SmartTAG takes container security to a higher level

SMARTAG Solutions Sdn Bhd has undertaken the first project under Entry Point Project, under the 12 National Key Economic Areas to monitor containers and facilitate clearance within domestic ports and selected high volume routes. This project is being undertaken in collaboration with the Malaysian Royal Customs and Malaysian Communications and Multimedia Commission (MCMC). The enhancement of container security using an online Radio Frequency Identification (RFID) track and trace system reduces the risk of terrorism, dangerous chemicals and contraband from reaching borders while increasing the efficiency of container movement through Customs checkpoints. The transparency of the online tracking system also helps increase Malaysia's ranking within Transparency International and World Bank's Competitiveness Index as well. For instance, the local swiftlet nest industry makes up 20 per cent of the global market share and Malaysia competes with a significant number of fakes or adulterated swiftlet nests from neighbouring countries, some of which are smuggled into the country for re-export to China. Therefore, the second project within the Entry Point Project is the Swiftlet Nest Online Traceability System that uses RFID technology to ensure tracking and traceability of high quality and sustainable swiftlet nest production in Malaysia to high-value markets in China, Japan and Taiwan. This project is jointly led by MCMC and the Agriculture Ministry's Veterinary Department. Currently, Malaysia is the only country in Southeast Asia with the rights to export directly to China, the world's largest swiftlet nest market. According to SmarTAG, the swiftlet traceability system was launched on August 12 last year. To date, a total of 60 out of 980 bird's nest houses and processing plants, or six per cent, are currently using the system. Under the system, efforts are underway to get 300 birds' nest houses and processing plants registered with a total of 3,600 transactions. Meanwhile, the Security and Trade Facilitation project has successfully met its target of completing trials at 10 Customs checkpoints in Malaysia. As a result, the clearance process by Customs for each container is quicker by 43 minutes and to date, 18 Customs checkpoints have been installed with the system. This system is one of the first in the world and was cited for the ISO TC 104/SC4 technical specifications. Following its commercial launch on September 26 last year, the project is now supported by freight forwarders in the country. In parallel with the project in Malaysia, SmarTAG Solutions has also completed trials with the Royal Customs of Thailand with similar success. SmarTAG also plans to roll out the security and trade facilitation system at 80 Customs sites nationwide this year. It is currently in negotiations to set the commercial rates for the service.