Technology That Transforms Accelerating Trade Processes Through a Multimodal Logistics Single Window

Technology that Transforms Accelerating Trade Processes through a Multimodal Logistics Single Window

Evolution of Single Windows: The UN guideline Maritime Industry : Port Stakeholders & Systems

The current processes and challenges

Case Study @ Tuticorin Port, South India Air Cargo Stakeholders : Current processes and challenges

GMAX: A case study @ Mumbai Airport, India

About Kale

Also links pvt sector: banks, custom brokers, insurance cos., freight forwarders & other logistics service providers. May not link with ports ( Extends SW to serve entire trade and logistics communities within airports, seaports and/or dry ports.

Interconnection & integration of Electronic Customs declaration systems uses only electronic NSWs > Regional cross-border e- documents through secure Value Added Networks (VANs) info exchange platform for without requiring physical visit and without submitting increased security, trust. physical papers at a later stage.

Interconnection between airports, airlines, forwarders and further this single window is linked to regulatory SW and Paperless Customs

Traders submit data only once to SW, which communicates with several authorities to get permits & certificates.

Chamber of19 3 Commerce Warehouse 1 CFS/ICD Operations

2 Rail 5 Operations C& F 4 Transport Agents Operations

6 Gate 12 Operations 18 5 Transport Liner Agent Exporters & Managem 7 Importers ent Yard 10 Management Equipment 14 Management 13 Stevedoring Survey Agency Agency 15 Customs

16 8 Bulk 9 Storage Vessel Port/Terminal Operations Operations

Shipping 11 NVOCC Line 17 Operations Pilotage

Chamber of19 3 Commerce Warehouse 1 CFS/ICD Operations

2 Rail 5 Operations C& F 4 Transport Agents Operations

6 Gate 12 Operations 18 5 Transport Liner Agent Exporters & Managem 7 Importers ent Yard 10 Management Equipment 14 Management 13 Existing PCS Stevedoring Survey Agency Agency community 15 Customs

16 8 Bulk 9 Storage Vessel Port/Terminal Operations Operations

Shipping 11 NVOCC Line 17 Operations Pilotage

Chamber of19 3 Commerce Warehouse 1 CFS/ICD Operations Port User Community

2 Rail 5 Operations C& F 4 Transport Agents Operations

6 Gate 12 Operations 18 5 Transport Liner Agent Exporters & Managem 7 Importers ent Yard 10 Management Equipment 14 Management 13 Existing PCS Stevedoring Survey Agency Agency community 15 Customs

16 8 Bulk 9 Storage Vessel Port/Terminal Operations Operations

Shipping 11 NVOCC Line 17 Operations Pilotage

SMTP, Placement

Report

BayPlan

AdvanceList Invoice Packing List

Status update

Movement Report

Shipping Container Agent

SB, LEO

Port User Community Stakeholders Transactions / documents Exporters/Importers – Forwarder/Broker Freight booking, Invoice, Packing List, SLI, pre-alerts Forwarder – Customs Broker Job information, job status, Consol DO Forwarder – Shipping Line e-booking, SI, e-BL, e-House Manifest, Tracking Customs Broker-Customs Customs Documents, Acknowledgements, Status Forwarder – Customs Consol Manifest, Acknowledgements Customs Broker – Container Depot Carting Order, Depot charges, Gate Pass Forwarder/Broker/Exporter – Chamber of Commerce Certificate of Origin Container Depot – Port/Terminal Operator Equipment Interchange Report, Bay area allocation, Status Terminal Operator- Shipping Line Container List, Stowage Plans Terminal Operator – Customs AFS, Cargo Declaration, Release Order, Shipping Line - Customs Manifest

1. Purchase Order/Sales Contract 65. Receipt 17. HBL 20. Invoice & Packing List Importer Exporter 19. Debit Note 18. Credit Note 21. Debit Note

4. L/C Notification Exporter’s Bank 3. L/C Application Importer’s Bank 2. L/C Application 5. Invoice & Packing List 6. Invoice & Packing List

7. Certification Request 9. Certificate of 67. MBL 8. Invoice & Packing List Conformity 68. Handling 13. Booking 46. Cargo Manifest Fees 14. SLI 15. MBL 29. Receipt 28. Transport Shipping Insurance Order 48. IGM Shipping Transporter Line Port Port Line 10. Invoice & Packing List CB/FF 50. Clearing Payment 11. Letter of Instruction 22.Invoice & Packing List 12. L/C Instruction 23. MBL 51.DO 24. Certificate of Insurance 49. Via 49. Via 48. IGM 16. HBL Road Rail Customs 47. CAN 44.1 Port wise Document

52. BOE CB/FF 66. Consignee ICD/CFS 45. Pre- Arrival Notice Receipt Customs Warehouse 27. Carting Request 61. Transport 25. Shipping Bill 33. Storage of Cargo -TJO -Train Summary 58. Customs 30. Gate In Order 34. Allocation of -WTR Examination 26. Shipping Bill No. 31. Container Weighment Empty Container 59. Out of Charge 32. De-stuffing + Carting Tally 36. Inspection & LEO 35. Stuffing ICD/CFS 53.Container Inspection Transporter 37. CLP 54. Gate In

43. Payment Confirmation 55.Weighment 62. Receipt 56.1 FCL 44. Gate Out 56. Seal Cutting 39. Forwarding Note 57. De-stuffing 38. Movement 60. Loaded/Re-stuffing Delivery Warehouse 40.Pre Load List 56.2 LCL Request 63 Payment Confirmation -Stored in Bonded Area 41. WTR 64. Gate Out 42. Train Summary

Container Depots/ Customs Empty Yards Exporter/Importer Forwarder/CHA Transporter

Web Portal Port Authority Transporter

Terminal

Operator

Service Service Bureau

Shipping Container Digital Exchange Forwarder/Customs Broker

Line

Adapter

Internal System Internal Web services Container Depots/ Empty Yards Exporter/Importer Customs Single Window

Bank Container Depots/ Empty Yards

CODEX – Container Digital Exchange

1 Key Figures 2 Transactions

. 12 Carriers . Export- 500 TEU/day . 400+ Agents . Import- 800 TEU/day . 2 Terminal Operators . 150+ Port Pass/day . 14 Container Depots . 1900+ Customs Filings/day . Port Security . Port Trust . 30+Transporters . 2500+ Exporters/Importers . Customs CODEX – A joint Initiative of Kale Logistics & Tuticorin Logistics Association

PRE CODEX EXPORT PROCESS Container Depot 1 2 Pass Section @ Port 3 Security @ Port Container Vehicle & Driver Vehicle No. , Depot Broker Details Recorded Container No. & Gate Out Pass Submits EIR Vehicle Pass Copy EIR is checked Issued Time Taken: 15 Time Taken: 15 Min Min

Port 4 Preventive Officer 6 Customs Officer 5 Authority

Customs Seal / Broker Export Broker EIR is Broker Line Seal & Submits EIR Declaration & Submits EIR Verified Submits EIR Container # is Copy EIR is Verified & SB Copy and Copy Copy verified Time Taken: 20 Min Time Taken: 15 Min Time Taken: 20 Min

7 Yard Operator 8 Yard Operator

Broker Gate In: Gate Out: Submits EIR EIR is Verified & Yard Block Copy Location updated Allotted Time Taken: 25 Min Time Taken: 10 Min Total Time to Check, approve and stamp~ 2 hrs Improved Process with CODEX CODEX BASED EXPORT PROCESS

Container Depot 1 2 Gate Pass Security OK | Reject

Port EIR OK | Reject Brokers Shows CODEX Pass

Customs S-Bill Gate Out Pass Vehicle Details OK | Reject

Seal CODEX Preventive Officer OK | Reject EIR Details SBill Details Total Time Taken: 10 Min

CODEX Pass 3 Brokers Shows CODEX Pass Yard Operator Gate In: Gate Out: Brokers Shows Location Location CODEX Pass Allotted Updated Total Time Taken: 15 Min

Total Time to check Documents~ 25 Minutes CODEX: Endorsed by Indian Customs Indian Customs Public Order

Terminal Inventory 48 42 Approve EIR Count Approve

340 Vessel Name Titanic Voyage O98 200 140 Cut Off Date & Time 15-10-2015 @ 15:30 80 70 Sailing Date & Time 16-10-2015 @ 02:00 20 Auto Approve EIR Approved Inventory Approval Toll Gate In On Vessel Approve Count 20 Approve Generated Pending

80 Vessel Name Alabama 50 Voyage DG767 30 Cut Off Date & Time 16-10-2015 @ 22:00 15 10 7 Sailing Date & Time 17-10-2015 @ 11:00 Auto Approve EIR Approved Inventory Approval Toll Gate In On Vessel Approve Generated Pending Approve Count

Pre-alerts for Overseas Agents House Customs Invoice Freight Manifests, Manufacturer Packing List Forwarder/ 3PL Provider Invoice, Packing SLI Lists SDDG

CR, TSP ERP Systems EGM, SB, CGM CARR, SAP/Oracle LEO,BAG, TDG Documentation System

3rd Party DEO Estimated 118 copies, 258 GHA signatures, 22 hours of MAWB House Manifest key-punching during Other shipment exports clearance process docs MAWB Source: IATA House Manifest Flight Manifest Carting Order , Charges receipts, MAWB, Booking Airline Lists, Manifests

Airline System

01 Air Cargo:End to End Export and Import Process Flow

1. Purchase Order/Sales Contract

Exporter Importer 17. Invoice & Packing List 14. Air Waybill 18. Debit Note 15. Credit Note 16. Debit Note

3. L/C Application 2. L/C Application 4. L/C Notification Importer’s Bank Exporter’s Bank 5. Invoice & Packing List 6. Invoice & Packing List

7. Certification Request 9. Certificate of 46. Freight Arrival Notice 8. Invoice & Packing List Conformity 47. Handling Forwarder

28. Receipt 57. Transport Order Insurance Transporter 24. Invoice & Packing List 60. Consignee Transporter 25. Air Waybill Airline Receipt 27. Transport Order 59. Receipt 26. Certificate of Insurance 39. Pouch 40. Air Waybill FWB 58. Receipt 19. Booking 41.House Waybill FHL 10. Invoice & Packing List 61. Air Waybill CB/FF 20. Air Waybill FWB 42. Flight Manifest FFM Airport Authority 11. Letter of Instruction 62. Customs Fees 21. House Waybill FHL 12. L/C Instruction 63. Handling Fees 13. Air Waybill 38. MRN 36. ACI Customs 43. Air Waybill FWB CTO 64. Handling Fees 37. MRN 44. House Waybill FHL Airport Authority 35. Flight 45. Flight Manifest FFM CTO 22. Air Waybill FWB Manifest Pouch Content: 23. House Waybill FHL • House Waybill(Paper) 29. Cargo Receipt FOH 50. Invoice 32. Pouch 54. Customs Fees • Invoice Customs 51. Air Waybill CB/FF 48. Pouch 33. Customs Rel. Exp. 55. Customs • Packing List 30. Export Goods Declaration. 52. House waybill 49. Air Waybill FWB • Certificate of Origin 34. Cargo Acceptance 31. Customs Release Exports 53. Import Goods Release Imports • Regulatory Documents Declaration 56. Custom Release Import

GMAX is an airport cargo platform which is an electronic platform for digital interactions between airport stakeholders viz. Importer / Exporters, Forwarders, Customs Brokers, Carriers, Customs, GHAs at Mumbai Airport This platform lays the digital foundation for:

Eliminating paperwork at the airport

Faster processing of cargo

Making information available to airport prior to cargo reaching the airport thereby enhancing security

Better planning processes which further reduces dwell times at the airport

Help comply with global regulatory and industry requirements such as o e-trade (Govt. of India) o Advanced Air Cargo Screening (ACAS) initiative of US CBP/TSA, PRECISE initiative of EU, PACT initiative of Canada o Advanced security declaration requirements of countries that have signed up for WCO SAFE framework o e-AWB, e-CSD, e-freight initiatives

Bringing in more transparency and visibility in supply chain to reduce overall transaction costs

To aid India in improving its ranking in Doing Business initiative of World Bank

. 115+ Airlines 1 . Export- 1500 AWBs/day . Customs 3 . 1800 Agents . Import- 2500 AWBs/day . GHAs . 13 Statutory Bodies . 6000+ receipts . Truckers . 2 Handlers . 100 Mn USD payments processed . Bombay Municipal . 500+ truckers . 2000+ ASIs Corporation . Shippers 2 . Agents

Modes of payment Document Submission Tracking

. Cash 4 . Portal . App 6 . Cheque . EDI . Web . PDA . Interfaces . SMS . Online . App . Email . Payment Gateway . Bureau . IVRS (Roadmap) 5

Exporter Booking / Transport / tracking Documentation / Booking / Documentation Clearance /tracking Forwarder Duty Payments Job info Unregulated Certificates Airline Payments Cargo Payments Octroi docs CHA Operators Loading instructions, Manifest

Chamber of Customs and Banks Commerce Allied regulators Airside Landside Area Area Cargo Terminal

Cargo Terminal Operator Processes: Receipt of Cargo, Weightment, Screening, Storage, Palletization, Regulated Customs Inspection, Airside movement, Aircraft Loading Cargo Services

GMAX: Empowering unregulated operators to transact digitally E-booking, e-AWB, e-Customs, e—Chamber of Commerce etc.

Exporter

Forwarder Unregulated Airline Cargo CHA Operators

Chamber of Customs and Banks Commerce Allied regulators Airside Landside Area Area Cargo Terminal

Cargo Terminal Operator Processes: Receipt of Cargo, Weightment, Screening, Storage, Palletization, Regulated Customs Inspection, Airside movement, Aircraft Loading Cargo Services

Parameter Pre GMAX Post GMAX

Document handled ( including copies) 128 24

Avg Queue Time for document/payments 1 hr 20 minutes Nil

Airport Counters 9 1

Average time per export doc handling 28 minutes 6 minutes

Average time per import doc handling 22 minutes 8 minutes

Accuracy of data 85% 94% +

Waiting time for Export Trucks 2 hours+ Average 6 minutes

Availability of data to stake holders Through Mail, calls and in person Portal, EDI, App, On Demand

100% adoption in a year’s time

In a nutshell, GMAX has helped Trade Facilitation by  Simplifying the processes at the airport through a single window of digital documentation.

• This is a key requirement in WTO trade facilitation implementation.  Giving complete visibility of exports/imports operations for better supply chain planning  Reduction in malpractices / errors at the airport which results in loss to exchequer  Better productivity of trade/airport staff at the airport  Digital records of events for audits GMAX also helped  Faster document processing Mumbai to become the  Better security for the airport first airport in the world to have 100% FWB (EDI  Possibility of reduced dwell times for e-AWB)

 Reduced impact on trade of impending global security regulations

Container Depot/ Liner Agent/GSA Empty Yards Exporter/Importer Forwarder/Customs Broker Transporter

Web Portal Port Authority Transporter

Airport/Port Terminal

Operator Multi Modal

Service Service Logistics Bureau Shipping Forwarder/Customs Broker

Line Single Window

Adapter

Internal System Internal Web services/EDI Container Depot/ Empty Yards Exporter/Importer Customs Single Airline Window

Bank Container Depot/ Empty Yards

Multimodal Logistics Single Window + Customs Single Window = National Trade Single Window

LEADING PROVIDER OF FINANCIAL, OPERATIONAL AND BUSINESS INTELLIGENCE SOLUTIONS TO THE AIRLINE AND LOGISTICS INDUSTRY

500+ 3000+ 15 30+ years Customers Professionals Countries

Kale provides “Technology that Transforms” the way information is exchanged across the Logistics value chain

1 Business Focus Kale Logistics focuses on providing IT solutions to:

• Multi Modal Logistics- Asset and Non Asset Based • Airports and Ports • Warehouses • Carrier & Transporters & Fleet Operators

2 Solution Categories We primarily provide two types of systems:

• Systems automating internal business processes of Logistics Service Providers • Community solutions helping various players in the logistics value chain to communicate and transact with each other electronically

Background

A company recognized Widest range of Experience of working as the “Best IT solution solution offerings for with leading carriers, provider to logistics the industry terminal, freight and industry” consistently shipping for last 7 years management companies globally

First and Only Covered in publications Recognized partners Indian IT products of KPMG as top 10 of industry company to have a innovations in Indian associations of FIEO, global industry Logistics Industry and in NACFS,FIATA, IATA, platforms the book written by TIACA, ACAAI, ASA, professors of Kellogg’s CII, TIFFA and WCO business school for its innovations for Logistics industry

Air Ocean Rail Road

Freight Management System Shipping Line Agency Rail Management System Transportation Management System

Custodian Management System Stevedoring Agency Fleet Management System

GHA Management System Survey Agency

Warehouse Management System Equipment Management

Customs Clearance Management Customs Clearance Management

CFS/ICD Management System EnterpriseSolutions

Warehouse Management System

Air Ocean

Connecting the Cargo Community Container Digital Exchange

e-Certificate of Origin (e-CoO) Global Cargo Exchange

Airport Community System

Global Cargo Exchange CommunityPlatforms

Vipul Jain receiving the Sumeet Nadkar receiving the ‘Best IT Solutions Provider-2015’ award ‘Supply Chain IT Solutions Provider -2014’ award

Vipul Jain receiving the ‘Asia Pacific Entrepreneurship - 2016’ award Amar More receiving the Sumeet Nadkar receiving the ‘Payload Asia 2014’ award ‘Best SCM Solutions Provider -2012’ award

Sumeet Nadkar receiving the Sumeet Nadkar receiving the Sumeet Nadkar receiving the Vipul Jain and Sumeet Nadkar receiving the ‘Best Technology Service Provider -2012’ award ‘Best SCM IT Solutions Provider -2011’ award ‘Best IT Solutions Provider-2010’ award ‘Emerging IT Solutions Provider-2009’ award

For more information please contact:

Kale Logistics Solutions Private Limited

Corporate Office Channel Network 12th Floor, MBC InfoTech Park, • Africa Near Hyper City, Kasarvadavali, Ghodbunder Road, • Middle East Thane - (W) 400615, (Mumbai Area) Maharashtra, INDIA • South-East Asia Tel: +91 22 4113 4113 | Fax: +91 22 4113 4123

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