1. 1 Use of Electronic Services to enhance Hong Kong’s Position as a Logistics Hub _______________________ Tuesday 26 March 2002 Justin YUE, Chief Executive Officer Tradelink Electronic Commerce Limited

2. 2 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. 3 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. 4 The “ Supply Chain ”

5. 5

6. 6

7. 7 Integrated Electronic Logistics THE 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 Terminal Barges Operations (Port Community System) Banks Financial Networks Overseas Buyers & Logistic Providers (Global Logistics and Community Networks e.g. Bolero TEDI Descartes) Truckers Cross Border Trucking Service Order Management - 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. 8 Trade Related Government Services as the Basic Building Block General Traders u Import & Export Declaration u Export Credit Insurance Declaration u Certificate of Origin u Dutiable Commodities Permit u Shipping Order Service (1Q 2002) u Processing Trade/China Cross Border Documentation (3Q 2002) u Trader Documentation – International (3Q 2002) Textile Traders & Manufacturers u Restrained Textile Export Licence u Carrier Notification and Visa Copy u Production Notification u Textile Trader Registration Scheme (TTRS) Notifications (3Q 2002) Forwarders & Carriers u Carrier Notification u Shipping Order (1Q 2002) u Manifest (2Q 2002) u Textile Trader Registration Scheme Notifications (3Q 2002)

9. 9 Processing Trade Service u Scope –Processing Contract Administration –Processing Job Preparation and Management –Central Database for real time access by Hong Kong traders & China factories –Transport Documents F HK Manifest –TTRS Notifications –OPA Combined/Form F China Customs Declaration F China Manifest F Customs Invoice F Packing List –Integration with F Order Management (PO, Invoice) F Trade Declaration Service F Potentially, Electronic Road Manifest

10. 10 Processing Trade Service PRC Manufacturer HK Manufacturer HKSAR: - C & ED - TID Electronic submission of : - TTRS notifications - Trade declaration Contract approval status checking Job preparation & management Handling and printing of transport documents MOFTEC Processing Trade Contract Administration Contract approval status checking Job preparation & management Processing and printing of transport documents MOFTEC MOFTEC Processing Trade Contract Administration = Electronic & Paper = Paper (later electronic) Submission of : - Customs declaration - Application & maintenance of PRC Customs processing trade handbook China Customs Tradelink/CIECC Processing Trade Service Truck Manifest Customs Invoice etc. Truck Manifest & TTRS, OPA (Paper) China Border Check Point HKSAR Border Check Point

11. 11 Pan-Asian e-Commerce Alliance (1) u EstablishedJul 2000 u 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. 12 Pan-Asian e-Commerce Alliance (2) u Initiatives –Mutual Recognition of Public Key Infrastructure –Secure Cross Border Transactions F Purchase Order, Invoice, Packing List, Advanced Shipment Notice –Pan Asian Portal and e-Market Place –Logistics Tracking