Archives For International Trade

Cross-border e-commerce freight train [Xinhua]

From ancient trade to modern tech

Two millennia ago, camel caravans trekked across an inland route centered around Chang’an – today’s Xi’an, the capital of Shaanxi province – serving to connect China to western-lying regions of the world through trade and exchange.

Today, under the guidelines of the Belt and Road Initiative, cross-border and transcontinental transactions are booming online as well, with a key difference: unlike the ancient model, the online businesses of today’s digital era are more efficient, more diverse and far more extensive.

Smart technologies and modern logistics have enabled people to pick and choose products from overseas – from Argentina’s red prawns, Mexico’s avocados and Chile’s cherries to the Czech’s crystals, Myanmar’s emeralds and Bulgaria’s rose oil – and receive them within hours or days after a simple click.

The Belt and Road online

Countries involved in the Belt and Road Initiative have launched businesses on China’s online shopping platforms, among which the e-commerce giant JD.com alone has attracted more than 50 overseas e-stores.

At the same time, these e-platforms facilitate the export of Chinese products to 54 countries, among them Russia, Ukraine, Poland, Thailand, Egypt and Saudi Arabia.

China’s e-commerce sector, projected to reach 2 billion consumers globally by 2020, has become a pillar industry supporting worldwide trade, said Xing Yue, vice president of Alibaba.com, one of China’s leading e-commerce conglomerates headquartered in Hangzhou, the capital of Zhejiang province.

“With circumstances highlighting digital dividends, cross-border e-businesses do not only focus on selling products, but also on creating service-centered trade, a signal epitomizing digital commerce,” added Xing at the second Cross-Border E-Commerce Summit held in Zhengzhou, capital of Henan Province, in May this year.

According to Alibaba.com, the company’s annual online shopping spree hosted last November 11 – a day evolved from China’s Singles’ Day into an annual online shopping frenzy – attracted buyers from 225 countries and regions, generating a revenue of 168.2 billion yuan (US$26.25 billion) and producing 812 million orders.

AliExpress, a global business division of Alibaba.com established eight years ago, reached 100 million overseas customers as of April 2017. “We may be underestimating the actual size as people under the same roof may use the same account,” said Shen Difan, the general manager of AliExpress.

“Products made in China are nothing inferior to the rest of the world. However, the problem is that the small-and-medium-sized enterprises in China were unable to reach overseas customers,” Shen said, adding that e-commerce has allowed these businesses to tap into other markets, extending connections between the two sides.

E-commerce and drones reshaping trade

The change in delivery speeds in Russia exemplifies the convenience of online business. Before e-commerce took off there, overseas packages often took as long as 60 days to arrive to Russian households, after being sent to Moscow for a security check.

Now, however, with the adoption of big data, Russian customs is no longer required to send deliveries to Moscow for unpacking and examination. Instead, detailed information about each package, including dates, types and values of commodities, is made available online, enabling direct delivery to customers.

E-commerce – arising as one of China’s four major modern inventions, along with high-speed railway, Alipay and bicycle sharing platforms – has overhauled traditional industrial chains and reshaped the trade system across the world, the People’s Daily reported.

“I have been greatly interested in the rural logistics run by JD.com,” Wu Min, the editor in chief of the Italian weekly newspaper Il Tempo Europa Cina, said while paying a visit to JD.com’s Beijing headquarters on June 1 of this year.

“In the past few years, it cost us heavily to send newspapers to the countryside, where difficult geographic conditions blocked entrance. Today, with the use of drones, we are able to surmount the last-mile challenge and send our newspapers to rural readers at much lower costs,” Wu explained.

JD.com has also developed drones, weighing 13 kilograms each, to manage deliveries to outlying areas. Additionally, smart technologies including robotic couriers and unmanned inventory have enabled the companies’ shipments to cover 99 percent of the population nationwide, saving 70 percent of total logistical costs, the People’s Daily reported.

Source: China.org.cn, article by Wu Jin, 14 June 2018

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Global Illicit Trade Environment Index.PNGThe Economist Intelligence Unit and the Transnational Alliance to Combat Illicit Trade (TRACIT) have released their Global Illicit Trade Environment Index, ranking 84 countries on the extent they enable or prevent illicit trade.

Finland ranks first in the Index with a score of 85.6 (out of 100), just barely ahead of the U.K. The rest of the top 10 includes a handful of European countries (Sweden, Austria, Netherlands, Denmark and Germany), along with the U.S., Australia and New Zealand. South Africa features 42nd in the list.

At the bottom of the Index ranking is a group of developing economies from all regions of the globe. Libya ranks last with a score of 8.4, and is joined by Iraq in 83rd place, scoring less than six points better. Filling out the bottom ten of the Index are: Myanmar, Laos, Venezuela, Cambodia, Kyrgyzstan, Belize and Ukraine.

Regionally, Europe (34 economies in the index), earns the highest the average score (68.0). The Asia-Pacific (21 economies) comes second at 56.0 and the Americas (19 economies), including the U.S. and Canada, is third at 54.0. The Middle East and Africa (10 economies) comes in last, with an average score of 50.0.

The Index is constructed on consideration of government policy, supply and demand, transparency and trade, and customs environment.

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“The Index provides essential information to help policy makers better understand the regulatory environment and economic circumstances that encourage illicit trade,” said Jeffrey Hardy, Director-General at TRACIT. “Illicit trade not only hurts consumers and takes revenue away from governments, it threatens the security of nations by supporting transnational criminal syndicates and terrorist groups, and governments and the private sector must work together to fight it.”

TRACIT hopes that economies that are at the top will concentrate on implementation and enforcement and says they need to provide leadership to help countries with lower scores to build a better environment to prevent illicit trade.

TRACIT calls for Governments across the globe to:

  • Commit to illicit trade related treaties;
  • Tighten controls on money laundering;
  • Reduce corruption;
  • Rationalize tax policies;
  • Strengthen law enforcement efforts;
  • Protect intellectual property;
  • Enhance interagency cooperation;
  • Improve governance of FTZs;
  • Report and share statistical data across borders.

Source: The Economist, Illicit Trade Index, June 2018

Trade Community System - Brisbane - DashboardA new Trade Community System (TCS) that will function as a free to access portal bringing together existing data on container shipments is the result of a collaboration between PwC Australia, the Australian Chamber of Commerce and Industry, and the Port of Brisbane.

The goal of the TCS is to link existing supply chain information in disparate systems through blockchain technology, and in the process “revolutionise international trade by removing complexity”.

The developers of TCS noted that one shipment to or from Australia today generates as many as 190 documents and 7,5000 data fields, much of which is duplicating data for different systems, and there is no ability currently to track containers on end to end journeys.

TCS aims to address this with a “National platform that links rather than replaces existing systems, provides end to end visibility and foresight of impediments such as delays and incorrect information, and is permissioned”. All documents, approvals and other requirements would be linked to a single shipment or container number as hashes on a blockchain that supports the TCS system, or stored in an off-chain graph database.

TCS - Brisbane

The developers stressed that TCS “augments, not replaces the systems that are already part of Australia’s supply chains”. Users would access the TCS directly through a web portal or indirectly through their existing systems, and at no upfront cost. “Users are not charged to use the platform or access data about the goods they are managing. Revenue comes from the productivity and service innovations that the data unleashes,” the developers stated.

Speaking at the launch of a proof of concept Trade Community System digital application in Brisbane, Port of Brisbane CEO, Roy Cummins said: “To drive new efficiency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector”.

This is the goal of the TCS. “The Trade Community System proof of concept is the first stage in building an innovative end-to-end supply chain that will digitise the flow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses,” PwC Partner, Ben Lannan added.

For the Chamber of Commerce and Industry, TCS is an important step in reducing the cost of doing business. “As a trading nation, Australia relies on efficient and effective international supply chains to drive its economic engine room,” said Australian Chamber Director of Trade and International Affairs, Bryan Clark. “At present the current inefficiency across Australian supply chains has added to the cost of doing business, creating up to $450 in excess costs per container. This doesn’t just represent in excess of $1bn in value lost, but goes to the heart of Australian commodity trade viability when it gets priced out of the competitive global market”.

Check out the video – https://vimeo.com/262332930

Source: WorldCargoNews, Editorial, 30 May 2018

 

 

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Companies that have been certified by the Singapore Customs for adhering to robust security practices can now enjoy a faster customs clearance process for goods that they export to Australia, the agency for trade facilitation and revenue enforcement said on Thursday.

In addition to the faster clearance process, certified Singapore firms will also be subject to reduced documentary and cargo inspections. The same will be applied to Australian companies that are certified by the Australian Border Force (ABF) for goods that they export to Singapore.

The move was recognised under a Mutual Recognition Arrangement (MRA) of Authorised Economic Operator programmes signed by Singapore Customs and the ABF on May 31 that aims to foster closer customs collaboration and elevate bilateral trade ties between the two countries.

The MRA comes under the Comprehensive Strategic Partnership signed between Singapore and Australia in 2015. In addition, Singapore is the first Asean country to sign an MRA with Australia.

In its media statement on Thursday, Singapore Customs said: “The Australia-Singapore MRA recognises the compatibility of the supply chain security measures implemented by companies certified under Singapore Customs’ Secure Trade Partnership (STP) programme and the trusted companies of the ABF’s Australian Trusted Trader programme.”

The agreement was signed on Thursday by Singapore’s director-general of customs, Ho Chee Pong, and the commissioner of ABF and comptroller-general of customs, Michael Outram, in Singapore.

Mr Ho said: “The signing of this MRA reinforces the commitment of both our customs administrations to maintain the security of regional and global supply chains, and to facilitate legitimate trade undertaken by Authorised Economic Operators in both countries.

“As major trading partners, I am confident that this new MRA of our respective Authorised Economic Operator programmes will bring about much benefit to our businesses and boost bilateral trade.”

The signing of the Authorised Economic Operator-MRA will further strengthen closer cooperation at the borders and smoothen the passage of goods between our two countries of trusted traders.

Source: The Business Times (Singapore), original article by Navin Sregantan, 31 May 2018

 

Container LogisticsA new book by Dr. Rolf Neise examines how the global shipping container industry has witnessed an unprecedented shift as a result of a dynamic change in the global container trade landscape. Whilst the maritime container business has been studied in-depth, the impact on shippers and how shippers deal with the given challenges has not been fully examined until now.

Container Logistics: The Role of the Container in the Supply Chain looks at the maritime business from a customer’s perspective and covers areas such as the purchase of transportation services from ocean carriers and transport management, to efficient logistics execution from a supply chain perspective.

The book, published by Kogan Page, examines the challenges, solutions, and the latest developments in the container industry as well as the interaction between the different actors involved, such as freight forwarders, supply chain managers and shippers.

Neise is a lecturer at the International School of Management in Germany and a consultant supporting multinational companies in optimizing their supply chain management and logistics structures. Prior to lecturing, Neise was the Global Head of Logistics Operations at British American Tobacco responsible for defining logistics excellence in the end-to-end supply chain.

Nik Delmeire, Secretary General for the European Shippers’ Council, said: “The timing of this book is spot on. I am convinced that this book can contribute to the dialogue that is needed between all parties in the maritime supply chain.”

Source: Maritime -Executive

blockchain-z

The world’s first blockchain-based platform for electronic certificates of origin (eCOs) was unveiled in Singapore on Tuesday.

The platform is the result of a partnership between the Singapore International Chamber of Commerce  (SICC) and Singapore-based vCargo Cloud. As the first chamber in the world to implement blockchain-based eCOs, SICC seeks to provide its members and trade-related agencies, including trade financing and insurance firms, with a system that offers higher security, efficiency and flexibility. The platform aims to vastly improve transparency, security and efficiency in authenticating trade documents. It permits instant verification of eCOs and runs on a private blockchain network that prevents fraud, alterations and third-party interference.

SICC says the platform represents a quantum leap in processing trade-related documents by hosting information of trade transactions on a tamper-proof distributed ledger system, which can be authenticated and accessed by various stakeholders of the platform. The platform uses QR codes, allowing eCOs to be scanned using smart phones and then printed. The number of allowable prints is restricted to prevent unauthorized duplicates. This improves efficiency and minimizes the costs of verifying COs, removing a major impediment in the process and a frequent cause of high insurance or trade finance costs.

vCargo Cloud intends to leverage on the Singapore launch to promote the platform globally, beginning with Asian countries that are substantive manufacturing exporters such as Japan, Myanmar and Sri Lanka, using a pay-per-use model.

The launch of the blockchain-based eCO platform comes amidst the Singapore Government’s call for a Self-Certification regime through the ASEAN Single Window, which aims to expedite freight clearance and reduce manual paperwork across all 10 member countries.

eCo

Source: Maritime Executive, original article published 8 May 2018.

E-Commerce Strategic PlanCustoms and Border Protection has developed an e-commerce strategy in a bid to tackle the increase in online shopping and growth of illicit and counterfeit goods shipped as small packages.

The strategy, which notes that CBP must “adapt” to the new e-commerce landscape, seeks to address emerging threats posed by the global change in commerce habits and ensure CBP has the means to enforce violations.

Under the new e-commerce strategy, CBP will, among a number of measures, look to enhance data collection and intelligence, develop and utilise state-of-the-art techniques and technologies, review its existing legal and regulatory authorities, seek to strengthen partnerships with the private sector, facilitate international trade standards for e-commerce, and educate the American public of the risks, both as consumers and as importers, associated with non-compliant products.

The crackdown and new emphasis for the CBP reflects the shift from traditional methods of importing via large, containerised shipments to small, low-value packages as direct-to-consumer business becomes more common. This has presented new inspection and data challenges for CBP, especially as the volume of these small packages has increased.

In addition, transnational criminal organisations are increasingly shipping illicit goods to the US via small packages on the belief there is a lower risk of interdiction and less severe enforcement consequences if caught. CBP said this illicit activity poses a risk to the health and safety of Americans and compromises US economic security.

The new e-commerce strategy also follows a report last month by the Government Accountability Office, which reviewed the enforcement efforts by CBP and US Immigration and Customs Enforcement in light of the increase in online shopping and sale of counterfeit goods. The report found that CBP had conducted a limited evaluation of its efforts, suggesting its activities were not the most efficient or effective, and recommended it evaluate its activities to enhance intellectual property enforcement.

The new strategy has a strong focus on data, which is one of the current limitations around enforcement of small packages. For instance, according to the strategy document, CBP will strengthen partnerships with stakeholders and encourage information sharing, proposing benefits for those parties who share advance electronic data and other information and will penalise those who are not compliant in this area.

The agency will also increase its operational efficiency and effectiveness by using data analytics, data mining, and an array of powerful analytical tools. In addition, CBP will expand its existing advance electronic data pilot in the international mail environment to include additional foreign postal operators.

Potential technology options include mobile applications and an e-commerce resource library, the strategy notes. CBP will also develop a portal that contains a database on importers that CBP has vetted and deemed “trusted”.

Source: USCBP and Securing Industry, online article 2018.03.28

CargoX

Hong Kong-based CargoX raised $7 million through an initial coin offering to build its smart contract-based house bill of lading solution. CargoX, has designs on developing so-called smart contracts to transfer house bills of lading onto a blockchain solution it is building. House bills of lading are issues by non-vessel-operating common carriers (NVOs).

The coins, also called tokens, can be used to pay for CargoX’s smart contract solutions, but those interested in the blockchain-backed bill of lading solution can also pay with traditional currencies.

“Our platform will support all the legacy payment options with fiat money, but as we are a startup based on blockchain technologies, we are working on implementing cryptocurrency payment as well,” said CargoX founder Stefan Kukman. “There will be various service levels supported, and there will be additional features and services provided to holders and users of our CXO utility tokens.”

The ICO serves two purposes in this application. It helps CargoX raise funds as opposed to seeking venture capital investment, but the coins can also be used to transact within the solution. So, the sale of the CXO tokens is ancillary to the product offering.

That’s different from another crypto-token liner shipping model that emerged in the second half of 2017 called 300Cubits. That company issued tokens, called TEUs, to underpin a solution that would penalize shippers and carriers for no-show or overbooking behavior.

CargoX, meanwhile, said it wants to be a neutral platform for global trade documentation and is starting with the bill of lading approach. The solution comprises an app, a document exchange protocol, and a governing body, which is currently being established.

“The next step is to demonstrate the viability of our platform with a test shipment,” Kukman said.

That pilot, scheduled for the second quarter of 2018, links a logistics company with its clients on a shipment from Asia to Europe.

“Technology companies often lack the shipping and logistics expertise necessary to break into this industry,” Kukman said. “On the other hand, logistics companies venturing into the tech field may be held back by their reliance on established, old-school business practices.”

To register, CargoX collects “know your customer” and NVO license information “to establish roles and permissions on the platform.”

“Once companies register, they will receive their public and private key for signing the Smart B/Ls. This can be done in the Smart B/L distributed application provided by CargoX, or with the help of the CargoX Smart B/L API (application programming interface) integrated into the company’s system.”

That integration can take a few hours or weeks, depending on the workflow of the company, CargoX said.

The ultimate goal of bringing bills of lading to the blockchain solution is to create a common, encrypted repository of data. The secondary benefit of that process would be the potential to eliminate bank-backed letters of credit for suppliers, as the smart contract would automatically trigger payment.

“The shipping industry currently wastes billions of dollars on spending related to letters of credit, which are used in global trade as a payment guarantees,” Kukman said.

In terms of how the blockchain-backed bill of lading would function in practice, Kukman said that data will be encrypted and stored in a decentralized storage application.

“These are much safer than centralized storage, as they use the same blockchain security mechanisms as the billions of dollars worth of cryptocurrencies such as bitcoin currently in circulation,” he said. “Actual ownership (of the document) will be traded (sent) in the same way people send tokens today, from one wallet to another.”

Visit CargoX website, click here!

CargoX Whitepaper, click here!

Source: American Shipper, E, Johnson, 14 February 2014

project-walvis-bay-container-710Namibia’s 344 million U.S. dollars container terminal currently under construction in its coastal town of Walvis Bay is 76 percent complete, the Namibian Port Authority (Namport) said Thursday.

According to a statement issued by Namport, the contract is on schedule for completion of most of the works at the end of 2018 with minor works to be completed early 2019.

One of the major components of the projects is the commissioning of four new Ship Container Cranes (STS), making it the first time that these cranes will be deployed in the port of Walvis Bay.

Namport has to date made use of mobile cranes to load and offload containers from vessels.

The 4 STS cranes are expected to arrive from China on February 10, 2018.

The project which commenced in May 2014 with the contractor being China Harbor Engineering Company Limited will have a throughput capacity of 750,000 TEUs (twenty foot equivalent units) per annum.

The new port will also be connected to the existing port’s road and rail networks as well as communication systems. Source: Xinhuanet 2018-02-01

ZIMRAaaaaaaaZimbabwe’s Deputy Finance and Economic Planning Minister Terrence Mukupe has estimated that the country has lost an estimated $20 million in revenue receipts since ZIMRA’s automated Customs processing system (ASYCUDA World) collapsed in the wake of server failure on 18 December 2017.

During a site visit of Beit Bridge border post earlier this week, it was revealed that ZIMRA collects an estimated $30million per month in Customs duties at its busy land borders. The Revenue Authority has since instituted manual procedures.  Clearing agents are submitting their customs documents accompanied by an undertaking that they will honour their duties within 48 hours. That is, when the ASYCUDA system is finally resuscitated and this is totally unacceptable.

Furthermore, Zimbabwe lies at the heart of the North-South Corridor which handles a substantial volume of transit traffic. The threat of diversion due to lack of proper Customs control and opportunism will also create both a fiscal and security headache. The deputy minister stated that the government was considering abandoning the Ascyuda World Plus system to enhance efficiency and the ease of doing business. “We need to benchmark it with what our neighbours in the region are using”.

It has also been suggested that the ZIMRA board have been complacent in their oversight of the affair. While it is a simple matter to blame systems failure, the lack of management involvement in taking proactive steps to ensuring redundancy of the country’s most crucial revenue collection system has been found wanting.

This calamity undoubtedly signals a huge concern for several other African countries who are likewise supported by UNCTAD’s ASYCUDA software. Many question post implementation support from UNCTAD, leaving countries with the dilemma of having to secure third party vendor and, in some cases, foreign donor support to maintain these systems. The global donor agencies must themselves consider the continued viability of software systems which they sponsor. Scenarios such is this only serve to plunge developing countries into a bigger mess than that from which they came. This is indeed sad for Zimbabwe which was the pioneer of ASYCUDA in sub-Saharan Africa.

This development must surely be a concern not only for governments, but also the regional supply chain industry as a whole. While governments selfishly focus on lost revenue, little thought is given to the dire consequence of lost business and jobs which result in a more permanent outcome than the mere replacement of two computer servers.

Under such conditions, the WCOs slogan for 2018 “A secure business environment for economic development” will not resonate too well for Zimbabwean and other regional traders tomorrow (International Customs Day) affected by the current circumstances. Nonetheless, let this situation serve as a reminder to other administrations that management oversight and budgetary provisioning are paramount to maintaing automated systems – they underpin the supply chain as well as government’s fiscal policy.

bulk-carrier

The first full agricultural commodity transaction using a blockchain platform has been completed by Louis Dreyfus Company (LDC), Shandong Bohi Industry, ING, Societe Generale and ABN Amro.

The trade included a full set of digitalized documents (sales contract, letter of credit, certificates) and automatic data-matching, thus avoiding task duplication and manual checks. Time spent on processing documents and data was reduced five-fold. The companies involved said that other benefits included the ability to monitor the operation’s progress in real time, data verification, reduced risk of fraud and a shorter cash cycle.

In the test, the Easy Trading Connect platform was used to execute a soybean shipment transaction from the U.S. to China. The transaction involved user participation on the blockchain-based platform by teams from Louis Dreyfus Company as the seller and Bohi as the buyer, with banks issuing and confirming the letter of credit. Russell Marine Group and Blue Water Shipping also participated in the process, issuing all required certificates. The U.S. Department of Agriculture provided valuable insights on how to include phyto-sanitary certificates in the process.

The Easy Trading Connect platform was first validated with an oil cargo transaction in February 2017, with the subsequent launch in November 2017 of an energy consortium aiming to offer blockchain-based services to the energy sector. The same principle was then applied to develop a blockchain-based platform tailored to agricultural commodities trading.

ING, Societe Generale, ABN Amro and other major industry players such as LDC have a long-term ambition to improve security and operational efficiency in the commodity trading and finance sector through digitalization and standardization.

“One thing is clear: the digital revolution is transforming the commodities sector,” said Gonzalo Ramírez Martiarena, Chief Executive Officer of LDC. “Distributed ledger technologies have been evolving rapidly, bringing more efficiency and security to our transactions, and immense expected benefits for our customers and everyone along the supply chain as a result. The next step is to harness the potential for further development through the adoption of common standards, and welcome a truly new era of digital trade flow management on a global level.”

Source: Maritime Executive, 3 January 2018 (Image credit: David Hundley (LDC)

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Are toilet seats bought by the kilogram or on a per piece basis? Should tableware or porcelain be measured by weight or as a unit? Likewise with a coffee table — weight or number? The answers may seem obvious but they’re not. Differences in commercial practices and customs guidelines on the measurement of some goods may have wreaked havoc with the country’s trade statistics, not to mention sparking a plethora of disputes and delays in the clearance of consignments.

The Central Board of Excise and Customs (CBEC), India has now begun a review of standard unit quantity codes (UQC) to address the issue and help improve the ease of doing business while reducing the scope for disputes. India has already identified ‘trade across borders’ as one of the areas where it can show substantial improvement in ease of doing business.

India is ranked 119 on this count in the World Bank’s latest rankings.

“There are issues particularly in some tariff lines… We are now looking at how we can bring about uniformity,” said a government official. For instance, UQC for products under Heading 6911— tableware, kitchenware and other household articles, and toilet articles of porcelain or china—is in kilogram.

However, the trade transacts in units or by number of pieces. Moreover, there is no uniformity in UQC declarations by traders. These are not the same for a particular item at different customs locations. The World Customs Organization has prescribed standard UQCs that are used internationally. India implemented mandatory standard UQCs from 2013 as part of export-import declarations.

There are inconsistencies in the way these have been applied. Variance in codes is approved by field officials, which makes the system subject to discretion and interpretation. CBEC has reached out to the industry to arrive at ways in which the matter can be addressed.

“Use of standardised UQC as prescribed in Customs Tariff Act, 1975, is a challenge at times faced by trade due to different market practices,” said Rahul Shukla, executive director, PwC.

“The same has been recognized by the customs authorities and they have supported the trade in resolving it as well on case-to-case basis. Shukla said the proposed move by CBEC to take another look at UQCs prescribed in the Customs Tariff Act and align them with practice was a positive move and in line with the continued commitment to trade facilitation.

“It will help if CBEC can consider allowing multiple UQCs for the same commodity or adopting a particular UQC which is used more frequently by trade,” he said. India jumped 30 places to 100 in World Bank’s overall ease of doing business rankings in the latest listing released in October after undertaking various reforms to improve the environment. Source: By Deepshikha Sikarwar, The Economic Times, India, 8 January 2018.

Port of Shanghai

The port of Shanghai has set a new world record by handling over 40 million TEUs.

On December 10, 2017, Shanghai Yangshan Deep Water Port, the world’s biggest automated container terminal, started trial operations.

Shanghai Port started container handling in 1978 with a capacity of 7,951 TEUs. In 2010, the port overtook the Port of Singapore to become the world’s busiest container port, and in 2011 throughput exceeded 30 million TEUs. In 2016, Shanghai set a record by handling over 37 million TEUs.

Shanghai aims to become China’s leading international shipping, aviation and railway hub by 2040. The city has also set a goal of handling 45 million TEUs in Shanghai ports by 2040. Shanghai Yangshan deep water port and Shanghai Waigaoqiao Port will be central to achieving the target, along with other ports including Hangzhou Bay and Chongming Island. Source: Maritime Executive, 1 January 2018

Shanghai Yangshan Deep-Water Port’s Phase IV container terminal started its trial operations last Sunday. The 550-acre, $1.8 billion facility is the latest expansion of the Port of Shanghai’s complex on Yangshan Island, which has deeper water than the port operator’s mainland terminals.

The Port of Shanghai is already the busiest for container traffic in the world, handling a record 37 million TEU in 2016, and the new automated Phase IV terminal will cement its leading position with an additional seven berths and 4-6 million TEU of capacity. Phase III began operations in 2008, but the global financial crisis delayed construction of the long-planned Phase IV until 2014.

According to Chinese state media, Phase IV is the world’s largest automated container terminal, with computer-controlled bridge cranes, AGVs and rail-mounted gantry cranes. All of the equipment is Chinese-made, and the facility also uses a Chinese-designed automated terminal management system. About 100 out of a total of 280 pieces of the automated equipment have already been delivered and are in testing.

“The automated terminal not only increases the port’s handling efficiency, but also reduces carbon emissions by up to 10 percent,” said Chen Wuyuan, president of Shanghai International Port Group, speaking to Xinhua.

Yangshan is the biggest deepwater port in the world. Phase I was finished in 2004, and the following year construction wrapped up on a 20-mile, six-lane bridge to connect the facility to the mainland. Extensive land reclamation allowed for the construction of Phases I through III on new ground adjacent to the islands of Greater and Lesser Yangshan, which were previously home to small fishing communities.

The port handles about 40 percent of Shanghai’s exports, and its operators hope to see it grow as a transshipment hub as well. As of 2016, it operates under a free trade zone status, which speeds up customs procedures and facilitates transferring or storing foreign-origin cargoes. Source: Maritime Executive, 11 December, 2017. Pictures: China State Media

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The WCO Policy Commission (PC) has seized the momentum garnered in the domain of electronic commerce and has unanimously adopted the Luxor Resolution at its meeting held this week from 4 to 6 December 2017 in the Egyptian city which gives its name to the Resolution.

The Resolution, developed in close collaboration with all stakeholders, outlines the guiding principles for cross-border E-Commerce addressing eight critical aspects, notably Advance Electronic Data and Risk Management; Facilitation and Simplification; Safety and Security; Revenue Collection; Measurement and Analysis; Partnerships; Public Awareness, Outreach and Capacity Building; and Legislative Frameworks.

The Resolution is aimed at helping Customs and other government agencies, businesses, and other stakeholders in the cross-border E-Commerce supply chain to understand, coordinate and better respond to the current and emerging challenges.

Additionally, and taking into consideration the relevance of the topic and the need to better position the work of the WCO and coordinate ongoing efforts, the PC has also issued a Communiqué to the Eleventh WTO Ministerial Conference (MC11), the Organization’s highest decision-making body, attended by trade ministers and other senior officials from the WTO’s 164 Members, that will take place in Buenos Aires, Argentina, from 10 to 13 December 2017.

The Communiqué strongly reaffirms the WCO’s leadership in providing policy and operational frameworks for the effective management of cross-border E-Commerce from both a facilitation and a control perspective, and clearly demonstrates its strong commitment to supporting the WTO’s Work Programme on E-Commerce, moving forward. Source: WCO 

  • Access the Resolution on Guiding Principles here!
  • Access the Communique here!
  • Visit the WCO’s Cross-Border E-Commerce webpage here!