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New Trends in International Trade for SMEsNew Trends in International Trade for SMEs

A Seamless Global Supply Chain Management A Seamless Global Supply Chain Management SolutionSolution

11 December, 2008

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Established inSep 1988

Government becomesa shareholder

Granted exclusive franchise (1997– 2003)to provide e-submission services for certaintrade-related documents

Selected by the Government as the developerand operator of DTTN

1992

2003

1988

19942004

Granted license (2004-2008) to continue provisionof government document e-submission services

2005

Publicly listed and traded on the Main Board of The Stock Exchange of Hong Kong

About TradelinkAbout Tradelink2008

Tradelink Beijing Established

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The HK SAR Government

Key players in the trading sector, including trade associations, terminal operators & financial institutions

43.80%43.80%

12.29%12.29%

Public Shareholders

43.91%43.91%

Digi-Sign CertificationServices Limited

Digital Trade and Transportation Network

Other Shareholders: -

•21% The HK SAR Government

•28% Trade Associations

Government and Industry Expert SupportGovernment and Industry Expert Support

100%100% 51%51%

The digital express link to you business partners worldwide

Building trust in electronic services with Digi-Sign security solutions

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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

LogisticsServicesProviders Importers

Exporters

Freightforwarders

Carriers

Manufacturers

Tra

din

g C

om

mu

nity

Tra

din

g C

om

mu

nity

e-confirmation e-confirmation

SecuritySolution

Tradelink’s Operating ModeTradelink’s Operating Mode

The HKSAR The HKSAR GovernmentGovernment

TradelinkTransaction fee

+Gov’t fee

+e-submission of

trade related documents

Gov’t fee+

e-submission of trade related documents

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Services Details

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 ande-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 ServicesTradelink’s Government Services

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Tradelink’s Commercial Tradelink’s Commercial ServicesServices

Services Details

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 Certificatesupports 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)

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Industry Challenges:

Disjoined Communities

Enhance Competitiveness:

A Common Digital Platform to Facilitate Information Exchange

DTTN – the Solution Meeting the Industry DTTN – the Solution Meeting the Industry ChallengeChallenge

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Community Role of the Community Role of the DTTNDTTN

Electronic message transformation services

Statistical and analytical reporting services

Data inheritance services

Information security services

Electronic message routing services

Portal services

SellersInspectionAgencies

Banks &Financial

Institutions

FreightForwarders

Buyers

Government& Agencies

CarriersInsurance

InstitutionsTerminals

DTTN Key Services Offering

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Purchase Process Purchase / Sales Order, Order Confirmation

Packing List / ASN, Commercial Invoice,Inspection Certificate, InsuranceDelivery

Booking, Shipping Order, Arrival Notices,Transport Documents - Master / HouseWaybill - Sea / Air, Cargo Receipt,Transport Set, EIR, Delivery / Release Order

Local and OverseasTransportation

Government Trade DocumentsExport / 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-ChainDTTN to Support the Whole Supply-Chain

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DTTN Interconnection ExampleDTTN Interconnection Example(Purchase to Delivery)(Purchase to Delivery)

Goods Tracking Locations

Buyer 1 DTTN

1. PO (X 12)

Buyer 2

Forwarders

Seller

ApplicationService

Provider 2

1. PO (Excel)

2. SO, CI, PL (Excel)

2. SO, CI, PL (XML)

SO - shipping orderCI - commercial invoicePL - packing listBL - bill of lading

ApplicationService

Provider 1

Carriers

3. Master SO (XML)

3. Master SO

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 BLShipment Status

4. Master BL,Shipment Status

(EDIFACT)

6. Goods / Shipment Status(Web Services/XML)

Goods Status (RFID / EPCGlobal)

Physical Delivery

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Case Study: A Buyer in UK Case Study: A Buyer in UK and its suppliers in H.K. and Chinaand its suppliers in H.K. and China

Goods Delivery

TDS

FreightForwarderFreightForwarder

Buying Office

UK Buyer

1. Purchase Order

2. Purchase Order10. Clean Document set

3. Purchase Order7. Bill of Lading

4. Invoice, Packing List, Shipping Order8. 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

, Pack

ing

List, B

ill of L

ading,

e/CO

11. Invoice

, Pack

ing

List, B

ill of L

ading,

e/CO

12. Invoice, Packing List, Bill of Lading,

e/CO

12. Invoice, Packing List, Bill of Lading,

e/CO

Suppliers

Physical

Data

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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 Extending Our Reach with Partners around the Worldthe World

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Trading ProcessesTrading Processes

E-Document Exchange

BusinessMatching

ReceivePO Production Inspection Insurance

Chamberof

CommerceCustoms

OutboundLogistic

FreightForwarder Terminal Payment

The Missing Piece – Financial Services,

e.g. Payment

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The Enhanced Payment Layer The Enhanced Payment Layer ––Collaboration with SWIFT Collaboration with SWIFT

DTTN to provide possible docs/messages supporting transactions for payment/LC/open account related transactions

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Buyer Seller

Bonded WarehouseTransaction

Warehouse AirlinersShippers

Transport/CY InspectionQuarantine

Forwarder Government Services

Enable electronic document exchange between banks and traders

BankBank

E-Trade (from PO to Payment)E-Trade (from PO to Payment)

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The Bridge between the Trading Industry The Bridge between the Trading Industry and Banks 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

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Benefits to Banks’ Benefits to Banks’ CustomersCustomers

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

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Thank You!!