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UNeDOCS Awareness & Technical

Workshop 2006

The Digital Trade and Transportation Network

Justin Yue

CEO, Tradelink Electronic Commerce Ltd31 May 2005

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Agenda

Tradelink Highlights Digital Trade and Transportation Network (B to B)

– The Genesis

– Functions and Features of the DTTN

– Benefits

- Model for International Connections

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Tradelink Highlights

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Tradelink’s Electronic ServicesTrade Related Government Services as the Basic Building Block

All Traders Import & Export Declaration Certificate of Origin Dutiable Commodities Permit Shipping Order Service / AMS Trader Documentation Service

for Regional/Global Trade China Processing Trade/Cross

Border Documentation Service

Textile Traders & Manufacturers

Production Notification Textile Trader Registration

Scheme (TTRS) Notifications Certificate of Origin

Forwarders & Carriers Shipping Order Manifest Textile Trader Registration Scheme Notifications

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Mainly officially required trade documents

through Government mandating their use

Market penetration

– Over 54,000 company subscribers

– 18 million transactions/year

– All documents digitally signed & encrypted

for open network transmission, using

recognized Digi-Sign Certification Service’s

certificates

Tradelink Highlights

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The Digital Trade and Transportation Network (DTTN)

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Development Roadmap of DTTN

2003

Aug 2005

by end of 2005

2006

Government becomes directshareholder of DTTN with29.17% shareholding*

15-year operating agreementsigned

Pilot run

Tradelink selected by the Governmentas developer and operator of DTTN

Full commercialisation

* Subject to the approval by the Financial Committee of the Legislative Council

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• Developed Canonical XML Structures for major international/local trade documents covering trade, logistics and finance

• The DTTN Standards Advisory Group, comprising relevant industry associations, has reviewed and endorsed over 80 documents

• Explore possibility to align DTTN transport related document structures with UNeDOCS under the UN/CEFACT framework

DTTN to Support Over 80 Electronic Documents for the Whole Supply-Chain (1)

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DTTN to Support Over 80 Electronic Documents for the Whole Supply-Chain (2)

Purchase Process Purchase / Sales Order, Order Confirmation

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

Delivery

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

Local and OverseasTransportation

Government Trade Documents Export / Import Licence,Customs Clearance,Certification of Origin etc.

Financial Settlement Letter of Credit, Company Guarantee, Bill of Exchange,L/C collection Letter; Document Arrival Notice

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Electronic message transformation services

Statistical and analytical reporting services

Data inheritance services

Information security services

Electronic message routing services

Portal services

Functional Blueprint of DTTN

Rich array of capabilities for messaging, documents, transactions, payments, security etc.

SellersInspectionAgencies

Banks &Financial

Institutions

FreightForwarders

Buyers

Government& Agencies

CarriersInsurance

InstitutionsTerminals

DTTN Key Services Offering

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DTTN User Interface

A simple direct connection with the customer’s FMS/ERP/SCM using existing external interfaces with no or minimal system changes

Standard Excel spreadsheets for SMEs which are easily customizable according to your needs

Through the DTTN Portal to access a suite of user friendly web-based functions covering enquiries, reports, audit trails and messages / document download

Connects to application service providers’ services via DTTN’s Single Sign-On function which users can easily manage over the DTTN Portal

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Benefits of the DTTN Reduced operation costs through reduced delays, double handling / data entry &

minimized errors

Reduced time and cost on document deliveries

Better financial management such as tighter credit control and improved cash

flow

Easy, cheap & fast to interconnect electronically with trading partners and

automate their supply chain

Retention of existing business against competition with more timely, accurate

information and value-add services

Significant business and efficiency opportunities through “Just in time” supply

chain management and e-access to more trading partners

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ProgressProgress

• Phase 1 of the construction of the platform completed

• Pilot phase started since 28 December 2005, and select pilot users being activated and sending live transactions

• Full commercialisation later in 2006

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DTTN Model for Worldwide Interconnections

Oversease-LogisticsPlatform(s)/ or Direct

Buyers

Hong Konge-Logistics

Hubs(DTTN)

1a. PO

OverseasSuppliers

OverseasBuyingOffices

Nationaland regional e-Logistics

Hubs

1a. PO

2a. SO, CI, PL

2d. BL

1a. PO

2a. SO, CI, PL

2b. SO Confirmation

2b. SO Confirmation

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

3a. BL, CI, PL

3a. BL, CI, PL

InternationalCarriers /

Forwarders

2a. SO, CI, PL

1a. PO (copy)

2b. SO Confirmation

2d. BL

2d. BL

3a. BL, CI, PL

3a. BL, CI, PL4. Cargo Status,Shipment Advice

4. Cargo Status,Shipment Advice

4. Cargo Status,Shipment Advice

2d. BL

4. Cargo Status,Shipment Advice

1b. draft import customsdocuments (for import

of raw materials)

1b. draft importcustoms documents

1c. import customsdocuments

OverseasCustoms1c. import customs

documents

3b. draft importcustoms documents

(if export via HK)

3b. draft importcustoms documents

(if export via HK)

Hong KongGovernment

3c. import documents

Overseas Customs

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The Digital Express Link to your Business Partners Worldwide

www.tradelink.com.hkwww.hk-dttn.com