Request for Proposal (RFP) For E-Lock cum Global Positioning System (GPS) Equipment

for Intermodal Transshipment Facilitation Scheme (ITFS)

Customs and Excise Department January 2017

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1. INTRODUCTION

1.1 The Customs and Excise Department (C&ED) of the Hong Kong

Special Administrative Region (HKSAR) makes an open invitation to

suppliers for proposals in providing Electronic Locks and Global

Positioning System (E-Lock cum GPS) equipment and services for

operating the Intermodal Transshipment Facilitation Scheme (ITFS)

under the Road Cargo System (ROCARS).

1.2 This “Request for Proposal” aims to invite suppliers to apply to C&ED

for accrediting E-Lock cum GPS equipment for use under ITFS. This

document is neither a contract nor a tender document.

1.3 ROCARS is an electronic platform for advance cargo data submission

which facilitates customs clearance of road cargo. With the

mandatory implementation of ROCARS on 17 November 2011, C&ED

introduced ITFS to offer facilitation to Air – Land / Sea – Land

transshipment cargoes by simplified clearance process.

1.4 C&ED conducts cargo examination for Air-Land / Sea-Land

transshipment cargoes at the designated points such as the Hong Kong

International Airport, the Kwai Chung Customhouse (KCCH), the

River Trade Terminal Building or the corresponding land boundary

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control points to provide facilitation.

1.5 Shippers or logistics companies of transshipment cargoes are eligible

to join ITFS in a voluntary basis provided that their vehicles are

equipped with the E-Lock cum GPS equipment.

2. APPLICATION OF E-LOCK CUM GPS EQUIPMENT

2.1 Under ITFS, the E-Lock cum GPS equipment helps C&ED to monitor

and secure the integrity of the transshipment cargoes processed during

the journey in Hong Kong. An E-lock is attached to the cargo

compartment/container of a vehicle conveying the transshipment

cargoes for locking up mechanically and electronically while a set of

GPS equipment is installed on the vehicle for monitoring the intactness

of the E-Lock and tracking of the vehicle’s routing.

2.2 The E-Lock and GPS equipment provided by the Accredited Suppliers

listed on the ROCARS Website (www.rocars.gov.hk) are regarded to

have met the requirements of C&ED for use under ITFS.

2.3 The E-Locks attached to the cargo compartment/container of the ITFS

vehicles conveying non-constrained cargoes shall be activated

automatically once the vehicles passing by the E-lock readers equipped

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in the designated locations of the entry points of the cargoes. The

GPS equipment installed on the vehicles shall be connected with the

activated E-lock to monitor its intactness and the routing of the vehicle.

Alert messages shall be generated in the monitoring platform of C&ED

in the following four circumstances:-

(a) the activated E-Lock has been tampered with;

(b) no electronic signal of the E-Lock and GPS is being detected;

(c) the vehicle with the activated E-Lock is deviated from the

designated route; and

(d) the vehicle with the activated E-Lock stays at a location longer

than the buffering time.

2.4 For the Southbound constrained cargoes, cargo examination shall be

conducted in a designated checkpoint specified by C&ED and the

E-locks shall be deactivated by officers of C&ED with handheld

devices. On the other hand, the Northbound constrained cargoes shall

be processed at the points of import before loading to the ITFS

vehicles for exportation.

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2.5 For non-constrained / Customs-cleared cargoes, the E-Locks shall be

deactivated automatically once passing through the exit points for

exportation. In case of any irregularities detected, the

auto-deactivation function of the E-Lock shall be disabled by C&ED

and the drivers shall contact the C&ED officers stationed at the exit

points for deactivation of the E-locks and further Customs clearance.

2.6 Different Types of Equipment

The Accredited Suppliers shall be capable of supplying the following

equipment under ITFS:–

(a) E-Lock

E-Lock shall be designed to secure a closed door of the cargo

compartment/container on a goods vehicle and operate by

wireless technology;

(b) E-Lock Reader

Fixed devices for activation and de-activation of E-Lock shall be

installed at the designated areas of all land boundary control

points, cargo terminals of the Airport (including Super Terminal 1,

Express Cargo Terminal, Asia Airfreight Terminal, DHL Central

Asia Hub and Cathay Pacific Air Cargo Terminal), sea cargo

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terminals (including Modern Terminals Ltd (MTL), Hongkong

International Terminals Ltd (HIT), COSCO-HIT, DP World and

Asia Container Terminals Ltd (ACT)), River Trade Terminal and

Kwai Chung Customhouse;

(c) GPS equipment installed at vehicles

GPS equipment shall be installed on registered vehicles and

connected with the E-Lock so as to monitor the intactness of

E-Lock and to keep track of the vehicle;

(d) GPS monitoring system interface

GPS monitoring data shall be provided and interfaced to the

platform of C&ED for keeping track of the status of E-Locks and

the movement of the registered vehicles.

(e) Handheld Device

Handheld devices shall be furnished for manual activation or

de-activation of the E-locks by C&ED officers in case of need.

3. SPECIFICATION

3.1 Detailed technical specifications of the E-Lock cum GPS equipment

are at Annex A.

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3.2 In case of system enhancement and technology refreshment required by

C&ED, the Accredited Suppliers shall comply with the technology

requirement from C&ED.

4. PROPOSAL

4.1 Interested suppliers are invited to submit a proposal to C&ED for

consideration.

4.2 Suppliers are required to provide samples of their E-Lock cum GPS

equipment for trials of C&ED and its technical consultant. After

authentication, the qualified suppliers may be approved as the

Accredited Suppliers under ITFS.

4.3 The Accredited Suppliers shall provide C&ED with the requisite

equipment as listed in items (b), (d) & (e) of paragraph 2.6. All costs

of installation, maintenance and servicing of the equipment shall be

covered by the Accredited Suppliers.

5. SUBMISSIONS OF PROPOSAL

5.1 Submissions shall be made by using the Proposal Form outlined in

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Annex B which can be downloaded from the ROCARS websites –

www.rocars.gov.hk.

5.2 One hardcopy and one softcopy of the Proposal shall be sent by courier

or registered mail to the following address.

Customs and Excise Department

Road Cargo Research Division

Room 3005, 30/F,

Customs Headquarters Building,

222 Java Road, North Point, Hong Kong

5.3 All proposals shall be marked as “Proposal for E-Lock cum GPS

Equipment for ITFS (CONFIDENTIAL)”.

6. DISCLAIMER

6.1 C&ED has the absolute discretion to accept or reject supplier as the

Accredited Supplier without obligation to give reason thereof.

6.2 C&ED reserves the rights to retain the proposals submitted without

liability of bearing costs of such documents.

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6.3 C&ED bears no responsibility for any damage of sample E-Locks and

GPS equipment provided by suppliers for accreditation.

6.4 C&ED constitutes no liability on any commercial deals under ITFS.

7. CONFIDENTIALITY

7.1 All proposals submitted by the E-Lock cum GPS equipment suppliers

and the relevant test results on their equipment shall be kept by C&ED

in strict confidentiality.

8. NOTIFICATION OF RESULTS

8.1 Proposal submitted to C&ED will be processed in due course once

received. Notification of receipt will be sent to the Contact Person

listed in the proposal via email.

8.2 Testing on the equipment will be arranged after vetting of the proposal

and notification of the testing result in writing will be sent to the

equipment suppliers within one month after testing.

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9. MEMORANDUM OF UNDERSTANDING

9.1 The Accredited Suppliers will be invited for signing a Memorandum

of Understanding with C&ED on the arrangement under ITFS.

10. CONTACT DETAILS

10.1 Enquiries regarding this Request for Proposal can be made to

Road Cargo Research Division at 3759 2176 or at e-mail address

rocars_enquiry@customs.gov.hk.

Customs & Excise Department

January 2017

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CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

香港海關

Technical Specifications of E-Lock cum GPS Equipment 1. SCOPE This Technical Specifications define the functions of E-Lock cum Global

Positioning System (GPS) which are required by C&ED in the Intermodal Transhipment Facilitation Scheme (the Scheme). It also stipulates the performance standards for E-Lock in delivering these functions.

2. THE E-LOCK 2.1 General The E-Lock shall be designed to secure a closed door of the cargo

compartment/container on a goods vehicle.

It shall be strong and reliable so as to provide a degree of resistance, at a

level to the satisfaction of C&ED, to intentional and unintentional attempts

to open it.

It shall be capable of detecting and evidencing breakage of its sealing mechanism.

2.2 Mechanical Characteristics 2.2.1 Physical strength The physical strength of the E-Lock shall reach the standard for high

security seals prescribed in ISO 17712, Freight containers – Mechanical seals.

Annex A

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

香港海關

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2.3 Electrical Characteristics 2.3.1 Operating range The E-Lock shall be able to be locked/unlocked by non-contact means, with

an operating range and a penetrating power that suffice the operation at following sites:-

(a) Customs kiosk at land boundary control points;

(b) Cargo examination compound at land boundary control points; (c) Ports and maritime terminals; (d) Kwai Chung Customhouse; and (e) Cargo terminals at Hong Kong International Airport.

2.3.2 Response time The locking/unlocking of E-Lock shall be completed in no longer than 12

seconds.

The locking/unlocking of E-Lock is preferred to be completed within 8

seconds.

2.3.3 Operating frequency The E-Lock shall comply with relevant statutory provisions in establishing

telecommunications in Hong Kong.

The E-Lock may use 433MHz, 315MHz or 2.4GHz frequency band in its

operation.

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HONG KONG

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NOTE: The use of frequency bands in Hong Kong are subject to conditions and restrictions imposed by the Office of the Telecommunications Authority

(OFTA).

2.4 Battery Requirements 2.4.1 Self-contained battery source The E-Lock shall be powered by a self-contained battery source.

2.4.2 Battery life The battery source, when fully charged, shall be capable of supporting the

continuous operation of an activated E-Lock for not less than 120 hours.

2.5 Functional Characteristics 2.5.1 Activation/de-activation Activation / de-activation of the E-Lock shall be performed automatically

when the E-Lock is located within the operation range of the designated

E-Lock readers.

Activation and de-activation of the E-Lock, whether authorized or

unauthorized, shall trigger an update message to be sent to Customs via the

Data Exchange Interface.

2.5.2 Tamper alert Breakage of the sealing mechanism of the E-Lock shall trigger an instant

alert message to be sent to Customs via the Data Exchange Interface.

When the signal of the E-Lock or GPS is being “jammed”, an instant alert

message shall be sent to Customs via the Data Exchange Interface.

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

香港海關

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2.5.3 Indicator light The E-Lock shall have visible indicator light(s) to show its locking status.

Successful locking/unlocking of the E-Lock shall be clearly indicated by

distinctive signals.

2.6 Restriction on Remote Control Locking and unlocking of the E-Lock shall be operated by fixed equipment

installed at prescribed sites only.

Except those possessed by Customs, other mobile device which is capable

of locking/unlocking the E-Lock is forbidden.

3 GLOBAL POSITIONING SYSTEM (GPS) 3.1 General A GPS equipment / On-Board Unit (OBU) shall be linked to the E-Lock for

monitoring the status of the E-Lock and the movement of the registered

vehicle.

The GPS equipment shall be capable of reporting positioning data to an

information platform and receiving enquiry from the information platform

via telecommunication means. 3.2 Receiver Sensitivity Receiver sensitivity of the GPS module shall be below or equal to

-120dBm.

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

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3.3 Accuracy Position error of the GPS equipment shall not exceed 15 meters at the 95

percent confidence level.

3.4 Refresh Rate The GPS equipment shall be capable of refreshing and submitting

positioning data to the information platform at intervals of every 10 seconds or less.

3.5 Time to First Fix (TTFT) Cold start: Computation of position fix shall be completed within 60

seconds after power on.* Hot start: Computation of position fix shall be completed within 10

seconds.* (*Under normal operating conditions.)

3.6 Battery Requirement The GPS equipment shall be backed up with an independent battery source,

which will support the operation of the equipment when the vehicle is switched off. The battery source, when fully charged, shall be capable of supporting the

continuous operation of the GPS equipment for not less than 8 hours.

3.7 Post Reporting When connection with the information platform cannot be established, the

GPS device shall be capable of recording the positioning data in its internal

memory, and shall submit the record to the information platform upon

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

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resumption of the network.

3.8 Auto Activation / Deactivation Operation Triggering When the e-lock equipment devices are within the effective RF operation

range of designated E-Lock readers, the E-Lock auto activation /

deactivation process shall be triggered.

3.8.1 Guard Period Some control points / terminals may only be able to offer one single

location for activation / deactivation E-Lock reader(s) to be installed. In

such case, the auto activation operation shall be triggered and conducted

when the E-Lock is in unlocked state and the GPS equipment has just

entered the effective RF operation range of the E-Lock reader. Similarly,

auto deactivation operation shall be triggered and conducted when the

E-Lock is in locked state and the GPS equipment has just entered the

effective RF operation range of the E-Lock reader.

To prevent the E-Lock from switching between locked and unlocked states

like an infinite loop when the E-Lock is placed within the RF coverage area

of a reader(s), a guard period mechanism shall be implemented. It means

once an auto activation or auto deactivation operation has been finished for

an E-Lock, then the E-Lock should not be triggered for auto activation or

auto deactivation during the guard period. The guard period starts counting

from the completion time of the latest auto activation / auto deactivation

operation. Currently, the value of the guard period is suggested to be 3

minutes. Please note that supplier may be required to change this value as

requested by C&ED.

3.9 Indicator The On-Board Unit (OBU) shall have an indicator, e.g. a red light or

on-screen display, to reflect the locked / unlocked state of the E-Lock.

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

香港海關

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The On-Board Unit (OBU) shall also have an indicator to inform the driver

in case of failure on performing auto activation / deactivation at designated

locations.

4 HANDHELD DEVICE

4.1 General

A handheld device shall be linked to the E-Lock for performing manual

operation.

4.2 E-Lock Communication

The handheld device shall communicate with E-Lock directly, instead of

going through the On-Board Unit (OBU).

The handheld device shall be able to communicate with E-Lock within 2

meters.

4.3 Login

The handheld device shall not have a login feature.

4.4 Main Screen

The following functions shall be accessible through the main screen:

- E-Lock Locking

- E-Lock Unlocking

- Enable Auto Deactivation

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

香港海關

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- Disable Auto Deactivation

- E-Lock Inspection

- Configuration / Administration Functions

4.5 E-Lock Locking and Unlocking

The handheld device shall be able to perform E-Lock locking and unlocking

operation manually.

4.6 Enable / Disable Auto Deactivation

The handheld device shall be able to enable / disable E-Lock auto

deactivation.

After inspection and user confirmation, auto deactivation shall be disabled

for the E-Lock inspected.

When an E-Lock has been locked / unlocked manually by using a handheld

device, auto deactivation shall be enabled for such E-Lock.

4.7 E-Lock Inspection

When being used to inspect an E-Lock, the handheld device shall display

the E-Lock number, OBU number and the corresponding vehicle

registration mark.

4.8 Configuration / Administration Functions

Configuration / Administration functions shall be either protected by

password or disabled.

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

香港海關

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5 HONG KONG INTERNATIONAL AIRPORT (HKIA)

TERMINALS / PORTS AND MARITIME TERMINALS 5.1 E-Lock Locking / Unlocking

E-Locks locked at HKIA / maritime terminals shall not be unlocked by any readers located at HKIA / maritime terminals, respectively. E-Locks unlocked at HKIA / maritime terminals shall not be locked by any readers located at HKIA / maritime terminals, respectively; except under the following condition:

- The E-Lock has been physically unlocked and then physically locked. Handheld device shall be able to perform E-Lock locking / unlocking

operation at all time.

6 DATA EXCHANGE INTERFACE 6.1 General The interface enables information interoperability between the information

platform of the supplier and the C&ED information system. Information

such as GPS position update, E-Lock activation / de-activation operation,

E-Lock activation / de-activation key and tamper alert is to be exchanged

through the interface. Please refer to the specification for details.

7 TESTING AND ACCEPTANCE 7.1 General E-Locks to be used in the Scheme shall be shown, to the satisfactory of

C&ED, that they meet the requirements set down in this Specification.

CUSTOMS AND EXCISE DEPARTMENT

HONG KONG

香港海關

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7.2 Accreditation Supplier of E-Lock may be required to produce a test report issued by a

recognized testing authority to show that the E-Lock meets the International

Standards prescribed in this Specification.

7.3 Testing The E-Lock will be subjected to laboratory and field tests conducted by

C&ED or an organization appointed by C&ED.

The E-Lock shall meet all the requirements prescribed in this Specification in the normal environment of the prescribed sites.

8 OTHER REQUIREMENTS 8.1 Legal Compliance Users shall ensure the E-Lock and GPS equipment they use are in

compliance with relevant statutory provisions in Hong Kong. They are also advised to comply with the laws of other jurisdictions in which the E-Lock and GPS equipment will be used outside Hong Kong.

8.2 Support Accredited Suppliers are required to provide 7 x 24 technical support

service for C&ED.

8.3 System Enhancement In case of system enhancement and technology refreshment required by

C&ED, the Accredited Suppliers shall comply with the technology requirement from C&ED.

Proposal by

{ Name of Company}

For E-Lock cum Global Positioning System (GPS) Equipment

for Intermodal Transshipment Facilitation Scheme (ITFS)

Annex B

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1. Company Information

Company Name

Company Address

Telephone

Fax

Company website

Business Registration Number

Date of Registration

2. Contact Person

Name

Title

Telephone

Fax

E-mail

3. E-Lock cum GPS equipment supplier’s Experience

Please provide details on supplier’s experience in delivery of

projects/products in the industry.

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4. General Information on E-Lock and GPS equipment

5. Technical Specifications of E-Lock cum GPS equipment

Please provide the technical specifications of your products. Please specify

the compatibility / non-compatibles with the specifications set in Section 3 of

the Invitation of Proposal.

6. Competitive Advantage

Please provide details of the technical advantage/special feature(s) of your

products or any value-added service you may offer.

7. Constraint and Limitation Declaration

Please provide (if any) details of constraints/limitations of the product and

services rendered.

8. Security Measures

Please provide details on security measures adopted to prevent hacking of

technology of E-Lock cum GPS equipment.

9. Project Schedule

Please formulate a detailed project schedule on the installation of the

equipment, the testing of the products and the training schedules on the

application of E-Lock cum GPS equipment.

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10. Remarks

Please provide any other relevant information that may cause significant

impact on C&ED’s consideration on this proposal.

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