Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 1 China Customs Manifest Management System February 2009

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 2 Legal Provisions  Regulation No.172 for the manifests management of export and import transportation of China  Released by China Customs on 28 March, 2008  Based on the WCO SAFE Framework of Standards  Total: 5 chapters, 39 clauses  Chapter 1 General rule, include 1 st to 7 th clauses  Chapter 2 Managing of import manifests, include 8 th to 19 th clauses  Chapter 3 Managing of export manifests, include 20 th to 29 th clauses  Chapter 4 Managing of manifests changing, include 30 th to 33 rd clauses  Chapter 5 Define, include 34 th to 39 th clauses

 INTERNATIONAL AIR TRANSPORT ASSOCIATION 3 Technical Specifications  Data format:  Principles and standards based on the WCO  Data model V2.0 of WCO  XML message format  Bulletins:  Bulletin No.54: for Manifest data element, released on Aug 2008  Bulletin No.80: for Aircraft & Flight data element, released on Nov 2008  Bulletin No.81: for Shipment message definition, released on Nov 2008  Bulletin No.88: for Aircraft FLT Dynamic message, released on Dec 2008  Bulletin No.97: other issue for data submitting, released on Dec 2008  Bulletin No.101: Registration, released on Dec 2008

 INTERNATIONAL AIR TRANSPORT ASSOCIATION 4  The China Customs manifest system does not accept IATA IMP standard SITA message (FFM, FHL, FWB…etc). The data elements in the manifest system are build around IATA IMP standard/specification. Hence Data elements were not classified or requested by IATA IMP will not be required by the new manifest system. An interface is mandatory for interpreting SITA message.  Data connections: It varies at each different Customs District in China. Connection can be made via 2 different portal, using 2 types of connection:  Portal: E-port China Customs Information Center  Type: Internet (Client terminal) Smart Mailbox Remark for Technical Specifications

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 5 Time Table  Implementation date 1 st January 2009  2 steps:  Grace period: January 1 st to June 30 th 2009  Mandatory implementation: July 1 st 2009 onward

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 6 GHA / Terminal Customs inspection & clearance Airfreight Import Procedure 4 hrs Before Aircraft take off or 4 hrs before it arrive at destination Carrier Forwarder Customs Customs Bonded Area Customs Broker FLT Plan. Accept booking from forwarder, generate MAWB info. Rejection unloading Matching M/HAWB Rejection unloading Verification According to consignee’s instruction generate custom declaration Aircraft Arrive After Customs’ inspection/ Clear process the shipments Customs inspection & clearance Shipment transfer to warehouse In side the warehouse Tally Report Confirmation report for FLT Dynamic Aircraft Registration/ Advance FLT Dynamics/ Original Manifest Booking with Carrier, accept shipper info, generate HAWB info Inversion input Original manifest Aircraft Registration/ Advance FLT Dynamics/ Original Manifest Confirmation report for FLT Dynamic, Customs supervision unloading GHA process the shipments, generate tally report Tally report Normal/ Irregularities Forwarder generate distribution request Distribution request Customs approval Distribution request/ Tally report Normal/ Irregularities Shipment Storage area Tally report Shipment arrival report, Forwarder process After Customs’ inspection/ Clear process the shipments

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 7 Business Process: Import Into China Step 1Step 2Step 3Step 4 Flight DepartureAircraft ArrivalShipment transfer to Warehouse In side the Warehouse Covered by China Customs Regulation No. 172 Chapter 2 Managing of Import Manifests, include 8 th to 19 th clauses Short haul: take off Long haul: 4 hours prior to arrival When flight dynamic is confirmed, aircraft arrived, Unloading of goods Shipment in the warehouse Shipment been distributed Aircraft Registration/ Advance FLT Dynamics/ Original Manifest Report of FLT DynamicTally reportDistribution request, Shipment arrival report

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 8 Import business process 1.Airlines should inform Customs the estimated flight arrival time before they transfer the data of original manifest. 2.Airlines or GHA (party responsible for transfer the manifest) should transfer the electronic data of original manifest to Customs  The messages include the key data and supplementary data  The message will be sent to Customs via the airlines system, e-port, or other EDI system  Time limit ：  The key data, if the flight duration is less than 4 hours, the data of manifest should be transferred prior to aircraft take off. If the flight duration is more than 4 hours, the data of manifest should be transferred 4 hours before aircraft’s arrival at the first destination port within China customs territory.  The supplementary data, before the cargo or goods arrive the destination.

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 9 Import business process – continue 3 Import dispatch arrival report  GHA/ Terminal operator should provide import dispatch arrival report within 2 hours when cargo and goods are sorted in the (level 2) custom boned warehouse 4. Import tally report  Ground Handling Agents should provide electronic cargo tally report within 6 hours after import cargo and goods are offloaded 5. Import Cargo Dispatching Request  The Dispatched cargo information should be sent to Customs by electronic data  Dispatched cargo and goods should be shipped with the permission and under the supervision of Customs  Freight forwarders should send electronic tally report to Customs within 2 hours after dispatched cargo are sorted 6. By submitting the import tally report / dispatched cargo or goods information, the Customs will finally verify and release the cargo

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 10  For inbound flights, the original manifest must be provided by the airlines / GHA including both MAWB and HAWB information.  Aircraft registration and flight dynamic RFS (road feeder service) including trucking, shipping, etc, are required to register the same as airline flight. The inbound international shipment transferring to domestic location on a domestic flight is required to be under customs bond. Thus, aircraft operating such domestic flights also need registration Import business process – Remark

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 11 Accept booking from forwarder, generate MAWB info. Air transport Export Procedure Forwarder Carrier GHA Customs Customs Bonded Area Customs Broker Feed back Booking with Carrier, accept shipper info, generate HAWB info Export Declaration Manifest Feed back Matching Master & House AWB Before Loading the Aircraft Export Declaration Manifest & Shipment Arrival Report Customs inspection & clearance Verification Customs Bonded Area receive the shipments, generate shipment Arrival Report According to shipper’s instruction generate custom declaration After Customs’ inspection/ Clear process the shipments Load Plan Loading Instruction Rejection for loading Follow dispatch plan, generate FLT Dynamic Dept Dynamic Departure Dynamic & Loading Instruction 30 Mins Before Aircraft LoadingAircraft Departure After loading, generate the Tally Report Tally Report Normal shipment/ Irregularities Tally Report Customs Clearance granted, Declaration slip Signed Customs Broker process the declaration slip

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 12 Business Process: Export from China Step 1Step 2Step 3 Before loading30 mins before loadingAircraft Departure Covered by China Customs Regulation No. 172 Chapter 3 Managing of export manifests, include 20 th to 29 th clauses Key Data: before Apply for clearance Supplement Data: 4 hours in advance of loading Loading instruction should be transferred to Customs 30 minutes in advance of loading start Tally report within 6 hours after the aircraft departure Export Declaration Manifest, Shipment Arrival Report Loading Instruction, Departure Dynamic, Tally report

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 13 Export business process 1. Airlines or Freight forwarders should transfer the export declaration manifest  the key data should be transferred to Customs before applying for customs clearance  the supplementary data should be transferred 4 hours in advance of loading 2. Shipment arrival report  Ware house operator should send electronic shipment arrival report to Customs following export shipment arrival at the the custom boned warehouse.  Following submission of the report, the shipment is ready for Custom Inspection and clearing process for export. 3. Loading instruction should be transferred to Customs 30 minutes in advance of loading start

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION Airlines should inform Customs the aircraft departure time, 2 hours in advance of aircraft take-off 5. Airlines shall apply for Custom clearance after loading of the cargo is finished. Then with the approval from the custom authority, the aircraft is ready for departure 6. GHA or warehouse operator should provide electronic cargo export tally report within 6 hours after the aircraft departure 7. Customs shall compare the loading instruction with export tally report. For non- matching cases, Custom will inform the airlines electronically. The airlines shall report to the Customs the reason of non-matching within 48 hours after loading is finished Customs will also compare the aircraft manifest with custom clearance request. For non-matching, Custom will inform the airlines electronically. Report for the reason of non-matching shall be submitted by the airlines within 24 hours to the Customs after custom clearance Export business process – continue

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 15  For outbound flights, HAWB included in the Export declaration manifest can be provide by forwarders. If the forwarders cannot provide such information, the airlines must provide the HAWB info to Customs.  For the same flight, HAWB information can be submitted from different data sources. Airlines can change the data submitted via proper channel before deadline. Export business process – Remark

 INTERNATIONAL AIR TRANSPORT ASSOCIATION 16 e.g: Q: In the Custom bulletin 101 state airlines must register with the customs. If an airline operates with several branches in china, does each branch need to do the registration individually? A: The Chinese Customs use one registration policy, airlines only need to register at one location then is shared across the whole country /all custom district. Q & A:

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 17 How to get information? Help desk  Contact IATA China / NA Regional office  Contact IATA Head quarters Website  Access China Customs website to get up to the information China Customs Hot-lines:  For all technical issues, 2 hotlines has been setup for assistance. · China Custom Information Center · China Custom General Administration Information Center  Airlines & Agents can also contact their local Custom district （ department of Customs Control and Inspection ） for more information

Ó INTERNATIONAL AIR TRANSPORT ASSOCIATION 18 Thank You !