Tracking & Facilitating Cross Border Shipments

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1 2007/SCCP/ACBD/001a Tracking & Facilitating Cross Border Shipments Submitted by: DHL APEC Customs-Business Dialogue Sydney, Australia 29 June 2007

2 Tracking & Facilitating Cross Border Shipments APEC Customs Business Dialogue, June 2007

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4 WCO Framework As per the Introduction of the WCO Framework: International trade is an essential driver for economic prosperity. There is a need for a World Customs Organization (WCO) endorsed strategy to secure the movement of global trade in a way that does not impede but, on the contrary, facilitates the movement of that trade. a holistic approach is required to optimize the securing of the international trade supply chain while ensuring continued improvements in trade facilitation. Page 3

5 Overview The task of Customs in international trade has often been seen within the terms of ensuring trade facilitation while maintaining appropriate levels of control This initiative falls within that general frame it is just that certain members now see the need for much greater levels of control in response to the current security situation Page 4

6 Current Clearance profile in AP The clearance environment in AP is very diverse and the economic situation is very strong Ranging from revenue focus to community protection focus Ranging from manual processing to full EDI/paperless environment Ranging from no de minimis provisions to relatively high levels Currently characterised by minimal export reporting requirements very minimal pre departure export reporting Extensive pre-arrival reporting Significant number of short haul flights Significant hub operations, with tail to tail transfers Strong growth Page 5

7 The Express Industry in AP Service industry reflecting the demands of our customers Absolute demand for overnight service across AP and a 1-2 day service into other international markets Latest possible cut off in the evening, earliest possible delivery the following day Production cycle closes 7pm Pickup by carrier at 8pm Export processing complete by 9pm, take off Overnight transfer, including preclearance Import processing breakbulk etc Delivery in the morning Page 6

8 The Role of Industry To work with Governments and bodies such as the WCO to ensure that assessed security risks are addressed while trade facilitation levels are maintained or increased. Ensure that authorities establish measures that are in line with the determined threat levels. Represent the needs of our customers in driving economic prosperity. Once measures are established, contribute to the security of the supply chain through the implementation of agreed internal controls and the provision of high quality data to agencies for screening in a timely manner. Support capacity building. Page 7

9 DHLE Shipment Movement Process ORIGIN SERVICE CENTRE ORIGIN GATEWAY Pickup (PU) Processed & Bagged (PL) Departs Facility (DF) Arrives Facility (AF) Processed & Bagged (PL) Depart Facility (DF) Confirmed Uplift (CU) TRANSFER HUB 9 8 Confirmed Uplift (CU) Departs Facility (DF) Processed & Bagged (PL) Arrives Facility (AF) DEST GATEWAY DEST SERVICE CENTRE Arrives Facility (AF) Processed & Bagged (PL) Departs Facility (DF) Arrives at Final Dest (AR) With Courier (WC) Shipment Delivered (OK) Page 8

10 Clearance Process Tools for the early transfer of information from origin to destination DHL Customs alert Tools for the transfer of images invoices, HAWB, permits Tools for the auto-classification of shipments providing improved consistency and compliancy, and hence lower risk Just as Customs are seeking visibility of the shipment process, our customers are also seeking visibility on the clearance process New Checkpoints introduced that monitor the timing of declaration lodgement and the timing of Customs response. Many multi-nationals looking to benchmark clearance performance of service providers and governments in the supply chain Page 9

11 Asia Pacific Quality Control Centre (APQCC) APQCC Page 10

12 QCC - in country examples SYD KUL HKG HUB SIN HUB Page 11

13 Real Time Flight Management Page 12

14 AEI as the Ideal Partner The air express industry covers a significant number of customs declarations in most countries across AP estimated at 25+% of declarations with only 4 companies (DHL, FedEx, TNT, UPS) Control and visibility on shipment movement from pick up to delivery via a single reference number (the HAWB) - no multiple handling, transfer of data between multiple parties etc We have made significant investments in security of premises and process to ensure that risks are minimised We are able to provide information on best demonstrated practices across the region and globe Our key request is that, in line with the WCO Framework, authorities consult with our industry prior to the implementation of any measures Page 13

15 THANK YOU Page 14