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HAFFA ANNUAL REPORT

2016-2017

For

FAPAA 44th Executive Council Meeting

Kathmandu, Nepal

26th – 28th July 2017



Content

1. Chairman’s Report for the Year 2016-2017

2. Airfreight Sub-Committee

3. FAPAA Liaison Sub-Committee

4. FIATA Liaison Sub-Committee

5. Greater China Affairs Sub-Committee

6. Information Technology Sub-Committee

7. Legal Matters Sub-Committee

8. Logistics Policy Sub-Committee

9. Membership Sub-Committee

10. Public Relations Sub-Committee

11. Recreation & Sports Sub-Committee

12. Seafreight Sub-Committee

13. SME Development Sub-Committee

14. Training Sub-Committee (attached in a separate file)



Chairman Report for the Year 2016-2017

Date: 18 April 2017

Dear HAFFA Members,

During 2016 (HAFFA’s 50th Anniversary year), the resilience that distinguishes Hong Kong’s freight and

logistics service providers has again been put to the test, more intensely and frequently than ever before. As

leaders and entrepreneurs in the cargo supply chain, HAFFA members play a vital role in helping raise the

level of business confidence and, in 2016, there was a resulting growth in air freight of more than 3%.

However, we still face as many challenges as we do opportunities, all of which are stepping stones to greater

experience.

In particular, these challenges include the “Cargo Fuel Surcharge (cargo FSC)” and “Security and Safety”,

issues which continue to top the Hong Kong cargo business agenda. The Association reflected the difficulties

and additional burdens encountered by Members that undermined Hong Kong’s competitiveness after the

cessation of cargo FSC and its mechanism. HAFFA expressed our position to Transport and Housing Bureau

(THB) and Civil Aviation Department (CAD) of the need to maintain a fair, transparent and easily understood

cargo FSC mechanism for the wellbeing of the airfreight market in Hong Kong. In matters relating to these and

possible changes under the new policy direction of the International Civil Aviation Organisation (ICAO),

HAFFA, THB and CAD continue to exchange views on the future development of air cargo security.

As for safety matters, last year was a hectic one for DG due to the substantial number of changes to the

requirements of shipping lithium batteries by air, and Hong Kong experienced a number of hidden DG

incidents. HAFFA took the lead, and seized the initiative to organize two joint seminars (instead of the usual

one per annum) on “DG Awareness with a Focus on the Lithium Battery” in April and December 2016

respectively, jointly organized with the Carrier Liaison Group (CLG), the Hong Kong Shippers’ Council

(HKSC) and the Transport Logistics Training Board – Vocational Training Council (VTC-TLTB), and

supported by the CAD. The April session was an ad hoc seminar organised with very short preparation time in

order to present the additional changes which took effect from 1st April 2016. Substantial preparation work

was also undertaken for the new IATA/ICAO changes in the December seminar. We also initiated a new

session within the seminar with the three Cargo Terminal Operators (CTOs) in order to increase awareness

when tendering consignments.

Thanks to industry’s enthusiastic support, many participants attended the two seminars, which concluded with

lengthy question and answer sessions. In response to Members’ needs, HAFFA and the CLG established a

local DG Best Practice, which sets guidelines to meet local requirements, such as co-load, consolidation.

In view of the obvious rising demand in Asia for temperature controlled air cargo and transshipment, HAFFA

is in support of the Airport Authority Hong Kong (AAHK) drive to work on an “End-to-End” solution for the

processing of temperature controlled products, and to promote this widely throughout the industry both locally

and worldwide when the solutions are finalized in order to enhance the competitiveness of Hong Kong. To this

end, we proactively participated in the AAHK Task Force for Temperature Controlled Airfreight Handling,

and another Task Force on the facilitation of Air Cargo Transshipment, this to reinforce our commitment to the

industry.



At the front-end, we conducted internal surveys and meetings to tackle current issues such as “Passenger flight

reduction due to introduction of the new Air Traffic Management System (ATMS)”, “Recall of Samsung

Galaxy Note 7 – Does airline accept recall Samsung Galaxy Note 7 device? (relevant follow up)” and “Survey

for UN3480 (Lithium ion batteries) – Does airline accept UN3480 for carriage and require declaration of SoC

for UN3480?”. These initiatives resolved many operational issues for Members. In addition, in view of the

launch of the e-AWB 360 campaign, additional efforts were made and meetings held dedicated to striving for

more EzyCargo special discounted packages especially for SME Members.

On the broader IT spectrum, to align with the global trend of e-freight and other international requirements

under the World Customs Organization (WCO), back in 2013 and 2015, HAFFA submitted two proposals to

the Chief Executive (CE) to urge the Government to consider building an e-Platform to facilitate trade

information flow across the entire supply chain. We are particularly grateful to have received the

Government’s response of carrying out a three-month public consultation to seek views on the development of

a Trade Single Window (SW) in Hong Kong. The HAFFA Executive Committee met the Commerce and

Economic Development Bureau (CEDB) and Customs officials to exchange views. HAFFA made a

submission to CEDB in June 2016 expressing its full support of the SW; reflecting operational concerns;

seeking clarification on possible liability issues under pre-shipment declarations; and expressing the need for

the SW to expand to cater for Business to Business connection in order to genuinely enhance Hong Kong’s

competitiveness.

When it comes to Seafreight, we had a very tough year. The requirements of SOLAS VGM became legally

effective in July 2016. Our prompt response and extra efforts were focused on reflecting the many operational

views/concerns to the Marine Department (MD). HAFFA met with the MD and made pragmatic suggestions to

modify the relevant guidelines, declaration, forms and FAQ. We established three HAFFA Best Practices to

assist members to perform better due diligence under the SOLAS requirements, and established a dedicated

webpage with comprehensive and useful information.

Hanjin’s Receivership was a bombshell which impacted every operator in the supply chain. With the

enormous losses it brought to freight forwarders and associated parties, we issued HAFFA News to provide

timely updates, and received many calls as the news of receivership reached the public at the end of August

2016. The Association voiced outrage at the handling of the situation resulting from the receivership of Hanjin

Shipping, and reflected Members’ grave concerns to THB and Hon. Frankie Yick (Legislative Councilor)

respectively. In response to HAFFA’s requests, Mr. Yick convened an urgent meeting with THB,

HIT, HAFFA and other associations in September 2016.

At the meeting, HAFFA spelled out the many difficulties Members had encountered, and made official

requests to the Hongkong International Terminals (HIT) in order to mitigate a critical situation. After lengthy

discussions, on 15 September 2016, HIT undertook to issue an official notice on the published rates, with

details of payment methods, procedures and hotline numbers. An update on the meeting, together with the HIT

notice, were disseminated to all Members via News and posted onto the website on the same day.

Notwithstanding what the law may say, in today’s global world, it is difficult to stomach that a forwarder or

shipper has to pay several times over the value of the freight to get cargo to a safe port. Regrettably, we are still

facing insufficient protection in this area.



In summary, we presented our views to the authorities and forged ever closer relationships, in particular with

THB, CAD, AAHK, CEDB, Customs and MD.

The Association plays an important role in representing the Hong Kong freight forwarding and logistics

industry on an international level. HAFFA represents members' interests at meetings of the IATA, FIATA and

Federation of Asia-Pacific Air Cargo Associations (FAPAA).

Under IATA’s Annual Financial Review (AFR), abundant efforts were made to formulate strategy and

organize a Member Consultation Meeting in order to deal with the issue of the AFR. The results of the vote

held at the HAFFA Members’ Consultation Meeting in April 2016 were relayed to IATA-Hong Kong, and an

AFR exemption proposal was submitted to CAC for a mail vote with the aim of protecting members’ best

interests. Unfortunately, the IATA Cargo Agency Conference (CAC) defeated the ICAP proposal to exempt

AFR in Hong Kong. Therefore, AFR must be implemented in Hong Kong according to the resolution. Given

that the implementation of AFR would have significant impact on Hong Kong, with HAFFA’s support, ICAP

airlines submitted a further proposal to CAC requesting a one year lead time in which to prepare for the

implementation of AFR. The proposal was finally adopted by CAC on 13 March 2017.

Under the IATA-FIATA Air Cargo Program (IFACP), IATA and FIATA announced that an agreement had

been signed in July 2016 by Tony Tyler of IATA and Huxiang Zhao of FIATA, to implement the IFACP which

will replace all existing IATA Cargo Agency Programmes in the future. The IATA Cargo Agency program has

operated for many decades without significant alterations, despite compelling changes in the business

relationship between cargo agents and airlines. Today, the traditional IATA Cargo Agent has transitioned from

being a selling-agent of the airline to being a purchasing-customer. In an effort to modernize the current

Agency program, FIATA and IATA joined forces to review, refine, and re-engineer the airline

conference-based program to one which would be jointly managed by airlines and forwarders. Major steps

have been made, and this collaboration has resulted in the development of a new joint IATA-FIATA Air Cargo

Program, and significant strides towards redefining airline and forwarder responsibilities.

One year ago, we celebrated our 50th anniversary joined, for the second time during his term, by Chief

Executive the Honourable C Y Leung, his presence testament to the importance of our industry to the

continued prosperity of Hong Kong. As we embark upon our sixth decade, I hope you share our ambition and

will support HAFFA in its commitment to do more as a team to contribute to the industry and Hong Kong as a

whole. With this vision, the phrases which come to mind are those of “unity, taking advantage of our

inheritance, and pragmatically building a bright future”. These are the characteristics of HAFFA, and a

reinforcement of these values, which have helped the industry succeed, will no doubt be our pillars as we

confront the challenges ahead.

With that, I would like to take this opportunity to express my pride and appreciation for the sincerity and

unparalleled support we have received from you, the Board of HAFFA, the HAFFA Secretariat Office and our

government & industry partners.

Yours truly,

Cliff Sullivan

Chairman



Source: http://www.nasdaq.com

AIRFREIGHT SUB-COMMITTEE

Chairman: ABLE FORCE FREIGHT LTD – Mr. Raymond Kan / Mr. Sammy Mak

Vice Chairman: RHENUS LOGISTICS HONG KONG LTD – Mr. Edmond Wong

Members: A-SONIC LOGISTICS (H.K.) LTD

CARGO FREIGHT SERVICES LTD

DIMERCO AIR FORWARDERS (HK) LTD

INFINITY CARGO EXPRESS LTD

NAF GLOBAL LOGISTICS LTD

RCS LOGISTICS LTD

WORLDTRANS AIR-SEA SERVICE LTD

AE EAGLE LOGISTICS HONG KONG LIMITED

CTI LOGISTICS (HK) CO., LTD

DHL GLOBAL FORWARDING (HONG KONG) LTD

SEA-AIR LOGISTICS (HONG KONG) LTD

THE JANEL GROUP OF HONG KONG LTD

YUSEN LOGISTICS (HONG KONG) LTD

I. Liaise with the Civil Aviation Department (CAD)

A. Cessation of Cargo Fuel Surcharge and its Mechanism

It has come to HAFFA’s attention that negative

impact on the freight forwarding and logistics

industry has emerged since the cessation of

cargo fuel surcharge (FSC) and its mechanism

by the CAD from 01 April 2016. The HAFFA

Executive Committee met CAD officials on 19

May 2016 to express our position of the need to

maintain a fair, transparent and easy to

understand cargo FSC Mechanism for the

airfreight market in Hong Kong. The

Association also reflected the difficulties and

additional burdens encountered by Members

that undermined Hong Kong’s competitiveness

after the cessation of cargo FSC and its

mechanism.

At the meeting, the CAD undertook to conduct a holistic study on the surcharge issue for both cargo and

passenger. Subsequently, CAD commissioned a consultant to carry out the study which HAFFA was invited to

participate in. The study was finalized in late-January 2017 and taking into consideration the interests of

different stakeholders, CAD decided to establish a modified Cargo FSC mechanism with effect from 01 April

2017, until 31 December 2019. HAFFA believes that the mechanism can provide a transparent price

adjustment based on the fuel index and the industry is given sufficient advance notice for necessary

preparation.



However, to cope with the potential of high oil prices beyond 2019, when the current CFS mechanism is due to

once again cease, HAFFA is concerned that a satisfactory replacement is established to take its place in

advance. . Before a decision is made on whether fuel surcharges are to be de-regulated in the long run, HAFFA

will continue to work with the Government on future consultations in order to seek satisfactory solutions to

this complex issue.

B. Airline’s Implementation of Airfreight Adjustment (AFA)

On 18 July 2016, an airline announced to introduce a new charge called “Airfreight Adjustment” (AFA) with

effect from 01 September 2016. The charge was a variable component to their airfreight for all contract and

ad-hoc shipments out of Hong Kong. While HAFFA understood the need of the airline to address the volatility

in the fuel price by introducing AFA, its nature was obviously a fuel surcharge and the Association received

many concerns from Members. Thus HAFFA issued a letter on 28 July 2016 urging CAD to clarify whether or

not the AFA was a fuel surcharge.

Besides, it was afraid that other airlines might follow suit and establish their

own FSC mechanism that would create a more complicated environment

causing serious market chaos and complicating the business operations such as

communications with customers, preparation of shipping documents etc.

HAFFA has therefore reiterated in the letter that there was an imperative need

for the CAD to expedite the review and establish a cargo FSC mechanism for

the cargo industry in Hong Kong so as to avoid confusion or chaos in the

market.

As a Member’s privilege, the HAFFA letter was uploaded onto the website under “Member Only” area

[After login] http://www.haffa.com.hk/portal/MemberOnly/PositionPapers.aspx

Following our letter sent to CAD on 28 July 2016, in view of the seriousness and urgency of the issues,

HAFFA conversed with senior officials of the Transport and Housing Bureau (THB) and CAD several times.

The issue was also brought to the attention of Hon. Frankie Yick, Legislative Councilor. He discussed with the

Chairman Mr. Cliff Sullivan and later sent a letter to Professor Anthony Cheung, Secretary for Transport &

Housing on 11 August 2016 to reflect HAFFA’s concern and urge the Bureau to resolve the issues.

Thanks to both THB and CAD for their efforts made to help the industry to resolve the burning issue behind,

the concerned airline confirmed on 12 August 2016 to suspend the implementation of AFA until further notice.

C. Passenger Flight Cancellation due to the introduction of the new ATMS

Airlines in Hong Kong were asked by the CAD to reduce their

passenger flight schedules by 10% during the period of 30

October 2016 to 26 November 2016 due to the introduction of

the new Air Traffic Management System (ATS). Although

freighter schedule was not affected, given traditionally

November is a peak season for cargo transport by air and belly

load accounts for over 50% of total airfreight volume, the

impact of passenger flight cancellation on air cargo industry

could be very significant.

Source: Oriental Daily



HAFFA therefore requested for a high-level meeting with the Director-General of Civil Aviation, in which we

brought out the concern that despite freight forwarding sector was one of the most affected groups under the

system migration, the industry had never been consulted by the CAD. The Department admitted that there were

rooms for improvement and the freight forwarding sector should be consulted from the outset. CAD also

presented some information on capacity analysis after flight reduction. In short, a total of 84 ports and about

1/5 of the scheduled airlines serving Hong Kong were affected. By comparing with the same period in 2015,

the total cargo capacity was reduced by 4.5% (representing 42,200 tonnes) with which the impact should be

limited.

In order for Members to timely communicate with their clients and do necessary planning in advance, HAFFA

requested CAD to provide detailed information of affected flights with dates, flight number and destinations.

However, CAD responded that they were unable to disclose cancelled flight details which were proprietary

information owned by the respective airlines to third parties without the owners’ consent. As such, the

Association based on the aggregated lists provided by CAD and approached 13 affected airlines individually to

obtain the needful information. The first-hand information was circulated promptly to all Members via News

on 27 September 2016.

D. Update on Air Cargo Security – ICAO New Policy Direction

The International Civil Aviation Organization (ICAO) decided on a new

policy direction to phase-out consignors not approved by the appropriate

authority for aviation security. In September 2016, the ICAO Secretary

General issued a State Letter announcing the ICAO Council’s decision that

consignors not subject to approval by the appropriate authority should be

phased out within a five-year period, and at the latest by 30 June 2021.

At present, a consignor recognised by its partnering RA or aircraft operator in

Hong Kong may have its consignments treated as known cargoes. Under the

new policy direction, consignors will either have to be approved by an

appropriate authority, or have their air cargoes subject to 100% security

screening. Thus, it will necessitate adjustments to the existing RAR in Hong

Kong.

CAD is maintaining close communications with the ICAO as the latter is developing the detailed

implementation guidelines. The Government is studying the full implications of the new ICAO policy

direction, taking into account the implementation arrangements, and will propose a way forward.

HAFFA has been and will continue to work closely with the Government (Security Bureau, Transport and

Housing Bureau and CAD) and industrial stakeholders to formulate the proposals with a view to minimizing

the possible disruptions to the trade. Members will be kept informed via HAFFA News should there be any

essential update on the matter.

II. Liaise with IATA

A. IATA Annual Financial Review (AFR)

Subsequent to the update on AFR in the last Airfreight Sub-committee Annual Report published on 19 April

2016, HAFFA organized a Member Consultation Meeting on 26 April 2016 for IATA Cargo Agents to express

views and cast votes on the ICAP (IATA Cargo Advisory Panel) HK proposed wordings for AFR exemption in



Hong Kong. As the majority of votes agreed to the proposed wordings, HAFFA based on the voting result and

indicated our support of the ICAP proposal to IATA Hong Kong.

Unfortunately, the IATA Cargo Agency Conference (CAC) defeated the ICAP proposal to exempt AFR in

Hong Kong. Therefore AFR has to be implemented in Hong Kong later as per laid down resolution. Given the

implementation of AFR would have significant impact in HK, with HAFFA’s support, ICAP airlines

submitted a proposal to CAC to ask for 1 year’s lead time to prepare for the implementation of AFR. The

proposal was adopted at the CAC on 13 March 2017, which means AFR will be implemented one year later.

For the sake of protecting Members’ best interests, HAFFA pledges to closely work with ICAP HK to

endeavor withholding AFR and mitigating the impact of its implementation by organizing a new round of

HAFFA/ICAP HK meeting review the criteria of AFR.

B. IATA-FIATA Air Cargo Program (IFACP)

On 18 July 2016, IATA and FIATA announced that an agreement has been signed by Tony Tyler, IATA’s

Director General and CEO and Huxiang Zhao, President of FIATA, to implement IFACP to replace the

existing IATA Cargo Agency Program later.

The IATA Cargo Agency program has operated for many decades without significant alterations,

despite compelling changes in the business relationship between cargo agents and airlines. Today, the

traditional IATA Cargo Agent has transitioned from being a selling-agent of the airline to being a

purchasing-customer. In an effort to modernize the current Agency program, FIATA (representing

international freight forwarders and logistic providers) and IATA (representing airlines) joined forces to

review, refine, and re-engineer the airline conference based program to one which would be jointly managed

by airlines and forwarders. Major steps have been made and this collaboration has resulted in the development

of a new joint IATA-FIATA Air Cargo Program, and significant strides in redefining airline and forwarder

responsibilities.



IFACP will require for a single Bank Guarantee (BG) from a forwarder. Airlines can opt out the IATA BG in

respect of a country or specific forwarder with 3 months advance notice in writing to IATA if they wish to

impose bilateral criteria (e.g. bilateral BG) in addition to the IATA Local Financial Criteria.

The phased rollout of IFACP will begin in Q2, 2017 with Canada as the pilot country. It is scheduled for

Hong Kong to follow in Q4, 2017 tentatively. Full global rollout is expected to be completed by end 2018.

There should be no immediate impact on the current IATA Cargo Agents as the current participants of the

IATA Cargo Agency/Intermediary Program will be provided with a new IATA-FIATA Air Cargo Program

Agreement when the program implementation process begins in Hong Kong. Upon execution and receipt of

the completed Agreement, the Endorsed Freight Forwarder will join the new program. No further assessment

will be required. New entrants shall be granted access to the IFACP in accordance with the program's rules,

which are designed to be more reflective of how the air cargo business functions in today’s market.

HAFFA will proactively participate in the regional Joint Council (JC) which will be established to provide

local feedback, discuss and submit proposals to the IATA-FIATA Governance Board (IFGB). The new JC may

propose to IFGB the minimum criteria of financial standing and operational criteria required for endorsement

and retention of freight forwarders in Hong Kong, while CASS will remain ‘as is’ and under the jurisdiction of

the CAC.

III. Liaise with Airport Authority Hong Kong (AAHK)

A. AAHK Task Force for Temperature Controlled Airfreight Handling

AAHK engaged a consultant to carry out a study to access the prevailing market forces affecting the

competitiveness of Hong Kong International Airport (HKIA). The study was completed and it has identified

some key cargo flows which will be of value to HKIA in its future development. One of which is the

development of temperature controlled products such as the temperature-sensitive high-value perishables and

pharmaceutical products.

Temperature controlled

products require a

specialized and

sophisticated handling

process from the time of

aircraft landing to the final

delivery point to

consumers. To solicit the

views and expert advice

from the industry, AAHK

established a

cross-industry task force

with the key players in the

temperature controlled

products market. HAFFA

was invited to join the task

force and it is our position

that the Association

supports for AAHK to



Source: http://aircargosecurity.ie

work on the “End-to-End” solution for processing of the temperature controlled products. When the solutions

are finalized, it is essential to widely promote to the industry both locally and worldwide to enhance the

competitiveness of Hong Kong.

Task Force agreed action items include:

� To incorporate Task Force Members’ inputs in the future airport planning and establish action plans (short-term, medium-term and long-term) for enhancement of airport facilities and services;

� To work out a roadmap and timetable for AA / cargo terminal operators / ramp handling operators on achieving the IATA CEIV Pharma accreditation on “HKIA community” basis;

� To liaise with relevant Government departments on the support and operation facilitation required by the industry; and

� To benchmark against other key international airports (e.g. Dubai) on the handling of temperature controlled cargo.

B. Meeting with CEDB and AAHK on the facilitation for Air Cargo Transshipment through HKIA

Initiated by the AAHK, a meeting with the Commerce and Economic Development Bureau (CEDB) on the

facilitation of air cargo transshipment through HKIA was convened on 24 AUG 2016. Participants included

representatives of CEDB, Customs and Excise Department, Census and Statistics Department, AAHK, HKSC

(Hong Kong Shippers’ Council), HAFFA, CLG (Carrier Liaison Group) and FHKI (Federation of Hong Kong

Industries). HAFFA proposed the following transshipment facilitation measures:

� Need to update the list of strategic items to remove licensing requirement on items which are no longer strategic in nature nowadays (e.g. routers);

� For transshipment of telecommunication products via Hong Kong, waive the telecommunication license requirement for Hong Kong shippers/forwarders;

� Transshipment not to limit to air-air only but also extend to inter-modal

transshipment (e.g. air-sea or air-land);

� Customs to set up a scheme for certified Regional Distribution Centre to perform

high value-added services;

� For through and non-through airside transshipment commodities, benchmark

against the arrangement in Singapore

Changi Airport Free Trade Zone to allow

value-added services, such as resembling,

repackaging, post services, sorting and

packing, to be performed on transshipment goods at HKIA before the goods are further shipped to

various final destinations (e.g. cosmetic products sold online via Singapore);

� It is very important to also allow value-added services and consolidation to be performed at carton level, as seen in the Singapore’s Zero-GST Warehouse Scheme, this is the key to increase cargo



volume at house AWB level, streamlined documentation and administration, and cater for

customers’ demand with efficient operations;

� Make reference to the existing model of Free Trade Agreement (FTA) Transshipment Facilitation Scheme and dutiable goods; and

� The industry to prove to the Customs by IT (e.g. RFID) that the shipments in original form are transferred to another aircraft for exportation. In the bonded areas of other countries like

Singapore and Korea, CCTV linked with the Customs is acceptable to the authorities.

IV. Liaise with Carrier Liaison Group (CLG), HACTL, AAT and CPCT

A. Seminar on “DG Awareness with a Focus on Lithium Batteries”, 15 December 2016

In view of latest changes in the requirement of shipping dangerous good (DG) and lithium battery by air (effective

from 01 January 2017), plus the increasing number of DG incidents involving shipments of undeclared or

mis-declared lithium batteries, with the support of CAD and the Transport Logistics Training Board – Vocational

Training Council (VTC), HAFFA initiated and organized with CLG and the Hong Kong Shippers’ Council

(HKSC) a big seminar on 15 December 2016. Representatives from the CAD, CLG and 3 Cargo Terminal

Operators (CTOs) were the speakers providing attendees with an overview of the 2017 requirements of shipping

DG and lithium battery by air, as well as the common CTO issues when tendering DG and lithium battery

consignments to the CTOs.



Thanks for industry’s enthusiastic support, there were nearly 350 participants attended the seminar and it was

concluded after a fruitful “Question and Answer” session. Trust that the seminar has raised the awareness of the

industry, thereby enhancing safety in air cargo transport and maintain a good reputation of the Hong Kong air

cargo industry.

B. Best Practice 014 - Best Practice for Consigning Lithium Cells / Batteries in Hong Kong

In response to the latest changes in lithium batteries under the 58th Edition IATA DGR (2017),

CLG–Dangerous Goods Working Group (DGWG) and HAFFA worked together to provide an update of the

Best Practice (BP) with operational guidance for Members and the industry. The number of the BP

is changed from “BP013” to “BP014” to avoid confusion in the market. That means, “BP014” has replaced

“BP013” with effect from 01 January 2017. Summay of the significant changes in BP014 as set out below:

� there will not be any separate lithium battery document (i.e. NO need for the Declaration forms for consigning Section IB and Section II).

� All PIs’ Section I & IA: Class 9 Label will be changed (transition period = 2 yrs). � All PIs’ Section II & IB: Lithium Battery Handling Label will be changed (transition period = 2

yrs).

� A section “What is a consignment?” is added for easy reference. � the information about the new provisions of adequate instruction of Training Requirement for

Section II is added.

The relevant documents, together with the presentation slides used in the above-mentioned seminar, were

disseminated to all Members on 15 December 2016 via News and uploaded on the HAFFA website.

http://www.haffa.com.hk/portal/Page/Default.aspx?id=157

Please note the best practice is jointly issued by the CLG-DGWG and HAFFA for industry reference only.

Shippers and freight forwarders shall always follow the IATA Dangerous Goods Regulations and the

requirement of individual carriers for the air carriage of shipments containing lithium batteries at all times.

C. HAFFA Surveys

Given there were no alignments from the airlines on various new measures in handling lithium batteries and

recalled smartphone, HAFFA conducted the following surveys with individual carriers to better understand

their requirements so as to facilitate Members in compliance.

� Survey for UN3480 (Lithium ion batteries) – Does airline accept UN3480 for carriage and require declaration of SoC for UN3480?

� Survey for Recall of Samsung Galaxy Note 7 – Does airline accept recall Samsung Galaxy Note 7 device and relevant follow up?



FAPAA LIAISON SUB-COMMITTEE

Chairman: BEL INTERNATIONAL LOGISTICS LTD – Mr. Brian Wu

Vice Chairman: THE JANEL GROUP OF HONG KONG LTD – Ir. Dr. Paul Tsui

Members: CARGO FREIGHT SERVICES LTD

KORCHINA LOGISTICS (H.K.) LTD

Report on the 43rd FAPAA ECM and AGM Meetings, 10 - 12 July 2016 in Manila,

Philippines

The Aircargo Forwarders Association of the Philippines Inc. (AFPI) hosted the 43rd Executive Council

Meeting (ECM) and Annual General Meeting (AGM) of the Federation of Asia Pacific Aircargo Associations

(FAPAA) on 10-12 July 2016 in Manila.

Discussion topics included (but not limited to):

� Air Cargo Safety and Security � IATA / FIATA Air Cargo Program (IFACP) � CASS Matters � IATA Annual Financial Review � e-Commerce related issues � e-AWB & e-Freight � Lithium Batteries � e-CSD (Electronic Cargo Security

Declaration)

� ULD Handling and Training � Current trends and air cargo issues affecting

Asia-Pacific

The strength of FAPAA, a three-decade-old regional association, lies in the sharing of information and the

application of that understanding and knowledge within our own businesses. This enables the respective

memberships and their customers to interact and transact business under a more unified and standardized

approach within the region.

To compound our good future, we are fortunate to be able to continue strengthening our relationships with

many countries stakeholders at the FAPAA meeting. The continued success of FAPAA is dependent on every

link in the chain being strong, working together unified in purpose and goals, with the very aim to strive

towards enhancing the business environment for and uplifting the standards of our industry.

The next FAPAA ECM and AGM of FAPAA will take place in Kathmandu, Nepal, hosted by the Nepal

Freight Forwarders Association (NEFFA) on 26-28 July 2017.



FIATA LIAISON SUB-COMMITTEE

Chairman: BEL INTERNATIONAL LOGISTICS LTD – Mr. Brian Wu




Report on the FIATA World Congress, 03 - 08 October 2016 in Dublin, Ireland

(Extract of FIATA Review No. 115, December 2016)

One of the highlights at this year’s FIATA World Congress in Dublin was FIATA’s 90th anniversary, which

was celebrated with delegates of the founding association Members at trinity college, Dublin. Other highlights

were the meetings which were held in a new style, based on open and interested interaction between the

participants and the speakers.



Airfreight Institute - AFI The agendas regulatory procedures were

swiftly settled and the audience witnessed a

historical event - the public signing

ceremony of the cooperation agreement

between FIATA and IATA for the

IATA-FIATA Air Cargo Program (IFACP).

Subsequent to the signing FIATA President

Huxiang Zhao described this as a rather

extraordinary event. Mr Zhao said: “After

many decades we are launching a new

airfreight programme, for the first time one

that is not presented to an audience of agents

by the airlines, but a programme that is

jointly introduced by the global freight forwarders’ and airlines’ organizations.” This was, according to the

President, enough to explain the desire of the attendees to witness this historical moment, and he recognized

that: “It was not sufficient to explain the sense of expectation that I feel comes towards FIATA from the

farthest corners of our constituencies, which are eager to launch the programme in their regions.” Reaching the

agreement was a monumental task for which he thanked AFI on behalf of FIATA’s members, but he stressed

that the implementing phase may be even more demanding.

Mr Aleks Popovich, IATA Senior Vice President for Industry Distribution and Financial Services, was pleased

that the industry collaborative spirit was fully embraced by his new IATA Director General and CEO,

Alexandre de Juniac. He explained that Alexandre has commitments at the 39th ICAO Assembly in Montréal.

He delivered the IATA CEO’s best wishes and full support. He stated that this signing of the Cooperation

Agreement ensures IATA and FIATA will continue their collaboration and dialogue and work more closely

together for the mutual benefit of the air cargo industry. Mr Popovich looks forward to the effective rollout of

IFACP across all markets over the next two years - a challenging task in itself!

Customs Affairs Institute - CAI

Emanating from CAI’s work that is connected with the World Customs Organization (WCO), which relates as

well to the WCO’s World Trade Organization (WTO) Trade Facilitation Agreement (TFA) Working Group,

amongst many other aspects and topics, the Chairman made the passage to the following topic and the guest

speaker: Realising the benefits of the WTO’s TFA: easier, faster, cheaper trade. Ms Donia Hammami, Head of

Customs & Trade Facilitation, International Chamber of Commerce (ICC), and Vice President, Global

Alliance for Trade Facilitation (GATF), flagged her presentation under GATF, highlighting the public-private

partnership for trade-led growth. She informed participants about features and benefits of the TFA Agreement

and explained about the TFA’s targeted aspects of border procedures.

Once it enters into force the TFA will be binding. With its present

status of ratification it’s only lacking sixteen countries to reach

that milestone. The agreement provides a unique momentum to

get all government agencies and stakeholders together, enabling

them to reach a win-win situation, since governments and trade

share the objective to increase trade and economic growth. The

TFA encourages a multi-stakeholder approach trough

implementation through National Committees on Trade

Facilitation and enables developing countries to request financial and technical assistance as well as special

differential treatment.



Multimodal Transport Institute - MTI

Mr Jens Roemer (Belgium), Chairman of the Working Group Sea Transport, reported that on 1 July 2016 the

SOLAS amendment became law, and it is illegal for shipping lines to ship a container without a valid VGM.

The IMO asked for a practical and pragmatic approach for the first three-month period, this grace period

terminated on 1 October 2016. As expected, rules and legal enforcement vary between countries, ocean carriers

and marine terminals.

The main opinion is that the introduction of the SOLAS Amendment and VGM has run very smoothly in

almost all countries. Except for some teething problems, there do not seem to have been any major problems to

trade. With the support of FIATA and the documentation and guidance provided by the working group,

national Freight Forwarders Associations have often been in the front line in meetings with their governments

and other stakeholders.

Shipping Lines reproduced legal terms and documentation, but often Freight Forwarders consulted their

customers on the mechanism and impact of the SOLAS Amendment, in the process creating awareness and

discussing practical solutions. In this context, Freight Forwarders have often added value to their services by

providing method 1 weighing solutions.

Legal enforcement by the government agencies in charge appears to be limited at the moment. However, we

expect enforcement agencies to implement measures to ensure that compliance is achieved. Proper

due-diligence procedures for method 2 are essential and should not be underestimated. Forwarders should stay

close to their customers, consulting them and assuring themselves that information is conclusive.

The 2017 FIATA World Congress will be held in Kuala Lumpur, Malaysia between

4th and 8th of October 2017. Details are available at: http://www.fiata2017.org.



GREATER CHINA AFFAIRS SUB-COMMITTEE

Chairman: CARGO FREIGHT SERVICES LTD – Mr. Danny Wong / Mr. Raymond Chan

Vice Chairman: YUSEN LOGISTICS (HONG KONG) LTD – Mr. Louis Lee

Members: ACE PROTRANS FORWARDING LTD

HANKYU HANSHIN EXPRESS (HK) LTD





HAFFA/HKSC Joint Logistics Delegation to Qianhai 深圳前海物流考察團深圳前海物流考察團深圳前海物流考察團深圳前海物流考察團

HAFFA in collaboration with the Hong Kong Shippers’ Council (HKSC 香港付貨人委員會) have organized a

logistics delegation to Qianhai on 27 October 2016.

Logistics industry is one of the key industries of the Qianhai Shenzhen -Hong Kong Modern Service Industry

Cooperation Zone (“Qianhai Cooperation Zone”). The objective of the delegation was to provide opportunities

for the delegates to gain a better understanding on the policy and latest development of the freight and logistics

industry in Qianhai Cooperation Zone. It also served as a good platform for Members to explore business

opportunity in the Mainland.



Led by Mr. Danny Wong

(HAFFA Vice Chairman cum

Greater China Affairs

Sub-committee Chairman) and

Mr. Sunny Ho (Executive

Director of HKSC), the

40-member delegation visited

Qianhai Exhibition Hall (前海展

示廳), Chow Tai Fook Global

Goods Shopping Centre (周大福

全球商品購物中心 ),

Q-Emporia - China Merchants

Group ( 招商自貿商城 ),

CR-Vanguard ‘ewj shop’ (華潤E

萬家), Sea Transportation Centre

- Qianhai Bay Bonded Port Area (海運中心 - 前海灣保稅港區) and import warehouse of CR-Vanguard ‘ewj

shop’ at Globex (華潤E萬家在保宏的進口倉庫).

They also gained the opportunity to meet the representatives of the Guangdong FTA Qianhai Shekou

Administrative Committee and Globex e-Services Ltd to obtain information of how to make use of Qianhai’s

policy to provide more diversified modern logistics services like cross border e-commerce and sharpen their

overall competitive edge.

The feedbacks received from delegates were positive and encouraging. Interested Members are welcome to

suggest any Mainland destination for the HAFFA Delegation to China in Year 2017 - 2018 and we appeal for

your continuous support in joining the delegation.

Key activities in 2016-2017 at a glance:

Date HAFFA Event Organizer(s) / Visitor(s)

21/06/2016 Mr. Danny Wong (Vice

Chairman)

2016 中國鹽城(香港)現代服

務業合作懇談會

江蘇鹽城市人民政府

28/06/2016 Ms. Alice Lui (Secretariat) HKSTLA BUD Project Closing

Ceremony and Seminar “香港物

流+跨境電商現況及未來成功

策略研討會”

Hong Kong Sea Transport

and Logistics Association

(HKSTLA)


Chairman) 新疆生產建設兵團建設絲綢之

路經濟帶核心區項目推介會

新疆生產建設兵團商務局


Chairman)

深化桂港合作懇談會 - 桂港

CEPA服務業合作交流推介會

中聯辦經濟部貿易處


Chairman) as Leader

HAFFA/HKSC Joint Logistics

Delegation to Qianhai

HAFFA and the Hong

Kong Shippers’ Council

(HKSC)




19/12/2016 Mr. Cliff Sullivan

(Chairman)

Forum on Hong

Kong/Guangdong Liberalisation

of Trade in Services cum

Promotion of Key

Demonstration Bases in

Guangdong

Trade and Industry

Department (TID)


Chairman)

特區政府施政十件大事評選頒

獎典禮

Various Media


Chairman) and Mr.

Raymond Chan (Alternate

Executive Committee)

廣東省國際貨運代理協會

2017年新春聯誼會

Guangdong International

Freight Forwarders

Association (GIFFA) 廣東

省國際貨運代理協會


(Chairman), Executive

Committee Members and

Secretariat

Courtesy Visit by the Macau Air

Freight Forwarding (Logistics)

Association (MAFFA)

MAFFA 澳門空運暨物流

業協會



INFORMATION TECHNOLOGY SUB-COMMITTEE

Chairman: GLOBAL ALLIANCE LOGISTICS (HK) LTD – Mr. Elmen Chu

Vice Chairman: ACE PROTRANS FORWARDING LTD – Mr. Sydney Chan

IATA eAWBLink

As mentioned in the SME Development Sub-committee report, IATA launched “eAWB 360” campaign in

2016. 14 IATA member airlines signed up to the campaign with an aim to accelerate the adoption of e-AWB in

Hong Kong. These 14 airlines include:

� Air Canada � Air France � American Airlines � Cathay Pacific � China Airlines � Delta Air Lines � Finnair

� KLM � Korean Air � Lufthansa � Qatar Airways � Saudi Arabian Airlines � SWISS � United Airlines

They switched over to e-AWB as the preferred means of shipping cargo to all destinations by using the e-AWB

Single Process at HKG airport from 01 June 2016 onwards.

Source: IATA



Given different carriers may use different platforms and the formats are all different resulting in more costs to

comply, HAFFA brought out the need for IATA being an initiator to establish a common platform for e-AWB

transmission.

Members may be aware that in late 2016, IATA has launched the eAWBLink, a low cost online tool that is

designed to allow in particular SME forwarders to send and receive electronic shipment data (such as e-AWB).

It is a web-based solution which freight forwarders can use to create, manage, and send e-AWBs etc.

Connected to over 120 Airlines

(http://www.haffa.com.hk/files/News/P2_IATA_eAWBLink_Carrier_List.XLSX), the key features of

eAWBLink also include tracking shipment status, creating and managing AWB stock, and exporting AWB

and HAWB data.

Source: IATA

However, the major deficiency of eAWBLink is: it DOES NOT have the key feature that can accommodate the

CO-LOAD business which is very common in Hong Kong. HAFFA has reflected this concern to IATA head

office and the IATA representative agreed to investigate and ensure progress was being made to resolve the

issue.

Besides, freight forwarder needs to get consensus from airlines as to whether they accept messages via IATA

eAWBLink in Hong Kong. Interested Members please remember to confirm with your airline partners first

before subscribing the eAWBLink service.

More details about eAWBLink (including pricing scheme) are available at:

http://www.iata.org/whatwedo/cargo/e/eawb/pages/eawblink.aspx/

Should any Members be interested in subscribing the eAWBLink service, please contact Ms. Yvonne Ho of

IATA (Tel: 2862 5932; email: [email protected]) and Ms. Angie Lim of HAFFA (Tel: 2796 3121; email:

[email protected]). In case of enthusiastic response, the Association may negotiate with IATA to strive for

special discount for Members.

Trade Single Window 貿易單一窗口貿易單一窗口貿易單一窗口貿易單一窗口 (SW) - see under Logistics Policy Sub-Committee



LEGAL MATTERS SUB-COMMITTEE

Chairman: AE CARGO SERVICES LTD – Mr. Ronnie Leung


Member: DHL GLOBAL FORWARDING (HONG KONG) LTD

HAFFA Best Practice for Strategic Commodities Handling

It has come to the attention of the Association that a number of Member companies have been prosecuted and

fined for shipping strategic commodities due to no valid licences. In reality, the Members concerned were

unaware that the goods (with generic goods description such as integrated circuits, router) they were instructed

to handle were or consisted of strategic commodities, and only became aware of the problem when the

Customs and Exercise Department (Customs) investigated the cases and made the prosecution after the

shipments were flown weeks or years later.

With the hope of assisting Members in protecting themselves from unintentional committal of such offences,

HAFFA established a best practice (BP015) for Members’ reference and consideration when exercising

“reasonable diligence”.

The Best Practice has been submitted to the Customs’ responsible investigation bureau for information and

reference. The Customs undertakes that they will investigate all cases of non-compliance in a holistic

approach. All evidence will be fully reviewed and legal advice will be sought from the Department of Justice

where necessary in the course of investigation.

The Best Practice, which is available at the HAFFA website

http://www.haffa.com.hk/portal/Page/Default.aspx?id=140, is used on a voluntary and non-binding basis for

Members. It is intended to provide a recommendation for Members to perform reasonable due diligence for

shipment handling. The information inside does not constitute legal advice and in all cases must be tailored to

the specific circumstances of any transaction.

Source: Trade and Industry Department (TID)



LOGISTICS POLICY SUB-COMMITTEE

Chairman: CARGO SERVICES AIRFREIGHT LTD – Mr. Ringo Cheung

Vice Chairman: KORCHINA LOGISTICS (H.K.) LTD – Ir. Elsa Yuen

Members: BEL INTERNATIONAL LOGISTICS LTD

CARGO FREIGHT SERVICES LTD

DIMERCO AIR FORWARDERS (HK) LTD

JET-SPEED AIR CARGO FORWARDERS (HK) LTD





YUSEN LOGISTICS (HONG KONG) LTD

Trade Single Window 貿易單一窗口貿易單一窗口貿易單一窗口貿易單一窗口 (SW)

On 13 April 2016, the Government carried out a three-month public consultation to seek views on the

development of a Trade Single Window (SW) in Hong Kong and related matters.

Source: Customs & Excise Department

The HAFFA Executive Committee met the officials of the Commerce and Economic Development Bureau

(CEDB) and Customs and Excise Department on 19 May 2016 for views exchange. As mentioned in previous

News, the Association fully supported and urged the implementation of SW in Hong Kong as soon as

practicable in order to maintain Hong Kong’s competitiveness.



In response to the public consultation, HAFFA made an official submission to CEDB on 23 June 2016 in

which the Association:

� reinforced support to the SW; � reflected operational concerns; � sought clarification on possible liability issue under pre-shipment declaration; and � expressed the need for the SW to also cater for Business to Business connection in order to genuinely

enhance Hong Kong’s competitiveness.

As a Member’s privilege, the HAFFA submission was uploaded onto the website under “Member Only” area

[After login] http://www.haffa.com.hk/portal/MemberOnly/PositionPapers.aspx

On 25 November 2016, CEDB invited HAFFA for an informal meeting. They thanked HAFFA for the

submission, shared the overall views collected from the public consultation and sought further advice from the

Association. In brief, the trade generally supported the implementation of SW in Hong Kong but shippers’

organizations in particular held serious reservations on the requirement of pre-shipment declaration

(pre-TDEC). They do not accept any requirement more than that of the current Road Cargo System

(ROCARS). Considering the trade’s strong objection to the full pre-TDEC, the Government tended to take a

soft-launch approach to roll out SW in phases.

Required fields under ROCARS

In order to relieve forwarder’s liability, HAFFA also brought out the following suggestions regarding licence

requirement at the meeting with CEDB on 25 November 2016:

� Need trader to make declaration under SW as to whether or not valid licence is required for the shipment; � Platform to link with searching engine for controlled items with enquiry hotline of relevant departments; � Pop-up message to remind trader of the legal implication and consequence of shipping controlled item

without valid licence.

It is expected that more details of the SW implementation will be released by the Government later this year.



MEMBERSHIP SUB-COMMITTEE

Chairman: DIMERCO AIR FORWARDERS (HK) LTD – Mr. Eddie Law

Vice Chairman: BEL INTERNATIONAL LOGISTICS LTD – Mr. Brian Wu

Members: AE CARGO SERVICES LTD


RCS LOGISTICS LTD


A. Membership

HAFFA admitted 12 New Ordinary Members during the year of 2016-2017, their names are listed below:

1. AK Logistics Ltd 7. Pacific Airlift (China) Ltd

2. Andashun Global Supply Chain (HK) Ltd 8. Royale Int’l Couriers Ltd

3. CTS Int’l Logistics Corporation (HK) Ltd 9. Seiyo Global Logistics (Asia) Ltd

4. Dachser Hong Kong Ltd 10. Shine Int’l Transportation (HK) Ltd

5. Forward by Norman Ltd 11. Sinotech Int’l Transportation Co., Ltd

6. Joyspeed Global Cargo (China) Ltd 12. Wen-Parker Logistics (H.K.) Company Ltd

During the year of 2016-2017 the following members ceased to be a member of HAFFA:

1. ADL Express Ltd 9. Norman Express Ltd

2. Capital Distribution Services Ltd 10. OHL (Hong Kong) Ltd

3. Chiao Feng Shipping Ltd 11. Profit Cheer Shipping Ltd

4. China Jet Express Group Ltd 12. Senator Int’l Logistics Ltd

5. Dachser Far East Ltd 13. Transpole Logistics Private Ltd

6. Danzas AEI (HK) Ltd 14. UTi (HK) Ltd

7. Fast Network Logistics Company Ltd 15. Wellsoon Express Ltd

8. Freight Transportation Company Ltd 16. XPO Global Forwarding (HK) Ltd

And the total membership now stands at 318.

B. FIATA Licencee

In addition we authorized the following members to issue the FIATA Documents [including FIATA

Multimodal Transport Bill of Lading (FBL) “as Carrier”, FIATA Multimodal Transport Waybill (FWB) &

Forwarders Certificate of Receipt (FCR)] in Hong Kong:

1. Royale Int’l Couriers Ltd (008)

During the year of 2016-2017 the following members ceased to be FIATA Licencee:

1. Capital Distribution Services Ltd (084) 2. UTi (HK) Ltd (054)

3. XPO Global Forwarding (HK) Ltd (082)

The total number of members authorized to issue FIATA Documents now

stands at 65.



PUBLIC RELATIONS SUB-COMMITTEE

Chairman: A-SONIC LOGISTICS (H.K.) LTD – Mr. Cliff Sullivan



RCS LOGISTICS LTD

I) Key Events with Various Trade Bodies



(Chairman)

Meeting with CEDB on the

Development of a Trade Single

Window

Hon. Frankie Yick,

Legislative Councilor and

Commerce and Economic

Development Bureau

(CEDB)

13/05/2016 Mr. Patrick Yip (Vice

Chairman)

HKQAA Symposium 2016

“Strengthen Business Resilience

with Innovative Perspectives”

Hong Kong Quality

Assurance Agency

(HKQAA)


(Chairman)

Belt and Road Summit Hong Kong Trade

Development Council

(HKTDC)

17/06/2016 Mr. Brian Wu (Vice

Chairman)

Consultation on Development of

Trade Single Window in Hong

Kong

The Hong Kong General

Chamber of Commerce

(HKGCC)


(Chairman) as Judge and

Award Presenter

HKMA 48th Distinguished

Salesperson Award (DSA)

Presentation Ceremony

The Hong Kong

Management Association

(HKMA)


Chairman)

Hong Kong IoT Conference GS1 Hong Kong


Chairman)

HKCTOA 38th Anniversary and

31st Council Inauguration

Ceremony

Hong Kong Container

Tractor Owner Association

Ltd (HKCTOA)

28/06/2016 Mr. Sammy Mak

(Airfreight Sub-committee

Chairman)

Interview on Cold Chain in

China

Hong Kong Polytechnic

University (PolyU)


(Chairman) and Mr.

Sammy Mak (Airfreight

Sub-committee Chairman)

Courtesy visit by the Civil

Aviation Authority of Singapore

Civil Aviation Authority of

Singapore (CAAS)

10-12/07/2016 Ir. Dr. Paul Tsui (Former

Chairman), Mr. Brian Wu

(Vice Chairman and Int’l

Organizations Liaison


and Ms. Alice Lui

43rd FAPAA Executive Council

Meeting (ECM) and Annual

General Meeting (AGM),

Manila, Philippines

FAPAA (please refer to the

Annual Report under

FAPAA Sub-committee)




(Secretariat) as delegates

representing Hong Kong

16/07/2016 Mr. Sydney Chan (Hon.

Secretary), Ir. Elsa Yuen

(Executive Committee)

and Mr. Kenny Cheung

(Alternate Executive

Committee)

HKLMSA 30th Anniversary and

Inauguration of the 15th

Executive Committee

Hong Kong Logistics

Management Staff

Association (HKLMSA)


(Chairman)

Luncheon with Stakeholders in

Port and Maritime Logistics

Industry

Hong Kong Container

Terminal Operator

Association (HKCTOA)

01/08/2016 Ms. Alice Lui (Secretariat) Construction Kick-off

Ceremony for the Three-runway

System of Hong Kong

International Airport

Airport Authority Hong

Kong (AAHK)


(Chairman)

Meeting with CEDB on

Transshipment Facilitation

Airport Authority Hong

Kong (AAHK)


(Chairman)

Consultation on Manpower

Requirement Projection to 2025

(MRP2025)

Census & Statistics

Department


(Chairman), Mr. Patrick

Yip (Vice Chairman) and

Ms. Alice Lui (Secretariat)

HKLMSA 30th Annual Dinner Hong Kong Logistics

Management Staff

Association (HKLMSA)


(Chairman)

Cocktail Reception for the

Celebration of National Day

Hong Kong Media

Preparatory Committee for

the Celebration of National

Day


Chairman)

HKLA 20th Anniversary

Celebration

Hong Kong Logistics

Association (HKLA)


Chairman) as Guest of

Honor to deliver a speech

and Ms Alice Lui

(Secretariat)

The 5th Annual Payload Asia

Gala Dinner & Awards

Ceremony

Payload Asia

29-30/09/2016 Mr. Sydney Chan (Hon.

Treasurer) and Mr.

Raymond Kan (Executive

Committee)

LSCM Logistics Summit 2016 Hong Kong R&D Centre

for Logistics and Supply

Chain Management

Enabling Technologies

(LSCM)


(Chairman)

67th Anniversary of the

Founding of the PRC

Home Affairs Department

03-08/10/2016 Ir. Dr. Paul Tsui (Former

Chairman) as Hong Kong

conference delegate

FIATA World Congress 2016,

Dublin, Ireland

FIATA (please refer to the

Annual Report under

FIATA Sub-committee)


(Chairman)

Logistics Leadership Luncheon Mark Millar





(Chairman), Mr. Brian Wu

(Vice Chairman), Mr.

Patrick Yip (Vice

Chairman) and Mr.



and Secretariat

Study on the Regulation of Fuel

Surcharge in Hong Kong

Civil Aviation Department

(CAD)


(Chairman) as Award

Receiver

2015/16 Family-Friendly

Employers Award Scheme Prize

Presentation Ceremony

Family Council


(Chairman)

22nd Congregation of the Hong

Kong Polytechnic University

(PolyU)

Hong Kong Polytechnic

University (PolyU)

03/11/2016 HAFFA as Supporting

Organization and delegates

GS1 Hong Kong Summit 2016 GS1 Hong Kong

07/11/2016 Ir. Dr. Paul Tsui (Former

Chairman) as Guest

Speaker

Dangerous Goods & Lithium

Battery Workshop 2016,

Guangzhou

International Air Transport

Association (IATA)


Chairman)

Courtesy visit by Frankfurt

Airport Services Worldwide Frankfurt Airport Services

Worldwide (Fraport AG)

08/11/2016 Mr. Ronnie Leung (Hon.

Secretary)

Focus Group for “A Study on

Emissions Trading: Options for

Hong Kong” - Transport Sector

Hong Kong Productivity

Council (HKPC)


(Chairman) as Speaker

and Secretariat

Career Talk by HAFFA HAFFA and HKUST


Chairman)

ECIC 50th Anniversary Cocktail

Reception

Hong Kong Export Credit

Insurance Corporation

(ECIC)

22-23/11/2016 HAFFA as supporting

organization; Executive

Committee Members as

conference delegates

Asian Logistics and Maritime

Conference (ALMC)

Hong Kong Trade

Development Council

(HKTDC)


Chairman)

Cross Strait Shippers’ Alliance

Meeting

The Hong Kong Shippers’

Council (HKSC)


Chairman) and Ms. Alice

Lui (Secretariat)

AVSECO Customer Day

Cocktail Reception

Aviation Security

Company Limited

(AVSECO)

28/11/2016 Mr. Sydney Chan (Hon.

Treasurer)

HKCVTA 53th Anniversary and

28th Council Inauguration

Ceremony

Hong Kong Cargo-Vessel

Traders' Association

(HKCVTA)


(Chairman) and Ir. Elsa

Yuen (Executive

Committee) and

Secretariat

Courtesy visit by the Ministry of

Personnel Management,

Republic of Korea

Ministry of Personnel

Management, Republic of

Korea





Chairman)

資歷架構夥伴嘉許典禮 Qualifications Framework Secretariat (QFS)


(Chairman)

HKEA Annual Christmas

Luncheon 2016 The Hong Kong Exporters'

Association (HKEA)


(Chairman)

工聯會物流及交通行業委員會

十周年晚宴

工聯會物流及交通行業委

員會


(Chairman) as Guest

Speaker

Update on the Recent

Challenges faced by the Freight

Forwarding industry

The British Chamber

Commerce in HK –

Logistics Committee


(Chairman), Mr. Brian Wu

(Vice Chairman), Mr.

Patrick Yip (Vice

Chairman) and Mr.



and Secretariat

Lunch with AVSECO to explore

opportunity for collaboration

under the aspect of aviation

security

Aviation Security

Company Limited

(AVSECO)

11/12/2016 Mr. Joseph Lee

(Recreation & Sports

Sub-committee

Chairman) as Award

Presenter and Secretariat

HAFFA/HKSTLA Bowling

Tournament 2016

HAFFA and Hong Kong

Sea Transport and Logistics

Association (HKSTLA)

11/12/2016 Mr. Sam Chung (Former

Chairman) and Mr.

Danny Wong (Vice

Chairman) as

Coordinator

HAFFA Table-Tennis

Tournament 2016

HAFFA


(Airfreight Sub-committee

Chairman)

Hong Kong Logistics Forum

2016「探討冷鏈物流在網購的

角色」

Hong Kong Logistics

Association (HKLA)


(Airfreight

Sub-committee

Chairman) as Judge

International Forklift and Pallet

Building Competition 2017

Hactl


(Chairman)

GS1 Hong Kong Annual

Member Dinner 2017

GS1 Hong Kong


(Chairman)

Inaugural Ceremony of 2016-18

ROCARS User Liaison Group

Customs and Excise

Department

20/01/2017 Mr. Cliff Sullivan (Chairman) and Mr. Sammy Mak (Airfreight Sub-committee Chairman)

International Customs Day Customs and Excise Department

14/02/2017 Mr. Cliff Sullivan (Chairman)

HKPC 50th Anniversary cum Spring Reception

Hong Kong Productivity Council (HKPC)

14/02/2017 Mr. Sydney Chan (Hon. Treasurer)

HKLSA Annual Cocktail Party Hong Kong Liner Shipping Association (HKLSA)




17/02/2017 Mr. Cliff Sullivan (Chairman) as Judge

HKMA 49th Distinguished Salesperson Award (DSA) Programme

The Hong Kong Management Association (HKMA)

03/03/2017 Mr. Brian Wu (Vice Chairman), Mr. Danny Wong (Vice Chairman) and Mr. Ronnie Leung (Hon. Secretary) and Secretariat

Courtesy Visit by the Ministry of Commerce of the Royal Thai Government

Ministry of Commerce of the Royal Thai Government


HKUST IELM Alumni Dinner cum Annual Gala

HKUST

06/03/2017 Mr. Brian Wu (Vice Chairman)

物流業「資歷架構」十周年慶典暨物流發展新里程研討會

QFS and HKU SPACE


HKSTLA 23rd Anniversary Annual Dinner Party

Hong Kong Sea Transport and Logistics Association (HKSTLA)

15/03/2017 Mr. Cliff Sullivan (Chairman), Executive Committee Members and Secretariat

Consultation on the New ICAO Policy Direction on Aviation Security

Security Bureau (SB) and Transport & Housing Bureau (THB)

06/04/2017 Mr. Cliff Sullivan (Chairman) as Speaker and Secretariat

Career Talk by HAFFA HAFFA and CUHK

06/04/2017 Mr. Sammy Mak (Airfreight Sub-committee Chairman) and Mr. Danny Wong (Vice Chairman) and Secretariat

Consultation Meeting on Temperature Controlled Air Cargo

International Air Transport Association (IATA)

07/04/2017 Mr. Cliff Sullivan (Chairman) as Judge and Award Presenter

HKICT Awards 2017 - Best Smart Hong Kong Award Presentation Ceremony cum Dinner

GS1 Hong Kong

II) Greater China Affairs Delegations / Events

Please refer to a separate detailed report under “GREATER CHINA AFFAIRS SUB-COMMITTEE”.

III) Media and Others

Throughout the year 2016-2017, HAFFA was interviewed by the media on various issues. With the help of the

Executive Committee Members, the PR Sub-committee endeavor to entertain all press enquiries. In making

comments, we adopt a factual, objective approach with the interest of HAFFA members being our first

priority.



RECREATION AND SPORTS SUB-COMMITTEE

Chairman: WORLDTRANS AIR-SEA SERVICE LTD – Mr. Joseph Lee


Member: DIMERCO AIR FORWARDERS (HK) LTD

HAFFA Table-Tennis Tournament, 11 December 2016

With the help of Mr. Sam Chung (Former Chairman) and Mr. Danny Wong (Vice Chairman), HAFFA

organized a Table-Tennis Tournament on 11 December 2016 at Kwun Chung Sports Centre. A total of 10

players signed up for the tournament to contend for six awards in 2 hours of vigorous competition.

Congratulations to the winners, they were:

Singles :

Champion : Mr. Ray Chung - Toll Global Forwarding (Hong Kong) Limited

1st Runner-up : Mr. Philip Lam - World Net Logistics (Hong Kong) Limited

2nd Runner-up : Mr. Danny Wong - Cargo Freight Services Limited

Doubles :

Champion : Mr. Philip Lam

Mr. Andrew Luk

- World Net Logistics (Hong Kong) Limited

1st Runner-up : Mr. Wong Chun Kit

Mr. Ray Chung

- Pretty Fair Freight Limited

- Toll Global Forwarding (Hong Kong) Limited

2nd Runner-up : Mr. Sam Chung:

Mr. Danny Wong

- Former Chairman

- Cargo Freight Services Limited

There was a lot of running around, catching balls and banter between the players. This event was a great

success and all enjoyed the excitement and fun from the Tournament!



HAFFA / HKSTLA Joint Bowling Tournament, 11 December 2016

Supported by the Hong Kong Logistics Association (HKLA) and Hong Kong Logistics Management Staff

Association (HKLMSA), HAFFA collaborated with the Hong Kong Sea Transport and Logistics Association

(HKSTLA) for its sixth year to organize a Bowling Tournament on 11 December 2016 at Magic Fun Bowling

World, Tsuen Wan. A total of 8 teams signed up for the tournament to contend for five awards after four

games.

Congratulations to the winners, they were:

Team Champion - Star Rainbow Logistics Hong Kong Limited

Team 1st Runner-up - Scanwell Logistics (Hong Kong) Limited (Team 1)

Team 2nd Runner-up - Scanwell Logistics (Hong Kong) Limited (Team 2)

Best Female Bowler - Ms. Vicky Fung / Scanwell Logistics (Hong Kong) Limited (Team 2)

Best Male Bowler - Mr. Danny Fung / Star Rainbow Logistics Hong Kong Limited

As a token of encouragement, apart from the nicely-designed trophies, winning teams were also awarded with

cash as prizes. This event offered a wonderful platform for the industry practitioners to strengthen friendship

and all bowlers enjoyed an exciting morning of bowling and fun!



Source: Marine Department

Source: Marine Department

SEAFREIGHT SUB-COMMITTEE

Chairman: JET-SPEED AIR CARGO FORWARDERS (HK) LTD – Mr. Gary Lau

Vice Chairman: ACE PROTRANS FORWARDING LTD – Mr. Sydney Chan


AE EAGLE LOGISTICS HONG KONG LTD




SOLAS Requirement - Verified Gross Mass (VGM) of a Container Carrying Cargo

The amendment to SOLAS (International Convention for the Safety

of Life at Sea) Chapter VI, Regulation 2 regarding the verified gross

mass of a container carrying cargo (packed container) was adopted at

the 94th MSC (Maritime Safety Committee) session in November

2014 for entry into force globally on 01 July 2016.

This amendment requires mandatory verification of the gross mass

of a container prior to loading on the vessels to which SOLAS

Chapter VI applies. Although some exemptions are included (for

roll-on/roll-off vessels amongst others), the vast majority of

containers loaded for export will fall under this new regulation.

In view of the obvious impact on forwarders’ operations, HAFFA

collected many enquiries and concerns from Members, and reflected

to the Marine Department (“MD” - the authority regulates VGM in

Hong Kong) via numerous face-to-face meetings, emails and phone

calls. We also made pragmatic suggestions for the MD to issue

notice to shippers as well as modify the relevant guidelines,

declaration, forms and FAQ etc.

To facilitate Members in compliance with the new regulation, HAFFA, with the input of MD, established three

non-binding Best Practices for Members’ reference, which include:

(1) HAFFA BP 011: Marine Department’s advice on the liability issues under the expression of “O/B” “ABC Forwarder on behalf of...” and “C/O” “....care of ABC Forwarder” on Bills of Lading



Source: http://www.economist.com

(2) HAFFA BP 012: Recommendations for Members that handle FCL containers or outsource the services (physical

cargo acceptance, weighing and consolidation) to the CFS

warehouses and use METHOD 2 for mass verification

(3) HAFFA BP 013: MD’s endorsed guidelines for Members to fill out the Container Mass Declaration under

different modes of operation

For ease of reference, a dedicated webpage with

comprehensive and all useful information including the above

BPs was set up under “INFO CENTRE”>>”SEAFREIGHT”

of the HAFFA website http://www.haffa.com.hk

(http://www.haffa.com.hk/portal/Page/Default.aspx?id=795).

The MD organized a meeting on 23 August 2016 to review the

implementation of VGM requirement. It is gratifying to know

that the new regulation in general runs smoothly since its

implementation.

Hanjin’s Receivership

Following the withdrawal of support from its creditors after a lengthy period of financial distress, the Board of

Hanjin – the world’s seventh biggest container line has decided to proceed with Receivership on 31 August

2016. Dozens of Hanjin Shipping ships carrying what was estimated to be more than half a million containers

were either stranded, unable to dock due to uncertainty over payment of fees, or had been seized by the

company’s creditors.

Members were timely updated of the latest

development of the matter and were recommended

that in case any of the shipments involved Hanjin

Bill of Lading or Hanjin vessel, it was advisable to

keep their customers concerned informed of the

latest update and notify them that there would be

likely to a delay in cargo release at destination and

possible additional cost would be incurred. Besides,

Members were also reminded to seek advice from

their legal advisers and liability insurers in order to

take all appropriate steps to protect themselves and

to secure their cargoes.



In early September, the Association voiced outrage at the handling of the situation resulting from the

receivership of Hanjin Shipping and reflected Members’ grave concerns to the Transport and Housing Bureau

(THB) and Hon. Frankie Yick (Legislative Councilor) respectively. In response to HAFFA’s requests, Mr.

Yick convened an urgent meeting with THB, HIT, HAFFA and other industrial associations on 14 September

2016.

At the meeting, HAFFA brought out many difficulties Members encountered and made official requests to HIT

in order to mitigate the critical situation. In particular, one of the key concerns was that communications from

HIT were not transparent. There was no clear and official written information provided by HIT since the

inception of the matter. Instructions were made verbally only. Members found it confused and almost

impossible when communicating the HIT fees with their customers without any official announcement in such

a chaotic situation.

After lengthy discussions, HIT undertook to issue an official notice on the published rate with the details of

payment method, procedures and hotlines on 15 September 2016. An update on the meeting together with the

HIT notice were disseminated to all Members via News and posted onto the website on the same day. Trust

that this can address the major concerns of Members.

Notwithstanding what the law may say, in a global world like the one we have today, it is difficult to stomach

that a forwarder or shipper has to pay several times higher the value of the freight to get cargo to a safe port, or

worse. Sadly, we are still facing insufficient protection in this area.

Source: Apple Daily



Source: IATA

SME DEVELOPMENT SUB-COMMITTEE

Chairman: KORCHINA LOGISTICS (H.K.) LTD – Ir. Elsa Yuen

Vice Chairman: CARGO FREIGHT SERVICES LTD – Mr. Raymond Chan

Members: BEL INTERNATIONAL LOGISTICS LTD



HAFFA 50th Anniversary Privilege

- Special EzyCargo Packages exclusively for elig