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1 st APEC e-Commerce Business Alliance Forum TRADELINK: A SUCCESSFUL CASE STUDY OF PAPERLESS TRADE AND ELECTRONIC COMM

1 st APEC e-Commerce Business Alliance Forum TRADELINK: A SUCCESSFUL CASE STUDY OF PAPERLESS TRADE AND ELECTRONIC COMMERCE. Wednesday 16 June 2004 Justin YUE Chief Executive Officer Tradelink Electronic Commerce Limited. Agenda. Tradelink Highlights. Tradelink’s Electronic Services.

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1 st APEC e-Commerce Business Alliance Forum TRADELINK: A SUCCESSFUL CASE STUDY OF PAPERLESS TRADE AND ELECTRONIC COMM

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  1. 1st APEC e-Commerce Business Alliance ForumTRADELINK: A SUCCESSFUL CASE STUDY OF PAPERLESS TRADE AND ELECTRONIC COMMERCE Wednesday 16 June 2004 Justin YUE Chief Executive Officer Tradelink Electronic Commerce Limited

  2. Agenda Tradelink Highlights Tradelink’s Electronic Services Pan Asian e-Commerce Alliance Digital Trade and Transportation Network

  3. Tradelink’s Mission • To help Hong Kong maintain itsinternational competitiveness through the use of Electronic Commerce • To jump start HK’s adoption of Electronic Commerce

  4. Tradelink’s Shareholders • The HKSAR Government 42.49% • The Hongkong and Shanghai Banking Corporation Ltd (HSBC) 8.78% • Pacific Century CyberWorks (PCCW) 8.78% • China Resources (Holdings) Ltd 5.30% • Hong Kong Air Cargo Terminals Ltd (HACTL) 5.30% • Modern Terminals Ltd (MTL) 5.30% • Swire Pacific Ltd 5.30% • TAL Apparel Ltd (TAL) 4.73% • Hongkong International Terminals Ltd (HIT) 4.69% • The Hong Kong General Chamber of Commerce (HKGCC) 4.08% • The Federation of Hong Kong Industries (FHKI) 3.48% • Standard Chartered Bank 1.55% • Hong Kong Association of Freight Forwarding and Logistics Ltd (HAFFA) 0.22%

  5. Tradelink Highlights • 7 year franchise (1997 - 2003) for specified Government trade documents, with license confirmed for 2004 - 2008 • Over 53,000 company subscribers • 17 million transactions/year • All documents digitally signed & encrypted for open network transmission • Customer Hotline and Training • Dual call centers • Three tier with 100 + staff • Sophisticated Customer Relation Management System • Dedicated training centers

  6. Tradelink Highlights • Network of 26 Service Centers • Conversion of Paper documents to electronic form • Certification Authority • Signature and Encryption Certificates • Subsidiary “Digi-Sign Certification Services” recognized under the ETO

  7. Agenda Tradelink Highlights Tradelink’s Electronic Services Pan Asian e-Commerce Alliance Digital Trade and Transportation Network

  8. Typical HK Business Process Regional Supplier HKSAR Border Checkpoint PRC Border Checkpoint Government Export Documents (5) (3) Raw Materials PO + Confirmation Customs Documents (6,7) (4) Advance Shipment Notice Customs Documents (6,7) (5) Invoice + Packing List Regional Government (2) Factory Order Hong Kong Trader PRC Factory (6) Raw Material Shipment Documents (7) Finished Goods Shipment Documents Overseas Government Government Trade Documents (5,8) Pre-Declaration (Customs) Government Import Documents (1) Finished Goods PO Processing Contract (8) Finished Goods Shipment Logistics Providers Terminals Banks HKSAR Government PRC Government Overseas (US/Europe) Buyers Tradelink’s Electronic Services Aim toFacilitatethis Process

  9. Tradelink’s Role as e-Business Magnet in International Trade Transactions US Customs Air Terminals Insurers (ECIC) Inspection Agencies Govt Depts Banks Tradelink & Partners Establish Market Channel Negotiate Contract Prepare Products Arrange Logistics Settle Payment Comply with Regulations • Web Hosting • Pan Asian • Portal • Carrier • Notification • Shipping Order • Bill of Lading / • Forwarder Cargo • Receipt (Draft) • Packing List • Advanced Shipment • Notice • Textile Quota Licenses • Electronic Visa Copy • to US Customs • Trade Declaration • Dutiable Commodity • Permit • Manifest • TTRS Notification • Commercial Invoice • Packing List • Insurance Certificate* • Inspection Certificate* • Proof of Delivery • Bill of Lading • (Title) • Production • Notification • Certificate of Origin • Outward Processing • Arrangement • China Cross Border • Documentation • China Processing • Contracts • Export Credit • Insurance • Declaration • Purchase Order Pan-Asia E-Commerce Alliance Bolero Overseas Buyers Sellers China Traders & Manufacturers Container Terminals HK Traders Carriers Forwarders * Under Development - Current Connections - Future Connections

  10. Tradelink’s Electronic Services Trade Related Government Services as the Basic Building Block All Traders • Import & Export Declaration • Certificate of Origin • Dutiable Commodities Permit • Shipping Order Service • Trader Documentation Service for Regional/Global Trade • China Processing Trade/Cross Border Documentation Service Textile Traders & Manufacturers • Restrained Textile Export Licence • Carrier Notification and Electronic Visa Copy to US Customs • Production Notification • Textile Trader Registration Scheme (TTRS) Notifications Forwarders & Carriers • Carrier Notification • Shipping Order/AMS/ACI • Manifest • Textile Trader Registration Scheme Notifications

  11. Benefits to the Hong Kong Trading Community

  12. Agenda Tradelink Highlights Tradelink’s Electronic Services Pan Asian e-Commerce Alliance Digital Trade and Transportation Network

  13. Established in July 2000, aims to secure cross border electronic services for efficient global trade and logistics Pan Asian e-Commerce Alliance (1) Members No. of Customers • CIECC (China) 10,000 • KTNet (Korea) 25,000 • CrimsonLogic (Singapore) 25,000 • Trade-Van (Chinese Taipei) 15,000 • Tradelink (Hong Kong) 53,000 • DagangNet (Malaysia) 2,000 • TEDMEV (Macau) 2,000 • TEDI Club (Japan) ___________ • 132,000

  14. Pan Asian e-Commerce Alliance (2) • Trust in cross border transactions through: • Legal framework for electronic Cross Border trade transactions • Mutual Recognition of Digital Certificates amongst members of the Alliance, Six Certification Authorities recognized (HK, Taiwan, Korea, Singapore, Japan, China) • Secure Cross Border Trade Transaction Service between HK and Taiwan in operation with pilots in place between Japan, Korea, Singapore and Malaysia • PAA Portal (www.PAA.net) • Logistics Tracking Initiatives

  15. Pan Asian e-Commerce Alliance (3)Cross Border Transaction Services • Provides complete set of electronic commercial documents that meets the specific requirements of driving organizations in transacting with their local and overseas partners. e.g. PO, Invoice, Packing list, Advanced Shipment Notice, Inspection certificate, SO, SI, Waybills etc. • One platform to transact with all partners • Direct integration to operational systems

  16. Pan Asian e-Commerce Alliance (4)Example Services In Operation • Hong Kong – Chinese Taipei / China • Major garment manufacturer (TAL) & suppliers • Chinese Taipei - Japan / Korea • Formosa Plastics with Mitsubishi in Japan and Korean suppliers • Korea - Japan • Hyundai Motors in Korea with a division Mitsubishi in Japan • Japan - Singapore • Sumitomo Corporation with Pandai Steel

  17. Agenda Tradelink Highlights Tradelink’s Electronic Services Pan Asian e-Commerce Alliance Digital Trade and Transportation Network

  18. Hong Kong’s Digital Trade and Transportation Network (DTTN) Public/private sector initiative under the Logistics Development Council to improve HK’s competitiveness that aims to: • 1. Be A NEUTRAL, OPEN, NON-EXCLUSIVE, TRANSPARENT state-of-the-art electronic document exchange platform 2. Facilitate trade & transportation information flow and service integration through interconnections • Within Hong Kong/Pearl River Delta • Regionally • Globally • 3. Stimulate growth of innovative value added e-logistics services • 4. Promote SME e-business adoption • 5. Provide 10 major trade and logistics Business Processes and over 60 business documents

  19. DTTN 3-Layer Model Value- added Services Value-added services such as multi-modal integration, distribution & transportation management Layer 3 Core Messaging Infrastructure Open, neutral, secure, reliable and shared electronic infrastructure messaging Layer 2 Standards and Protocols Local and international standards for security, trade documents, codes, protocols Layer 1

  20. Community Role of the DTTN Sellers Buyers Freight Forwarders Carriers DTTN Core Messaging Infrastructure Value Adding Service Providers Communications Gateway Security Services Web Services Government & Agencies Document Exchange & Transformation User Management Reporting Regional/ Global Service Providers Terminals Banks & Financial Institutions Inspection Agencies Insurance Institutions

  21. The Way Forward for HK’s DTTN Appoint Tradelink as the DTTN service provider Establish Standards Group and adopt standards to streamline local, regional and global interconnections Identify cross border trade chains and organizations for pilot adoption Develop and implement the DTTN Implement DTTN Interconnections by Logistics Industry

  22. Spearheading Hong Kong's Development of Electronic Commerce

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