UNESCAP-UNECE CAPACITY BUILDING WORKSHOP ON

TRADE FACILITATION IMPLEMENTATION FOR

ASIA AND THE PACIFIC REGION

17 – 18 March 2005, Kuala Lumpur, Malaysia

Single Window Development and Implementation

Experience of Hong KongPeter Stokes, CEO, Digital Trade and Transportation

Network Ltd Gurudutt Ponnathar, Head, eTRADE

SOLUTIONS, Axway Asia Pacific

UNECE UN/CEFACT

Digital Trade and Transportation Network (DTTN) Business drivers

DTTN’s mission is enhance the productivity and competitiveness of Hong

Kong's trading community by making available

o Purchase Process (Purchase / Sales Order; Order Confirmation)

o Get products ready for delivery (Packing List / ASN; Commercial Invoice; Inspection

Certificate; Insurance)

o Local and overseas transportation (Booking; Shipping order; arrival notices; transport docs -

Master / house waybill - sea / air; cargo receipt; transport set; EIR; delivery / release order)

o Local and overseas transportation (Booking; Shipping order; arrival notices; transport docs -

Master / house waybill - sea / air; cargo receipt; transport set; EIR; delivery / release order)

o Settlement Process (Letter of Credit; Company Guarantee; Bill of Exchange; L/C collection

letter; document arrival notice)

o Key document ownership transfer & “print right” with local on-line payments (transport

documents e.g EIR; local trade services invoice; payment instruction / confirmation)

UNECE UN/CEFACT

Guiding Principles

Neutrality Non-exclusivity Transparent, accountable & responsible

operations Minimum intervention to any participant’s

business processes & relationships Facilitate & respect market forces Easy to access & use

UNECE UN/CEFACT

Three Layer DTTN Model

Source: Study for the Development of a Digital Trade and Transportation Network (DTTN) System to Support the Development of Hong Kong as an International Logistics Hub, Final report November 2002

UNECE UN/CEFACT

Community Role of the DTTN

DocumentExchange &

Transformation

CommunicationsGateway

CustomerManagement

SecurityServices

Support & Operations

Management

WebServices

DTTN Core Messaging Infrastructure

SellersSellers Carriers / Portals(Inttra, GTNexus)

Carriers / Portals(Inttra, GTNexus)BuyersBuyers Freight

Forwarders

FreightForwarders

Banks & Financial

Institutions

Banks & Financial

Institutions

TerminalsTerminalsInspection Agencies

Inspection Agencies

Insurance Institutions

Insurance Institutions

Government& Agencies

Government& Agencies

Value AddingService

Providers

e.g. Tradelink

R egional/G lobal Service

Providers

UNECE UN/CEFACT

Status (1/2) The development and operation of the non-

exclusive DTTN awarded to Tradelink (http://www.tradelink.com.hk/)

Tradelink set up subsidiary “Digital Trade and Transportation Network Ltd”, to be owned:o 51% by Tradelinko 21% by Governmento 28% by industry associations

Established DTTN Standards Advisory Group o Following UBL methodologyo Endorsed structures of 15 commercial documents

UNECE UN/CEFACT

Status (2/2) Status (2/2)

Design and Development has commenced with target to launch the DTTN pilot by end 2005

Planning to interconnect with shippers, buyers, trade service providers, and international service providers for participation in the Pilot:

The pilot is to be a showcase of the potential benefits of DTTN

After the pilot, intend to use the pilot showcase as a platform to launch a “critical mass” marketing program

UNECE UN/CEFACT

What are the costs to use DTTN?

Low-Cost Community Infrastructure Charges based on each successfully

transformed and delivered document Initial connectivity, annual & customisation

fees will apply Final pricing details to be determined closer

to launch

UNECE UN/CEFACT

What are the business benefits of DTTN? Cut operation costs through reduced delays, double

handling / data entry & minimized errors

Save time and cost for document delivery

Better financial management, for example: credit, cash flow

Easy, cheap & fast to interconnect with trading partnerso any-to-any protocol & document transformation

Retain existing business against competitiono more timely and accurate, with value-added services

Significant business and efficiency opportunitieso just-in-time supply chain management

o e-access to more trading partners

UNECE UN/CEFACT

Structure and services

Source: Study for the Development of a Digital Trade and Transportation Network (DTTN) System to Support the Development of Hong Kong as an International Logistics Hub, Final report November 2002

UNECE UN/CEFACT

ArchitectureAccess Channels

ebXMLSecure HTTP

ebXMLSecure E-mail

E-mail Client

Web Browser

TradelinkClient Support

Secure MessageOver SMTP

Secure MessageOver HTTP

Secure FTP

Load

Bala

nce

r an

d H

ard

ware

&

Softw

are

DTTN

Gate

ways

MessageTransformation

MessageProcessing

MessageRouting

Business Activity MonitoringEnd-to-End Logging and Tracking Services

Com

mu

nica

tion

Gate

ways

FTP, S

MTP, H

TTP

DTTN WebPortal

Services&

Applications

Security Services

Trade PartnerManagement

StorageServices

User ProfileManager

ReportingAnalysis

CustomerCare

Gate

ways

OtherServices

UNECE UN/CEFACT

Technology and Interoperability

Source: Study for the Development of a Digital Trade and Transportation Network (DTTN) System to Support the Development of Hong Kong as an International Logistics Hub, Final report November 2002

UNECE UN/CEFACT

G2B/Customs

EDI

Back-end govt,Customs, govt depts

Phase 1

EDI/XML

Additional service providers

Phase 2

Evolution of National Level Trade Facilitation Networks in Hong Kong

Trade Declaration Digital Trade and

Transportation Network Electronic Manifest

Time2002-20041997 2005

ebXML

Community Platform

EDINTebXML

Private Hub

Phase 3

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UNESCAPUNECE

UN/CEFACT