The paper-free e-Freight offers two specific attractive characteristics compared to the paperless environment, with the e-Freight scope covering the legal, technical processes, as well as standards changes. This compares to the current air logistics environment in Taiwan in which the government adopts paperless processes in some cases and other areas and industries are requested for paper submission by law.
Some of the most difficult challenges linked with switching from paper-based, to electronic processes are the cost of operation, despite the trade facilitation, security enhancements and speed it provides. Th erefore, TAFA-R represents the right aim for the IATA e-Freight on the e freight project.
TAFA-R has an e-customs 100 per cent compliance with the IATA e-Freight requirements, but it was reported in the HLA (High Level Assessment) that Taiwan cannot sign MC99 and MP4, nor can it make a commitment to WCO SAFE. This is because Taiwan is not a member of the United Nations and consequently has no legal ground to sign the UN instruments, nor be admitted to the WCO.
We anticipate such environment will continue in near future. China Airlines has actively participated in MIP practice since 2007 and we cannot understand why Taiwan is not on the list of e Freight pilot sites. The e-Ticket project will be completed by the end of May 2008 worldwide and Taiwan has removed all paper tickets and is now in the era of paperless traveling for passengers. Whatkind of situation we are going to face in2012?
Taiwan Customs has studied and is working on the EU SAD & AEO.The Association of Air Forwarding& Logistics, Taipei Customs Broker’s Association, China Airlines and EVA Air – Represented LSP – Logistics Service Provider and the Taipei Computer Association – TCA-represented LSULogistics Service User are also working on an overview of the WCO SAFE and AEO in the business partners perspective.
The logistic supply chain in Taiwan will largely benefi t from the WCO SAFE Framework with its four core elements.
1. It harmonises the advance electronic cargo information requirements on inbound, outbound and transit shipments.
2. Each country that joins the SAFE Framework commits to employing a consistent risk management approach to address security threats.
3. It requires that at the reasonable request of the receiving nation, based upon a comparable risk targeting methodology, the sending nation’s Customs administration will perform an outbound inspection of high-risk containers and cargo, preferably using non-intrusive detection equipment such as large-scale X-ray machines and radiation detectors.
4. The SAFE Framework defines benefits that Customs will provide to business that meet minimal supply chain security standards and best practices.
Successful implementation will rest on the twin pillars of Customs-to-Customs network arrangements and Customsto- Business Partnerships. However due to the political reality Taiwan cannot be the member of WCO and cooperation with other nations’ Customs at the international platform will be extremely difficult.
Alternatively, through the NGO like IATA’s e-Freight project (Customs- Business – Customs model) it would be possible to achieve the same goals of the WCO SAFE. The e-Freight project will include the stakeholders, namely the freight forwarders association, national carriers, Trade-Van, Customs, CAA and other government agencies and led by Samson Pao, Chairman of the freight forwarders association. To cope with the international conventions namely MC99 or MP4, some of the local laws will also need to be amended which requires assistance from the government.
Looking at conditions and requirements for the Authorized Economic Operator (AEO) in the local business partner perspective, it has been noted that some of the criteria would be difficult to meet, namely: financial viability, consultation, co-operation and communication, education, training and awareness, cargo security, conveyance security, premises security, personnel security, trading partner security, crisis management and incident recovery, measurement, analyses and improvement. As such the assistance of the government is neccessary in order to accomplish these goals. By Samson Pao, chairman, Association of Airfreight Forwarding & Logistics.
