Tuesday 26 March 2002 Justin YUE, Chief Executive Officer Tradelink Electronic Commerce Limited

1

Use of Electronic Services to Use of Electronic Services to enhance Hong Kong’s Position enhance Hong Kong’s Position

as a Logistics Hub as a Logistics Hub ______________________________________________

TuesdayTuesday26 March 200226 March 2002

Justin YUE, Chief Executive OfficerJustin YUE, Chief Executive OfficerTradelink Electronic Commerce Tradelink Electronic Commerce

LimitedLimited

2

Definition of “Logistics”Definition of “Logistics”

Webster’s Dictionary: -The aspect of military science dealing with the procurement, maintenance, and transportation of military material, facilities and personnel.

3

Definition of “Logistics”Definition of “Logistics”

Webster’s Dictionary: -The aspect of military science dealing with the procurement, maintenance, and transportation of military material, facilities and personnel.

4

The “Supply Chain”The “Supply Chain”

Supplier M anufacturer W holesaler R eta iler C onsum er

5

The “Supply Chain”The “Supply Chain”

Supplier M anufacturer W holesaler R eta iler C onsum er

Transporta tion-------------------

S ettlem ent

Transporta tion-------------------

S ettlem ent

Transporta tion-------------------

S ettlem ent

Transporta tion-------------------

S ettlem ent

6

The “Supply Chain”The “Supply Chain”

Supplier M anufacturer W holesaler R eta iler C onsum er

Transporta tion-------------------

S ettlem ent

T ransporta tion-------------------

S ettlem ent

T ransporta tion-------------------

S ettlem ent

Com m ercial- P .O- C om m erc ia l Invo ice- P ack ing L is t- A dvance S h ipm en t N o tice- B ill o f Lad ing- Inspec tion C ertifica te- Le tte r o f C red it

Governm ent - E xpo rt L icence - Im port L icence - O u tw ard P rocess ing C on trac t - C e rtifica te o f O rig in - Im port & E xpo rt D ec la ra tions - C a rgo M an ifes t

Com m ercial- P .O- C om m erc ia l Invo ice- P ack ing L is t- A dvance S h ipm en t N o tice- B ill o f Lad ing- Inspec tion C ertifica te- Le tte r o f C red it

Governm ent - E xpo rt L icence - Im port L icence - O u tw ard P rocess ing C on trac t - C e rtifica te o f O rig in - Im port & E xpo rt D ec la ra tions - C a rgo M an ifes t

Com m ercial- P .O- C om m erc ia l Invo ice- P ack ing L is t- A dvance S h ipm en t N o tice- B ill o f Lad ing- Inspec tion C ertifica te- Le tte r o f C red it

Governm ent - E xpo rt L icence - Im port L icence - O u tw ard P rocess ing C on trac t - C e rtifica te o f O rig in - Im port & E xpo rt D ec la ra tions - C a rgo M an ifes t

7

Integrated Electronic LogisticsIntegrated Electronic LogisticsTHE HONG KONG MODELTHE HONG KONG MODEL

HK Traders & Manufacturers

HK Carriers &Forwarders

HKSAR Government

Overseas Customs

China Traders&

Manufacturers

China Government- Customs- MOFTEC

Regional Traders

(Pan Asian E-Commerce

Alliance)

Air Cargo Community

System

Ocean TerminalBarges

Operations(Port Community

System)Banks

FinancialNetworks

Overseas Buyers& Logistic Providers

(Global Logisticsand Community

Networkse.g. Bolero TEDI

Descartes)

TruckersCross Border

TruckingService

OrderManagement- PO- Invoice- Packing List- Advanced Shipment Notice

Licenses & Permits- RTEL- ELVIS- PN- CO- DCP- TTRS- TDEC

Logistics

- Cargo Booking- SO- Billing of Lading- Freight Invoice

China Processing Trade

- HK Truck Manifest (Paper) + TTRS, OPA- China Customs Documents (Paper)- Processing Contracts

8

Trade Related Government ServicesTrade Related Government Servicesas the Basic Building Blockas the Basic Building Block

General Traders Import & Export Declaration Export Credit Insurance

Declaration Certificate of Origin Dutiable Commodities Permit Shipping Order Service (1Q 2002) Processing Trade/China Cross

Border Documentation (3Q 2002) Trader Documentation –

International (3Q 2002)

Textile Traders & ManufacturersRestrained Textile Export LicenceCarrier Notification and Visa CopyProduction NotificationTextile Trader Registration Scheme (TTRS) Notifications (3Q 2002)

Forwarders & Carriers Carrier Notification Shipping Order (1Q 2002) Manifest (2Q 2002) Textile Trader Registration Scheme Notifications (3Q 2002)

9

Processing Trade ServiceProcessing Trade Service Scope

– Processing Contract Administration– Processing Job Preparation and Management– Central Database for real time access by Hong Kong traders &

China factories– Transport Documents

HK Manifest– TTRS Notifications– OPA Combined/Form

China Customs Declaration China Manifest Customs Invoice Packing List

– Integration with Order Management (PO, Invoice) Trade Declaration Service Potentially, Electronic Road Manifest

10

Processing Trade ServiceProcessing Trade Service

PRC Manufacturer

HK Manufacturer

HKSAR:- C & ED- TID

Electronic submission of :- TTRS notifications- Trade declaration

Contract approval status checkingJob preparation & managementHandling and printing oftransport documents

MOFTEC Processing Trade ContractAdministrationContract approval status checkingJob preparation & managementProcessing and printing of transport documents

MOFTECMOFTEC ProcessingTrade ContractAdministration

= Electronic & Paper

= Paper (later electronic)

Submission of :- Customs declaration- Application & maintenance of PRC Customs processing trade handbook

China Customs

Tradelink/CIECCProcessing Trade Service

Truck ManifestCustoms Invoice etc.

TruckManifest &TTRS, OPA(Paper)

ChinaBorderCheckPoint

HKSARBorderCheckPoint

11

Pan-Asian e-Commerce Alliance Pan-Asian e-Commerce Alliance (1)(1)

Established Jul 2000 Founding members

– CIECC (China) 10,000– CrimsonLogic (Singapore) 25,000– KTNet (Korea) 12,000– Trade-Van (Taiwan) 15,000– Tradelink (Hong Kong) 53,000– Japan TEDI Club ______

115,000

12

Pan-Asian e-Commerce Alliance (2)Pan-Asian e-Commerce Alliance (2)

Initiatives

– Mutual Recognition of Public Key

Infrastructure

– Secure Cross Border Transactions Purchase Order, Invoice, Packing List, Advanced

Shipment Notice

– Pan Asian Portal and e-Market Place

– Logistics Tracking