DTTN’s experience on facilitating

SME’s participation in trade

Mr Stephen Cheung, Senior Vice President,

Business Development, Tradelink/DTTN

Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis

20-22 May 2009, Beijing, China

Agenda

Tradelink (B to G) Highlights

Digital Trade and Transportation Network (B to B)

Established in

Sep 1988

Government becomes

a shareholder

Granted exclusive franchise (1997– 2003)

to provide e-submission services for certain

trade-related documents

Selected by the Government as the developer

and operator of DTTN

1992

2003

1988

19942004

Granted license (2004-2009) to continue provision

of government document e-submission services

2005

Publicly listed and traded on the Main Board of

The Stock Exchange of Hong Kong

About Tradelink

2008

Tradelink Beijing

Established

Being granted license to

continue

provision of GETS II (2010-16)

The HK SAR Government

Key players in the trading sector, including

trade associations, terminal operators & financial institutions

43.80%

12.29%

Public Shareholders

43.91%

Digi-Sign CertificationServices Limited

Digital Trade and Transportation Network

Government and Industry Expert Support

100% 100%

The digital express link to business

partners worldwide

Building trust in electronic services with

Digi-Sign security solutions

Services Details

Import or Export Declaration (TDEC) e-lodgment of import or export declaration with Customs

Production Notification (PN)e-lodgment of notification to the Trade & Industry Department about

cut-and-sewn garments manufactured in HK

Certificate of Origin (CO) e-application for CO to the Trade & Industry Department or other

government approved organisations

Dutiable Commodities Permit (DCP)e-application for DCP to Customs for import, export, manufacturing

or storage of dutiable commodities

Electronic Cargo Manifest (EMAN)

(excluding road mode)

e-submission of manifests for air, rail, water cargo to the Census

Department and the Trade & Industry Department

e-receipt of notice / voucher from Customs and

e-communication with other government departments

Notifications under Textiles Trader

Registration Scheme (TTRS)

e-submission of notification to the Trade & Industry Department for

textile trading under TTRS

Tradelink’s Government Services

Document checking and validation

Secure communication channel

7 x 24 electronic interface

Document status tracking

Hotline & onsite technical support and other customer services

“Paper-to-electronic” conversion service

LogisticsServicesProviders

Importers

Exporters

Freightforwarders

Carriers

Manufacturers

Tra

din

g C

om

mu

nity

e-confirmation e-confirmation

Security

Solution

Government Services

The HKSAR

Government

TradelinkTransaction fee

+Gov’t fee

+e-submission of

trade related documents

Gov’t fee+

e-submission of trade related documents

Over 54,000 registered users including manufacturers, importers, exporters, freight forwarders, logistics services providers, and carriers

Steady transaction volume – over 20 million per annum

Dedicated customer services: hotline, onsite technical support, 20 customer services centres, training support, and direct sales team

Customer loyalty program - customer magazine , e-newsletter , luncheon seminar and round-the-year loyalty program

Our Substantial Customer Base

Established development Centre in Guangzhou in 2007

Beijing Branch office opened in 2008

Tianjin JV company in 2008

Recognised service provider under the CEPA framework

Our Vision for the China market

To facilitate international trade between China and the rest of the world

Develop an one-stop e-trade platform in mainland for the

– Operation and management of the modernized logistics parks

– E-finance services– International connection（via DTTN)

China Market

Pan-Asian E-Commerce Alliance (PAA)

Customer base: over 250,000 organizations

Established in July 2000 by TradeLink (HK), Trade-Van (TW) and CrimsonLogic (SG)

Now 9 member economies

Jointed by three new members from Australia,Philippines and Japan in 2007

Common Strengths

Local market leader in e-commerce

Strong & close relationship with local gov’t

Mass customer base

Long years of experiences on electronic document exchange, customs declaration, manifests, certificate of origin, licenses services

To provide secure, trusted, reliable and value-adding IT infrastructure and facilities to promote intra-regional trade

10

Digital Trade & Transportation Network

(DTTN)

Key Milestones of DTTN

Dec 2005

2H 2006

With 3600+

registered

customers

Dec 2004

DTTN Limited incorporated

Pilot run

Full

Commercialization

2003

Tradelink awarded by the Government

as developer and operator of DTTN2001Formation of LOGSCOUNCIL

2008

2009

Becomes Tradelink’s

wholly owned subsidiary

Objective of DTTN

Suppliers

Tax

Authority Truckers Carriers Terminals Forwarders

Airlines

Warehouses

Trade Associations

Inspection

Agencies

BanksInsurance

InstitutionsTrade

Associations

Customs Buyers

Manufacturers

CarriersForwarders

Buyers

Sellers

Insurance

Institutions

Manufacturers

Banks

Key Functions of DTTN

An e-Business CONNECTOR for the Entire Supply Chain

connects all parties along the supply chain to achieve

“system-to-system integration”.

A Mega Electronic DATA STORE

stores data online for 2 years and offline for 7 years

A Super Electronic Document CONVERSION ENGINE

supports “any-to-any” transformation of data format and

communication protocols

Data Inheritance Feature

- Common data can be inherited between documents

- Web portal services

Community Role of the DTTN

Electronic message transformation services

Statistical and analytical reporting services

Data inheritance services

Information security services

Electronic message routing services

Portal services

SellersInspection

Agencies

Banks &

Financial

Institutions

Freight

ForwardersBuyers

Government

& AgenciesCarriers

Insurance

InstitutionsTerminals

DTTN Key Services Offering

DTTN to Support the Whole Supply-Chain

Purchase Process Purchase / Sales Order, Order Confirmation

Packing List / ASN, Commercial Invoice,

Inspection Certificate, InsuranceDelivery

Booking, Shipping Order, Arrival Notices,

Transport Documents - Master / House

Waybill - Sea / Air, Cargo Receipt,

Transport Set, EIR, Delivery / Release Order

Local and OverseasTransportation

Government Trade DocumentsExport / Import License,

Customs Clearance,

Certification of Origin etc.

Financial Settlement Letter of Credit, Company Guarantee, Bill of Exchange,

L/C collection Letter; Document Arrival Notice

Support over 80 major documents related to trade, logistics and

finance for both import and export business processes

How to Connect with DTTN

Option 1: Direct Integration

A simple direct connection

with internal application systems

(e.g. FMS/ERP/SCM etc.) using the existing interfaces

with no or minimal system changes

Option 2: Standard Excel Spreadsheets

Easily customizable according to

your needs

Link with Your Buyers

Buyers

• Data Transformation

• Verification of digital

signature

• Encryption / Decryption

• Dispatch the ack / error msg

• Prepare the PO by using the Excel

Form and send to XX via DTTN

electronically.

• Prepare the PO by using the

existing internal application system

& send to the XX via DTTN

electronically

• Receive the PO Confirmation from

XX via DTTN electronically

• Receive PO & the data will go

directly into the internal ERP

System

• Generate & return the PO

Confirmation to the buyers

electronically

Suppliers

Internal SystemElectronic Document

Conversion Engine

(Type 1) Excel Form User

(Type 2) Direct Integration User

18

DTTN is well received and supported by the industry …

Excerpt of DTTN Participants in

different industries

Excerpt of DTTN Participants - Forwarders

Excerpt of DTTN Participants - Others

22

Success Cases Sharing

Customer Success Case DTTN as UNIQUE gateway between

Tyco & Tyco’s partners for document exchange

(Purchase to Delivery)

5. Master SO(EDIFACT)

Buyer

1. Sales Order (X.12)

Forwarder

Tyco

1. Sales Order (SAP)

4. Shipping Order, CI, PL (SAP)

4. Shipping Order, CI, PL

(File Format: XML)

SO - shipping order/ 落貨紙

CI - commercial invoice / 商業發票PL - packing list / 提單

BL - bill of lading / 裝箱單

Carriers

5. Master SO

(File Format: XML)

7. Tyco Invoice (X.12)

6. Invoice

(File Format: XML)

6. Invoice (SAP) ( (

Suppliers

2. EDI – Purchase Order

3a. DN “EDI” (Excel)

3a DN “EDI” (SAP)

6. Invoice (CSV)

3b. DN “Drop Ship” (Excel)

3b. DN “Drop Ship”

(File Format: XML)

7. Tyco Invoice

(SAP)

Goods

Delivery

TDSTDS

Freight

Forwarder

Freight

Forwarder

Otto International Asia

Buying Office

Otto UK

Buyer

1. Purchase

Order

2. Purchase Order

10. Clean Document set

3. Purchase Order

7. Bill of Lading

4. Invoice, Packing List,

Shipping Order

8. Invoice, Packing List, Bill of

Lading

9. Invoice, Packing

List, Bill of Lading

12. Invoice, Packing

List, Bill of Lading,

e/CO

12. Invoice, Packing

List, Bill of Lading,

e/CO

Suppliers

Physical

Data

Reference Cases Buyer Management Service

Freescale – A Seller-Driven Case

Shipping

Dept - Admin

Shipping

Dept - Operators

1 Sales Information

TDS3 Confirmed SLI

9 Shipping Cartons

+ INV + PL + SLI

8 Printed Ship

Label

Freight

Forwarders

4 SLI + INV

5 SLI + INV

6 AWB/SWB

7 AWB/SWB

10 Generate TDEC

2 Draft SLI

Physical

Data

11 Trade

Declaration

Freescale

Sales Backend

Tradelink ValuNet

The Digital Express Link to your

Business Partners Worldwide

www.tradelink.com.hk

www.hk-dttn.com