March 2022

Review of ASEAN Commitments in
Courier Services
Under AFAS 10 and RCEP

Notes
The terms country and/or economy as used in this study also refer, as appropriate, to territories
or areas; the designations employed and the presentation of the material do not express any
opinion whatsoever on the part of the ASEAN-Japan Centre concerning the legal status of any
country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers orboundaries.
The tables use the following symbols:• Two dots (..) indicate that data are not available or are not separately reported.
• A dash (-) indicates that the item equals zero or its value is negligible.
• Use of an en-dash (–) between dates representing years, e.g. , 2015–2016, signifies the fullperiod involved, including the beginning and end years.
Reference to “dollars” ($) means United States dollars, unless otherwise indicated.

Prepared by Hikari Ishido (Chiba University, Japan), Mateus Silva Chang (Keio University, Japan)and ASEAN-Japan Centre. The manuscript was edited by Tora Estep. Errors and omissions are
only those of authors and should not be attributed to their respective organizations.

Contents
I. Introduction······························································································································································1
II. Number of International Express Items in ASEAN·········································································3III. Ascendency of Courier Services·············································································································6
1. Mode 1: International trade····················································································································6
2. Mode 3: Commercial presence············································································································9
IV. T rade Agreements and Regulations in ASEAN Member States···································· 12
V. I mpacts of Further Liberalization of Courier Services on the Economy·················· 15
VI. Conclusions and Policy Suggestions································································································ 17
1. General policy suggestions················································································································· 17
2. Workable policy suggestions············································································································· 17
Annex A.
Definition of Express Delivery Services························································································· 23
Annex B.
Specific Schedule of Commitments for “Courier Services” Under AFAS
(10th package, signed in November 2018) by ASEAN Members······································· 26
Annex C.
Specific Schedule of Commitments and Reservation Tables for “Courier
Services” Under RCEP by ASEAN Members······················································································· 31
Annex D.
Policy Evaluation for Courier Services·································································································· 361

I. Introduction
Courier services, also known as express delivery services (EDS), are an essential service sector
especially for any kind of economic activities. The industry is a catalyst for ASEAN’s trade andinvestment growth. The General Agreement on Trade in Services (GATS) administered by the World
Trade Organization (WTO) lists1 one job category under courier services: 02B Courier services.
Operators in the courier services industry cater to all in the form of both business-to-business andbusiness-to-consumer services. As such, the growth of the industry is intrinsically linked to the
population and economic growth of the ASEAN region.
Out of the “three sources of value added”, i.e. , provisions of (1) tangible products, (2) informationand (3) amenities, courier services correspond to the first and tend to increase with economic
development. In the ASEAN region, which is undergoing rigorous economic advancement, the roleof courier services is becoming larger year after year.
Figure 1 illustrates the role of courier services in the value chain (in the form of smile curves). The
courier services industry covers establishments engaged in parcel deliveries. The terms courier
and EDS have no universal definition (see Annex A for legal definitions of EDS by ASEAN member
states). However, just as with transport services, courier services enable smooth transmissionof documents and parcels, thereby contributing to productivity enhancement along value chainshorizontally and vertically. Courier services at times compete with national postal administrations;establishing an international-level playing field is required for fair competition in courier services.
Defining the scope of the monopoly narrowly to allow a minimum level of scale economies andintroducing courier services where needed (especially in remote areas in the ASEAN region) will
stimulate economic efficiency and increase consumer choice.
Swift delivery times distinguish courier services from mail services. These are usually only
“optional” for ordinary mail services. Courier services are therefore costlier than ordinary mailservices, and their use is limited based on cost considerations.
Courier services’ value chain is complex and entails numerous activities and participants. Service
providers offer a complete chain of time-bound logistics solutions from consignment collection
at the customer’s location to packaging, transportation, storage, clearances and final delivery of
the shipment. Express delivery may either be local, intercity or international, depending on theoperator’s capabilities. For cross-border delivery, express delivery service providers also handle
customs clearances and duty payment. Courier service suppliers charge fees to clients based on
the classification of parcel (documents/non-documents2), its weight, the distance to be transported
and the urgency of delivery.
Growing e-commerce is an important factor spurring courier services development. Increasing
consumption and growing Internet penetration are boosting the ASEAN e-commerce sector.
To maintain cost-competitiveness, companies in the online business prefer to work with thirdparty courier providers instead of hiring in-house delivery staff workers. Furthermore, the strong
presence of courier companies provides the added advantage of greater access for e-commercecompanies. Thus, growth in the e-commerce sector has been driving demand for the ASEAN
courier industry. Courier service operators usually provide visibility of the shipment through real-

1
2

See WTO, “Services Sectoral Classification List” (MTN.GNS/W/120, released 10 July 1991).
Documents include letters, trade documents, applications, check books, bank statements and promotional materials. Nondocuments include equipment parts, electronic products, spare parts and trade samples, among others.

been driving demand for the ASEAN courier industry. Courier service operators
usually provide visibility of the shipment through real-time tracking mechanisms.
2

Conceptually, courier services use a “hub-spoke” distribution network: this is atraffic system shaped like a wire wheel in which all traffic moves along spokes
connecting the hub (at the center) and the nodes at the other end of the spokes.
time tracking mechanisms.

The
benefitscourierof sucha networklie in the limited
numberof thisroutestoConceptually,
servicesuse a “hub-spoke”
distribution
network:
is a necessarytraffic systemshaped like a wire wheel in which all traffic moves along spokes connecting the hub (at theconnect
all nodes and the ease with which new spokes can be created.
center) and the nodes at the other end of the spokes. The benefits of such a network lie in thelimited number ofare
routesnecessary
all nodes
and the ease withto
which
new spokes
Consignments
movedfrom totheconnect
collecting
branch/franchiseecollection
andcan be created. Consignments are moved from the collecting branch/franchisee to collection

distribution
throughvarioustransportmeans.areDeliveries
are directly
eitherand distributionhubs
hubs throughvarioustransportmeans. Deliveries
either completed
by distribution hubs or through local agents. The latter route is especially used by medium andcompleteddirectly by distribution hubs or through local agents. The latter routesmaller players.3
is especially used by medium and smaller players.3
Figure 1. Value chains and courier services

3

Drawbacks of the hub-spoke network include that day-to-day operations may be rather inflexible
and changes in demand may have unexpected consequences throughout the network. However, thehub-spoke model significantly reduces the cost of courier traffic, thus supporting the standard
business model used globally.
3

3

Drawbacks of the hub-spoke network include that day-to-day operations may be rather inflexible and changes
in demand may have unexpected consequences throughout the network. However, the hub-spoke modelsignificantly reduces the cost of courier traffic, thus supporting the standard business model used globally.

3

II. Number of International Express Items in ASEAN
Table 1 shows the number of international express items (dispatch and receipt) in 2013–2019.
Express items, as defined by the Universal Postal Union, cover items dispatched or received
mainly through post offices; hence, these data might not cover private-sector-mediated expressdelivery services. Despite lacking such data, the information in the table is useful in capturing theincreasing demand for express delivery services at large.
The number of international express items handled increased in Cambodia, Myanmar andViet Nam, while that number oscillated in other countries such as Indonesia and Philippines.
Comparing with China, Japan and the Republic of Korea reveals scope for further increase: The
population of Indonesia is four times larger than that of Japan, for example, yet the number ofinternationally dispatched items for Indonesia is considerably smaller. The “express” nature ofcourier services is much needed for ASEAN participation in global value chains because the timely
delivery of essential business items (e.g. , signed contracts or badly needed spare parts) would
surely facilitate business operations in the ASEAN region.

4

Table 1. Number of international express items, 2013−2019 (thousands)
Country
ASEAN Member States
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam
Memorandum
China
Japan
Korea, Republic ofCountry
ASEAN Member States
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam
Memorandum
China
Japan
Korea, Republic of

2013

2014

2015

Dispatch
2016

2017

2018

2019

10.7
..
458
42.6
335
25.6
415.3
..
..
141.1

10.3
..
444.4
..
..
28.1
..
..
..
..

10
..
527.8
..
359.6
34.5
2,465.4
..
905
..

9.5
55.8
410
5.7
326.3
34.5
433.8
..
..
113

8.6
68.8
385.1
5.5
263.3
26.1
350.7
..
522
178.7

7.5
83.5
378.5
6
242.9
21.5
..
600
602.9
182.4

7
84.1
264.4
15.3
205.3
19.1
318.4
..
496.6
205.3

10,655.8
11,0007,518.8

10,010.2
14,0008,522.3

7,440
19,00010,039.7

10,780.8
14,000
6,832

12,884.7
14,000
6,042

14,299.7
13,000
6,268

2013

2014

2015

11,596.7
15,0009,386
Receipts
2016

2017

2018

2019

41.5
0.7
411.8
48.4
611.9
41.1
307.3
..
..
297.9

46.3
..
368.3
..
..
44.3
..
..
..
..

44.5
..
407.5
..
543.6
44.5
739.1
..
1,004
..

37.4
60.3
324.7
3.2
514.3
44.1
313.5
..
..
435.6

29.3
62
333.9
5.6
481.1
42.7
719.2
..
851.9
465

28.3
78.9
403.7
7.5
472.2
42.7
..
860
1,075.9
507.3

26.4
78.3
365.4
25.8
433.4
42.2
542.7
..
1,123.5
528.3

7,934.5..
1,832.1

13,100.9..
2,118.2

28,106.8..
2,429.5

26,255.8..
2,244

24,021.7..
2,821

15,327.7..
4,476

14,672.3..
5,912

Source: Universal Postal Union database,
http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE.
Note: Covers items passed through post offices only.

Innovation in the courier services industry has been limited in ASEAN to date because of thelabour-intensive nature of the industry. In the countries where further recruitment is difficult suchas in Japan, some progress has been made in compensating labour shortages (box 1).
While estimating the volume of private-sector-mediated courier services is difficult (table 1
captures just part of them), demand for the services is surely expected to increase in the ASEAN
region.4

4

According to a study by Facebook and Bain & Company, digital consumers in ASEAN will spend three times asmuch as they currently do in 2025. The study mentions an increase in the number of consumers purchasing
lower-cost daily items such as groceries, clothes and personal care products on the Internet. Consequently,
ASEAN e-commerce has expanded seven times in just four years (increasing from $5.5 billion in 2015 to morethan $38 billion in 2019), and it is expected to exceed $150 billion by 2025. (The ASEAN Post, 22 October 2019,https://theaseanpost.com/article/e-commerce-spending-expected-triple-asean).

5

Box 1. Innovation in courier services: Delivery drone and courier boxes
Technological advancement in courier services is changing how courier services areprovided: Express delivery using drones (remote-controlled flying devices) enables unmannedand hence efficient delivery of express items. The government of Japan and companies
started a trial of a drone home delivery service in Chiba Prefecture (Japan) in April 2016. The
joint project involving the central government, the city of Chiba, research institutions andcompanies, including e-commerce giant Rakuten Inc., is the first drone delivery trial in an
urban area. The city of Chiba has been designated as a special deregulation zone to conduct
the trial. ASEAN can possibly make legal deregulation efforts for this type of new expressdelivery services.
(The Japan Times , 11 April 2016, http://www.japantimes.co.jp/news/2016/04/11/business/japan-starts-trial-drone-home-delivery-service-chiba/)
Another innovation useful for ASEAN would be the installation of “courier boxes” atcustomers’ homes: The express delivery items are subject to direct handover, yet more than
20 per cent of delivered items have to go through second- or third-time delivery (based on
the information from a Japanese courier service company). Using courier boxes into which
courier deliverers can put the first-time delivery item(s) would surely facilitate the delivery
process and reduce the use of unnecessary human resources.

Box 2. Courier services during the COVID-19 pandemic
Courier sector growth is directly connected to population growth and tends to expand witheconomic development. As the economy has advanced constantly and the population isincreasing in the ASEAN region, growth in courier services was naturally expected. However,the spread of COVID-19 has raised doubts over continued growth in courier services.
Although it is still early to make conclusions, clearly the COVID-19 pandemic has opened new
possibilities for the courier services sector, along with the negative effects.
The COVID-19 pandemic and the measures adopted to curb the spread of the virus, suchas social distancing and lockdowns, affected economies around the globe. The fear of
infection and the difficulties imposed by restrictive policies directly affected the population’s
consumption habits. The demand for entertainment, food and tourism, for example,
decreased or was channeled to new ways of consumption, boosting the e-commerce andthe delivery service sectors. According to Google, Temasek and Bain’s e-Conomy SEA
2020 study, one in three digital service consumers (in a group composed of Indonesia,
Malaysia, Philippines, Singapore, Thailand and Viet Nam) started using digital services due to
COVID-19, and nine in 10 users intend to continue using digital services in the post-COVID-19
era. (Google et al., 2020). These changes in habits are expected to positively affect the courier
services sector.
According to The ASEAN Post, these lucrative new sectors attracted new players from China
like Best Inc., which started express delivery services in Malaysia, Cambodia and Singapore
following its entry into the Thai and Vietnamese markets in the previous year. Now thecompany is also considering expanding its services to Indonesia and Philippines in the near
future (The ASEAN Post, 8 July 2020, https://theaseanpost.com/article/logistics-servicesrace-intensifies-asean).

6III. Ascendency of Courier Services
Like other transport services (air, marine, road and rail transport services), these particularservices are not delivered via Mode 2 (supply through consumption abroad) and Mode 4 (supply
through movement of natural persons) (table 2) because delivering such services requires physicalfacilities that are not movable. Although non-residents can act as couriers when travelling abroad(Mode 2), and courier professionals travel in executing courier services (Mode 4), both of these arevery limited and assumed to be close to zero.

Table 2. Estimated value and share of courier services supply in ASEAN, by mode of
supply, 2015

The estimated value of courier services supply to ASEAN (imports) was $22 billion in 2015, while
those from ASEAN (exports) were only $14 billion (table 2). In both directions of the services supplyThe
estimated value of courier services supply to ASEAN (imports) was $22of this sector, cross-border supply (Mode 1) overwhelms supply through commercial presence(Mode 3).in 2015, while those from ASEAN (exports) were only $14 billion (tablebillion2). In both directions of the services supply of this sector, cross-border supply

1. Mode1: International(Mode1) overwhelms
supply tradethrough commercial presence (Mode 3).

Courier is a component of transport services in the trade statistics based on the balance of
payments. Courier services, including postal services, account for at most 5 per cent of total
1.
Modeservices
1: International
trade delivery of documents and non-documents remains
transport
in ASEAN. Therefore,
limited andnot assumeof
antransport
important services
business positionin economic
activities.
Theon
trade
Courieris doesa component
in the trade
statistics
based
the
balance has been positive in ASEAN during the periods 2005–2010 and 2016–2020 (tables 3–4), withbalanceof payments.
Courier
services,
including postal services, account for atexports 20–30
per cent larger
than imports
after 2015.

most 5 per cent of total transport services in ASEAN. Therefore, delivery of
documents and non-documents remains limited and does not assume an7Exports of courier services have been concentrated in Singapore, followed by Viet Nam. These
two countries accounted for four-fifths or more of ASEAN exports after 2010. The importance of
this service in total services exports stands out for Viet Nam at more than 40 per cent after 2010,
almost three times higher than the ASEAN average.
Imports are more concentrated, with Singapore and Viet Nam accounting for more than 90 per
cent of total imports of courier services into ASEAN, for about a decade after 2010. Near absenceof domestic courier services companies handling international courier services in the country has
made Viet Nam use foreign services companies.

Table 3. E xports of courier services and their share in total exports of services and in
total exports of goods and services, 2005–2020 (millions of dollars and per cent)Country

Annual average
2005–2010

Courier service exports
Brunei Darussalama
5
Cambodia
16
Indonesiaa
37
Lao PDR
6
Malaysiaa
70
Myanmarb
0
Philippines
15
Singaporec
185
Thailanda
79
Viet Nam
13
ASEAN total
426
Share in total exports of services
Brunei Darussalam
0.7
Cambodia
1.0
Indonesia
0.3
Lao PDR
1.7
Malaysia
0.2
Myanmar
0.1
Philippines
0.1
Singapore
0.2
Thailand
0.3
Viet Nam
0.2
ASEAN total
0.2
Share in total exports of goods and services
Brunei Darussalam
0.1
Cambodia
0.3
Indonesia
0.0
Lao PDR
0.4
Malaysia
0.0
Myanmar
0.1
Philippines
0.0
Singapore
0.0
Thailand
0.0
Viet Nam
0.0
ASEAN total
0.0

Annual average
2011–2015

2016

2017

2018

2019

2020

1
0
10
3
13
2
4
324
16
42
416

2
0
17
0
20
3
9
423
27
82
582

1
0
7
0
9
1
5
445
14
89
572

1
0
11
0
16
0
9
509
24
91
662

1
0
20
0
26
1
14
486
36
98
682

0
0
4
..
5
2
3
335
6
..
355

0.2
0.0
0.0
0.5
0.0
0.1
0.0
0.2
0.0
0.4
0.2

0.3
0.0
0.1
0.0
0.1
0.1
0.0
0.3
0.0
0.4
0.2

0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.5
0.2

0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.4
0.2

0.3
0.0
0.1
0.0
0.1
0.0
0.0
0.3
0.1
0.4
0.2

0.1
0.0
0.0
..
0.0
0.1
0.0
0.2
0.0
..
0.1

0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
..
0.0
0.0
0.0
0.1
0.0
..
0.0

Source: AJC based on own data from UNCTAD and ASEAN stats.
aData are available only for telecommunications, computer and information services. Therefore, Philippines’ ratio of courier
services to this sector is applied to estimate the courier services sector only.
bData are available only for telecommunications, computer and information services. Therefore, Myanmar’s ratio of courier
services to this sector in 2012 is applied to estimate only the courier services sector for the years 2005–2011.
c
Data are available only for telecommunications, computer and information services. Therefore, Singapore’s ratio of courier
services to this sector in 2011 is applied to estimate only the courier services sector for the years 2005–2010.

8

Table 4. Imports of courier services and their share in total imports of services and in
total imports of goods and services, 2005–2020 (millions of dollars and per cent)Country

Annual average
2005–2010

Courier services imports
1
Brunei Darussalama
Cambodia
15
26
Indonesiaa
Lao PDR
3
29
Malaysiaa0
Myanmarb
Philippines
8282
Singaporec
50
Thailanda
Viet Nam
5
ASEAN total
419
Share in total imports of services
Brunei Darussalam
0.1
Cambodia
1.7
Indonesia
0.1
Lao PDR
3.1
Malaysia
0.1
Myanmar
0.0
Philippines
0.1
Singapore
0.3
Thailand
0.1
Viet Nam
0.1
ASEAN total
0.2
Share in total imports of goods and services
Brunei Darussalam
0.0
Cambodia
0.2
Indonesia
0.0
Lao PDR
0.2
Malaysia
0.0
Myanmar
0.0
Philippines
0.0
Singapore
0.1
Thailand
0.0
Viet Nam
0.0
ASEAN total
0.0

Annual average
2011–2015

2016

2017

2018

2019

2020

0
0
10
3
10
2
3
348
18
29
424

0
0
4
0
5
4
2
408
7
45
475

0
0
5
0
5
6
2
396
8
44
467

0
0
5
0
5
8
2
394
8
48
472

0
0
1
0
1
5
1
420
2
49
480

0
0
2
..
2
4
1
258
4
..
270

0.0
0.0
0.0
0.4
0.0
0.1
0.0
0.3
0.0
0.2
0.1

0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.3
0.0
0.3
0.2

0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.2
0.0
0.3
0.1

0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.2
0.0
0.3
0.1

0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.2
0.0
0.3
0.1

0.0
0.0
0.0
..
0.0
0.1
0.0
0.2
0.0
..
0.1

0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
0.0
..
0.0
0.0
0.0
0.1
0.0
..
0.0

Source: AJC based on own data from UNCTAD and ASEANstats.
Data are available only for telecommunications, computer and information services. Therefore, Philippines’ ratio of courier
services to this sector is applied to estimate the courier services sector only.
bData are available only for telecommunications, computer and information services. Therefore, Myanmar’s ratio of courier
services to this sector in 2012 is applied to estimate only the courier services sector for the years 2005–2011.
c
Data are available only for telecommunications, computer and information services. Therefore, Singapore’s ratio of courier
services to this sector in 2011 is applied to estimate only the courier services sector for the years 2005–2010.
a9

Box 3. The impact of COVID-19 on courier services
As mentioned previously, the COVID-19 pandemic led to measures of social distancing andlockdown in many countries, including ASEAN member states. Especially in the beginningof the COVID-19 pandemic, lack of knowledge about the virus and how to deal with itcontributed to the imposition of stricter measures, possibly negatively affecting the courier
sector. However, changes in consumption habits, like the increase in the use of e-commerce,created new opportunities for courier services, especially in domestic markets. From thepoint of view of international trade, disruptions in global value chains due to the lack ofcomponents to be traded and/or disruptions in trade due to the closing of borders may havenegatively affected courier services. To grasp the real impact on the courier services sector
we observe the trade data from tables 3 and 4 for the year 2020. Data for exports reveal astrong decline in values and in the shares in total services. Data for imports reveal the samenegative trend solely for Myanmar and Singapore. Interestingly, import values increased forIndonesia, Malaysia and Thailand.

2. Mode 3: Commercial presence
Nearly 100 foreign courier service companies operate in ASEAN (table 5). However, they operate
mainly in Thailand, Singapore, Philippines, Malaysia, Viet Nam and Indonesia. While they may
exist, no foreign firms are identified in Brunei Darussalam, Cambodia, Lao People’s Democratic
Republic and Myanmar. Their estimated sales were $3.3 billion in 2015, the bulk of which are
generated in Thailand and Singapore only (table 5). However, ASEAN courier services firms
supplying to the world reside mainly in Singapore with a total sales value of $100 million (table 5).

Table 5. Estimated sales of courier services through foreign presence, 2015

Box 4. The impact of COVID-19 on Japanese foreign affiliates engaged incourier services

10

Box 4. The impact of COVID-19 on Japanese foreign affiliates engaged in courier
services
As previously indicated, measures adopted to mitigate the COVID-19 pandemic such as
lockdowns and border closures negatively affected courier services. Concomitantly, the
new situation forced the adoption of new consumption behaviors such as an increase in
e-commerce, generating new opportunities for courier services. Based on these facts,
whether to expect an increase or a decrease in sales from foreign affiliates established in
ASEAN countries is unclear.
Given the lack of foreign affiliate statistics for ASEAN member states, investigating changes
in theirsalesthatis notAnother
option isis tocollect datafrom each foreign affiliate in
hard,
given
thepossible.
pandemicsituation
relatively
recent.
each country. Unfortunately, obtaining sales data for companies (an already challenging task
given that many companies do not publish this kind of data) after the spread of COVID-19 isalso extremely hard, given that the pandemic situation is relatively recent.

Aiming to illustrate the changes in sales during the COVID-19 pandemic, foreign
Aiming to illustrate the changes in sales during the COVID-19 pandemic, foreign affiliates

affiliatescompiled
in ToyoKeizai’sdatabasefor Japaneseaffiliates
in ASEAN
compiled in
Toyo Keizai’s
databasefor Japaneseaffiliates
in ASEAN wereidentified.
Table 6collects those with sales data for the year 2020.

were identified. Table 6 collects those with sales data for the year 2020.
Table 6. Sales of Japanese foreign affiliates engaged courier services in ASEAN(thousands
dollars)
Table 6. Sales
of Japanese
foreign affiliates engaged courier services in ASEAN (thousands dollars)

Before analyzing the changes, note that companies without sales data for the year 2020 were
excluded, leaving only 19 out of 330 companies.5 Consequently, care should be taken before
generalizingthese specificresults. note that companies without sales data for the year
Beforeanalyzing
the changes,

2020 were excluded, leaving only 19 out of 330 companies.5 Consequently, careshould be taken before generalizing these specific results.
5

These companies were classified as having their main activity related to warehouse and logistics. Consequently,
the data may include companies that are not related to courier services.

The data indicate that for 11 companies sales decreased, while for eightcompanies an increase was observed. Here it is important to state that the11

The data indicate that for 11 companies sales decreased, while for eight companies anincrease was observed. Here it is important to state that the Japanese fiscal year starts in
April, meaning that the data published in the year 2020 were collected before March 2020,
while the data published in 2019 were collected before March 2019. Suzuyo and Sojitz are
exceptions, with Suzuyo’s affiliates collecting data in August of the given year, while Sojitz’s
affiliate data are collected in September of the given year.
Interpreting these data requires caution, given that they reflect only the beginning of thepandemic situation. Naturally, a negative initial shock would be expected to prevail in the
beginning of the pandemic. Indeed, the data indicate that the amplitude of negative changes
was higher than the amplitude of positive ones, possibly indicating that even for companies
with growth, the pandemic negatively affected the rate of growth.

Foreign courier services companies in ASEAN originate in Europe, Japan, the United States andHong Kong (table 7, for the year 2015), including world-known FedEx, Deutsche Post, TNT andJapan’s big courier firms such as Sagawa and Yamato. ASEAN courier services firms, especially
Singaporean ones, operate mainly in Australia and India. Singapore Post and DHL Express
Singapore are large investors from ASEAN.

Table
affiliates
in ASEAN
and ASEAN
affiliates
abroadabroadin courier
services services
byTable7.7.ForeignF oreign
affiliates
in ASEAN
and ASEAN
affiliates
in courierbysource/destination
country
andmillions of dollars)source/destination
country (number
and(number
millions ofdollars)

IV. Trade Agreements and Regulations in ASEAN Member States
The barriers to entry by companies increase exponentially when a company

12

IV. Trade Agreements and Regulations in ASEAN
Member States
The barriers to entry by companies increase exponentially when a company chooses to cover abigger area, regardless of its original geographical focus at the national, regional and international
levels. To attain broader coverage and a larger network, firms must dedicate funds for higher setup costs and a larger amount of capital investment to infrastructural development, which may
include a larger fleet of trucks, computerized documentation, a real-time GPS tracking system andeven professional systems for sorting and consolidating parcels. In addition to these fixed costs
are variable costs, which tend to be large, as the labour-intensiveness of the industry raises staff
costs, which make up a major portion of such costs.
The ASEAN member states entered into the ASEAN Framework Agreement on Services (AFAS),
10th package, in November 2018 and into the Regional Comprehensive Economic Partnership(RCEP) in 2020. These free trade agreements (FTAs) cover commitments of market liberalizationand national treatment for courier services, and hence the sector is expected to capture benefits.
Table 8 provides Hoekman index6 values for trade in courier services under AFAS (10th package).
As shown, all ASEAN members are fully committed to Mode 1 and Mode 2; as for Mode 3, somemembers are fully committed for market opening, while others are partially committed. Overall,though, the degree of liberalization in courier services is quite high.

Table 8. Hoekman index for trade in courier services under AFAS (10th package)
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam

Mode 1
1
1
1
1
1
1
1
1
1
1

Mode 2
1
1
1
1
1
1
1
1
1
1

Mode 3
0.75
1
0.5
1
0.75
0.5
1
1
0.75
1

Average
0.92
1
0.83
1
0.92
0.83
1
1
0.92
1

Source: AJC calculations based on the specific commitment tables of AFAS (10th package).

Table 9 lists the results of Hoekman index calculations for courier services under RCEP. Note that
Brunei Darussalam, Indonesia, Malaysia and Singapore have adopted negative listing, for whichindexation is not applicable.

6

Hoekman (1995) proposes an indexation method for measuring the GATS-style degree of commitment in theservices sector. This method assigns values to each of eight cells (four modes and two aspects: market access,MA, or national treatment, NT), as follows: First assign the value 1 when the sector at issue is “fully liberalized”,
0.5 when “limited (but bound)”, 0 when “unbound” (government has not committed to liberalize), by subsector,
by mode and by aspect (MA or NT); take the simple average for aggregation and then calculate the averagevalue by services sector and by country. The higher the figure, the more liberal are the country’s service tradecommitments to the FTA members. Using the database the ASEAN-Japan Centre constructed, the Hoekman
index was derived for 155 subsectors. Then the simple average at the level of the 11 sectors was calculated. The
Hoekman index takes a value between 0 and 1, with 0 referring to the most restricted status and 1 being the mostopen situation.

13

Table 9. Hoekman index for trade in courier services under RCEP
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam

Mode 1
negative1
negative1
negative1
0.75
negative
01Mode 2
negative1
negative1
negative1
1
negative
01Mode 3
negative1
negative1
negative01
negative
00.75

Average
1
1
0.67
0.92
0
0.92

Source: AJC calculations based on the specific commitment tables of RCEP.
Note: For ASEAN members with a negative listing (indicated as “negative”), indexation method is not applicable.

Table 10 lists shares of foreign ownership allowed in courier services (in per centage) under
AFAS (10th package). Five ASEAN member states (Cambodia, Lao People’s Democratic Republic,
Philippines, Singapore and Viet Nam) allow 100 per cent foreign ownership. As postal agencies
can also provide express delivery services, opening the market would enhance international
competition, thereby leading to supply of varieties of convenient courier services.

Table 10. M aximum of foreign ownership allowed in courier services under AFAS (10thpackage) and RCEP, (per cent)Country
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam

Foreign ownership allowed
AFAS (10th package)
RCEP
70
49
100
100
49
49
100
100
70
51
NA
NA
100
40
100
NA
70
NA
100
100

Source: Specific commitment tables of each ASEAN member state under AFAS (10th package) and RCEP.
NA: Not applicable/available because of the need for government approval (for Myanmar), no mention in the positive list (forThailand under RCEP) and reservation under negative listing (for Singapore under RCEP).

Table 11 shows the status of restrictions on courier services under AFAS (10th package) and
RCEP. As shown, the status of no restriction (N in the table) is now dominant, with D (limitations
on the total number of natural persons), E (measures that restrict or require specific type of
legal entity) and F (limitations on the participation of foreign capital) are used sparsely. As for thecomparison of AFAS and RCEP, the former is more liberalized than the latter overall (albeit withsome similarities), implying the closer integration of ASEAN member states among themselves.
As courier services have the feature of network externality (i.e. , the more stakeholders connected,
the more productive the whole sector becomes), more commitments as “N” (instead of D, E or F)
would be desirable.

14

Table 11. Status of restrictions on courier services under AFAS (10th package) and RCEP

Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam

Number of Measures
E=measures that
F=limitations on
D=limitations on
U=Unbound (norestrict or require
N=none/no
the participation
the total number
commitment)
specific type oflimitationof foreign capitalof natural persons
legal entity
AFAS 10 RCEP AFAS 10 RCEP AFAS 10 RCEP AFAS 10 RCEP AFAS 10 RCEP
5
1
1
1
0
6
6
0
0
0
0
0
0
0
0
4
0
2
1
0
6
6
0
0
0
0
0
0
0
0
5
0
0
1
0
4
4
1
0
2
0
1
0
0
2
6
5
0
0
0
1
0
0
0
0
6
0
0
0
0
5
0
0
0
1
0
1
0
0
6
6
5
0
0
0
0
0
1
0
0

Source: Calculated from each country’s specific commitment table under AFAS (10th package) and RCEP.
Note: The way commitments are recorded differs across ASEAN members, hence the diversity in the number of N (no limitation);
only those commitments defined under GATS are counted.

Aside from AFAS and RCEP, ASEAN-wide regulatory cooperation in connection with courier
services is needed. The US-ASEAN Business Council (2005) mentions that the courier industry
thrives in countries with efficient import and export procedures, including customs procedures.
The business environment for courier services in ASEAN is diverse, ranging from those thatare highly liberalized to those in which postal administrations continue to maintain control overcourier services (see Section V). ASEAN member states should therefore make concerted efforts
to improve border clearance procedures and liberalize customs procedures.
In this context, ASEAN has its “ASEAN Customs Cooperative Framework”: the first ASEAN Finance
Ministers’ Meeting held in 1997 in Thailand established the customs principles of consistency,
simplicity, efficiency, transparency, access to appeals (legal actions) in cases of damages or loss
and mutual assistance. This sort of regulatory framework should also be put into practice forcourier services.

15

V. Impacts of Further Liberalization of Courier
Services on the Economy
Courier services prosper in countries with efficient import and export procedures, open aviation
regimes and attractive investment climates. The environment for courier services in ASEAN ranges
from highly liberalized and open economies with independent regulators to those in which postal
administrations continue to maintain jurisdiction and control over the provision of such services.
To avail themselves of the benefits that accrue to economies with efficient courier services, ASEAN
member states must take immediate steps to improve border clearance procedures and liberalize
aviation regimes. Over the medium term, greater market access, including the liberalization of
investment regimes, fair competition and closer regional integration should be pursued with vigor.
For courier-based delivery, 25 per cent of costs and 20 per cent of transit time are spent in and/or on customs practices (The US-ASEAN Business Council, 2005). While these figures might
have decreased over the past years, continuing to promote reduction of costs and time spenton customs-related practices remains important. Table 12 provides an updated version of thecustoms capability index (CCI) based on the most recently available data from Global Express
Association (the global industry association for courier services).7 ASEAN member states varysignificantly, ranging from the lowest score for Myanmar (2.0) to the highest score for Singapore(9.5). Because the nature of courier services require standardized customs capability acrosscountries, more policy efforts are needed to harmonize the scores.

Table 12. Customs capability index, 2020
Country
ASEAN member states
Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam
Memorandum
China
Japan
Korea, Republic ofUnited States

CCI score
5
8
7
6
2
7
9.5
9
6.5
5.5
9
10
9

Source: AJC, adapted from Global Express Association.

Table 13 displays regression results estimating the impacts of customs-related indices on tradein the world, including some ASEAN member states 8 (Frontier Economics, 2015).9 A common

789

Section VI discusses this indexation method in detail in the context of policy suggestions.
ASEAN member states covered include Brunei Darussalam, Indonesia, Malaysia, Myanmar, Philippines, Thailand
and Viet Nam.
The customs-related indices are related, but not specific, to courier services by nature; in the absence of indices16

implication by these indices is that through their improvement, around 5 per cent of trade canbe additionally created. As table 12 shows, ASEAN members states still have room to improvetheir indices, meaning that fully adopting the necessary policy measures to improve an index can
increase the countries’ trade considerably.

Table 13. Regression results for the impacts of customs-related industry indices on trade
Table 13. Regression results for the impacts of customs-related industry indices on tradein the world(including
some ASEAN
states), states),2015 2015
in theworld (including
some member
ASEAN member

Several ongoing trends affect the courier services sector in ASEAN. National postal
Severalongoing trends affect the courier services sector in ASEAN. National
administrations are corporatizing and extending their services to include courier services.

Initiatives
have been launched
integrate the region
a single market
goods andpostaladministrations
areto corporatizing
andintoextendingtheir forservicesto services,
includewith active participation by governments to liberalize air transport services and regional aviation

courier
Initiatives
havecommitments
been launched
to integratetheaccess,regionnational
into amarkets. services.
For WTO members,
furtherwith regard
to market
treatment and fair competition are expected under the Doha Round. Bilaterally, disciplines for the

singlemarket for goods and services, with active participation by governments
service sector including courier services have already been incorporated into the United StatesSingapore
FTA andexpected under
the United
FTA. markets. For WTO
toliberalize
airaretransport
servicesand States-Thailand
regional aviation

members, further commitments with regard to market access, national treatment
and fair competition are expected under the Doha Round. Bilaterally, disciplines
for the service sector including courier services have already been incorporated
into the United States-Singapore FTA and are expected under the United StatesThailand FTA.
VI. Conclusions and Policy Suggestions
1. General policy suggestions
As a priority and an achievable target for the immediate term, ASEAN member
states could undertake measures to facilitate trade, including eliminating barriers
to efficient customs clearance, establishing appropriate de minimis levels,
unique to courier services, these indices are considered here. Among these indices, CCI is most relevant.

introducing full electronic data interchange and integrating customs policies andprocedures overall. Customs and trade facilitation is a priority for the industry
10

17

VI. Conclusions and Policy Suggestions
1. General policy suggestions
As a priority and an achievable target for the immediate term, ASEAN member states could
undertake measures to facilitate trade, including eliminating barriers to efficient customs
clearance, establishing appropriate de minimis levels, introducing full electronic data interchange
and integrating customs policies and procedures overall. Customs and trade facilitation is apriority for the industry and one of the four key areas10 proposed under the WTO (since 1996).
The most efficient economies with the highest standards are those in which the distribution sector
is competitive and has been freed from burdensome regulations and barriers to investment andmarket entry.
Frontier Economics (2015) indicates five attributes of courier services that customers value as highwhen they are met and as low when they are not met:
1. Global reach: being able to send items anywhere
2. Reliability: realizing the items’ timely arrival
3. Transparency: being able to track items
4. Speed: being able to reach markets and customers quickly
5. Security: ensuring the item’s safety while moving.
The US-ASEAN Business Council (2005) points out that in the face of heightened security
requirements adopting customs facilitation measures is essential: further promotion of
automated customs clearance, risk management strategies, the separation of goods release fromaccounting processes, the establishment of a de minimis level and the general simplification andmodernization of customs processes and procedures.
With the application of electronic data interchange technology, ASEAN countries such asSingapore, Thailand, Philippines and Malaysia have successfully reduced average customs
processing for air shipment to one day or less (US-ASEAN Business Council, 2005). Electronic datainterchange enables exporters and importers to input data electronically, with links to customs
and other supporting import-licensing agencies, for efficient approval and release of goods.

2. Workable policy suggestions
To promote regional flow of goods in the ASEAN region requires the implementation of policy
initiatives that strengthen the domestic logistics sector and improve connectivity. These efforts
are likely to benefit courier services ASEAN-wide. To make this happen in the foreseeable future,
concrete policy measures must be implemented. Table 14 lists the 10 components of the CCI for
formulating workable policy suggestions.

10

The four key areas, known as “Singapore issues” (because the WTO ministerial conference in 1996 was held in
Singapore), are government procurement, trade facilitation (customs issues), trade and investment and trade andcompetition.

18

Table 14. CCI components for workable policy suggestions
Customs capability variable Corresponding question in customs capability questionnaire

Scoring method(1) E lectronic customs /pre-arrival processing

Does customs accept and process electronically the data required 1 = yes
for release of shipments in advance of their actual arrival so that 0.5 = sometimes
they can be released either prior to or immediately after arrival?
0 = no(2) 24-hour / 7-day
automated customs
processing

Is full-time (24 hours and seven days) automated processing forthe customs ports at which you operate available?

1 = yes0 = no(3) Adapted working hours
customs personnel

Are the working hours of customs personnel adapted tocommercial needs?

1 = yes0 = no(4) Inspection at operator
facility or transfer

1 = operator’s facility
For shipments arriving by air, does customs inspect and release
0.5 = depends on the
goods at the operator’s facility or require their transfer to anothersituation
facility?
0 = transfer required(5) Other agency
If there are inspections by agencies other than customs, do thoseinspections cause delays cause delays?
(6) D e minimis regime
present

Does the customs administration apply a de minimis regime thatallows goods that do not exceed a certain value to be exemptedfrom duties and taxes?

(7) If de minimis , simplified If yes, are those goods subject to simplified procedures, e.g. ,procedures
consolidated release/clearance?

1 = no0.5 = sometimes
0 = yes
1 = yes0 = no1 = yes0 = no(8) Threshold for informal
customs procedure

Does the customs administration apply a de minimis regime thatallows dutiable goods that do not exceed a certain value to be
exempted from formal declaration procedures?

(9) Necessity to provide
a consular trade
document?

Does customs or any other agency require in connection with
importation of goods that the importer provide any of the following
items?:
1 = no- a consular invoice
0 = yes- a consular visa for a commercial invoice- other trade document(10) T hird-party customs
broker

Does customs or any other agency require clearance of import
shipments by a third-party customs broker?

1 = yes0 = no1 = no0 = yes

Source: Adapted from Frontier Economics (2015), Table 1.		

Table 15 provides the status quo of the ASEAN member states in terms of the custom capability
variables in table 14.

19

Table 15. Scoring of ASEAN member states’ custom capability by variable
Customs capability
Brunei
Cambodia
Darussalam
variable(1) Electronic
customs /00pre-arrival
processing(2) 2 4-hour / 7-day
automated
00customs
processing(3) Adapted
working hours
0
1
customs
personnel(4) Inspection at
operator facility
1
1or transfer(5) Other agency
inspections1
1
cause delays(6) D e minimis
11
regime present(7) If de minimis ,simplified
0
1
procedures(8) Thresholdfor informal
1
1
customs
procedure(9) Necessity
to provide a01
consular trade
document(10) Third-party
customs
1
1
brokerSum (CCI)
5
8

Indonesia

Lao PDR

Malaysia

Myanmar Philippines Singapore

Thailand

Viet Nam

0

..

0

..

0

1

1

0.5

1

..

1

..

0

1

1

0

0

..

1

..

1

1

1

0

1

..

1

..

1

0.5

1

1

1

..

0

0

0

1

0.5

0

1

..

1

1

1

1

1

1

1

..

1

1

1

1

1

1

1

..

1

..

1

1

1

1

0

..

0

..

1

1

0.5

1

1

..

0

..

1

1

1

1

7

0

6

2

7

9.5

9

6.5

Source: AJC calculation. Adapted from Global Express Association.

To make workable policy suggestions, table 16 lists policy targets essential for courier services,connecting custom principles and custom capability variables. As for the “no match” policy issues
in the table, holding a courier services seminar for sharing best practices by each ASEAN member
state would be needed.
Concerning “global reach”, what is important is access to “intermodal” markets (e.g. , smoothlinkages between air and ground modes of transport), which allows courier service suppliers
to practice flexible and seamless operations. Put differently, intermodal operations allow
courier service firms to have control over their airline operations and conduct their own groundpick-ups and deliveries. Concerning “reliability” and “security”, policies to encourage courier
service suppliers to invest further in the downstream end of the supply chain including parking,information technology–based customer support and financial service centers are needed. To
achieve the policy targets of “global reach”, “reliability” and “security”, a series of seminars
sharing international best practices (some of them organized by the ASEAN-Japan Centre) would
be necessary as a concerted effort for promoting trade in courier services.

20

Table 16. Policy targets for courier services

Table 16. Policy targets for courier services

The
services
developed
countrycountry
firms provide
highly concentrated
and account for
Thecouriercourier
services
developed
firmsareprovideare highly concentrated
most of the industry’s revenue. The local segment in the ASEAN region is much smaller and highly
and accountfor courier
most ofservice
the industry’s
The
local segment
the ASEAN
fragmented.
Large
firms offer arevenue.
wide rangeof services
relying oninhighly
capitalized
deliveryterms andof handlingand sorting
Small firms
firms, offer
usuallyregion networks
is much (insmallerhighlyequipment
fragmented.
Large technology).
courier service
more labour intensive, provide specialized customer service in metropolitan areas.

a wide range of services relying on highly capitalized delivery networks (in terms

With a view to formulating concrete policy proposals for trade in courier and transport services,the
Third Seminaron Promoting
Services
Trade in ASEAN
States was
held
11–13
of handlingequipment
and sorting
technology).
SmallMember
firms, usuallymorelabour
September 2017 in Kuala Lumpur, Malaysia.11 The policy evaluation exercise (see Annex D) in theintensive,providecustomer
serviceof inareas.
seminaridentified
thespecialized
following needs:(1) narrowing
themetropolitan
development gaps
across member

11

The focus areas of the seminar, co-organized by the ASEAN-Japan Centre and Malaysia External Trade
Development Corporation, were courier and transport services.

32

21

states for a more effective, ASEAN-wide courier services network; (2) synchronous implementationof cross-border customs cooperation and (3) harmonization of a de minimis threshold value
across member states. With the spirit of “start small and grow big”, a feasible option would be for
ASEAN member states to boost coordination among themselves on the first three needs, with due
consideration to the untapped policy targets (indicated in table 16).
To transform ASEAN into a more integrated platform for manufacturing and service activities,
especially after the outbreak of COVID-19 in 2019, harmonization of business practices for courier
services, as an “essential business service” without serious delays in delivering, must be pairedwith the vision of ASEAN as a single customs union, with an enhanced use of emerging digitaltechnologies. The aforementioned policy suggestions for courier services are expected to facilitate
not only ASEAN-wide promotion of trade but also ongoing negotiation for RCEP involving ASEAN
member states and their dialogue partners (Australia, China, India, Japan, New Zealand and theRepublic of Korea). Promoting trade in courier services in the ASEAN region should move to a
new dimension of catalyzing the knowledge-oriented establishment of global value chains. It istherefore hoped that ASEAN governments, in collaboration with the private sector, continue toactively engage in further promoting trade in courier services in the ASEAN and broader East
Asian region and on a more global scale.

22

References
Frontier Economics. (2015). “Express Delivery and Trade Facilitation: Impacts on the Global
Economy”. Report prepared for the Global Express Association, available at http://www.globalexpress.org/assets/files/Members-Library-2/GEA_FinalReport_040315_STC.pdf.

Google, Temasek and Bain. (2020). “e-Conomy SEA 2020”. Available at https://storage.googleapis.
com/gweb-economy-sea.appspot.com/assets/pdf/e-Conomy_SEA_2020_Report.pdf.

Hoekman, B. (1995). “Assessing the General Agreement on Trade in Services”. World Bank
Discussion Paper No. 307, World Bank, Washington, DC.

US-ASEAN Business Council. (2005). “Express Delivery Services: Integrating ASEAN to Global
Markets”. Available at http://global-express.org/doc/EDS_Report.pdf.

23

Annex A.
Definition of Express Delivery Services12
Brunei Darussalam
Brunei Darussalam does not have a formal definition of “courier services” or “express delivery
services”.

Cambodia
Cambodia does not have a definition of “express delivery services” under national legislation.

Indonesia
Law Number 38 of 2009 on Posts, Article 1, stipulates that a postal operator is a business entitythat provides postal services that consist of several activities as follows• A written communication and/or electronic mail• Parcel services• Logistics services• Financial transaction services• Postal agency service.
Courier services, as stated in the Decree of the Minister of Communications No.5/2005 concerning
Courier Service Operator, is a service of receiving, transporting and or delivering packets, money
and particular mail in the form of printed matter, newspaper, literature for the blind and small
packets from sender to receiver by collecting fees.

Lao People’s Democratic Republic
Based on the Law on Postal Services of the Lao People’s Democratic Republic:(i) Express services
refers to the acceptance, dispatch and delivery of letter post items and post parcels both in theform of ordinary and registered services, but delivery must be the first priority, and an additionalcharge will be collected for such services;(ii) Express mail services refers to the acceptance, dispatch and delivery of letter post items andpost parcels in the form of first priority and the items can be tracked and traced at any time, andthe postage charge will be more expensive than the charge for other services.

Malaysia“Express or Courier Service” means the integrated services for the collection, transmission and

12

Based on the ASEAN website at http://asean.org/wp-content/uploads/images/2013/economic/aem/file%2007%20
compilation%20of%20ams%20definition%20of%20eds%2013th%20ltsswg.pdf.

24

delivery of a letter, an envelope, a small packet, a package, a parcel, a wrapper, a container orgoods that can be collected, transmitted and delivered in an expedited manner with premiumfeatures such as security, tracking, signature, specialization and individualization of services andacknowledgement with committed delivery times.

MyanmarCourier services/express delivery services are governmental or non-governmental designatedoperators who deliver items on an on-time basis.

Philippines
Express and/or messengerial delivery services “firm”:• Includes every natural or juridical person who owns, operates, manages or controls such afirm in the Philippines, for hire or compensation, with general or limited clientele, whether
permanent, occasional or accidental, and for general business purposes.
• Any service for the personal delivery to other persons of written messages and any mail matter
except telegrams.
• A person or his/her employee delivering any article owned by the former is not conducting an
express delivery and/or messengerial service within the context of this circular.

Singapore
Singapore does not have a definition of “courier services” or “express delivery services” in its
national legislation. The closest it has is a definition of “express letters”, although “express
letters” is not equivalent to “EDS”, as “express letters” does not cover parcels, etc.
Definition of “express letters”:• Express letter means a local express letter or an international express letter, or both.
• Express letter service means a local express letter service or an international express letter
service or both.
• International express letter means a letter° originating from a sender in Singapore and intended for delivery to a destination outside
Singapore at a rate faster than the published delivery standard for air mail lettersdispatched by the public postal licensee or° originating from a sender outside Singapore and intended for delivery within the sameworking day in Singapore.
• Local express letter means a letter originating from a sender in Singapore and intended fordelivery within Singapore within the same working day.
• International express letter service means a service for the conveyance of international express
letters.
• Local express letter service means a service for the conveyance of local express letters.

25

ThailandThailand does not have a definition of “courier services” or “express delivery services” under thecurrent national legislation. Thailand is in the process of drafting the new Postal Act and will
inform LTSSWG on the definition after the new Act is enforced.

Viet Nam
According to Article 4 (2) of the Decree No 128/2007/ND-CP dated 2 August 2007 of theGovernment of Viet Nam on delivery service, “Express delivery service” means providing delivery
service in an expedited and reliable manner. Express delivery service also includes premiumfeatures such as collection at address of the sender, delivery at hand of the receiver, tracking,changing address of delivery while the package on the way, informing the delivery timing and otheradded value features.

26

Annex B.
Specific Schedule of Commitments for “Courier
Services” Under AFAS (10th package, signed in
November 2018) by ASEAN Members
Legend for this annex:(1) means Mode 1 (cross-border supply of services); (2) means Mode 2 (consumption abroad);(3) means Mode 3 (commercial presence); (4) means Mode 4 (movement of natural persons).

MA means market access. NT means national treatment.
The meaning of the alphabetical classification in the right-hand column of each specificcommitment table is as follows:
N: none (no restriction)
U: unbound (no mention or no promise of liberalization)
A: limitations on the number of service suppliers whether in the form of numerical quotas,
monopolies, exclusive service suppliers or the requirements of an economic needs test
B: limitations on the total value of service transactions or assets in the form of numericalquotas or the requirement of an economic needs test
C: limitations on the total number of service operations or on the total quantity of service
output expressed in terms of designated numerical units in the form of quotas or therequirement of an economic needs test13
D: limitations on the total number of natural persons who may be employed in a particularservice sector or whom a service supplier may employ and who are necessary for, anddirectly related to, the supply of a specific service in the form of numerical quotas or therequirement of an economic needs test
E: measures that restrict or require specific types of legal entity or joint venture throughwhich a service supplier may supply a service
F: limitations on the participation of foreign capital in terms of maximum per centage limit on
foreign shareholding or the total value of individual or aggregate foreign investment (Part
III: Specific Commitments, Article XVI: Market Access, subparagraph 2).

Under AFAS, ASEAN member states do not actually use restriction types A, B and C in
the sector “courier services”. In addition to the remaining five types of market access
restrictions, the following two restrictions are observed:
G: Government approval requirement
H: Tax or fee payment requirement.

13

Subparagraph 2(c) does not cover measures of a member that limit inputs for the supply of services.

27

Brunei Darussalam
Sector or Subsector
B. Courier services(CPC 7512)

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
TreatmentNT(1) None.

(1) N(1) None(1) N(2) None.

(2) N(2) None(2) N(3) Joint venturecorporation
with Bruneianindividuals
or Bruneiancontrolled
corporations
or both; theaggregate foreign
shareholding in
the joint venturecorporation shallnot exceed 70%
foreign equity.

(3) DEF70(3) None(3) N

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
TreatmentNT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) None(3) N(3) None(3) N

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
TreatmentNT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) Joint venture withforeign equity
participation up to49%(3) EF49(3) Allowed to establish (3) E
within a provincial
capital that has had
an international
airport and/or
seaportCambodia
Sector or Subsector
Courier services(CPC 7512)

Indonesia
Sector or Subsector
Courier services(CPC 7512)

Lao People’s Democratic Republic
Sector or Subsector
B. Courier services
Multimodal courier
services (CPC 75121)

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
TreatmentNT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) None(3) N(3) None

(3) N

28

Malaysia
Sector or Subsector

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
Treatment
NT

COMMUNICATIONS SERVICES
Courier services(CPC 7512)(1) None.

(1) N(1) None(1) N(2) None.

(2) N(2) None(2) N(3) None(3) N(3) Foreign equity shall (3) F70
not exceed 70%.

Myanmar
Sector or Subsector
Courier services(CPC 7512)
a. Multimodal courier
services (CPC75121)

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
TreatmentNT(1) None.

(1) N(1) None.

(1) N(2) None.

(2) N(2) None.

(2) N

(3)
a. F oreign service
suppliers and/or providers haveto comply withexisting laws, rules
and regulations
concerninginvestment,
taxation,
immigration andlabour.
b. Foreignorganisations andpersons are notallowed to own
land in Myanmar.
However, land
may be acquiredon long-termlease, dependingon the individual
circumstances.

(3) DE(3) EG(3) Commercial
presence of foreign
service suppliers
and/or providersb. Other courier
are permitted inservices (CPC
accordance with
75129)
the Myanmar(Courier services andInvestment Law
respect of documents(2016) of theand parcels excluding
Republic of theletters and postcards)
Union of Myanmar.
The investment
may be carriedout in any of thefollowing forms:(i)	Carrying out
an investment
by a foreignerwith 100%
foreign capitalon the businesspermitted by theCommission(ii)	Carrying out ajoint venture
between a
foreign anda citizen or
the relevant
government
department andorganization(iii)	Carrying out
by any system
contained in
the contract
approved byboth parties.

29

Philippines
Sector or Subsector
B. Courier services

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
TreatmentNT(1) Commercial
presence isrequired.

(1) E(1) None(1) N(2) None.

(2) N(2) None(2) N(3) None.

(3) N(3) None(3) N

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
Treatment
NT

Singapore
Sector or Subsector

B. Courier services
None
Courier services in(2) Nonerespect of documents
and parcels, excluding (3) None
letters and postcards

(1) N

None

(1) N

(2) N

(2) None

(2) N

(3) N

(3) None(3) N

Thailand
Sector or Subsector
B. Courier services
Bicycle courier
services for fooddelivery (part of CPC
Version 1.1: 64340)

Limitation on Market
AccessA–H Classification of Limitation on National A–H Classification ofMA
TreatmentNT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) None(3) N(3) As indicated in 3.1 (3) EF70of the horizontal
section (foreign
equity participationmust not exceed
70% of theregistered capitaland shall only
operate throughjoint venture with ajuridical person ofThai nationality)

30

Viet Nam
Sector or Subsector

A–H
Limitation on
Classification ofMarket AccessMA

Courier services (CPC (1) None
7512**)(2) None*Express delivery(3) None
services,9 i.e. ,services consistingof collection, sorting,transport and delivery,
whether for domestic
or foreign destination,of:(a) Written
communication,10
on any kind ofphysical medium,including- Hybrid mailservice- Direct mail.
Except for thehandling ofitems of written
communication, theprice of which isless than:- 10 times the tariff
for the handlingof a standard
domestic letterin the first weightlevel for domestic
shipments;- US$9 forinternational
shipments,
providedthat the grossweight of these
items is less than
2,000 grams.
(b) Parcels11 and othergoods.

Limitation
on National
Treatment

A–HClassification of
NT

(1) N

(1) None

(1) N

(2) N

(2) None

(2) N

(3) N

(3) None(3) N* Handling of nonaddressed items
Source: https://wtocenter.vn/chuyen-de/212-asean-framework-agreement-on-services-afas.

Additional
Commitments
Services and services
suppliers of any othermember shall beaccorded treatment
no less favourable
than the treatment
accorded to theVietnamese Post Officeor its subsidiaries
for its competitive
activities.

31

Annex C.
Specific Schedule of Commitments andReservation Tables for “Courier Services” Under
RCEP by ASEAN Members
Brunei Darussalam
28. Sector: Communication Services

Subsector: Courier Services

Type of Obligation: National Treatment (Article 8.4 and Article 10.3)
Market Access (Article 8.5)
Local Presence (Article 8.11)

Description of Measure : Trade in Services and Investment
A foreign national or enterprise may not provide courier services through a commercial
presence, unless through an enterprise established in Brunei Darussalam that is apartnership or joint venture, where the foreign national or enterprise does not own
more than 49% equity shareholding in any such enterprise providing courier services.
Source of Measure: Administrative Measures and Guidelines

Cambodia
B. Courier Services
Sector or Subsector
Courier services (CPC 7512)

Limitations on Market
AccessLimitations on National
Treatment(1) None(1) None(2) None(2) None(3) None(3) None(4) Unbound except as(4) Unbound except as
indicated in the horizontal
indicated in the horizontal
commitments.
commitments.

Additional Commitments

32

Indonesia
2.

Sector: Communication Services

Subsector: (a) Postal Services (CPC 75111 and CPC 75112) (Indonesia Standard Industrial
Classification 2015, Code 53102-Commercial Postal) excluding Intercity Delivery andUniversal Post Services(b) Courier Services (CPC 75121) (Indonesia Standard Industrial Classification 2015,
Code 53102-Commercial Postal) excluding Intercity Delivery and Universal Post
Services

Level of Government: Central

Type of Obligation: National Treatment (Article 8.4)
Market Access (Article 8.5)

Description of Measure : Trade in Services
Foreign service suppliers are not permitted to establish a commercial presence inIndonesia to supply postal or courier services, except through a joint venture with only
one Indonesian postal service supplier with foreign equity participation not exceeding
49%. The Indonesian joint venture partner must be wholly owned by Indonesiannationals.
The joint venture may only operate within a provincial capital with an international
airport or seaport and is prohibited from providing postal and courier services between
cities in Indonesia.
Source of Measure: Law No. 38 of 2009 concerning Postal

Lao People’s Democratic Republic
B. Courier Services
Courier services (CPC 7512) consisting (1) Noneof express delivery services1, except for(2) Nonethe following services:(3) None(a) the collection, transport anddelivery of domestic and cross(4) Unbound, except as indicated in theborder addressed mail to Post
horizontal section.
Office (PO) boxes in the following
categories:(i) 	addressed letters weighing notmore than 200 grams;(ii) 	small items or packages
weighing up to 2 kilograms;(b) the collection, transport anddelivery to PO boxes of domestic
and international postal parcels
weighing up to 20 kilograms;(c) the provision of PO boxes; and(d) the issuing of postage stamps.

(1) None(2) None(3) None(4) U nbound, except as indicated in thehorizontal section.

33

Malaysia
29. Sector: Postal services including courier and express delivery services

Subsector: -Obligations Concerned: National Treatment (Article 8.4 and Article 10.3)
Market Access (Article 8.5)
Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4)
Local Presence (Article 8.11)

Description: Trade in Services and Investment
Malaysia reserves the right to adopt or maintain any measure relating to postal
services, including courier and express delivery services.

Existing Measures: Postal Services Act 2012 [Act 741]
Customs Act 1967 [Act 235]

Inside Reservation tables (positive list on market access only)
COMMUNICATIONS SERVICES
Courier services
Courier services (CPC 7512)(1) None

Courier services in respect of
documents and parcels, excluding
letters and postcards(2) None(3) Only through joint venture with Malaysian individuals or Malaysiancontrolled corporations or both and the aggregate foreign shareholding in
the joint venture corporation shall not exceed 51%.

MyanmarB. Courier Services
Other courier services (CPC 75129)- Courier services and respect of
documents and parcels excluding
letters and postcards(1) None(1) None(2) None(2) None(3) Unbound(3) Unbound(4) Unbound(4) Unbound34

Philippines
Limitations on Market
AccessSector or Subsector

Limitations on National
Treatment

Additional Commitments

2. COMMUNICATION SERVICES
All subsectors(3) No franchise, certificate,or any other form ofauthorization for theoperation of a public
utility shall be granted
except to citizens of
the Philippines or
to corporations or
associations organizedunder Philippine laws
at least 60% of whose
capital is owned by suchcitizens.
(3) Limitations listed in the(4) horizontal commitments
shall also apply.

B. Courier Services(1) Commercial presence isrequired(1) None(2) None(2) None(3) None(3) None(4) Unbound(4) UnboundSingapore
42. Sector: All

Subsector: -Industry Classification: -Type of Reservation: Most-Favoured-Nation Treatment (Article 8.6 and Article 10.4)

Description: Trade in Services and Investment:
Singapore reserves the right to adopt or maintain any measure that accords differential
treatment to countries under any bilateral or multilateral international agreement inforce or signed prior to the date of entry into force of this Agreement.*
Singapore reserves the right to adopt or maintain any measure that accords differential
treatment to member states of ASEAN under any international agreement in force orsigned after the date of entry into force of this Agreement.
Singapore reserves the right to adopt or maintain any measure that accords differential
treatment to countries under any international agreement in force or signed after thedate of entry into force of this Agreement involving
D. aviation matters, including air services;
E. maritime and services auxiliary to maritime matters and port matters;
F. land transport matters;
G. postal and courier services matters;
H. telecommunications and information technology matters;
I. electronic commerce matters; andJ. environmental matters.
* For greater certainty, the wording in this paragraph extends to any differential
treatment accorded to a country pursuant to a subsequent review or amendment of
the relevant bilateral or multilateral agreement mentioned in this paragraph.

Existing Measure

: -

35

ThailandNo listing

Viet Nam
Limitations on Market
AccessSector or Subsector

Limitations on National
Treatment

Additional Commitments

2. COMMUNICATION SERVICES
B. Courier Services (CPC7512**)(1) None.d FL, MFN(2) None. FL, MFN* Express delivery servicesa, (3) 100% foreign-invested
i.e. , services consisting
enterprises shall beof collection, sorting,permitted. FL, MFN
transport and delivery,(4)
Unbound, except as
whether for domestic orindicated in Viet Nam’s
foreign destination, of
Schedule in Annex IVb(a) Written communication ,(Schedules of Specificon any kind of physicalCommitments on
medium, including:Temporary Movement of(a) Hybrid mail service;
Natural Persons).
(b) Direct mail.
Except for the handlingof items of written
communication the priceof which is less than(c) 10 times the tariff
for the handling of astandard domestic
letter in the firstweight level fordomestic shipments;(d) US$9 forinternational
shipments;
Provided that the grossweight of these items isless than 2,000 grams.

(1) None. FL, MFN(2) None. FL, MFN(3) None. FL, MFN(4) U nbound, except as
indicated in Viet Nam’s
Schedule in Annex IV(Schedules of SpecificCommitments on
Temporary Movement of
Natural Persons).

Services and services
suppliers of any other party
shall be accorded treatment
no less favourable than
the treatment accorded to
the Vietnamese Post Officeor its subsidiaries for its
competitive activities.

(b) Parcelsc and other goods.
* Handling of non-addressed
items.
Note:aExpress delivery services may include, in addition to greater speed and reliability, value added elements such as collection frompoint of origin, personal delivery to addressee, tracing and tracking, possibility of changing the destination and address in transit,
confirmation of receipt.
bWritten communication includes letters, postcards, handwriting, or printed matters such as books, newspapers, periodicals,magazines, or commercial documents such as bills and invoices, etc.
cBooks, catalogues are included hereunder.
d
The cross-border supply of service can be performed in association with a local service provider for the collection or delivery.
Source: https://rcepsec.org/legal-text/.

36

Annex D.
Policy Evaluation for Courier Services
A policy evaluation was undertaken at the Third Seminar on Promoting Services Trade in ASEAN
Member States, held 11–13 September 2017 in Kuala Lumpur, Malaysia. Table D1 shows subjective
results of the evaluation of realizing a multiple-equilibria (or “many capitals”) situation through thepromotion of courier services. Wide disparity is observed across ASEAN member states. Table D2
lists further policy options needed.

Table D1. Subjective evaluation of realizing a “multiple equilibria” situation
Trade in Courier Services:
National level

Trade in Courier Services:
ASEAN-wide

Brunei Darussalam8

6Cambodia

5

9Indonesia

7

8

Lao PDR

4

4

Malaysia

99Myanmar..

..

Philippines

99Singapore

10

8Thailand

6

6

Viet Nam

6

6

Average

6.4

6Source: Survey results from the Third Seminar on Promoting Services Trade in ASEAN Member States, 11–13 September 2017,
Kuala Lumpur, Malaysia.
Note: Scale = 1 (least agreeable) to 10 (most agreeable).

37

Table D2. Further policy options needed (participant responses)
Further Policy Options Needed
In-country level
Brunei Darussalam
Cambodia

Courier service in Cambodia
is at a lower stage ofdevelopment. It needs moreinvestment and cooperation
with advanced technology
companies to move courier
services of Cambodia up toan advanced level.

We should cooperate with
our neighbouring countries
in developing our courier
industry and better connect
with them.

ASEAN should find ways forbetter cooperation in courier
services in the new worldcontext of digital economy.

(not provided)
Ministry of Post andCustoms declaration
Telecommunication andmust be improved to
Ministry of Public Works and facilitate the movement ofTransport should work jointly courier products between
and in good cooperation.
neighbouring countries.

Malaysia(not provided)

Myanmar(not provided)

Philippines(not provided)

Singapore

ASEAN level(not provided)

Indonesia
Lao PDR

Neighbour-country level

Maintain current levelof courier services
liberalization.

The same case as theneighbouring-country level.

Harmonize de minimis
Harmonize de minimis
threshold with Malaysia and threshold for e-commerce
Indonesia.
transactions in ASEAN.

Thailand(not provided)

Viet Nam- Implement cross-border transport policy to conduct either synchronously or efficiently
due to the gap among countries in terms of economic development level, science andtechnology application and management capacity.
- Require the involvement of different sectors and agencies such as transport, custom,border guard, immigration and quarantine to harmonize common regulations andenhance cooperation among line agencies.

Source: Survey results from the Third Seminar on Promoting Services Trade in ASEAN Member States, 11–13 September 2017,
Kuala Lumpur, Malaysia.
Note: Original memorandum style (as reported in the survey by ASEAN member states) is lightly edited.

ISBN 978-4-910293-48-6