UNe DOCS Awareness Technical Workshop 2006 The

UNe. DOCS Awareness & Technical Workshop 2006 The Digital Trade and Transportation Network Justin Yue CEO, Tradelink Electronic Commerce Ltd 31 May 2005 1

Agenda u Tradelink u Digital Highlights Trade and Transportation Network (B to B) – The Genesis – Functions and Features of the DTTN – Benefits - Model for International Connections 2

Tradelink Highlights 3

Tradelink’s Electronic Services Trade Related Government Services as the Basic Building Block Textile Traders & Manufacturers All Traders u u u 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 u u u Production Notification Textile Trader Registration Scheme (TTRS) Notifications Certificate of Origin Forwarders & Carriers u u u Shipping Order Manifest Textile Trader Registration Scheme Notifications 4

Tradelink Highlights v Mainly officially required trade documents through Government mandating their use v 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 5

The Digital Trade and Transportation Network (DTTN) 6

Development Roadmap of DTTN u. Government becomes direct shareholder of DTTN with 29. 17% shareholding* u 15 -year operating agreement signed Full commercialisation 2006 Aug 2005 by end of 2005 Pilot run 2003 Tradelink selected by the Government as developer and operator of DTTN * Subject to the approval by the Financial Committee of the Legislative Council 7

DTTN to Support Over 80 Electronic Documents for the Whole Supply-Chain (1) • 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 UNe. DOCS under the UN/CEFACT framework 8

DTTN to Support Over 80 Electronic Documents for the Whole Supply-Chain (2) Purchase Process Delivery u Purchase / Sales Order, Order Confirmation u Packing List / ASN, Commercial Invoice, Inspection Certificate, Insurance Local and Overseas Transportation u Booking, Shipping Order, Arrival Notices, Transport Documents - Master / House Waybill - Sea / Air, Cargo Receipt, Transport Set, EIR, Delivery / Release Order Government Trade Documents Financial Settlement u Export / Import Licence, Customs Clearance, Certification of Origin etc. u Letter of Credit, Company Guarantee, Bill of Exchange, L/C collection Letter; Document Arrival Notice 9

Functional Blueprint of DTTN u Rich array of capabilities for messaging, documents, transactions, payments, security etc. Sellers Buyers Government & Agencies Freight Forwarders Carriers Inspection Agencies Insurance Institutions Banks & Financial Institutions Terminals DTTN Key Services Offering Electronic message routing services Portal services Statistical and analytical reporting services Electronic message transformation services Data inheritance services Information security services 10

DTTN User Interface q A simple direct connection with the customer’s FMS/ERP/SCM using existing external interfaces with no or minimal system changes q Standard Excel spreadsheets for SMEs which are easily customizable according to your needs q Through the DTTN Portal to access a suite of user friendly web-based functions covering enquiries, reports, audit trails and messages / document download q Connects to application service providers’ services via DTTN’s Single Sign-On function which users can easily manage over the DTTN Portal 11

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 12

Progress • 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 13

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The Digital Express Link to your Business Partners Worldwide www. tradelink. com. hk www. hk-dttn. com 15