Development of framework for halal cross-border clearance operation in halal trade facilitation / Fefiana Azureen Hamdan

Trade facilitation approach has become the main reference in facilitating international
trade especially of cross-border setting. The trade facilitation concept was presented in
1998 by the World Trade Organisation (WTO) to support while overcoming the major
non-tariff barrier associated with the international cross-border activities. Trade
facilitation has been described in sphere perspective which focuses are given to an
administration reformation at international borders to improve the trade movement
that is correlated with the activities associated with official procedures that control
trade movement especially at cross-border environment. Cross-border receive various
type of consignments and one of it is Halal goods. Halal goods are keen to have
complex and specific requirement, to ensure the Halal-ness status of each good is not
compromised. Ensuring Halal integrity of Halal goods along the chain remains as a
major concern among respective community in Malaysia. The current practices of
border clearance operation particularly for Halal goods is seen as inadequate, as the
control at the point of admission into the country is only depending on Halal
certification. On the other hand, with the international demand, Malaysia has
developed its own Trade Facilitation Masterplan as part of the country’s national
agenda to facilitate the international trade according to the national needs. However,
the initiative is uncommitted in enhancing the border to improve its service in
monitoring Halal, and significantly more to conventional form. As follows, this
research will answer the main objectives: first, to determine the clearance practices in
land cross-border; second, to identify the determinants of Halal cross-border clearance
operation for Halal trade facilitation; and finally, to develop framework to improve the
current practices of Halal cross-border clearance operation of Halal trade facilitation.
This study has adopted a qualitative research approach. Extensively, in-person semistructured
interviews were conducted with 22 participants from various stakeholders’
category in the cross-border community. The participants were selected by purposive
sampling. All interviews were properly recorded, coded, and analysed using thematic
analysis. The findings of this study were highlighted in a set of seven determinants,
namely, Halal agency, Halal policy, stakeholders’ awareness, Halal procedures, Halal
assessment, traceability, and facilities.