossing shall be registered in their

home country and comply with rules set out in Annex 2 “registration ovehicles in international traffic”Technical Requirement: Vehicles and containers shall satisfy safet

and emission standards in their home country. Vehicles travelling to ocontracting parties must comply with technical standards such as weiaxle loads, and dimensions of the host countryRecognition of Technical Inspection Certificates: The other

contracting parties will recognize technical inspection certificates issuby the home country. Compulsory Third Party Motor Vehicle Liability Insurance: Moto

vehicles used in border crossing shall comply with compulsory third pmotor vehicles liability insurance required in the host country.Driving Permits: Contracting Parties shall recognize driving license

issued by all other contracting parties in accordance with Agreement Recognition of Domestic Driving Licenses issued by ASEAN (1985)Temporary Importation of Motor Vehicles: Contracting parties sha

grant temporary admission to motor vehicles used in border crossing without payment of import duties and import taxes, and bond deposits



icle 19,20, 21, 22, 23 and 24: Exchange of Commercial Traffic Rights

ffic Rights Traffic rights shall be gradually granted to conduct inbound, ound, and transit transport. Cabotage will only be permitted on special orization.

gnation of Routes and Points of Entry and Exit: The permissible routes, point of entry and exit for cross border transport of goods and people be described in protocol 1 “designation of corridors, routes, and points try and exit (border crossing”

nsing of Transport Operators (Access to Profession): licensed transport ators must meet qualification set out in Annex 9 “criteria for licensing of port operators for cross border transport operations”

ket Access: Any licensed transport operators in home country shall be led to undertake cross border transport operations under the Agreement.

e Market for Transport Services: The capacity and frequencies of ces will be determined in Protocol 3 “frequency and capacity of services ssuance of quotas and permits” from time to time. The national port facilitation committee of each party will exchange and issue the ed number of permits each year.

ing and Conditions of Transport: Condition of transport will conform to set out in Annex 10 “conditions of transport”. Price setting for cross er transport will be free and determined by market force but subject to rvision of committee to avoid unfair competition and excessive high or pricing

Article 25, 26 and 27: Infrastructure

Protocol 1 illustrates construction of road linking countries. Contracting parties will ensure the agreed roads are safe, secureand in good condition.

Road signs and signals will meet standards set in Annex 7 “road traffic regulation and signage”

Article 28 and 29: Institutional Framework

The implementation of the Agreement will be responsible by joicommittee comprising representatives from each national transpfacilitation committee chaired by minister level

Article 30, 31, 32, 33, 34 and 35: Miscellaneous Provision

Contracting parties undertake to make transparency of regulatioand status of infrastructure as well as has nondiscriminatory treatment.

Contracting parties undertake to promote multimodal transportoperations via (a) application of a uniform multimodal transportliability regime set out in Annex 13a “multimodal carrier liabilityregime”; (b) laying down a minimum qualification for MultimodaTransport Operator set out in Annex 13b “criteria for licensing ofmultimodal transport operators for cross border transport operations”; and (c) a special container customs regime as set ouAnnex 14 “container customs regime”

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