Pan Asian e-Commerce Alliance Electronic Secure Cross-Border Trade Presented by: Dr. Chen, Jenn Nan Chairman, PAA CEO, Trade-Van Information Services Co., Chinese Taipei Pan Asian e-Commerce Alliance

International Trade Today Complex Maze of Document Movements Slow Costly Complicated Inaccurate

What if we could… Exchange trade documents electronically with overseas and local business partners in a secure environment Access multi-region customs systems for seamless import/export declarations Seamlessly track and trace cargo consignments anytime, anywhere Suggest to take out this slide

The Pan Asian eCommerce Alliance Members Established in July 2000 by Trade-Van, Tradelink and CrimsonLogic Now 8 member economies with 3 observers 260,000 Customers TedMev

The Pan Asian eCommerce Alliance Charter To enable secure and reliable transmission of trade and logistics documents. To allow inter-connection of network services to provide e-Commerce transaction application services for the business community. To create a Pan-Asian portal to enable global B2B connection and communication.

e.g. electronic P.O. signed by Taiwan Our Value Proposition Help companies compete through secure electronic cross border trading services Connect directly to trading partners and logistic providers Reduce administrative costs, purchasing costs, courier cost Speed up transactions Potential for “better” operations/inventory management Potential for higher sales volumes/revenues Backed by comprehensive legal framework Accept electronic documents Accept digital signatures Dispute resolution process e.g. electronic P.O. signed by Taiwan supplier legally binding in HK and vice versa.

PKI Mutual Recognition A study towards the setting up of a Certificate Policy Authority was commissioned as a framework for the mutual recognition of PKI Interoperability test among CAs Draft Alliance Certificate Policy & Recognition Procedure Establish PAA Policy Authority Co. Ltd. Application of CAs to join PAA services

PAA Portal Integrate the Traders Directory of each region to establish a single entry for foreign buyers

Cargo Tracking Trade-Van (Taiwan) and KTNET (Korea) have completed the pilot run to provide the cargo tracking services for international traders to trace their cargo in and out of both countries Tracking Status: Arrival/Departure Terminal Carry In Bonded Transport Warehouse Carry In Customs Clearance Customs Release

Secure Cross Border Transaction A secured cross border electronic documentation exchange solution for traders in Asia Define PAA Standard XML document format Confirm Communication Protocol Define Legal Framework Implement ebXML Components Recruit Pilot Users Joint Test & End to End Test

Robust Legal Infrastructure PKI Mutual Recognition CA Service Secure Cross-Border Transaction Services

Supported Documents Purchase Orders Advance Shipment Notice Packing List Commercial Invoice Bill of Lading Delivery Order Trade Declarations Shipping Order Processing Trade (China)

TAL Major textile manufacturer in Hong Kong Case Study 1 TAL Major textile manufacturer in Hong Kong

Project Participants Hong Kong: Taiwan(9 suppliers including): TAL – Importer Taiwan(9 suppliers including): Tai Yuen - Exporter Everest - Exporter Pinytex - Exporter Running - Exporter Gao Sha – Exporter Pinytex – Exporter ChangHo – Exporter ChenYu – Exporter Full Blossom - Exporter

TAL – Tai Yuen Manual Processing No guarantee of secure and on-time delivery. Cost incurred in preparing, faxing and mailing the documents. No integration between received data and ERP data. The buyer faxed the P.O. While the sellers faxed and later sent the shipping documents by post mail. Tai Yuen (Taiwan Seller) TAL (HK Buyer) Re-key in Invoice/P/L data in Export Declaration Re-key in Invoice/P/L data in Import Declaration TW Customs TRADE-VAN Customs Broker HK Customs No integration between trading and customs clearance documents. Double effort in data re-key in and possible error.

TAL – Tai Yuen Cross Border Pilot via PAA Guarantee Secure Delivery Integration with Legacy System Data Inheritance and Quality Time and Cost Saving Pinytex PAA ebXML Network (1) Purchase Order Everest (1) Purchase Order (2) Invoice (2) Invoice TAL (3) Advance Shipment Notice (3) Advance Shipment Notice (4) ASN, Invoice (5)Declaration (6) Declaration Hong Kong Customs Customs Broker Taiwan Customs Tai Yuen Textile XML standard

Benefit Analysis TAL: Taiwan Exporters: Advantages Advantages Reduced data input effort and error Integrated Bar Code Labeling eradicates the need to re-produce bar code from another system Bar Code and Scan Loading function eradicates errors provided in ASN and the actual products shipped. Faster and more accurate production planning Shorten the lead time from production to delivery of the final products to customer Advantages Reduced effort on order input as orders can be integrated into suppliers’ internal system Reduced the effort on preparing ASN & INV as data can be inherited from PO. Reduced error on shipment with the Bar Code and Scan Loading function and therefore avoided penalty imposed by TAL. Built a long term relationship with TAL with low setup cost

Case Study 2 Doosan Doosan Electro-Materials BG is a world-class producer of copper-clad laminate (CCL), a key component of printed circuit boards.

Project Participants Korea: Taiwan(8 suppliers including): Doosan – Importer Taiwan(8 suppliers including): Baotek - Exporter Glotech - Exporter Co-tech - Exporter Chang Chun - Exporter Taiwan Glass – Exporter LCY – Exporter Formosa Union – Exporter Asahi-Schwebel – Exporter

Doosan – Taiwan Suppliers Project Scope ① Purchase Order ② Commercial Invoice, Packing List Certification Doosan Suppliers ④ Commercial Invoice, Packing List ③ B/L Advice ③ B/L Advice ③ B/L Advice WAN HAI Forwarder

Benefits SECURITY - Secure electronic transaction with overseas trading partners - no additional development works or data mapping EFFICIENT OPERATIONS – Trade data can be reused resulting in time savings in documents preparation ERROR FREE OPERATIONS – Automated reuse of trade data transmitted from trading partners result in reduction of errors caused by multiple data re-entry REGULATORY INTEGRATION -Integrated with Government services (e.g. Trade Declarations) provided by PAA members NEUTRAL RELIABLE PLATFORM – Common or neutral e-platform for reliable and secure document delivery STRONG LEGAL FRAMEWORK - Backed by comprehensive legal framework

Single Window, Asia Connection PAA ebXML Network Visit www.paa.net today Thank you Contact: alicia.say@tradevan.com.tw TEL: 886 2 3789 5762