Efforts are underway to modernize and streamline customs procedures in Cambodia through digitalization. However, clear objectives, strong infrastructure, and human capital development are essential to make digital transformation a success.

Zoltan Kish, Gateway Manager at DHL Express Cambodia, said digitalization should be seen as a supportive tool that enhances existing processes.

Kish gave a presentation at the EuroCham forum "From Paper to Pixels: Transforming Customs Procedures through Digitalisation" held at Topaz Restaurant on November 8.

When considering customs clearance, it is important to identify the objectives of process change, such as increasing revenue, improving efficiency, or reducing costs associated with manpower and time.

These objectives should be mapped out and incorporated into a Prakas and standard operating procedures (SOP). The next step is to determine how digitalization can support these objectives, Zoltan added.

The order of priority between digitalization and the process itself depends on understanding the main priorities. The ultimate goal is to find digital solutions that make the customs clearance.

He said, “There are a lot of priorities that have to be put into a process where a digital solution has to be found to make it faster, and make it easier for all parties including customs, importer, exporter and freight forwarders."

Kouch Pheng, Vice-Chairman at the Cambodia Chamber of Commerce (CCC), emphasized three key factors for easy development. Firstly, he highlighted the importance of having digitalization from both the public and private sectors.

“Without the right intention, development would be challenging,” he said, adding that the General Department of Customs Excise (GDCE) has good intentions in the development of those procedures and systems.

Secondly, Pheng mentioned that Cambodia's infrastructure, including IT, technology, and internet and computer access, is already convenient and easy to use. The focus now is on transforming this infrastructure into a paperless system.

Kouch Pheng emphasized thirdly is human capital development, not just in the public service sector but also in the private sector. These three factors are key to the digitization efforts in Cambodia.

Pha Eng Veng, Deputy Director General of GDCE of Cambodia, emphasized the need to improve real success in the digitization process.

He noted that it is important to create a roadmap and strategy that starts with a comprehensive study of the existing processes before transitioning to digital solutions.

He added simplifying the online experience for users and seeking agreement from stakeholders through assessments and consultations are also key, as are commitment and cooperation among all parties involved.

He said, “Cooperation is very important. If we do not have good cooperation or collaboration among stakeholders, if we have a plan to integrate with a data HMI system but do not possess the necessary data, it becomes challenging to implement. Additionally, we are working on systems to further enhance our digitization efforts.”

The GDCE has used the Automated System for Customs Data (ASYCUDA) for the customs clearance processes since 2008. Currently, the ASYCUDA is deployed to all operational customs border checkpoints.

E-Customs was developed locally by GDCE to complement the ASYCUDA on certain procedures with at least 30 modules.

National Single Window (NSW) was established as a single platform for the issuance of cross-border trade-related documents such as licenses, permits, certificates, and others.

Another procedure, ASEAN Single Window (ASW) is the connection of ASEAN member states, NSW for exchanging trade-related documents in the ASEAN region.

Building partnerships

Zoltan added that cooperation and ongoing discussions with customs authorities are needed for the successful implementation of digital systems and to understand the interpretation of regulations and the deployment of the system.

He emphasized the importance of visibility into importers' concerns, frustrations, and challenges regarding providing certain data. Additionally, there is a need for constant exchange of information at various levels, both on the ground and at the GDEC level.

“Every single company's interest and the challenges they have can be resolved by cooperation. Discussion is needed on all levels of the organization, from the importer to the transportation company, as well as customer facilities and the various use cases," Zoltan said.

Pheng emphasized the importance of building trust between the public and private sectors for a successful digital transformation. He noted the need for clear procedures, streamlined systems, and consistent dialogue to facilitate smooth operations.

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"From my point of view, to have good operations, the most important thing is building trust between the public sector and the private sector to digital transformation very successfully," he said.

He emphasized clear procedures to avoid redundancy and the need to input data into multiple systems, such as the national single window to link customs and related ministries for seamless permit processing.

Pheng stated that when the system is in place, data is input, but the procedure has to be clear, not redundant.

Inputting into one system and having to input into another system in the same industry, for example for the national single windows, requires a single platform that multiple agencies use to issue permits.

Pheng said gaining public trust in the uploading of documents by the public sector is essential. In addition, physical inspections are necessary for high-risk companies, those with regular imports, safe commodities, and reliable suppliers.