Result of Operation Rule and regulation development
Rule and regulation development
Written by 235 Friday, 08 January 2010 16:10
The result of operation of the federation by all related parties can conclude into 3 mains part which are
2.Rule and regulation development
3.The process of developing the basic structure of transport and product distribution
Rule and regulation development
The activity of logistics rules development of Thailand, The Thai federation of Logistics is a conference host to create the suggestion for logistics rule development cooperates with a sub-committee of improvement to reinforce a potential for national competition by collected problems from working procedure of private sector. Then they also presented to the sub-committee to consider some of the topics as follow:
1. Introduce some problem solutions about container transportation system to fix the problem for export-import transportation by container. We try collect problems and solutions even in the part that we can start immediately and some solution that need a period of time for draft presenting to the legislative assembly.
Example of main problem is transportation controlling of dangerous product, this must have a transportation route control that far a way from residential area and also not out of route as well. The weight of the freezer for container “Generator Set” which should specify a clear consideration, problem about prohibited time period of transportation which has a differentiation and unclear which make container delivery delay (not within 24 hours). This problem must be concert as an important factor to make it become suitable and realistic.
2. Suggest solution of land transport problems which the federation had solution to look after as follow:
A. Responsible organization problems, almost committee is the representative from public sector and provide an effective performance and the solutions are:
- The established committee should have a suitable number and directly related to only. Anyway it should have a representative form private sector from both entrepreneur and service users.
- The committee authority must aim to set policy and measure for land transportation
B. Separation of businesses problems, now a day, transport business are complicated and difference from the past such as passenger transport, product transport etc. which make each of transportation type must have their own policy. Therefore it will be easy to separated as:
- Routed bus business
- Non route bus business
- Taxi business
- Private goods transport business
- Usual goods transport business
- Dangerous product transport business
C. Marketing problems since today, many transporters do not have enough management skill which cause problem about drivers’ quality, ability to pay the compensation to the product owner. Also effectiveness of services become from non-regulation for registering as a good entrepreneurship which solutions are the business providers must:
- Show their business plan and financial status
- Suitable amount of insurance
- Good business background
- Show their business skill and ability
- Have their own warehouse and fixed port
- Send a financial report in the standard format
- Send a annual report
D. Service control problem, presently scope of service control in Thailand still lack of quality in service systems. Thus they only set standard of service into the permission form. On the other hand, the developed country has a clear direction of quality service that related with regulation for entering into the land transportation. It impact Thai Transportation Industry cut down the price to their main customer which may lead a minor quit out of the market and finally, it will be a monopoly market. The solutions are:
- Specify the lowest service rate when we believe that there is an unfair price competition occurred.
- Set rules that an entrepreneur cannot act anything against the social benefit.
E. Security control problem, according to lots of accidents happen on street and cost of damage from transportation vehicle is high. And it strongly effect to the traffic such as car which may have a cause of disregarded of a vehicles and a driver quality also, the way to solve this problem are:
- Add more driver license conditions to the drivers
- Set up security control person who has an authority to random check a vehicle in the company to look after and evaluate a processing under the transportation rules.
F. Problem about set up role and responsibility of entrepreneur, according to a responsible problem of goods damage while delivery, problem of delivery illegal product and responsibility to the 3rd party which always debated between transporter and product owner because no one want to take responsibility. This create loss to 3rd party then a solution is, we must build the private sector law to promote an entrepreneur and generate a clear point of view in term of transport owner, sender and invoice receiver relationships.
G. Transportation center control problem, right now law and regulation are not compatible with business tradition. Especially product distribution center and product transport station which have a quite similar in term of law, it makes private sector get the unclear situation of government control then we suggest the solution as follow:
- Separate the type of station as
o Personal transport station
o Mass transport station
o Personal goods transport station
o Public goods transport station
- Supervising to prevent an unfair competition
H. Laws problem, Cause of the ability in the government sector. As Law set for director-general and registrar to supervision all of the transportation business. Even General Director has an authority to give an inspector or officer to work instead of him. But in the physically way, it is not efficient enough because in Thailand have many entrepreneurs. So Solutions are:
- Give entrepreneur agent and user participated in transport control.
- Using responsibility chain principle to develop the ways for user and citizen so they can complain for any problems.
3. Suggest solution for custom formality, the federation’s representative had introduced problems and solutions as follow:
A. Complicated of Structure RTC Tariff Class as it depends on too many people so there is no standard and also cause an equal situation. Then it will lead to the demand of non-financial funds, so we offer solutions as follows:
- Should do a declaration form before estimations
- Should do a serious value estimation by GATT Valuation of WTO to make the estimation become the same standard
- Should exempt an import tariff of example product or some import product that use for Research.
- Should consider setting rules and specifying the example product to cover all aspects even the one that need to check analyze and cannot send back as the original one.
B. Setting the Customs officer international standardization such as officer working time, work system, re-check system and document in process System, solutions are:
- Change the working system to be a shift work and open 24 hours service.
- Adjust the Act No.118 to perform in the same way.
- FCL product must use No. of container in stead of shipping mark.
- Post Review must be done in 3 months.
- Instantly remove product from the port for decrease duty in front of the port and warehouse or pay for deposit product which rent in the port.
- Decreasing document in Transshipment by using Single Document.
- Developed the same document support for continuing transport in many format and developed paperless for support.
- Instantly using more completely EDI system, created the law and regulation which support the business transaction that pass through the system.
- Changed some of the expense list to logging in the system in legal way.
C. The integration of customs formality in Thailand and neighbor country to promote a border trading to be better. Because now we have to check the goods before export at the original country by perform the customs formalities process to confirm the products. When it arrival at port of destination, product must pass the process again which the customs formalities in both export and import countries is duplicate and inconvenient in export and waste the time so problem solutions are:
- Perform the customs formality to export only one time at the original country or evaluation together.
- Set the same standard of checking.
4. The suggestion of integration Logistics provider
Federation agent presented problem and the way to developed Thai logistic facilitator, which are:
A. Tax law’s problem and obstacle
Presently, Thai Log found that the Logistic facilitators have the problem about storing tax principle and suggestions for solution are,
- The Logistic service provider in term of export should pay 0 % tax same as transport facilitator between the country such as shipper.
- Presently, the transport facilitators are not in the tax system. We should consider that transport facilitators can choose to logging in the system but have the base tax at 0 % for reduce the problem about delayed tax receive.
- Presently, other kind of logistic facilitator about transport such as warehouse management and compile product must pay 7% taxes. Therefore, we should change the rate to be equal to the logistic facilitator’s tax rate.
B. Tax and tariff policy to increase ability of Thai Logistics entrepreneur
- To support an expansion of service of Thai Logistics service provider asking to consider the tax and tariff procedure by deduct a network processing cost or create foreign branch as double of cost of occurring payment to be the motivation that make business man expand their investment to oversea country.
- Requesting to exempt the personal income tax of employees who have to work in the oversea branch to support the expansion of business and reduce cost for entrepreneur.
- Requesting to exempt the juristic person income tax and give the possible tax benefits under a scope of the Board of Investment include the co-investor and Oversea Logistics entrepreneur. This will create a strength and network for Thai entrepreneurship.
C. Problem of non customs status of the international carrier, according to a carrier is the service provider that become after the Customs Act. So there is nothing specify about the right and duty of international transporter which cause problems as:
- The carriers have no customs status, cannot run business by their own. They have passed the broker which effect to the effectiveness of business management and also slow processing too.
- There are no laws that declared about the responsibility when goods are damage. Thus problems occur; we have to use the commercial and civil law which apply for transport the goods and law of carriage of goods by sea.
The solution is suggest having status consideration for international carrier and setting the regulations for controls and manages. This is includes the responsibility when the goods damages while transport also.
