Promoting Services Trade in ASEAN PAPER 5
Trade in Courier Services

JANUARY

2018

For inquiries, contact ASEAN-Japan Centre(ASEAN Promotion Centre on Trade, Investment and Tourism)
1F, Shin Onarimon Bldg., 6-17-19, Shimbashi,
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http://www.asean.or.jp

Copyright © ASEAN Promotion Centre on Trade, Investment andTourism. All Rights Reserved.
Paper 5 / January 2018 / Trade in Courier Services

Promoting Services Trade in ASEAN PAPER 5
Trade in Courier Services

JANUARY2018

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NOTES
The terms country and/or economy as used in this study also refers, as appropriate, to territories orareas; the designations employed and the presentation of the material do not imply the expressionof 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 following symbols have been used in the tables:• Two dots (..) indicate that data are not available or are not separately reported.
• A dash (-) indicates that the item is equal to zero or its value is negligible.
• Use of a dash (-) between dates representing years, e.g., 2015–2016, signifies the full period
involved, including the beginning and end years.
• Reference to “dollars” ($) means United States dollars, unless otherwise indicated.

There are seven papers in total. The other six papers cover professional services; R&D
services; telecommunication services; computer and related services; maritime, air, rail androad transport services; and tourism.

Prepared by Hikari Ishido (Chiba University, Japan) and Masataka Fujita (ASEAN-Japan
Centre). The authors wish to thank the staff members of the AJC and Richard Liang for theirresearch and statistical assistance, and the ASEAN Government officials who participated in
the third seminar for the Promotion of Services Trade in ASEAN, on 11–13 September 2017,
in Kuala Lumpur, Malaysia, for their comments. Errors and omissions are only those of theauthors and should not be attributed to their respective organizations.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

CONTENTS
I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
II. Current state of courier services at the country level. . . . . . . . . . . . . . . . . . . . . . . . . . 3
III. Ascendency of courier services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1. Mode 1: International trade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2. Mode 3: Commercial presence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
IV. Trade agreements and regulations in ASEAN Member States. . . . . . . . . . . . . .  12
V. Impacts of further liberalization of courier services on economy . . . . . . . . . .  14
VI. Conclusions and policy suggestions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
1. General policy suggestions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
2. Workable policy suggestions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17

References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Annexes
Annex A. Definition of express delivery services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Annex B. Forty-eight large foreign affiliates
engaged in courier services in ASEAN, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Annex C. Nine large ASEAN affiliates abroad engaged
in courier services, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Annex D. Specific schedule of commitments for “courier services”
under the AFAS (9th package, signed in November 2015)
by ASEAN Members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Annex E. Policy evaluation exercise for courier services. . . . . . . . . . . . . . . . . . . . . . . . . . 32

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PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

1I. INTRODUCTION
Courier services, also known as express delivery services, are an essential service industry, especiallyfor many kinds of activities. The industry is a catalyst for ASEAN’s trade and investment growth.
The General Agreement on Trade in Services (GATS), administered by the World Trade Organization(WTO), lists one job category under courier services, namely, 02B Courier services.1
The services provided by operators in the courier services industry cater to all, in the form of bothbusiness-to-business (B2B) and business-to-consumer (B2C) services. As such, the growth of theindustry is intrinsically linked to the population and economic growth of the ASEAN region.
Of the “three sources of value added”, i.e. provision of (1) tangible products, (2) information or (3)amenities, courier services correspond to the first and tend to grow with economic development.
In the ASEAN region, which consistently records vigorous economic advances, the role of courier
services is becoming larger year after year.
Figure 1 illustrates the role of courier services in value chains (in the form of smile curves).
The term “courier services industry” covers establishments engaged in parcel deliveries. There isno universal definition for courier or express delivery services (see annex A for legal definitionsof express delivery services in the ASEAN Member States). Like transport services, courier
services enable the smooth physical transmission of documents and parcels, thereby contributing
to enhancing productivity along value chains, horizontally as well as vertically. At times courier
services compete with national postal administrations; the establishment of a level playing field,
at least at the international level, is required for fair competition in courier services. Defining thescope of the postal monopoly in the narrowest way (to allow a minimum level of scale economies)
and introducing courier services where they are needed (especially in remote areas in the ASEAN
region) will stimulate economic efficiency and expand consumer choice.
Courier services are distinguished from mail services most significantly by their swift delivery times– times that are usually only optional for ordinary mail services. Courier services are therefore morecostly than ordinary mail services, and their use is thus limited by cost considerations.
The 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 thecustomer’s location to packaging, transport, storage, clearance and final delivery of the shipment.
Express delivery may be local, intercity or international, depending on the operator’s capabilities.
For cross-border delivery, customs clearance and duty payment are also handled by express delivery
service providers. Courier services suppliers charge fees that are based on the classification of theparcel (typically documents versus non-documents2), its weight, the distance to be transported andthe urgency of delivery. Courier services operators usually provide visibility of the shipment throughreal-time tracking mechanisms.
The growth of e-commerce is an important factor spurring the development of courier services.
Increasing consumption and growing internet penetration are boosting e-commerce activity in
ASEAN. In order to maintain cost competitiveness, companies that operate online prefer to workwith third-party courier providers instead of hiring in-house delivery staff. The strong presence of1
2

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

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

2courier companies provides e-commerce companies with an added advantage of greater accessto customers. Thus, growth in e-commerce activity has been driving demand in ASEAN’s courier
services industry.
Conceptually, “hub-and-spoke” distribution networks are used for courier services: this is a trafficsystem shaped like a wire wheel, in which all traffic moves along spokes connecting the hub (at thecentre) and the nodes at the other end of the spokes. The benefits of such a network are that a limited
number of routes are necessary to connect all nodes and that new spokes can easily be created.
Consignments are moved from the collecting branch or franchisee to collection and distribution hubs
by various means of transport. Deliveries are completed either directly by distribution hubs or indirectly
through local agents. The latter route is especially used by medium-size and smaller players.3

Figure 1. Value chains and courier services
High

VALUE ADDED

Coverage of “courier
services” in the smile
curves (shaded area)

Courier
services

Low

R&D

DesignManufacturing /Services

Logistics

Distribution

After
sales

PRODUCTION (VALUE) CHAINS
Source: ASEAN-Japan Centre.

³

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

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

3II. CURRENT STATE OF COURIER SERVICES
AT THE COUNTRY LEVEL
Table 1 shows the number of international express items (dispatch and receipt) in recent years.
Express items, as defined by the Universal Postal Union, cover those items dispatched or received
mainly through post offices; hence, these data might not cover private-sector-mediated expressdelivery services. In the absence of more specific data, the information in the table is useful enoughto indicate the increasing demand for express delivery services at large.
Indonesia, Myanmar and the Philippines have experienced increases in the number of international
express items handled. When compared with China, Japan and the Republic of Korea, though, there
is more scope for further increase: Indonesia’s population is four times larger than that of Japan,
for example, yet the number of internationally dispatched items in Indonesia is just one quarter thatin Japan. The express nature of courier services is much needed for ASEAN’s participation in global
value chains, as the timely delivery of essential business items (such as signed contracts) facilitatesbusiness operations.

Table 1. Number of international express items, 2013−2015 (Thousands)
Country

Dispatch
2013

2014

Receipts
2015

2013

2014

2015

ASEAN Member States
Brunei Darussalam

10.7

10.3

10.0

41.5

46.3

44.5

Cambodia

..

..

..

0,7

..

..

Indonesia

458.0

444.4

527.8

411.8

368.3

407.5

Lao People’s
Democratic Republic

42.6

..

..

48.4

..

..

Malaysia

335.0

..

359.6

611.9

..

543.6

Myanmar

25.6

28.1

34.5

41.1

44.3

44.5

Philippines

415.3

..

2 465.4

307.3

..

739.1

Singapore

..

..

..

..

..

..

Thailand

..

..

905.0

..

..

1 004

Viet Nam

141.1

..

..

297.9

..

..

China

10 655.8

10 010.2

7 440.0

7 934.5

13 100.9

28 106.8

Japan

11 000.0

14 000.0

19 000.0

..

..

..

Korea, Republic of

7 518.8

8 522.3

10 039.7

1 832.1

2 118.2

2 429.5

Memorandum

Source: Universal Postal Union’s 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 courier services in ASEAN has been limited so far because of the labour-intensive
nature of the industry. Because of this, in countries where further recruitment is difficult, such as
Japan, some progress has been made in compensating for labour shortages (box 1).

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Box 1. Innovation in courier services: Delivery drone and courier boxes
Technological advances in courier services are changing how courier services are provided:
express delivery using drones (remote-controlled flying devices) is making possible unmanned,
efficient delivery of express items. In Japan, the Government and some companies started a trialof a drone home delivery service in Chiba Prefecture in April 2016. The joint project – involving thecentral Government, the city of Chiba, research institutions and companies including e-commerce
giant Rakuten Inc. – is the first drone delivery trial in an urban area. To enable the conduct of thetrial, Chiba was designated as a special deregulation zone. ASEAN could make efforts towards
legal deregulation for this new type of express delivery services (The Japan Times, 11 April 2016,
http://www.japantimes.co.jp/news/2016/04/11/business/japan-starts-trial-drone-homedelivery-service-chiba/).
Another innovation useful for ASEAN would be the installation of “courier boxes” at customers’
homes: express delivery items are expected to be handed over directly, and more than 20 per centof delivered items undergo two or three delivery attempts (based on information from a Japanesecourier service company). The use of designated courier boxes into which couriers can put item(s)on the first delivery attempt would surely facilitate the process as well as contribute to reductionin the use of unnecessary human resources.

Although it is difficult to estimate the volume of private-sector-mediated courier services (table 1
captures just part of them), demand for such services is surely on an increasing trend in the ASEAN
region. In order to assess the potential for further expansion, a description of the status quo in eachcountry is useful.
Brunei Darussalam. Courier services are offered by foreign companies including DHL (subsidiary ofDeutsche Post, Germany), TNT (Netherlands), FedEx (United States) and UPS (United States) – thefour largest courier services integrators operating as airlines, express carriers and courier delivery
services – as well as Parcel Monkey, which provides low-cost delivery.
The Government of Brunei Darussalam has set out a vision called Wawasan 2035, which aims at
development of a knowledgeable and highly skilled society, improvement in the quality of life andsustainable development. The Ministry of Communications supports this initiative through its visionof a smart society and excellence in communication. The postal service department has been thisministry’s responsibility since 1984. Its mission is to create efficient worldwide connectivity of mailservices for the society through 23 branches in the country.
Cambodia.4 Cambodia’s courier services industry has grown rapidly in recent years, attracting
global parcel delivery and logistics operators such as DHL, TNT, OCS, Federal Express, UPS, ABL
Cambodia, ACI-Air Courier International, BSK Regional Express Services, Cam Freight Service andNippon Express (Japan). The market for courier services is already open. However, the operator isrequired to obtain a license from the Ministry of Post and Telecommunication.
In order for the country to benefit fully from courier services, the Government should improve transport
regulations to ensure the quality and safety of transport systems and improve domestic infrastructure
connectivity, especially linking urban and rural transport and logistics systems. Integrating multimodaltransport systems, such as connecting the land (rail and roads) and waterway (inland and maritime)4

Based on ASEAN Economic Forum. “Trade in Services in Cambodia”.

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5transport networks, is important to enhance domestic connectivity. Cambodia also needs to promote
integrated road transport and cross-border shipments with Thailand and Viet Nam.
Indonesia.5 Some favourable domestic factors are driving the growth of courier services in Indonesia.
The country’s courier service providers are a crucial part of its logistics industry. They mainly utilize
land transportation, with other modes of transportation for international deliveries. A factor driving
the demand for courier services in the country is the growing adoption of e-commerce services byIndonesians. Growing online purchases of goods, mainly in the fast-moving consumer goods6 andelectronic industries, has increased the reliance of online businesses on courier services. This trend
is sustaining growth in the country’s courier services industry.
A rise in operational costs is a key challenge for the industry. One of many factors causing therise is the lack of transportation infrastructure. Because of its geographical characteristic as anarchipelagic country, Indonesia needs multiple modes of transportation – road, train, sea and air –in order for providers to conduct courier services. The poor connectivity of roads results in longer
transportation times as well as higher fuel (mostly oil) expenses.
Lao People’s Democratic Republic.7 In accordance with the Law on Postal Services (Amended)of 25 December 2013, the Ministry of Post and Telecommunications has the rights to authorize,
renew, suspend, withdraw or terminate business licenses of designated operators of branch andinternational postal services. The Ministry had already given international postal service licenses toEntreprise des Postes Lao, TNT, OCS, PT Air Cargo Lao and DHL Express Laos Sole Co., Ltd.
DHL Express Laos Sole, established in 1995, is the foremost and the market-leading international
air express company in the country. DHL operates 10 service and express centres, located incommercially important places. The company is committed to maintaining its leading position as
the preferred air express operator.
Malaysia.8 Malaysia’s courier services industry comprises an integrated network of door-to-doordelivery systems. The industry offers integrated shipment services from collection to transportationand delivery. Various categories of users utilize express delivery services, including both companies
and private individuals. Courier services suppliers may own branches or have other service points
through franchisees and associates.
As of August 2017, 128 courier services operated in Malaysia, comprising both local and multinational
companies. The shift towards licensing by class under the regime adopted in 2013 has resulted in an
upgrading of the industry as it requires additional capital investment. For instance, Class A licensees
are allowed to provide courier services for both international and domestic destinations. However,they are required to provide track-and-trace systems within a year of starting operations and at least
five outlets locally within two years of starting operations. Meanwhile, Class B and Class C licensees
are allowed to operate businesses nationwide or within a state, respectively. The total numbers oflicensees by class in August 2017 were 39 in Class A, 48 in Class B and 41 in Class C.
In Malaysia, most courier services are labour-intensive: delivering, repackaging, returns, sales andmarketing, track and trace, cash on delivery, payments and customer service are meticulous tasks.
Express delivery timelines usually range from 24 to 72 hours for most destinations.

5
6

7
8

Summary information based on online database SPEEDA.
Fast-moving consumer goods are non-durable products sold rather quickly and at a relatively low cost, such as softdrinks, toiletries, over-the-counter medications, processed foods and other consumables for daily use.
European Chamber of Commerce and Industry in the Lao People’s Democratic Republic (ECCIL) Website.
Summary information based on online database SPEEDA.

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The years 2016 and 2017 saw the entry of more new players from various businesses into the courier
services market. The entrance of e-commerce companies, internet retailers and other businesses
into the industry is a good indicator of the growth of e-commerce. Although major e-commercecompanies are establishing their own delivery networks, they are also partnering with local postal
and courier service providers to optimize their business operations. Hence, services such as pickup
and delivery are expected to improve as a result of competition between new and existing competitors
to better serve the customers.
Myanmar. As Myanmar begins its economic transformation, demand for courier services is expectedto skyrocket. Courier services companies must apply to the National Regulatory Authority to obtain
authorization and/or a license. The Authority issues licenses with terms that accord with the
Myanmar Postal Law, which is currently at the draft stage.
The Authority has issued licenses for international fast express services to companies such
as Magnate Group Logistics Co. Ltd., United Courier Services Co. Ltd. and DHL Express. United
Courier Services has offered worldwide services since 2015, as an authorized service contractor of
UPS in Myanmar. The OCS Myanmar office was established in 2004, operating in various logistics
businesses, and obtained a domestic express courier operating license in June 2012. DHL Express
opened its largest express facility in Myanmar, near the Yangon International Airport, in 2016.
The Ministry of Transport and Communication and Japan’s Ministry of Internal Affairs andCommunications have signed a memorandum of cooperation in the postal sector for themodernization and improvement of Myanmar’s postal services.
Philippines.9 In the Philippines, the courier services industry has developed to serve the needs ofFilipinos both at home and abroad. LBC Express Inc., the country’s biggest and first Filipino-owned
courier company, introduced 24-hour door-to-door delivery services in the 1970s. This occurred a
few years after DHL entered the Filipino market to establish an operational hub for the Far East and
the Pacific Rim. After the inauguration of the Foreign Investment Act of 1991, as the demand for air
parcel delivery increased, the major parcel delivery and logistics operators such as FedEx, UPS and
TNT entered the Philippines.
Among local operators, LBC Express serves “Balikbayan” or overseas Filipino customers withinternational payments and remittance services. PHL Post, a Government-owned postal services
provider, offers logistics and warehousing services. With the increasing demand for e-commercein the country, 2Go and Air 21 have seen rapid growth. The spread of information technology andbusiness process outsourcing (IT-BPO) services in the Philippines is another driver of third-party
logistics – use of a third party to carry out elements of a company’s distribution and fulfilment
services.
Singapore.10 Located at the centre of the ASEAN market, Singapore’s courier services industry has
grown rapidly in recent years. Firms have established operations in Singapore because of its lower
corporate tax rates as compared with other developed countries and because of the tax-exempt
capital gains system. In addition, Singapore has good business infrastructure, including airport,
port and other transport networks. Consequently, major parcel delivery and logistics operators with
global operations, such as DHL, FedEx and UPS, ventured into Singapore in the 2000s. These global
players focus on developing their businesses on the basis of B2B requirements.

910

Based on KEN Research, “Philippine Logistics Market Outlook to 2019”.
Summary information based on online database SPEEDA.

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7As for local companies, Singapore Post became a pioneer in the local express delivery and courier
services industry. As such, it has mainly carried out the delivery of documents by mail and courier.
However, over the years, with the popularity of e-commerce and growing affluence, international
companies such as Yamato Transport (Japan) have also managed to penetrate the market.
The delivery of parcels is open to competition and does not require a license from the Infocomm MediaDevelopment Authority. The Authority is responsible for the administration of the Postal Services
Act, which governs all postal services in Singapore. Industry players interested in providing domestic
and international basic mail services are required to first obtain a license from the Authority.11
Thailand.12 Express consignments are delivered by 14 licensed companies, including 10 express
carriers that are members of the Thai Express Courier Association (TEXCA) as well as 4 major
courier operators that are members of the Conference of Asia Pacific Express Carriers (CAPEC):
DHL, FedEx, TNT and UPS.
Express consignment operations in Thailand developed from an on-board courier service, carrying
documents and small parcels on commercial flights and operating at the airport. As the number ofgoods increased substantially and the types of shipments expanded to include industrial packages
and freight, the operational area became inadequate. Hence, the express consignment operations
were moved to the Customs Free Zone, which encompasses an area of 660,572 square meters at theSuvarnabhumi Airport.
Viet Nam.13 Viet Nam’s courier services industry is an integrated network of door-to-door delivery
systems. In general, express delivery times range between 24 and 72 hours for most in-country
destinations, as elsewhere in the ASEAN region. Operators usually offer real-time shipment tracking
facilities.
Most courier services providers are small and medium-sized enterprises with limited capital
investment and human resource capabilities. Large international players such as TNT Express(Netherlands) offer a wide range of services. In contrast, to remain competitive, smaller companies
such as TNC Express & Logistics (Viet Nam) typically provide specialized customer service.

III. ASCENDENCY OF COURIER SERVICES
Like other transport services (air, marine, road and rail transport services), courier services are notdelivered by Mode 2 (supply through consumption abroad) and Mode 4 (supply through movement of
natural persons) (table 2), as the basic condition for delivering this particular kind of service requires
the existence of physical facilities that are not movable. That said, non-residents can act as couriers
when travelling abroad (Mode 2) and courier professionals do travel in conducting their services(Mode 4), both forms of operations that are very limited and assumed to be close to zero.
The estimated value of courier services supply in ASEAN was $22 billion in 2015, whereas thoseexported from ASEAN were$14 billion (table 2). In both directions of services supply in this sector,
cross-border supply (Mode 1) overwhelms supply through commercial presence (Mode 3).

11
12
13

https://www.imda.gov.sg/regulations-licensing-and-consultations/frameworks-and-policies/postal.
Information from the Thai Express Courier Association.
Summary information based on online database SPEEDA.

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

8

Table 2. Estimated value and share of courier services supply in ASEAN, by mode of
supply, 2015 (Billions of dollars and per cent)Receipts from the world (imports)

Supply to the world (exports)

Courier services

Total services

Courier services

Total services

Mode of supply

Value

Share

Value

Share

Value

Share

Value

Mode 1

a

19

86

308

30

14

a

100

302

30

Mode 2

0

0

103

10

0

0

101

10

Mode 3

3b

14

565

55

-b

0

554

55

Mode 4

0

0

51

5

0

0

50

5

22

100

1 027

100

14

100

1 007

100

ASEAN total

Share

Source: AJC, based on own estimates, UNCTAD for total services and WTO for mode shares of total services.
Note: For total services, each mode share estimated by the WTO for the global supply is applied to ASEAN. The basic data for
estimates by mode are cross-border services (Mode 1) from UNCTAD; the WTO data on shares have been applied to the
UNCTAD data to calculate the value of each mode.
a
Courier services are part of transport services in the balance of payments (BoP), under the "Other (including Postal and Courier)"
category. Therefore values in this table include other services such as postal services.
For Brunei Darussalam, as data are not available for courier services alone, the ratios of courier services to transport services
that are available for other ASEAN Member States for the respective years are used to estimate the value of courier services.
For 2010, transport services data were not available. Therefore, the average of the 2009 and 2011 data was used as an estimate.
For Cambodia, data for 2015 were not available. Therefore, the average of the 2013 and 2014 data was used as an estimate.
For Malaysia, data from the International Monetary Fund (IMF) were used up to 2009. Data from the Department of Statistics
Malaysia were used for 2010 onwards, converted into U.S. dollars by using the IMF's annual exchange rate.
For Myanmar, although import data for 2011 are not available, the figure is assumed to be insignificant.
For Singapore, data on passenger services are also included.
For Viet Nam, as data are not available for courier services alone, the ratios of courier services to transport services that areavailable for other ASEAN Member States for the respective years are used to estimate the value of courier services. Data fortransport services are based on BPM5. For 2015, transport services data were not available. Therefore, the average of the 2013
and 2014 data was used as an estimate.
b
For estimated sales, see the estimation procedure in Paper 1, box 2.

1. Mode 1: International trade
Courier services are one of the components of transport services in trade statistics that are basedon the balance of payments. Courier services, including postal services, account for at most 5 percent of all transport services in ASEAN. Therefore, delivery of documents and non-documents is stilla limited service and does not have an important business position in economic activities. The tradebalance in ASEAN has been in deficit throughout the period between 2005 and 2015 (tables 3 and 4),
with imports being 30–40 per cent larger than exports.
Exports of courier services have been concentrated in Singapore, followed by Malaysia. These twocountries account for four fifths of the total of $14 billion exports of these services from ASEAN. The
importance of courier services relative to total services exports stands out for Brunei Darussalam,at 33 per cent in 2015 – four times higher than the ASEAN average.
Imports, with a value of $19 billion, are more concentrated. Singapore and Viet Nam account fornearly 90 per cent of total imports of courier services into ASEAN. Viet Nam was already the second
largest importer in the early 2000s, the period corresponding to dynamic growth of trade businesses
in ASEAN. The near absence of domestic courier services companies handling international courier
services in Viet Nam has led to high use of foreign courier services companies.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

9Table 3. Exports of courier services and its share in total exports of services and goods
and services, 2005−2015 (Millions of dollars and per cent)Country

Annual average 2005-2010

Courier services export
Brunei Darussalama
136
75
CambodiabIndonesia
435
Lao People's
37
Democratic Republicc
Malaysia
856
Myanmar77
Philippines
162
7 657
Singapored
Thailand
633
626
Viet NameASEAN total
10 694
Share in total exports of services
Brunei Darussalama
18.5
4.9
CambodiabIndonesia
3.6
Lao People's
11.0
Democratic Republicc
Malaysia
3.1
Myanmar23.1
Philippines
1.2
d
10.2
Singapore
Thailand
2.2
10.6
Viet NameASEAN total
8.8
Share in total exports of goods and services
Brunei Darussalama
1.6
Cambodiab
1.6
Indonesia
0.4
Lao People's
2.7
Democratic Republicc
Malaysia
0.4
Myanmar
1.3
Philippines
0.4
Singapored
2.0
Thailand
0.4
Viet Name
1.1
ASEAN total
1.2

2011

2012

2013

2014

2015

165
137
445

186
155
448

209
173
451

228
191
454

230
182
457

40

40

52

51

61

1 414
128
186
9 598
304
743
13 160

1 535
138
228
10 158322
732
13 942

1 519
210
207
9 342
380
834
13 377

1 610
329
260
10 317381
895
14 716

1 437
265
282
9 625
426
839
13 804

23.0
6.6
3.4

26.2
6.9
3.4

29.7
7.2
3.3

32.7
7.5
3.3

33.2
7.3
3.3

7.3

6.9

6.7

6.7

7.6

3.6
16.9
1.0
8.0
0.7
8.4
7.9

3.8
11.2
1.1
8.0
0.6
7.6
7.6

3.6
7.6
0.9
6.7
0.6
7.8
7.4

3.8
10.5
1.0
6.7
0.7
8.2
8.1

4.1
6.9
1.0
6.5
0.7
7.5
7.8

1.6
2.5
0.3

1.8
2.7
0.3

1.9
3.0
0.3

2.0
3.2
0.0

1.9
3.1
0.2

1.7

1.4

1.7

1.5

1.7

0.6
1.5
0.3
1.7
0.1
0.7
1.1

0.6
1.5
0.3
1.8
0.1
0.6
1.1

0.6
1.7
0.3
1.6
0.1
0.6
1.2

0.6
2.5
0.3
1.7
0.1
0.1
1.2

0.7
1.9
0.4
1.8
0.2
0.5
1.2

Source: AJC, based on data from IMF, WTO and the Department of Statistics, Malaysia.
Note: Courier services are part of transport services in the balance of payments (BoP), under the "Other (including Postal andCourier)" category. Therefore values in this table include other services such as postal services.
a
As data are not available for courier services alone, the ratios of courier services to transport services that are available for other
ASEAN Member States for the respective years are used to estimate the value of courier services. For 2010, transport services
data were not available. Therefore, the average of the 2009 and 2011 data was used as an estimate.
b
Data for 2015 were not available. Therefore, the average of the 2013 and 2014 data was used as an estimate.
c
Data from the IMF were used up to 2009. Data from the Department of Statistics, Malaysia were used for 2010 onwards,
converted to U.S. dollars by using the IMF's annual exchange rate.
dData on passenger services are also included.
e
As data are not available for courier services alone, the ratios of courier services to transport services that are available for other
ASEAN Member States for the respective years are used to estimate the value of courier services. Data for transport services are
based on BPM5. For 2015, transport services data were not available. Therefore, the average of the 2013 and 2014 data was used
as an estimate.

10

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

Table 4. Imports of courier services and its share in total imports of services and goods
and services, 2005−2015 (Millions of dollars and per cent)Country
Annual average 2005-2010
Courier services import
Brunei Darussalama
61
43
CambodiabIndonesia
298
Lao People's
6
Democratic Republicc
962
Malaysia
3
Myanmard
Philippines
305
9 109
Singaporee
Thailand
1 246
658
Viet Namf
ASEAN total
12 033
Share in total imports of servies
Brunei Darussalama
4.8
5.2
CambodiabIndonesia
1.2
Lao People's
5.8
Democratic Republic
3.5
Malaysiac
0.5
Myanmard
Philippines
3.5
11.5
Singaporee
Thailand
3.4
9.3
Viet Namf
ASEAN total
4.9
Share in total imports of goods and services
Brunei Darussalama
1.8
0.8
CambodiabIndonesia
0.3
Lao People's
0.4
Democratic Republic
Malaysiac
0.6
0.1
Myanmard
Philippines
0.6
2.7
Singaporee
Thailand
0.7
1.0
Viet Namf
ASEAN total
0.9

2011

2012

2013

2014

2015

84
103
334

95
120
345

118
137
355

125
154
366

123
146
376

12

13

15

19

14

961
452
12 355894
1 430
15 195688
579
14 602761
1 629
17 204657
552
15 284812
1 608
17 930536
17635
16 833777
1 702
19 463425
8626
16 486727
1 551
18 931

5.8
10.4
1.2

6.4
11.6
1.2

7.7
12.7
1.2

7.9
13.6
1.2

7.6
13.2
1.2

3.6

3.9

2.7

3.7

2.4

2.5
3.7
10.4
1.9
12.1
5.2

1.6
4.1
11.2
1.7
13.5
5.5

1.5
3.4
10.4
1.7
11.6
5.3

1.2
0.7
3.0
10.6
1.7
11.7
5.6

1.1
0.3
2.7
10.7
1.7
10.0
5.1

1.9
1.6
0.2

2.0
1.9
0.2

2.4
2.1
0.2

2.4
2.2
0.2

2.2
2.1
0.2

0.4

0.4

0.4

0.4

0.2

0.5
0.6
2.5
0.4
1.3
1.0

0.3
0.7
2.9
0.3
1.4
1.0

0.3
0.7
2.9
0.3
1.2
1.0

0.2
0.1
0.7
3.2
0.3
1.1
1.1

0.2
0.0
0.7
3.7
0.3
0.9
1.1

Source: AJC, based on data from IMF, WTO and the Department of Statistics, Malaysia.
Note: Courier services are part of transport services in the balance of payments (BoP), under the "Other (including Postal andCourier)" category. Therefore values in this table include other services such as postal services.
a
As data are not available for courier services alone, the ratios of courier services to transport services that are available for other
ASEAN Member States for the respective years are used to estimate the value of courier services. For 2010, transport services data
were not available. Therefore, the average of the 2009 and 2011 data was used as an estimate.
b
Data for 2015 were not available. Therefore, the average of the 2013 and 2014 data was used as an estimate.
c
Data from the IMF were used up to 2009. Data from the Department of Statistics, Malaysia were used for 2010 onwards, converted
to U.S. dollars by using the IMF's annual exchange rate.
d
For 2011, although the data are not available, the figure is assumed to be insignificant.
eData on passenger services are also included.
f
As data are not available for courier services alone, the ratios of courier services to transport services that are available for other
ASEAN Member States for the respective years are used to estimate the value of courier services. Data for transport services are
based on BPM5. For 2015, transport services data were not available. Therefore, the average of the 2013 and 2014 data was used
as an estimate.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

11

2. Mode 3: Commercial presence
Nearly 100 foreign courier services companies operate in ASEAN (table 5). However, they exist mainlyin Thailand, Singapore, the Philippines, Malaysia, Viet Nam and Indonesia. No foreign firms wereidentified in Brunei Darussalam, Cambodia, the Lao People’s Democratic Republic and Myanmar.
The estimated sales of foreign courier services companies in 2015 were $3.3 billion, the bulk ofwhich were generated in Thailand and in Singapore (table 5). In contrast, ASEAN courier services
firms 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
(Number and millions of dollars)

Receipts from abroad
Country
Brunei Darussalam
Cambodia
Indonesia
Lao People’s
Democratic Republic
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam
ASEAN total

Supply to the world

Number of
foreign entitiesa

Estimated
sales

Number of ASEAN
entities abroad

Estimated
sales

0
0
1

0
0
24

0
0
0

0
0
0

0

0

0

0

5
0
7
33
44
4
94

197
0
358
1 240
1 395
44
3 258

1
0
0
8
0
0
9

0
0
98
0
0
98

Source: AJC, based on data from Toyo Keizai Shimposha, UNCTAD, Thomson Reuters and Orbis.
Note: For estimated sales, see the estimation procedure described in Paper 1, box 2. Zero does not necessarily mean that there
is no foreign affiliate. It means that either no physical existence of foreign affiliate is identified or that foreign companies
extend only business alliance options to domestic firms.
aIncludes affiliates for which sales cannot be estimated (five for Singapore and two for Thailand).

Foreign courier services companies in ASEAN originate in Europe, Japan, the United States andHong Kong (table 6), including FedEx, Deutsche Post and TNT, as well as Japan’s big courier
services firms such as Sagawa and Yamato. ASEAN courier services firms, especially Singaporeanones, operate mainly in Australia and India. Singapore Post and DHL Express Singapore are large
investors from ASEAN.

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

12

Table 6. Foreign afﬁliates in ASEAN and ASEAN afﬁliates abroad in courier services,by source and destination country (Number and millions of dollars)
Foreign afﬁliates in ASEAN
Number of
afﬁliates

Estimated
sales

Number of
afﬁliates

Estimatedsales

United States

10

678

1

..

Europe

9

132

0

0

Australia

0

0

2

16

Japan

75b

1 778

1

..

Others0000Subtotal

94

2 588

4

16

ASEAN

3

1

1

..

Country

Developed
countries

Developing
countries

a

China

0

0

1

..

Korea, Rep. of

0

0

0

0

India

0

0

2

82

Hong Kong (China)

2

677

1

..

United Arab Eirates

1

..

0

0

Others0000Subtotal

6

678

5

82

0

0

0

0

100

3 266

9

98

Unspecified/Supernational
World

ASEAN afﬁliates abroad

Source: AJC, based on data from Toyo Keizai Shimposha, UNCTAD, Thomson Reuters and Orbis.
Note: For estimated sales, see the estimation procedure in Paper 1, box 2. Zero does not necessarily mean that there is no foreign
affiliate. It means that either no physical existence of a foreign affiliate is identified or that foreign companies extend only
business alliances to domestic firms.
a
The number of foreign affiliates in ASEAN and ASEAN affiliates abroad should balance. However, either the destination or thesource country of some of these affiliates is not available. Therefore they do not match.
b
Includes seven affiliates for which sales cannot be estimated.

IV. T
 RADE AGREEMENTS AND REGULATIONS IN
ASEAN MEMBER STATESThe barriers to entry by companies are raised 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 greater amount of capital investment to infrastructural development, which may include
a larger fleet of trucks, computerized documentation, a real-time GPS tracking system and evenprofessional systems for sorting and consolidating parcels. In addition to these fixed costs, there arevariable 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.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

13Table 7 shows the Hoekman Index14 for courier services in the ASEAN Member States under the
AFAS (9th package). As shown, courier services are open in most ASEAN Member States.

Table 7. Hoekman Index of the AFAS (9th package, signed in November 2015) for courier

services

Country

Mode 1Mode 2Mode 3

Brunei Darussalam
Cambodia
Indonesia
Lao People's Democratic Republic
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam

1
1
0
0.5
1
1
0.75
1
1
1

1
1
0
0.5
1
1
1
1
1
1

0.75
1
0
0.5
0.75
0.5
1
1
0.75
1

Source: AJC, calculated from the specific commitment tables of each ASEAN Member State under the AFAS (9th package).
Note: Mode 4 is not covered under the AFAS. It is covered under the AMNP (ASEAN Agreement on the Movement of Natural
Persons).

Table 8 lists shares of foreign ownership allowed in courier services (as percentages) under AFAS
9. Five ASEAN Member States (Cambodia, the Lao People’s Democratic Republic, the Philippines,
Singapore and Viet Nam) allow 100 per cent foreign ownership. As express delivery services canalso be provided by postal agencies, opening the market would enhance international competition,
thereby leading to supply of varieties of convenient courier services.

Table 8. Maximum of foreign ownership allowed in courier services under the AFAS
(9th package) (Per cent)Member State
Brunei Darussalam
Cambodia
Indonesia
Lao People's Democratic Republic
Malaysia
MyanmarPhilippines
Singapore
Thailand
Viet Nam

Foreign ownership allowed
70
100
n.a.
100
51
No mention
100
100
49
100

Source: Calculated from tables 2 and 3.

14

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, bymode and by aspect (MA or NT), and take the simple average for aggregation; then calculate the average value byservices sector and by country. The higher the figure, the more liberal are the country’s service trade commitments
to the FTA members. Using the database that the AJC constructed, the Hoekman Index was derived for each of 155
subsectors. Then the simple average at the level of the 11 sectors was calculated. The Hoekman Index takes thevalue between 0 and 1, with 0 referring to the most restricted status, with 1 being the most open situation.

14

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

Aside from the AFAS, there is a need for ASEAN-wide regulatory cooperation in connection withcourier services. The US-ASEAN Business Council (2005) notes that the courier industry thrives incountries with efficient import and export procedures, including customs procedures. The businessenvironment for courier services in ASEAN is diverse, ranging from those that are highly liberalized
to those in which postal administrations continue to maintain control over the provision of courier
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.

V. IMPACTS OF FURTHER LIBERALIZATION
OF COURIER SERVICES ON 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 percent of costs and 20 percent of transit time are spent in and/or on customs practices (US-ASEAN Business Council 2005). Although these figures might havebeen reduced over the past years, it remains important to further promote reductions of costs andtime spent on customs-related practices. Table 9 provides the Customs Capability Index calculated
for 2015 by Frontier Economics (2015) for the Global Express Association (which is the global
industry association for courier services).15 Large variation exists across the ASEAN Member States,
ranging from Myanmar’s score of 4.0 to Thailand’s score of 9.5. As international courier services bynature require standardized customs capability across countries, more policy efforts are needed toharmonize the scores.

15

The contents of this indexation method are discussed in detail in section VI in the context of policy suggestion.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

15Table 9. Customs Capability Index, 2015
Country

Customs Capability Index score

Brunei Darussalam

5

Cambodia

8

Indonesia

7

Lao People's Democratic Republic

7

Malaysia

6

Myanmar4

Philippines

8

Singapore

7.5

Thailand

9.5

Viet Nam

5.5

Memorandum
China
Japan
Korea, Republic ofUnited States

6
9
10
7

Source: AJC, adapted from Global Express Association.
Note: Table 12 shows the scoring of the 10 capacity variables. For the Lao People's Democratic Republic, an estimate was madeby the AJC.

Table 10 displays regression results estimating the impacts of customs-related indices on tradein the world, including some ASEAN Member States16 (Frontier Economics 2015).17 A common
implication of these indices is that through the improvement of the courier services-related indices,
about 5 per cent more trade will be created. Considering the recent global economic growth rate of 2
percent or so, the figure is promising, as promoting trade-based economic expansion by liberalizing
trade in courier services is an objective that is reachable by ASEAN as a whole.

Table 10. Regression results for the impacts of customs-related industry indices on
trade in the world (including some ASEAN Member States), 2015 (Per cent)Exports
Imports
Average of exports and imports

World Bank Ease of
Doing Business Index

World Bank Logistics
Performance Index(for infrastructure)

Customs Capability
Index

4.8
4.5
4.7

6.0
4.6
5.3

5.0
3.7
4.4

Source: Frontier Economics (http://www.frontier-economics.com/).
Notes: Average impacts of improving the index scores by one unit (10 per cent of the full score) for exports, imports and average ofexports and imports are shown. The World Bank’s Ease of Doing Business index measures the degree of business-friendly
regulation; the Logistics Performance Index measures the level of infrastructural development for logistics services.

16

17

The ASEAN Member States covered are Brunei Darussalam, Indonesia, Malaysia, Myanmar, the Philippines,
Thailand and Viet Nam.
The customs-related indices are related, but not specific, to courier services by nature and considered here in
the absence of indices unique to courier services. Among them, the Customs Capability Index is most relevant tocourier services.

16

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

Several ongoing trends affect courier services in ASEAN. National postal administrations arecorporatizing and extending their services to include courier services. Initiatives have been launched
to integrate the region into a single market for goods and services, with active participation by
Governments in liberalizing air transport services and regional aviation markets. For WTO members,
further commitments with regard to market access, national treatment and fair competition are
expected under the Doha Round. Bilaterally, disciplines for the services sector including courier
services have already been incorporated into the United States–Singapore Free Trade Agreement(FTA) and are expected under the United States–Thailand FTA.

VI. CONCLUSIONS AND POLICY SUGGESTIONS
1. General policy suggestions
As a priority and an achievable target for the immediate term, the ASEAN Member States could
undertake measures to promote trade facilitation, including the elimination of barriers to efficientcustoms clearance, the establishment of appropriate de minimis levels, the introduction of fullelectronic data interchange, and overall integration of customs policies and procedures. Customs
and trade facilitation is a priority for the industry and one of the four key areas18 proposed under
the WTO (since 1996).
The economies that are most efficient and have the highest standards are those in which the
distribution sector is competitive and has been left free of burdensome regulations and barriers toinvestment and market entry.
According to Frontier Economics (2015), there are five attributes of courier services that customers
value as high when they are met and as low when they are not met:
(1) Global reach: being able to send items anywhere(2) Reliability: realizing timely arrival of items(3) Transparency: being able to track items(4) Speed: being able to reach markets and customers quickly(5) Security: ensuring the safety of items while moving
The US–ASEAN Business Council (2005) points out that in the face of heightened security
requirements, the adoption of 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 as Singapore,
Thailand, the Philippines, and Malaysia have successfully reduced average customs processing for
air shipments to one day or less (US–ASEAN Business Council 2005). Electronic data interchange
enables exporters and importers to input data electronically, with links to customs and othersupporting import-licensing agencies, for efficient approval and release of goods.

18

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.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

17

2. Workable policy suggestions
To promote the regional flow of goods in the ASEAN region requires the implementation of policy
initiatives to strengthen the domestic logistics sector and improve connectivity. These efforts arelikely to benefit courier services ASEAN-wide. To make this happen in the foreseeable future,
concrete policy measures must be implemented. Table 11 lists the 10 components of the Customs
Capability Index for formulating workable policy suggestions.
Table 12 provides the status of the ASEAN Member States in terms of the custom capability variables
in table 11.

Table 11. Components of Customs Capability Index for workable policy suggestions
Customs capability variable

Corresponding question in customs capability questionnaire

Scoring method(1) Electronic customs/
Pre-arrival processing

Does customs accept and process electronically the datarequired for release of shipments in advance of theiractual arrival so that they can be released either prior to or
immediately after arrival?

1 = yes
0.5 = sometimes
0 = no(2) 24-hour/7-day automatedcustoms processing

Is full-time (24 hours and 7 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?

For shipments arriving by air, does customs inspect andrelease goods at the operator’s facility or require their transfer
to another facility?

1 = operator’s facility
0.5 = depends on thesituation
0 = transfer required(5) Other agency inspections
cause delays

If there are inspections by agencies other than customs,
do those cause delays?

1 = no0.5 = sometimes
0 = yes(6) De minimis regime
present?

Does the customs administration apply a de minimis regime
that allows goods the value of which does not exceed a certain
amount to be exempted from duties and taxes?

1 = yes0 = no(7) If de minimis, simplified
procedures?

If yes, are those goods subject to simplified procedures
e.g. consolidated release/clearance?

1 = yes0 = no(8) Threshold for informal
customs procedure

Does the customs administration apply a de minimis regime
that allows dutiable goods the value of which does not exceed
a certain amount to be exempted from formal declaration
procedures?

1 = yes0 = no(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 thefollowing items?
- a consular invoice- a consular visa for a commercial invoice- other trade document

1 = yes0 = no(10) Third-party customs
broker?

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

1 = yes0 = noSource: Adapted from Frontier Economics (2015), Table 1.

0

0

0

1

1

1

0

1

0

1

5

(1) Electronic customs/
Pre-arrival processing(2) 24-hour/7-day automatedcustoms processing(3) Adapted working hours
customs personnel(4) Inspection at operator
facility or transfer?

(5) Other agency inspections
cause delays(6) De minimis regime
present?

(7) If de minimis, simplified
procedures?

(8) Threshold for informal
customs procedure(9) Necessity to provide a
consular trade document?

(10) Third-party customs
broker?

Sum(Customs Capability Index)

8

1

1

1

1

1

1

1

1

0

0

Cambodia

7

1

0

1

1

1

1

1

0

1

0

Indonesia

7

1

1

1

1

1

0

1

1

0

0

Lao People's
Democratic
Republic

Source: AJC calculation. Adapted from Global Express Association.
Note: For the Lao People's Democratic Republic, an estimate was made by the ASEAN-Japan Centre.

Brunei
Darussalam

Custom capability variable

Table 12. Scoring of the ASEAN member states’ custom capability by variable

6

0

0

1

1

1

0

1

1

1

0

Malaysia

4

1

1

0

1

0

0

1

0

0

0

Myanmar

8

1

1

1

1

1

1

1

1

0

0

Philippines

7.5

1

0

1

1

1

0

0.5

1

1

1

Singapore

9.5

1

1

1

1

1

0.5

1

1

1

1

Thailand

5.5

1

0

1

1

1

0

1

0

0

0.5

Viet Nam18

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

19To aid in developing workable policy suggestions, table 13 lists policy targets that are essential forcourier services, connecting customs principles and customs capability variables. To resolve the “nomatch” policy issues in the table, a seminar could be held to share best practices in courier services
in each ASEAN Member State.
Concerning “global reach”, what is important is access to intermodal markets (e.g., smooth linkages
between air and ground modes of transport), which enables courier services suppliers to practiceflexible and seamless operations. Put differently, intermodal operations enable courier services
firms to control their airline operations and conduct their own ground pick-ups and deliveries.
Concerning “reliability” and “security”, policies to encourage courier services suppliers to invest
further in the downstream end of the supply chain, including parking, information technology–
based customer support and financial service centres. In order to achieve these policy targets ofglobal reach, reliability and security, a series of seminars should be held to share international bestpractices (some of which are being organized by the ASEAN–Japan Centre) as part a concerted
effort to promote trade in courier services.

Table 13. Policy targets for courier services
Policy target

Most relevant customs principle

Most relevant workable policy suggestion (in the table above)

Global reach

Mutual assistanceNo match (Sharing international best practices)

Reliability

Consistency

No match (Sharing international best practices)

Transparency

Simplicity and transparency(9) Necessity to provide a consular trade document?
(10) Third-party customs broker?

Speed

If there are inspections by agencies
other than customs, do those causedelays?

(1) Electronic customs/Pre-arrival processing(2) 24-hour/7-day automated customs processing(3) Adapted working hours customs personnel(4) Inspection at operator facility or transfer?
(5) Other agency inspections cause delays(6) De minimis regime present?
(7) If de minimis, simplified procedures?
(8) Threshold for informal customs procedure

Security

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

No match (sharing international best practices)

Source: AJC

The courier services provided by developed-country firms are highly concentrated and account formost of the industry’s revenue (table 6). The local segment in the ASEAN region is much smaller andis highly fragmented. Large courier services firms offer a wide range of services relying on highly
capitalized delivery networks (in terms of handling equipment and sorting technology). Small firms,
usually more labour-intensive, provide specialized customer service in metropolitan areas.
With a view to formulating concrete policy proposals for trade in courier and transport services, theThird Seminar on Promoting Services Trade in ASEAN Member States was held 11–13 September
2017 in Kuala Lumpur, Malaysia.19 The policy evaluation exercise (see annex E) in the seminar
identified the following needs: (1) narrowing the development gaps across the Member States

19

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

20

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

will be indispensable for a more effective, ASEAN-wide courier services network; (2) synchronous
implementation of cross-border customs cooperation will be needed; and (3) harmonization of a deminimis threshold value across the Member States will be necessary. A policy evaluation exercise
for courier services is included in annex A of Paper 6 of this series. With the spirit of “start small andgrow big”, a feasible option would be for the ASEAN Member States to boost coordination among
themselves on the first three needs, with due consideration to the untapped policy targets (indicatedin table 13).
To transform ASEAN into a more integrated platform for manufacturing and services activities,
harmonization of business practices for courier services must be paired with the vision of ASEAN asa single customs union. The above-mentioned policy suggestions for courier services are expected
to facilitate not just the ASEAN-wide promotion of trade but also the ongoing negotiation for the
Regional Comprehensive Economic Partnership involving ASEAN Member States and their dialogue
partners (namely, Australia, China, India, Japan, the Republic of Korea and New Zealand). Promoting
trade in courier services in the ASEAN region should move to a new dimension of catalyzing theestablishment of global value chains. It is therefore hoped that the ASEAN Governments, incollaboration with the private sector, continue to actively engage in further promoting trade incourier services in the ASEAN region and on a more global scale.

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21REFERENCESASEAN Secretariat (2015), Kuala Lumpur Transport Strategic Plan (ASEAN Transport StrategicPlan) 2016–2025, Jakarta: The ASEAN Secretariat.
ASEAN and the World Bank (2015), “ASEAN Services Integration Report: A Joint Report by the ASEAN
Secretariat and the World Bank”, The World Bank, Washington, D.C.
Frontier Economics (2015), “Express Delivery and Trade Facilitation: Impacts on the Global Economy”,
a report prepared for the Global Express Association (http://www.global-express.org/assets/
files/Members-Library-2/GEA_FinalReport_040315_STC.pdf).
US–ASEAN Business Council (2005), “Express Delivery Services: Integrating ASEAN to Global
Markets”, World Bank: US–ASEAN Business Council (http://global-express.org/doc/EDS_
Report.pdf).

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P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

23

ANNEX A. DEFINITION OF EXPRESS DELIVERYSERVICES20
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 its national legislation.
Indonesia
Law Number 38 of 2009 on Posts, Article 1, establishes that a postal operator is a business entitythat provides postal services, which consist of several activities, as follows:• Written communication and/or electronic mail• Parcel services• Logistics services• Financial transaction services• Postal agency service
Courier services, as stated in Decree No.5/2005 of the Minister of Communications concerning
courier services operators, are the services of receiving, transporting and/or delivering packets,money and mail in the form of printed matter, newspapers, literature for the blind and small packets,from senders to receivers for a fee.
Lao People’s Democratic Republic
Based on the Lao People’s Democratic Republic’s Law on Postal Services:(i) Express services refers to the acceptance, dispatch and delivery of letter post items and post
parcels in the form of both ordinary and registered services, but delivery is the first priority, and an
additional charge is collected for such services.
(ii) Express mail services refers to the acceptance, dispatch and delivery of letter post items and post
parcels, in the form of first priority, with the items able to be tracked and traced at any time, and the
postage charge more expensive than the charge for other services.
Malaysia“Express or courier services” means integrated services for the collection, transmission and delivery
of a letter, an envelope, a small packet, a package, a parcel, a wrapper, a container or goods thatcan be collected, transmitted and delivered in an expedited manner with premium features such as
security, tracking, signature, specialization and individualization of services, and acknowledgement,with committed delivery times.
Myanmar“Courier services/express delivery services” are provided by governmental or non-governmental
designated operators who deliver the items on time.

20

Based on ASEAN’s 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

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

Philippines
Express and/or messenger services “firm”:•Includes every natural or juridical person that owns, operates, manages or controls in thePhilippines, 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 employee delivering any article owned by the former is not conducting an expressdelivery and/or messenger services within the context of this circular.
Singapore
Singapore does not have definitions of “courier services” or “express delivery services” in its national
legislation. The closest is a definition of “express letters”, although that is not equivalent to “expressdelivery services” as “express letters” does not cover parcels.
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(a) 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 letters dispatched by
the public postal licensee; or(b) originating from a sender outside Singapore and intended for delivery within the same working
day in Singapore.
• Local express letter means a letter originating from a sender in Singapore and intended for delivery
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.
ThailandThailand does not have definitions of “courier services” or “express delivery services” in its current
national legislation. The Thai Government has stated that it is in the process of drafting the new
Postal Act and will inform ASEAN’s Logistic and Transport Services Sectoral Working Group of thedefinition after the new Act is in place.
Viet Nam
According to Article 4 (2) of Decree No. 128/2007/ND-CP dated 2 August 2007 on delivery service,“express delivery service” means providing delivery service in an expedited and reliable manner.
Express delivery service also includes premium features such as collection at the address of thesender, delivery at the hand of the receiver, tracking, changing the address of delivery while thepackage is on the way, notice of the delivery timing and other added-value features.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

25Annex B. Forty-eight large foreign afﬁliates engaged in courier services in ASEAN, 2015 (continued)
Name of ASEAN afﬁliate abroad

Host country

Estimated sales($ million)

Name of ASEAN investing
company

ASEAN homecountry

1

Singapore Post Ltd

Singapore653

Alibaba Investment Ltd

Hong Kong, China

2

SCG Nichirei Logistics Co, Ltd

Thailand356

Nichirei Logistics Group Inc

Japan

3

FedEx Philippines

Philippines

321

Federal Express (FedEx)

United States

4

Federal Express Services (M) Sdn
Bhd

Malaysia

141

FedEx Corp

United States

5

TTK Asia Transport (Thailand) Co,
Ltd

Thailand124

Toyota Tsusho Corporation

Japan

6

Seiwa Pioneer Logistics Co, Ltd

Thailand106

Seiwa Kaiun Co, Ltd

Japan

7

TNT Express Worldwide (Singapore)
Pte Ltd

Singapore94

FedEx Corp

United States

8

Sankyu Laem Chabang (Thailand)
Co, Ltd

Thailand87

Sankyu Inc

Japan

9

Hitachi Transport System (Asia)
Pte Ltd

Singapore81

Hitachi Transport System, Ltd

Japan

9

Bangpoo Intermodal Systems Co,
Ltd

Thailand81

Mitsui O.S.K. Lines, Ltd (MOL)

Japan

11

SBS Logistics Singapore Pte Ltd

Singapore69

SBS Holdings, Inc

Japan

12

Sagawa Express Thai Container
Distribution Service Co, Ltd

Thailand64

SG Holdings Co, Ltd

Japan

13

Sagawa Express Singapore, Pte Ltd

Singapore63

SG Holdings Co, Ltd

Japan

14

Hi-Tech Nittsu (Thailand) Co, Ltd

Thailand62

Nippon Express Co, Ltd

Japan

14

Mahaporn Transport Co, Ltd

Thailand62

Tonami Holdings Co, Ltd

Japan

16

K Line (Thailand) Ltd

Thailand57

Kawasaki Kisen Kaisha, Ltd

Japan

17

Tri-Net Logistics (Asia) Pte Ltd

Singapore

55

Mitsui & Co, Ltd

Japan

18

Dia Merchandise Co, Ltd

Thailand48

Mitsubishi Corp

Japan

19

TNT Express Worldwide (M) Sdn Bhd

Malaysia

46

FedEx Corp

United States

20

TNT Express Worldwide (Thailand)
Co LtdThailand42

TNT Express Worldwide NV

Netherlands

21--

Singapore

35

Federal Express (FedEx)

United States

22

Sankyu (Singapore) Pte Ltd

Singapore

34

Sankyu Inc

Japan

23

Mitsubishi Corporation LT (Thailand)
Co, Ltd

Thailand

33

Mitsubishi Corp LT, Inc

Japan

24

NNR Global Logistics (Thailand)
Co, Ltd

Thailand32

Nishitetsu Global Logistics,
Co, Ltd

Japan

25

--

Viet Nam

30

Deutsche Post

Germany

26

NNR Global Logistics (S) Pte Ltd

Singapore

27

Nishitetsu Global Logistics,
Co, LtdJapan

27

Vantec World Transport (Thailand)
Co, Ltd

Thailand25

Hitachi Transport System, Ltd

Japan

28

Nusantara Infrastructure Tbk PT

Indonesia

24

Eagle Infrastructure Fund Ltd

Hong Kong, China

29

Sankyu-Thai Co, Ltd

Thailand

20

Sankyu Inc

Japan
…/

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

26

Annex B. Forty-eight large foreign afﬁliates engaged in courier services in ASEAN, 2015 (concluded)
Name of ASEAN afﬁliate abroad

Host country

Estimated sales($ million)

Name of ASEAN investing
company

ASEAN homecountry

30

Shinano Kenshi Trading Co, Ltd

Thailand20

Shinano Kenshi Co, Ltd

Japan

31

Best Cold Chain Co, Ltd

Thailand19

Yokorei Co, Ltd

Japan

31

--

Singapore

19

Deutsche Post

Germany

31--

Singapore

19

Federal Express (FedEx)

United States

34

Nittusu Shoji (Thailand) Co, Ltd

Thailand

16

NITTSU Shoji Co, Ltd

Japan

35

Yamato Asia Pte Ltd

Singapore

15

Yamato Holdings Co, Ltd

Japan

36

UTI (Global Logistics), Inc

Philippines

13

DSV de Sammensluttede
Vognmaend AF 13-7 1976 A/S

Denmark37

Sumisho Global Logistics (Thailand)
Co, Ltd

Thailand

12

Sumisho Global Logistics
Co, Ltd

Japan

38

Hitachi Transport System (Thailand),Ltd

Thailand11

Hitachi Transport System, Ltd

Japan

39

Nissin Transport (Singapore) Pte Ltd

Singapore

10

Nissin Corp

Japan

39

Hankyu Hanshin Express (Singapore)
Singapore
Pte Ltd

10

Hankyu Hanshin Express
Co, LtdJapan

39

MBE Malaysia

Malaysia

10

Mail Boxes Etc

United States

39--

Philippines

10

United Parcel Services (UPS)

United States

39--

Philippines

10

Deutsche Post

Germany

39--

Viet Nam

10

TNT (TPG)

Netherlands

39

Pegasus Global Express (Thailand)
Co, Ltd

Thailand10

Pegasus Global Express
Co, Ltd

Japan

46

Alps Logistics (Thailand) Co, Ltd

Thailand9

ALPS Logistics Co, Ltd

Japan

46

Suzuyo (Thailand) Ltd

Thailand9

Suzuyo & Co, Ltd

Japan

46

Hankyu Hanshin Express (Thailand)
Co, Ltd

Thailand

9

Hankyu Hanshin Express
Co, Ltd

Japan

Source: AJC, based on data from Toyo Keizai Shimposha, UNCTAD, Thomson Reuters and fDiMarkets.
Note: These 48 firms are not necessarily the largest. They are provided for illustrative purposes. Sales are estimated in the following manner: First, the ratioof sales to the size of foreign affiliates (investment value, capital size, employment size, etc.) is calculated for available foreign affiliates in each ASEAN
host economy; second, the ratio is applied to the affiliates for which size is available from the sources given; and third, some adjustment is made toeliminate unreasonable estimates by researching information on the affiliates in question. There are likely to be some, sometimes large, errors andreaders should use these data with utmost caution.

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

27Annex C. Nine large ASEAN afﬁliates abroad engaged in courier services, 2015
Name of ASEAN afﬁliate abroad

Host country

Estimated sales($ million)

Name of ASEAN investing
company

ASEAN homecountry

1

Blue Dart Express Ltd

India

81.9

DHL Express Singapore
Pte Ltd

Singapore2

Quantum Solutions (Australia)
Pty Ltd

Australia

15.3

Singapore Post Ltd

Singapore3

Mailforce Document Solutions
Pty Ltd

Australia

0.7

Fuji Xerox Asia Pacific Pte Ltd

Singapore4

Quantium Solutions (Japan) Inc

Japan

0.3

Quantium Solutions
International Pte Ltd

Singapore

5

Konsortium Logistik Pvt Ltd

Hong Kong, China-

Tropical Dimension Sdn Bhd

Malaysia

6

First Flight Couriers Ltd

India

-

Temasek Holdings (Pte) Ltd

Singapore

7

Polar Air Cargo Inc

United States-

DHL Express Singapore
Pte Ltd

Singapore

8

Shenzhen 4PX Express Co Ltd

China

-

Quantium Solutions
International Pte Ltd

Singapore

9

Tin Thanh Express JSC

Viet Nam-

Investor Group

Singapore

Source: AJC, based on data from Toyo Keizai Shimposha, UNCTAD, Thomson Reuters and fDiMarkets.
Note: These nine firms are not necessarily the largest. They are provided for illustrative purposes. Sales are estimated in the following manner: First, the ratioof sales to the size of foreign affiliates (investment value, capital size, employment size, etc.) is calculated for available foreign affiliates in each ASEAN
host economy; second, the ratio is applied to the affiliates for which size is available from the sources given; and third, some adjustment is made toeliminate unreasonable estimates by researching information on the affiliates in question. There are likely to be some, sometimes large, errors andreaders should use these data with utmost caution.

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

28

ANNEX D.
SPECIFIC SCHEDULE OF COMMITMENTS FOR“COURIER SERVICES” UNDER AFAS (9TH PACKAGE,SIGNED IN NOVEMBER 2015) 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).
The meaning of the alphabetical classification in the right-hand column of each specific commitment
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 numerical quotas 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 the requirement of an
economic needs test21
D: limitations on the total number of natural persons that may be employed in a particular service
sector or that a service supplier may employ and who are necessary for, and directly related to,the supply of a specific service in the form of numerical quotas or the requirement of an economic
needs test
E: measures which restrict or require specific types of legal entity or joint venture through which a
service supplier may supply a service
F: limitations on the participation of foreign capital in terms of maximum percentage limit on foreign
shareholding or the total value of individual or aggregate foreign investment” (Part III: SpecificCommitments, Article XVI: Market Access, subparagraph 2).
Under AFAS, the restriction types A, B and C are actually not used by the ASEAN Member Statesin the sector “Courier Services”. In addition to these six types of market access restrictions, thefollowing two restrictions are observed.
G: Government approval requirement; andH: tax or fee payment requirement.

21

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

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

29Brunei Darussalam
Sector or Subsector
Courier Services(CPC 7512)

Limitation on Market
AccessA–H
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) Joint venturecorporation with
Bruneian individuals
or Bruneian-controlled
corporations or boththe aggregate foreign
shareholding in the joint
venture corporation shallnot exceed 70% foreign
equity.

(3) EF70(3) None(3) N

Limitation on Market
AccessA–H
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) None(3) N(3) None(3) N

Additional
Commitments

Cambodia
Sector or Subsector
Courier services(CPC 7512)

Additional
Commitments

Indonesia
No commitment made in courier services

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

Limitation on Market
AccessA–H
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT(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
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) Foreign equity shallnot exceed 51 per cent.

(3) F51(3) None(3) N

Additional
Commitments

Malaysia
Sector or Subsector
Courier services(CPC 7512)

Additional
Commitments

P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

30

Myanmar
Limitation on Market
AccessA–H
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT

Courier Services(CPC 7512)(1) None(1) N(1) None(1) N

a. Multimodal courier
services (CPC 75121)(2) None(2) N(2) None(2) N(3) Commercial
Presence of foreign
service suppliers and/or
providers are permitted
in accordance with theForeign Investment law(2012), the Republicof Union of Myanmar.
The investment may be
carried out in any of thefollowing forms(i) carrying out an
investment by a foreignerwith one hundred percent foreign capital on
the business permitted
by the Commission;(ii) carrying out a joint
venture between aforeign and a citizen or
the relevant Government
department andorganization;(iii)carrying out by any
system contained in thecontract which approvedby both parties.

(3) E(3) a. Foreign service
suppliers and/or
providers have tocomply with existingLaws, rules andregulations concerninginvestment, taxations,immigration and labor.
b. Foreign organizations
and persons are
not allowed to own
land in Myanmar.
However, land may
be acquired on longterm lease, dependingon the individual
circumstances.

(3) E

Sector or Subsectorb. Other courier services(CPC 75129)(Courier services andrespect of Documents &Parcels excluding Lettersand Postcards)

Additional
Commitments

Philippines
Sector or Subsector
B. Courier Services

A–H
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT(1) Commercial presence
is required(1) E(1) None(1) N(2) None(2) N(2) None

(2) N

(3) N

(3) None(3) N

Limitation on Market
AccessA–H
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT(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
Access(3) None

Additional
Commitments

Singapore
Sector or Subsector
B. Courier Services
Courier Services inrespect of documents
and parcels, excluding
letters and postcards

Additional
Commitments

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

31Thailand

Sector or Subsector
B. Courier Services
Bicycle courier services
for food delivery (part of
CPC Version 1.1: 64340)

Limitation on Market
AccessA–H
classificationofMA

Limitation on National
Treatment

A–H
classificationof NT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) As indicated in 3.1 of
the horizontal section(3) EF70(3) None(3) N

Limitation on Market
AccessA–H
classificationof MA

Limitation on National
Treatment

A–H
classificationof NT(1) None(1) N(1) None(1) N(2) None(2) N(2) None(2) N(3) None(3) N(3) None(3) N

Additional
Commitments

Viet Nam
Sector or Subsector
Courier Services(CPC 7512**)*Express delivery
services9, i.e. services
consisting of collection,sorting, transport anddelivery, whether fordomestic or foreign
destination, of:(a) Written
communication10, on any
kind of physical medium,including:- Hybrid mail service;- Direct mail.
Except for the handlingof items of written
communication the priceof which is less than:- 10 times the tariff
for the handling of astandard domestic letterin the first weight levelfor domestic shipments;- US$9 for international
shipments;
provided that the grossweight of these items isless than 2,000 grams.
(b) Parcels11 and othergoods.
* Handling of nonaddressed items

Additional
Commitments
Servicesand services
suppliers of
any otherMember shallbe accorded
treatment noless favorable
than thetreatment
accorded to theVietnamesePost Office or
its subsidiaries
for itscompetitive
activities.

Sources: h ttp://myservices.miti.gov.my/widget/web/guest/protocol/-/56_INSTANCE_cxTW8VKZiDDDFor Brunei Darussalam, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_BD_SOC_(CCS_78).pdf
For Cambodia, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_CA_HC_(AFAS__5).pdf
For Indonesia, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_ID_SOC_(CCS_78).pdf
For Lao People’s Democratic Republic, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_LA_SOC_(CCS_78).pdf
For Malaysia, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_MY_SOC_(CCS_78).pdf
For Myanmar, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_MM_SOC_(20140312).pdf
For Philippines, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_PH_SOC_(21Aug2015).pdf
For Thailand http://myservices.miti.gov.my/documents/10180/f0c1be7c-124f-47bf-b4f9-2fd6300ab7d1
For Singapore, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_SG_SOC_(20130509).pdf
For Viet Nam, http://www.miti.gov.my/miti/resources/AFAS_9_Consolidated_Schedule_-_VN_SOC_(20150911).pdf

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P R O M O T I N G S E R V I C E S T R A D E I N A S E A N – J A N U A R Y 2 018

ANNEX E. POLICY EVALUATION FOR COURIERSERVICES
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 E1 shows the resultof the evaluation, however subjective it may be, for realization of a “multiple equilibria” (or “manycapitals”) situation (see Paper 6 on trade in transport services) through the promotion of courier
services. A wide disparity is observed across the ASEAN Member States. Table E2 lists further policy
options needed.
Table E1. Subjective evaluation for realization of a “multiple equilibria” situation
Trade in Courier Services:
National level

Trade in Courier Services:
ASEAN-wide

Brunei Darussalam8

6Cambodia

5

9Indonesia

7

8

Lao People’s Democratic Republic

4

4

Malaysia

99Myanmar..

..

Philippines

99Singapore

10

8Thailand

6

6

Viet Nam

6

6

Average

6.4

6Source: Survey results at 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).

PA P E R 5 T R A D E I N CO U R I E R S E R V I C E S

33

Table E2. Further policy options needed
Further Policy Options Needed (in-country level / neighbor-country level / ASEAN level)
Brunei Darussalam(not provided)[in-country level] Courier service in Cambodia is at a lower stage of development. It needs more investment
and cooperation with advanced technology companies to move courier services of Cambodia up to the advanced
level.

Cambodia[neighboring-country level] We should cooperate with our neighboring countries in developing our courier
industry and better connecting with them.
[ASEAN-wide] ASEAN should find ways for better cooperation in courier services in the new world context ofdigital economy.

Indonesia(not provided)[in-country level] Ministry of Post and Telecommunication and Ministry of Public Works and Transport should
work jointly and good cooperation.

Lao People’s Democratic Republic[neighboring-country level] Customs declaration must be improved to facilitate the movement of courier productbetween neighboring countries.
[ASEAN-wide] The same case as the neighboring-country level.

Malaysia(not provided)

Myanmar(not provided)

Philippines(not provided)[in-country level] Maintain current level of courier services liberalization.

Singapore[neighboring-country level] Harmonize de minimis threshold with Malaysia and Indonesia.
[ASEAN-wide] Harmonization of de minimis threshold for e-commerce 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 and technology application, and management
capacity.
- Require the involvement of different sectors and agencies such as transport, customs, border-guard,
immigration and quarantine to harmonize common regulations as well as cooperation among line agencies.

Source: Survey results at 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 retained

ASEAN Promotion Centre on Trade, Investment and Tourism
www://asean.or.jp