1st APEC e-Commerce Business Alliance Forum
TRADELINK:
A SUCCESSFUL CASE STUDY OF
PAPERLESS TRADE AND
ELECTRONIC COMMERCE
Wednesday 16 June 2004
Justin YUE
Chief Executive Officer
Tradelink Electronic Commerce Limited
Agenda
Tradelink Highlights
Tradelink’s Electronic
Services
Pan Asian e-Commerce Alliance
Digital Trade and
Transportation Network
Tradelink’s Mission

To help Hong Kong maintain its
international competitiveness through
the use of Electronic Commerce

To jump start HK’s adoption of
Electronic Commerce
Tradelink’s Shareholders

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
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
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The HKSAR Government
The Hongkong and Shanghai Banking
Corporation Ltd (HSBC)
Pacific Century CyberWorks (PCCW)
China Resources (Holdings) Ltd
Hong Kong Air Cargo Terminals Ltd (HACTL)
Modern Terminals Ltd (MTL)
Swire Pacific Ltd
TAL Apparel Ltd (TAL)
Hongkong International Terminals Ltd (HIT)
The Hong Kong General Chamber of Commerce
(HKGCC)
The Federation of Hong Kong Industries (FHKI)
Standard Chartered Bank
Hong Kong Association of Freight Forwarding
and Logistics Ltd (HAFFA)
42.49%
8.78%
8.78%
5.30%
5.30%
5.30%
5.30%
4.73%
4.69%
4.08%
3.48%
1.55%
0.22%
Tradelink Highlights


7 year franchise (1997 - 2003) for specified
Government trade documents, with license
confirmed for 2004 - 2008
–
Over 53,000 company subscribers
–
17 million transactions/year
–
All documents digitally signed & encrypted for
open network transmission
Customer Hotline and Training
–
Dual call centers
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Three tier with 100 + staff
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Sophisticated Customer Relation Management
System
–
Dedicated training centers
Tradelink Highlights

Network of 26 Service Centers
–
Conversion of Paper documents to
electronic form
 Certification Authority
–
Signature and Encryption Certificates
–
Subsidiary “Digi-Sign Certification
Services” recognized under the ETO
Agenda
Tradelink Highlights
Tradelink’s Electronic
Services
Pan Asian e-Commerce Alliance
Digital Trade and
Transportation Network
Typical HK Business Process
Regional Supplier
HKSAR Border
Checkpoint
Government
Export
Documents (5)
PRC Border
Checkpoint
Customs
Documents (6,7)
Regional
Government
(2) Factory Order
Hong Kong
Trader
Overseas
Government
(6) Raw Material
Shipment Documents
(7) Finished Goods
Shipment Documents
Government Trade
Documents (5,8)
Government
Import
Documents
Overseas
(US/Europe) Buyers
Customs
Documents (6,7)
Logistics
Providers
Terminals
Banks
HKSAR
Government
PRC
Factory
Processing
Contract
Pre-Declaration
(Customs)
PRC Government
Tradelink’s Electronic Services
Aim to Facilitate this Process
Tradelink’s Role as e-Business Magnet in
International Trade Transactions
Air
Terminals
Insurers
(ECIC)
Inspection
Agencies
Govt Depts
US
Customs
Banks
Tradelink & Partners
Establish
Market
Channel
-Web Hosting
-Pan Asian
Portal
Negotiate
Contract
-Export Credit
Insurance
Declaration
-Purchase Order
Prepare
Products
-Production
Notification
-Certificate of Origin
-Outward Processing
Arrangement
-China Cross Border
Documentation
-China Processing
Contracts
Arrange
Logistics
-Carrier
-Textile Quota Licenses
Notification
-Electronic Visa Copy
-Shipping Order
to US Customs
-Bill of Lading /
-Trade Declaration
Forwarder Cargo -Dutiable Commodity
Receipt (Draft)
Permit
-Packing List
-Manifest
-Advanced Shipment-TTRS Notification
Notice
Pan-Asia E-Commerce Alliance
Overseas
Buyers
Sellers
HK Traders
- Current Connections
China
Traders &
Manufacturers
Comply
with
Regulations
Settle
Payment
-Commercial Invoice
-Packing List
-Insurance Certificate*
-Inspection Certificate*
-Proof of Delivery
-Bill of Lading
(Title)
Bolero
Container
Terminals
- Future Connections
Carriers
Forwarders
* Under Development
Tradelink’s Electronic Services
Trade Related Government Services as the Basic Building Block
Textile Traders
& Manufacturers
All Traders
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Import & Export Declaration
Certificate of Origin
Dutiable Commodities Permit
Shipping Order Service
Trader Documentation Service for
Regional/Global Trade
China Processing Trade/Cross Border
Documentation Service
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Restrained Textile Export
Licence
Carrier Notification and
Electronic Visa Copy to US
Customs
Production Notification
Textile Trader Registration
Scheme (TTRS) Notifications
Forwarders & Carriers
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Carrier Notification
Shipping Order/AMS/ACI
Manifest
Textile Trader Registration Scheme Notifications
Benefits to the Hong Kong Trading Community
Before
After
 Paper Documents

Electronic messages
 Each document needed to be
prepared separately

Same data can be re-used for
different documents
 Delivered to Government
centers by post, by courier, or
in person

Electronic documents sent via
direct dial-up or Internet
 Documents accepted only
during office hours (9:00 a.m.
to 5:00 p.m.) on weekdays

24 hours x 7 days a week
 Manual processing of paper
documents takes time

Automated computer
processing of electronic
documents is much quicker
 Manual payment by cash,
cheque or stamps

Computerised bank
settlement process
Agenda
Tradelink Highlights
Tradelink’s Electronic Services
Pan Asian e-Commerce Alliance
Digital Trade and
Transportation Network
Pan Asian e-Commerce Alliance (1)
Established in July 2000, aims to secure cross border
electronic services for efficient global trade and logistics
Members
No. of Customers
CIECC (China)
10,000
KTNet (Korea)
25,000
CrimsonLogic (Singapore)
25,000
Trade-Van (Chinese Taipei)
15,000
Tradelink (Hong Kong)
53,000
DagangNet (Malaysia)
2,000
TEDMEV (Macau)
2,000
TEDI Club (Japan)
___________
132,000
Pan Asian e-Commerce Alliance (2)

Initiatives
Trust in cross border transactions through:
–
Legal framework for electronic Cross Border
trade transactions
–
Mutual Recognition of Digital Certificates
amongst members of the Alliance, Six
Certification Authorities recognized (HK,
Taiwan, Korea, Singapore, Japan, China)

Secure Cross Border Trade Transaction
Service between HK and Taiwan in operation
with pilots in place between Japan, Korea,
Singapore and Malaysia

PAA Portal (www.PAA.net)

Logistics Tracking
Pan Asian e-Commerce Alliance (3)
Cross Border Transaction Services

Provides complete set of electronic commercial
documents that meets the specific requirements of
driving organizations in transacting with their local
and overseas partners.
e.g. PO, Invoice, Packing list, Advanced Shipment
Notice, Inspection certificate, SO, SI, Waybills etc.

One platform to transact with all partners

Direct integration to operational systems
Pan Asian e-Commerce Alliance (4)
Example Services In Operation

Hong Kong – Chinese Taipei / China
– Major garment manufacturer (TAL) & suppliers

Chinese Taipei - Japan / Korea
– Formosa Plastics with Mitsubishi in Japan and Korean
suppliers

Korea - Japan
– Hyundai Motors in Korea with a division Mitsubishi in
Japan

Japan - Singapore
– Sumitomo Corporation with Pandai Steel
Agenda
Tradelink Highlights
Tradelink’s Electronic
Services
Pan Asian e-Commerce Alliance
Digital Trade and
Transportation Network
Hong Kong’s Digital Trade and
Transportation Network (DTTN)
Public/private sector initiative under the Logistics Development Council to
improve HK’s competitiveness that aims to:
1. Be A NEUTRAL, OPEN, NON-EXCLUSIVE, TRANSPARENT
state-of-the-art electronic document exchange platform
2. Facilitate trade & transportation information flow and service
integration
through interconnections
– Within Hong Kong/Pearl River Delta
– Regionally
– Globally
3. Stimulate growth of innovative value added e-logistics services
4. Promote SME e-business adoption
5. Provide 10 major trade and logistics Business Processes and
over 60 business documents
DTTN 3-Layer Model
Valueadded
Services
Value-added services such as
multi-modal integration, distribution
& transportation management Layer 3
Core
Messaging
Infrastructure
Standards and Protocols
Open, neutral, secure, reliable and
shared electronic infrastructure
messaging
Layer 2
Local and international standards
for security, trade documents, codes,
Layer 1
protocols
Community Role of the DTTN
Sellers
Value
Adding
Service
Providers
Regional/
Global
Service
Providers
Buyers
Freight
Forwarders
Carriers
DTTN Core Messaging Infrastructure
Communications
Gateway
Document
Exchange &
Transformation
Terminals
Security
Services
User
Management
Banks &
Financial
Institutions
Web
Services
Government
&
Agencies
Reporting
Inspection
Agencies
Insurance
Institutions
The Way Forward for HK’s DTTN
1.
Appoint Tradelink as the DTTN service provider
2.
Establish Standards Group and adopt standards
to streamline local, regional and global
interconnections
3.
Identify cross border trade chains and
organizations for pilot adoption
4.
Develop and implement the DTTN
5.
Implement DTTN Interconnections by Logistics
Industry
Spearheading Hong Kong's Development of
Electronic Commerce