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1 New Trends in International Trade for SMEs A Seamless Global Supply Chain Management Solution 11 December, 2008.

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Presentation on theme: "1 New Trends in International Trade for SMEs A Seamless Global Supply Chain Management Solution 11 December, 2008."— Presentation transcript:

1 1 New Trends in International Trade for SMEs A Seamless Global Supply Chain Management Solution 11 December, 2008

2 2 Established in Sep 1988 Government becomes a shareholder Granted exclusive franchise (1997– 2003) to provide e-submission services for certain trade-related documents Selected by the Government as the developer and operator of DTTN 1992 2003 1988 1994 2004 Granted license (2004-2008) to continue provision of government document e-submission services 2005 Publicly listed and traded on the Main Board of The Stock Exchange of Hong Kong About Tradelink 2008 Tradelink Beijing Established

3 3 The HK SAR Government Key players in the trading sector, including trade associations, terminal operators & financial institutions 43.80% 12.29% Public Shareholders 43.91% Digi-Sign Certification Services Limited Digital Trade and Transportation Network Other Shareholders: - 21% The HK SAR Government 28% Trade Associations Government and Industry Expert Support 100% 51% The digital express link to you business partners worldwide Building trust in electronic services with Digi-Sign security solutions

4 4 Document checking and validation Secure communication channel 7 x 24 electronic interface Document status tracking Hotline & onsite technical support and other customer services “Paper-to-electronic” conversion service Over 20 million transactions in 2007 Logistics Services Providers Importers Exporters Freight forwarders Carriers Manufacturers Trading Community e-confirmation Security Solution Tradelink’s Operating Mode The HKSAR Government Tradelink Transaction fee + Gov’t fee + e-submission of trade related documents Gov’t fee + e-submission of trade related documents

5 5 ServicesDetails Import or Export Declaration (TDEC)e-lodgment of import or export declaration with Customs Production Notification (PN) e-lodgment of notification to the Trade & Industry Department about cut-and-sewn garments manufactured in HK Certificate of Origin (CO) e-application for CO to the Trade & Industry Department or other government approved organisations Dutiable Commodities Permit (DCP) e-application for DCP to Customs for import, export, manufacturing or storage of dutiable commodities Electronic Cargo Manifest (EMAN) (excluding road mode) e-submission of manifests for air, rail, water cargo to the Census Department and the Trade & Industry Department e-receipt of notice / voucher from Customs and e-communication with other government departments Notifications under Textiles Trader Registration Scheme (TTRS) e-submission of notification to the Trade & Industry Department for textile trading under TTRS Tradelink’s Government Services

6 6 Tradelink’s Commercial Services ServicesDetails Trader Documentation Services (TDS) web-based & client-based application solutions facilitates secure electronic document exchange for international trade transactions Electronic Shipping Orders (SO) platform that assists shippers and forwarders to prepare and submit shipping orders and obtain draft bills of landing Automated Manifest Services (AMS) e-solution for carriers and non-vessel operating common carriers meets the requirements under the “24-hour Rule” imposed by the US Customs and Border Protection Advanced Commercial Information (ACI) for Canadian Customs Digital Certificate supports digital signatures ensures secure electronic transactions DTTN E-platform for the trade and logistics communities to enhance their operational efficiency and reduce cost An e-business connector for the entire supply chain A super electronic document conversion engine A mega electronic data store (2 years online + 7 years offline)

7 7 Industry Challenges: Disjoined Communities Enhance Competitiveness: A Common Digital Platform to Facilitate Information Exchange DTTN – the Solution Meeting the Industry Challenge

8 8 Community Role of the DTTN Electronic message transformation services Statistical and analytical reporting services Data inheritance services Information security services Electronic message routing services Portal services Sellers Inspection Agencies Banks & Financial Institutions Freight Forwarders Buyers Government & Agencies Carriers Insurance Institutions Terminals DTTN Key Services Offering

9 9 Purchase Process Purchase / Sales Order, Order Confirmation Packing List / ASN, Commercial Invoice, Inspection Certificate, Insurance Delivery Booking, Shipping Order, Arrival Notices, Transport Documents - Master / House Waybill - Sea / Air, Cargo Receipt, Transport Set, EIR, Delivery / Release Order Local and Overseas Transportation Government Trade Documents Export / Import License, Customs Clearance, Certification of Origin etc. Financial Settlement Letter of Credit, Company Guarantee, Bill of Exchange, L/C collection Letter; Document Arrival Notice Support over 88 major documents related to trade, logistics and finance for both import and export business processes DTTN to Support the Whole Supply-Chain

10 10 DTTN Interconnection Example (Purchase to Delivery) Goods Tracking Locations Buyer 1 DTTN 1. PO (X 12) Buyer 2 Forwarders Seller Application Service Provider 2 1. PO (Excel) 2. SO, CI, PL (Excel) 2. SO, CI, PL (XML) SO - shipping order CI - commercial invoice PL - packing list BL - bill of lading Application Service Provider 1 Carriers 3. Master SO (XML) 3. Master SO (EDIFACT) 6. Shipment Status (Web) 5. BL (XML) 5. BL (Excel) 6. Shipment Status (XML) 4. Shipment Status (X 12) 4. Master BL, Shipment Status (XML) 4. Master BL Shipment Status 4. Master BL, Shipment Status (EDIFACT) 6. Goods / Shipment Status (Web Services/XML) Goods Status (RFID / EPCGlobal) Physical Delivery

11 11 Case Study: A Buyer in UK and its suppliers in H.K. and China Goods Delivery TDS Freight Forwarder Freight Forwarder Buying Office UK Buyer 1. Purchase Order 2. Purchase Order 10. Clean Document set 3. Purchase Order 7. Bill of Lading 4. Invoice, Packing List, Shipping Order 8. Invoice, Packing List, Bill of Lading 5. Invoice, Packing List, Shipping Order 6. Bill of Lading 9. Invoice, Packing List, Bill of Lading 11. Invoice, Packing List, Bill of Lading, e/CO 11. Invoice, Packing List, Bill of Lading, e/CO 12. Invoice, Packing List, Bill of Lading, e/CO 12. Invoice, Packing List, Bill of Lading, e/CO Suppliers Physical Data

12 12 Pan Asian E-Commerce Alliance Singapore, PRC, Thailand, Korea, Japan, Macau, Malaysia Other Regions: Australia, France, Spain, Mexico, United States, The Netherlands Extending Our Reach with Partners around the World

13 13 Trading Processes E-Document Exchange Business Matching Receive PO ProductionInspection Insurance Chamber of Commerce Customs Outbound Logistic Freight Forwarder TerminalPayment The Missing Piece – Financial Services, e.g. Payment

14 14 The Enhanced Payment Layer – Collaboration with SWIFT DTTN to provide possible docs/messages supporting transactions for payment/LC/open account related transactions

15 15 Buyer Seller Bonded Warehouse Transaction Warehouse Airliners Shippers Transport/CY Inspection Quarantine ForwarderGovernment Services Enable electronic document exchange between banks and traders Bank E-Trade (from PO to Payment)

16 16 The Bridge between the Trading Industry and Banks Tradelink/DTTN-SWIFT connection –An electronic gateway for the communication between banks and traders Documents can be submitted to banks via the connection –E.g. Purchase Order, Commercial Invoice, Shipping Documents & etc A single channel to communicate with all trading parties, including banks Minimize data entry efforts Minimize data entry error No constraints on collection time and collection location

17 17 Benefits to Banks’ Customers A one-stop service for the whole trading process Facilitate data exchange among the involved parties Provide data inheritance and avoid duplicated data input Keep track of trading document status and invoice/payment status at a glance Increase transaction visibility Improve cash flow management Improve productivity throughout the supply chain Obtain more comprehensive services from bank

18 18 Thank You!!

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