Bangkok airport to introduce paperless customs system on January 1, 2007

Thai officials hope the introduction of Southeast Asia's first paperless customs system will prove a breakthrough in its ambitious plan to become a regional air logistics center to rival Singapore. The pioneering application of air cargo "e-customs" at Suvarnabhumi Airport, developed with co-operation between the Thai Customs Department and WFSPG Cargo Co, a cargo terminal operator, will significantly streamline the customs procedures for air freight.

The web-based information technology is saving a huge amount of paper, time, hassle and money normally spent on imports, exports and trans-shipment of goods through Bangkok's new airport.

Aside from the convenience, the system will quicken the normally tedious customs process and speed up the flow of goods through Suvarnabhumi.

The technology will cut the customs processing time from about three hours per transaction to no more than 30 minutes, though in practice it will only take 10 minutes, according to Customs director-general Sathit Limpongpan.

Furthermore, the adoption of "world-class" e-customs fits into the Customs Department's transparency policy, which aims to eradicate brokers, who make a living by helping importers and exporters navigate complicated paper-based customs procedures.

Customs and WFSPG Cargo, a 50:50 joint venture between French-owned Worldwide Flight Services and Bangkok Airways, are in the advanced trial stages and hope the system will be up and running by January 1. That is the Customs Department's deadline to go entirely paperless for air cargo and goods moved over land and sea.

The Customs Department has started working with Thai Airways International, which handles the bulk of air cargo at Suvarnabhumi, to adopt a similar system. Bangkok Airways chief executive Prasert Prasarttong-Osoth hailed the introduction of e-customs as a crucial element to elevate Suvarnabhumi as a cargo hub in the region.

Officials also hope the streamlined facility will persuade major global air freight carriers such as DHL and FedEx to base operations at Suvarnabhumi.

Dr Sathit added that e-customs is an additional benefit for air cargo carriers as they can shorten flight times by 30 minutes compared to Singapore thanks to Thailand's geographical advantage.

With continued improvements, Thailand is in a good position to compete with Singapore as an air logistics hub in the not so distant future, said Dr Prasert.

Statistics from the Airports Council International (ACI) show Singapore ranked 10th among the highest cargo airports in the world, with an annual throughput for 2005 of 1.85 million tonnes. Bangkok was 19th on the list with 1.14 million tonnes.The 125-billion baht Suvarnabhumi site boasts state-of-the-art cargo terminals with a combined area of 568,000 sq m capable of handling 3 million tonnes of cargo a year. The cargo capacity could be enlarged to cater to 6.4 million tonnes after the airport is expanded fully.