Welcome to Singapore! Synchronizing the World of Commerce Taiwan Council for Economic Planning & Development 24 June 2005

Agenda Introduction to UPSIntroduction to UPS Profile of Singapore Customs ClearanceProfile of Singapore Customs Clearance Import Data / Package FlowImport Data / Package Flow Export Data / Package FlowExport Data / Package Flow Transhipment / Transit ShipmentsTranshipment / Transit Shipments Presentation by Singapore CustomsPresentation by Singapore Customs On-site visit to UPS Singapore Brokerage Operations /Free Trade Zone OperationsOn-site visit to UPS Singapore Brokerage Operations /Free Trade Zone Operations

Getting to know us Founded in 1907 in Seattle, Washington. World’s largest package delivery company and global leader in supply chain services. Headquartered in Atlanta, Georgia. Service to and from more than 200 countries & territories. 384,000 employees worldwide (8th largest global employer). Delivery fleet of 88,000 delivery vehicles. World’s 9th largest airline with more than 600 aircraft revenue: US$36.6B on a volume of 3.6 billion packages and documents. We move 14.1 million packages a day; 7 percent of U.S. GDP.

PROFILE OF SINGAPORE CUSTOMS CLEARANCE  Minimal dutiable commodities  Free Trade Zone concept “Goods in a FTZ may (a) be removed from the FTZ, destroyed, or sent into customs territory or into another FTZ in the original package or otherwise; (b) unless otherwise directed by the Authority, be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded cleaned, mixed or otherwise manipulated, or be manufactured in accordance with the provisions of this Act”

PROFILE OF SINGAPORE CUSTOMS CLEARANCE  Shipments below S$400 are not subject to GST nor formal declarations  Shipments above S$400 need formal declarations and attract 5% GST  Electronic formal declarations (TradeNet)  Pre-Clearance System (ACCESS) available  Risk Management, minimal inspections  Electronic Fund Transfer (Giro) available  Major Exporter Scheme  Service Standards

Import Data Flow Transfer Data from OPSYS via FDC RS to Brokerage Express Interface Data Management Trade Net ACCESS (Pre-Clearance System) Approving Agencies (Customs/IES/Competent Authorities) Customs (Selectivity System) MES/FTZ/Competent Authorities/Duty/ Exempt/GIRO (EFT) /Transshipment EDI Van (Crimson Logic)

Import Package Flow Ground Handling Agents UPS HUB Scan / Sort Release Package to Feeder Inspection at Airport Cargo Checkpoint Delivery Center FTZ Area Shipment Arrival Brokerage handover Customs Clearance Reports/Permits to Brokerage Acctg Brokerage Acctg Gives Customs Clearance Reports / Permits Customer Brokerage Brokerage Accounting

Export Data Flow Transfer Data fm OPSYS via FDC RS to Brkg Express Interface Data Management Trade Net ACES (Air Cargo EDI System) ACMIS (Air Cargo Manifest Interface System) Int’l Enterprise S’pore (Govt Agency) Controlled Agencies CCN (For Handling Agents SATS / CIAS) For Restricted Articles/Strategic Goods (3 days before export) Submit All Flights (UPS, UPS Chartered Flights) Shpt Manifests EDI Van (Crimson Logic) All Shipments Data For all other shipments (3 days after export)

Export Package Flow Key Entry & Scanning Sort and Bag Delivery Center Pick-up Shpt UPS Hub Ops Ground Handling Agents ( SATS / CIAS ) Feeder To Hub Flight Departure

Transshipment Shipment Arrived By Sea Flight Departure Prepare Transshipment Permit / Load Shpt FTZAREAFTZAREA FTZAREAFTZAREA SEAPORTAIRPORT Prepare Export Manifest And Goods For Re-export Bond Goods & Customs Endorse Permit Customs Endorse Permit & Verify Goods’ Seal Inter-Free Trade Zone Transport to Airport

Transit Unload Inbound Shipments Ground Handling Agents ( SATS / CIAS ) UPS Hub Within Free Trade Zone Hand-over Consolidated Export Shpts with Manifest to Agents Load Outbound Shipments Received Inbound Shpts from Agents ( Including Transshipment ) CCN ( for SATS / CIAS ) ACES ( Air-Cargo EDI Sys ) ACMIS ( Air-Cargo Manifest Interface Sys )

Thank You !