Cargo Community System - CSS Presented by Nityam Khosla, President, Consolidators Association of India (CAI) 28th October’ 2015

Table of Content Cargo Community system Export Consolidation Process Introduction Export Consolidation Process Business Summary Process Interaction ‘As is’ and ‘To be’ Process Import Consolidation Process Future Vision Challenges foreseen Our Expectations – Way forward

Introduction Old Approach New Approach Centralized Port Community System (CCS) is an initiative by Indian Ports Association (IPA) intended to provide a single window system for the Port communities in India to securely exchange the documents and information electronically with their stakeholders involved in the maritime transport and logistics chain including the trading partners and government agencies. It also expected to provide global visibility and access to the central database to all its stakeholders through internet based interfaces. Old Approach New Approach

Export Consolidation Process Business Summary Process Interaction ‘As is’ and ‘To be’ Process

Sea Export Consolidation Summary of the activities carried out by various departments: Sales Sales visit / enquiries Negotiation with Vendors / customers Quote creation Order finalization Operations Cargo Receiving Survey and Labelling Container stowage and planning Equipment procurement and placement Inter-CFS transfer Stuffing Movement to Port Onboard Documentation Issuance of HBL Invoicing Release of MBL Freight Cargo manifest and dispatch Accounts Document scrutinization Freight audit Receivable monitoring Brokerage commission processing

Sea Export Industry Stakeholder Interaction ‘External parties’ involved in the Sea Export Consolidation process at each stage Sales Customers (CHA / Local or International forwarder / Direct Shipper Overseas Agents Cargo details Shipping bill Rate Quote Booking Details Operations & Planning Shipping line Customs Nominated CFS Transporters Marine Surveyors Carting slip Labelling Survey Report CLP / Shipping Bill Carting Report Container Procurement Stuffing Container – Customs CLP Movement report Customer service / Documentation Shipping Line Customers Sailing schedule HBL docs / Supporting docs CLP / Shipping Bill HBL / MBL release Cargo freight manifest Carting / Booking / Stuffing / Onboard confirmation Industry Stakeholders Input Output

Limitations in the existing export process - Challenges and suggested solutions Item Category ‘AS IS’ Process ‘TO BE’ Process Expected Benefits Shipping Bill CHA generates the shipping bill checklist from ICEGATE and submits to Consolidator at the time of cargo carting Shipping Bill checklist details and scan copies of other documents commercial invoice, packing list & relevant bank documents to be available to the Consolidator via CCS a)   Consolidator can retrieve the same from CCS basis which Carting Form can be issued to CHA b)   Can also aid during the cargo physical examination basis which final S/B can be printed Carting order notification Post cargo carting, the Consolidator sends a notification to the Customer The carting confirmation details to be available in CCS This will enable both the customer and his CHA to access the relevant information Plot letter (Empty Pickup Letter) Plot letter is issued by Liner for empty container pickup which is handed over to the Transporter by the Consolidator Plot letter to be available in CCS enabling Transporter and Empty yard to retrieve the same directly from the system. Eliminates manual handling of documents between Liner, Empty yard Transporter and Consolidator Mate receipt Mate receipt collected from Liner within 15 days of vessel sailing The Mate receipt can be made available by Liner in CCS for the Consolidator Enables online retrieval of Mate receipt, eliminates manual follow-ups by Consolidator

Limitations in the existing export process - Challenges and suggested solutions Item Category ‘AS IS’ Process ‘TO BE’ Process Expected Benefits Customs CLP Customs endorsed CLP' is submitted to the Port authorities at the time of container gate in Customs to update final CLP information in CCS to enable visibility to Port, Customer and Consolidator a)  Customers can directly obtain the stuffing intimation from CCS instead of receiving it from the Consolidator b)  Port authorities need not rely on manual submission of Customs CLP at the time of Form 13 issuance Gate endorsed CLP Consolidator collects and submits the 'Gate endorsed CLP‘ (with S/B and CLP) to Liner The Gate endorsed CLP information to be available in CCS Real time information available to both Consolidator and Liner Receiving Confirmation Basis the 'gate endorsed CLP' information, Liner issues the 'Receiving confirmation' to Consolidator Basis the 'gate endorsed CLP', Liner to auto dispatch the Receiving confirmation via CCS to Consolidator Real time information available to Consolidator from the Liner Movement letter Movement letter is submitted to CFS by Customs for container movement from CFS to Port CY Customs to update Movement letter details in CCS to enable CFS / Consolidator to retrieve the same Real time information to both CHA and Consolidator

Limitations in the existing export process - Challenges and suggested solutions Item Category ‘AS IS’ Process ‘TO BE’ Process Expected Benefits Loading list details Consolidator sends the ‘advance loading confirmation’ to the Liner and obtains the final loading confirmation (via emails / calls) The loading confirmation from Liner to be available via CCS This will eliminate the need for the Consolidator to inform the customers On Board confirmation The vessel sailing information is passed on by Liner to the Consolidator who then sends a notification to the customer The Liner to update the vessel sailing confirmation in CCS This will provide real time information to all stakeholders and avoid to and fro correspondences between shipping line / Consolidator / end customer HBL information The HBL information (SI) is sent to Consolidator by the customer (local forwarder / direct shipper) via Inttra or email which is then updated in the Consolidator ERP and communicated back for customer confirmation HBL information (SI) to be made available by customer in CCS which can have an EDI interface in the relevant format available both to the Consolidator / customer. Final confirmation can also be obtained from customer via CCS basis which MBL filing can be carried out Eliminates duplicate data entry by Consolidator and Customer

Import Consolidation Process Business Summary Process Interaction ‘As is’ and ‘To be’ Process

Sea Import Consolidation Summary of the activities carried out by various departments: Sales Sales visit / enquiries Enquiry negotiation Quote submission Order finalization CS / Documentation Pre-shipment information Data entry Manifest submission Un-cleared shipments reporting Operations De-stuffing Segregation of MCC shipments Procurement of empty units (for MCC Operations and Inter-CFS movement Return of empty units Accounts Document scrutinization Freight audit MCC Billing Supplier payments Billing back to origin agents

Sea Import Industry Stakeholder Interaction ‘External parties’ involved in the Sea Import Consolidation process at each stage Sales Customers (CHA / Local or International forwarder / Direct Consignee) Overseas Agents Customer details Buy rates Cargo details Quotation Operations & Planning Shipping line Customs Nominated CFS Customers (CHA) Marine Surveyors Job order / Bill of entry Pick up Letter CLP Offloading letter MCC Operations Movement to CFS Procurement / Return of empty units to yard Re-stuffing and movement to ICD Customer service / Documentation Shipping Line Customers Pre-alert information HBL / MBL details Un-cleared shipments CAN / Freight invoice File docs with line SMTP manifest Cargo plan Pre-alert Industry Stakeholders Input Output

Limitations in the existing export process - Challenges and suggested solutions Item Category Current Process To be Process Expected Benefits Interlinking between CFS / Customs Carrier IGM and Console IGM details available in Icegate needs to be manually submitted to CFS along with Job order for container movement from Port CY to CFS Cargo de-stuffing information needs to be manually passed on from CFS to Customs These details to be available in CCS CCS to act as a single repository containing information on IGM EDI, Job order, cargo destuffing etc…visible to CFS / Customs / Consolidator / Customer eliminating the need for multiple systems to retrieve and send information Container seal number In case of a container seal discrepancy, we only know about it post container arrival to CFS. Due to this, it is put on hold Seal mismatch cases to be sent as a EDI trigger from CCS to the CFS immediately upon container arrival Avoid delays due to containers being put on ‘hold’ Customs Amendment Currently a few amendment categories are done manually CCS to provide a provision for customs amendments to be done online Enables transparency in the amendment handling process and helps maintain a record history

Challenges Foreseen Our Expectations – Way forward Future Vision Challenges Foreseen Our Expectations – Way forward

Challenges foreseen Development and implementation of CCS should factor the following issues Non-uniformity of Message Formats Level of Automation Non-standard directories and codification schemes Lack of Standardization of Procedures Legal requirements for bringing hard copies Unstructured form of information exchanged Requirement for re-engineering the processes Active participation of the stakeholders

Our Expectations – Way forward Future vision of how CCS can transform our Industry functioning Submission of information in structured formats. Optimal re-use of information. Greater efficiency and better service provisions. Statistical Analysis of Data generated for improving the services. Expected benefits in using CCS as an interface: Faster transmission of messages / Information / reports. Transmission to multiple parties at the same time. Possibility of a 2 way communication. Cost saving for stakeholders. Transparency and visibility to timelines, procedures & tariffs.

You are today where your thoughts have brought you, You will be tomorrow where your thoughts take you. Thank you!!!