Published on August 2010 Cold Chain Logistics China International Cold Chain Logistics Fair is the only one for cold chain logistics industry professional exhibition. International Cold Chain Logistics Exhibition provides an ideal trade platform for food manufacturers, food distributors, food processing, global retailers, fast food chain, food equipment suppliers, food service suppliers, grocers, restaurants, hotels, the third- party logistics companies, associations and government departments The most advanced description of cold chain equipment and technology is to build a complete cold chain logistics network, which will hopefully reduce the damage to property for the state to preserve food freshness, ensuring that the transport cost and improving national food security. Career talk in HKU BBQ gathering — career sharing Summer internship programme 2010 HAECO visit RFID Center visit Event Highlight Contents Message 3 New International Standard — AEO 4 Seminar 7 YMC Events 12 Upcoming Events 17 Education Training 18 Yearly Plan 19 What is AEO benefit for ? Reduce transit time of custom clearance Enhance competitive advantages Get intangible benefit such as customer service, time reduced WCO’s Framework of Standards to Secure and Facilitate Global Trade SAFE adopted in June 2005 by WCO High Level Strategic Group (HLSG) New International Standard for competition — AEO Supply Chain Security Association NEWSLETTER ISSUE 2010/01 More...
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Supply Chain
Security Association 2010 August
Published on August 2010
Cold Chain Logistics China
International Cold Chain Logistics Fair is
the only one for cold chain logistics
industry professional exhibition.
International Cold Chain Logistics
Exhibition provides an ideal trade
platform for food manufacturers, food
distributors, food processing, global
retailers, fast food chain, food equipment
suppliers, food service suppliers,
grocers, restaurants, hotels, the third-
party logistics companies, associations
and government departments
The most advanced description of cold
chain equipment and technology is to
build a complete cold chain logistics
network, which will hopefully reduce the
damage to property for the state to
preserve food freshness, ensuring that
the transport cost and improving national
food security.
Career talk in HKU
BBQ gathering — career sharing
Summer internship programme
2010
HAECO visit
RFID Center visit
Event Highlight
Contents
Message 3
New International
Standard — AEO
4
Seminar 7
YMC Events 12
Upcoming Events 17
Education Training 18
Yearly Plan 19
What is AEO benefit for ?
Reduce transit time of custom clearance
Enhance competitive advantages
Get intangible benefit such as customer service, time reduced
WCO’s Framework of Standards to Secure and Facilitate Global Trade SAFE adopted in June 2005 by WCO High Level Strategic Group (HLSG)
New International Standard for competition — AEO
Supply Chain
Security Association NEWSLETTER ISSUE 2010/01
More...
Supply Chain
Security Association 2010 August
Your Advertisement is
here
Supply Chain
Security Association 2010 August
Dear members and fellow students,
Security is nowadays a hot issue after The World Trading Center was attacked in September,2001 at USA. After that, WCO has established many regulations to avert countries for being threatened again. Recall the before 9-11, the Transportation Security Administration had not been created; nor had its rules and procedures that have engendered so much debate among security professionals as well as airline travelers. "We are NOT SAFER since 9-11," they said. "We have been extremely lucky. They won’t attack us by air next time, but will take advantage of our weaknesses in port security and commercial shipping. Ports, power plants, dams, bridges—they're all vulnerable. They will get here by simply walking across the border from Mexico or Canada." Security is not only protect aircraft, but also the supply chain.
Our association play the leading role in the logistic industry to beware the importance of security related to supply chain. Our Organization was founded by a group of professionals from supply chain management, security management and information technology management in April 2002, with the aim to address the awareness towards emerging security threats on the supply chain industry. In this year, we have contributed to many seminars including Cold Chain Conference 2010 China and Li battery Seminar to promote the common message of security in the whole supply chain to prevent unnecessary loss.
Apart from promoting the security of supply chain to society, our organization has founded Young Members Committee to provide a platform to our members who are mainly from universities studying related discipline. We hope they could broaden their views in our association before they graduate. It is a common phenomenon that our undergraduates concern little in security due to lack of supports in departments. To get the latest information in the industry, our organization hold countless functions. This year, we organized events such as Career Talk of Summer Internship, RFID visit in HKSTP, BBQ gathering to our members and this newsletter was designed by them.
In the future, we will promote much more events and seminars with highlighting the security awareness to industry. Furthermore, we would like to teach some useful skills to our students such as Communication Skills, Presentation Technique to upgrade their performance either in campus or in the society.
With best Regards,
Vice President SCSA
Message from Vice-President
3
Supply Chain
Security Association 2010 August
W hen the freight forwarders/ agency compa-
nies/ logistic companies are finding their
business partner for trading goods, they will
consider the reliability, quality by company’s background
and certification. A list of quality qualification such as
ISO 9001, ISO 14000 is what we called quality assur-
ance authorized. However, it is outdated because some
occasionally pose a threat to the security and it is not
reliable anymore. In 2005, EU’s provides amongst other
for the creation of an Authorized Economic Operator
(AEO). The legislation stipulates that customs authori-
ties shall grant to reliable traders that are established in
the European Community the status of ―authorised eco-
nomic operator‖. The legislation is coming towards Hong
Kong as AEO is a reliable marker for trading partners of
secure member of supply chain.
What is AEO?
Authorized Economic Operator (AEO) is aimed at cus-
toms simplification / security & safety control. It encour-
ages all the parties in the supply chain industry to in-
crease security in exchange for incentives that will im-
prove the efficiency and ultimately reduce costs and
improve partner relationships. The government and
HKC&E are promoting AEO to those related parties and
industries to get the greatest benefit.
4
The benefit of applying AEO
1. Peer recognition of AEO status
2. Reduced inspection, reduced transit time and lower
storage costs
3. Relaxed standards for pre-arrival and pre-departure
requirements
4. Simplified procedures for Customs declarations
5. More reliable information and more clearly defined
responsibilities
6. Special measures relating to periods of trade disrup-
tion or elevated threat
7. First consideration for participation in any new cargo
processing programs
8. simplified Customs procedure and less Customs in-
tervention.
There is a trend for Hong Kong small /medium business
companies apply AEO to enhance the competitive
advantage because after applying AEO, they can
reduce time for every process.
New International Standard in HKNew International Standard in HKNew International Standard in HK
Information provided by Alliance Management Consulting Ltd. (AMC) Information provided by Alliance Management Consulting Ltd. (AMC) 4
Parties involved in the whole supply chain
Supply Chain
Security Association 2010 August
Alliance Management Consulting Ltd. (AMC) was appointed by Customs and Excise Department (C&E) in April 2010
to train their auditors on the auditing techniques, methodology, and related ISO standards on supply chain security
and Authorized Economic Operator (AEO).
AEO condition
The World Customs Organization has designed stand-
ards to secure and to facilitate the ever-growing flow of
goods in international commerce. These standards are
set forth in the SAFE Framework, which was adopted by
the WCO Council at its 2005 Sessions. A vast majority of
WCO Member administrations have expressed the
intention to begin the process of implementing the SAFE
Framework provisions. In recognition of the urgency of
launching this new programme without undue delay, the
Council adopted the basic SAFE Framework document
which provides the broad overarching principles con-
cerning security and facilitation of the global supply
chain.
The SAFE Framework incorporates the concept of the
Authorized Economic Operator and provides baseline
technical guidance for the implementation of AEO pro-
grammes at the global level between WCO Members
and the international trade community. It is designed to
serve as a starting point for national AEO programme
implementation and supports the effective application of
the standards that are outlined in Pillar II (Customs-to-
Business Partnerships) of the SAFE Framework.
Demonstrated Compliance with Customs
Requirements
Satisfactory Systems for Management of
Commercial Records
Financial Viability
Consultation, Co-operation and Communi-
cation
Education, Training and Awareness
Information Exchange, Access and Confi-
dentiality
Cargo Security
Conveyance Security
Premises Security
Personnel Security
Trading Partner Security
Crisis Management and Incident Recovery
Measurement, Analyses and Improvement
AEO requirement
Authorization will be granted by the national Customs administration after validation of the fulfillment of AEO conditions and requirements.
AEO scheme provides:
a solid platform of international mutual recognition sys-tems
AEO concerns itself with both the security of the supply chain, and other aspects of each individual firm, such as financial standing.
5
Supply Chain
Security Association 2010 August
Global situation of AEO
The WCO is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of customs administrations. As at 3 May 2010, 161 WCO members has expressed their intention to implement the WCO Framework of Standards to Secure and Facilitate Global Trade. In next three issue, a overview is established in dif-ferent region.
AEO program in Asia - Japan
Japanese government has developed and promoted
AEO Program in close cooperation with the business
sector, aiming at ensuring security while facilitating
legitimate trade. For that purpose, Japan Customs, as a
main entity in the field of international trade, has
developed comprehensive AEO program with
combination of programs for importers, exporters,
warehouse operators, Customs brokers and logistics
operators, such as forwarders and carriers, which are
consistent with the ―SAFE Framework‖ developed by the
WCO.
Under this program, AEO in Japan can enjoy specific
benefits according to its type of AEO, in addition to the
benefits such as increased reputation as a more
compliant and security-oriented company, favorable
consideration in Customs enforcement proceedings and
better relations with Customs.
Programs for importers/exporters provide Authorized
Importers and Authorized Exporters with benefits such
as compliance-reflected reduced examination and in-
spection. Furthermore, ―pre-arrival lodgement of import
declaration and permission‖, ―release of cargoes before
duty/tax payment declaration and duty/tax payment‖ and
―periodical lodgement of duty/tax payment declaration‖
are allowed for Authorized Importers, and the
requirement to deposit cargoes into the Customs area
before export declaration is waived for Authorized
Exporters.
With regard to Authorized Warehouse Operators, it is
allowed to establish additional new bonded warehouses
by just notifying it to Customs while permission is
necessary for non-authorized warehouse operators.
1. Authorized Importers’ Program
2. Authorized Exporters’ Program
3. Authorized Warehouse Operators’ Program
4. Authorized Customs Brokers’ Program
5. Authorized Logistics Operators’ Program
Japan’s AEO Program
Compliance-reflected reduced audits of warehouses are
conducted by Customs, and monthly fee for keeping
Customs warehouses is free for Authorized Warehouse
Operators.
Regarding the Authorized Logistics Operators such as
forwarders, shipping companies, airlines and
transportation companies, processes for customs transit
are simplified. For example, AEO carriers and
forwarders are not required to obtain permission for
each and every customs transit.
As for Authorized Customs Brokers, in case a
non-authorized importer delegates its import clearance
to an Authorized Customs Broker, release of goods is
allowed before duty/tax payment declaration and du-
ty/tax payment. And, in case a non-authorized ex-
porter delegates its export clearance to an Authorized
Customs Broker, and an Authorized Logistics Operator
transports exporting goods to the Customs Area, it is
allowed to file an export declaration without placing
goods into the Customs area.
When AEO has been established in 2005 by WCO,
more and more countries apply this regulation in their
own country. Hong Kong, as a international trading
cities, is following the worldwide trend to adapt the
rules. AEO, without doubt, be most of industries’ target
and it will raise another upsurge.
Source from Hiroaki Taga, JICA Expert
6
Supply Chain
Security Association 2010 August
New Air Regulations on Battery Operated Electronic Products SeminarNew Air Regulations on Battery Operated Electronic Products Seminar
I nternational Civil Aviation Organization (ICAO) has
specially initiated new additional changes on the
control of Battery Operated Electronic Products, the
new regulatory requirements have been released and
will come into effect on 1 January 2009, and which aims
to enhance the aviation safety.
Supply Chain Security Association (SCSA) organized
the ―New Air Regulations (2010) on Battery Operated
Electronic Products‖ Seminar, to draw the attention to
the industry on the new requirements and the common
problems, which may significantly affect exiting toys,
cameras, mobile phones and electronics products, and
will affect most supply chain players such as, manufac-
turers, exporters, freight forwarders and airlines.
The seminar attracted many representative of companies to
aware the new air regulation of batteries.
Mr Cheng Wing Cheung, Maric one of speakers to present in the
seminar.
Incident analysis
Problem causes of incidents battery
For Other Batteries
70% Short Circuiting
2% Charg-ing/Discharging
11% Unintentional Activation of Devices
17% Others
For Lithium Batteries
68% Short Circuiting (External & Internal)
15% Charg-ing/Discharging
7% Unintentional Acti-vation of devices
12% Others
- External Short - Internal Short - In use situation (Charging/ Dis - charging) - Non– compliance situation
In the seminar, it focused on changes on Lithium Bat-
teries of 2010 IATA DGR 51st Edition; refresh the re-
quirements and recommendations on documentation
check. To get more information about, there is an regu-
lation
•The IATA Dangerous Goods Regulations are recognised by ICAO as
the field document for the transportation of dangerous goods by air.
SEMINARSSEMINARSSEMINARS
7
Supply Chain
Security Association 2010 August
Risks & Opportunities on High Value Logistics Seminar
W ith the growing trend of the high value cargo
supply chain activities, such as, luxury
brands, high-tech devices / components,
pharmaceutical products, surly not only it will be a
fortune opportunity for the HK logistic business
development, but also it is a challenge to the industry
with higher expectation of risk management. Supply
Chain Security Association (SCSA), thus organizes the
Risks & Opportunities in High Value Logistics Seminar to
explore and discuss about this critical subject of the
industry.
The seminar was held on 20th January at City University
of Hong Kong and it was honor to invite CIP Lau
Kar-ming, Roger from Crime Prevention Bureau to pre-
sent the topics.
The aim of the seminar is to overview both opportuni-
ties and risk awareness of the high value supply chain.
Special thanks to the Hong Kong Police Force who will
share the latest situation and crime prevention in the
coming peak season in the cargo industry.
There were a number of attendants joining this seminar and
they were interested in the topic.
Tips of security method
Physical Security
External walls to be constructed to resist penetration by
removing building fabric, cutting or ramming vehicles
External doors to be reinforced by steel doors & frames
or equipment/suitable materials, secured with sturdy
locks
Access Control - Pedestrian Access
Guard or receptionist on main entry points
Access card and/or PIN controlled at all entry points
maceutical market size in the world, ranked ninth.
With regarding to huge pharmaceutical market,
applying cold chain concept in pharmacy is
highlighted.
Example of cold chain in pharmacy
Drug substance manufacture East coast US
Shipment at –80°C to drug product
manufacturing site EU
Misunderstanding of
situation
Because of lack of
knowledge in danger goods
awareness among staff, food in
cargo may be affected. For ex-
ample, when delivering a cargo storing
dry ice and frozen food, staff may pack those
cargo with experience as they do not know the
characteristic of dry ice (it should be packed as
Class 9* with UN specification).
“The focus of dangerous goods is not
only a safety issue but also one of sup-
ply chain security…”
Source: International Civil Aviation Organization (ICAO),
Dangerous Goods Panel (DGP), DGP-WG/07-WP/75
The outer package may be cold enough but inner
package is warm resulting bad food. Besides, the
contribution is not only affect the manufacturing as
well as consumer and retailer. It is essential to es-
tablish a well-rounded system to manage cold chain.
Item Objectives The consequenc-
es of improper
handling
Deep frozen foods
(-40 °C )
E.g. Tuna
Frozen food stor-
age, to facilitate
the transport and
stop bacteria
growth rate
Affect the texture of
food, or even
worse, can not eat
Wet food packag-
ing, hamper
transport
Frozen Food (0 - -
18 °C )
E.g. Ice-cream,
frozen meet
Maintain at the
access points, pre-
pare or storage of
frozen food quality
and reduce the
rate of bacterial
growth
Affect the texture of
food, or even
worse, can not eat
Wet food packag-
ing, hamper
transport
Refrigerator Food
(0 - +4°C )
E.g. Egg, mike,
frozen cake
So that the growth
rate of bacteria in
food can be in a
safety and ac-
ceptable level, but
also to facilitate
real-time cooking
Bad food, not edi-
ble
Direct impact on
the end consumer
sentiment
Paul frozen food (8
- 12°C )
Maintained at the
access point be-
fore the prepara-
tion of frozen food
quality and reduce
the bacterial
growth rate, to fa-
cilitate immediate
consumption
Bad food, not edi-
ble
Direct impact on
the end consumer
sentiment
Successful cold chain should pay attention to…
Route planning With clear location, transportation method, time estimation, temperature change estimation
Quality check ensuring temperature control in cargo, any special design needed
Cost estimation Budgeting the overall process to select optimal solution
Co-operation Seeking the views of partners, such as courier companies, freight forwarders, clinical research organizations, contractors and business consultants in order to balance the interests of all parties to achieve the best profits.
For frozen food, there is temperature range involved in
transportation.
11
Supply Chain
Security Association 2010 August
YMC EventsYMC Events
12
RFID centre visit – Automatic identification application
Also, We were honoured to have well-known
professor in RFID research, Prof. George Huang
to share the progress of the state-of-art research-
es and opinions on RFID to our students. The Vice
President of SCSA, Mr. Jimmy Pang, gave an
impressive sharing on RFID application and the
restriction of RFID. He suggested the QR code
which originated from Japan would be better than
RFID technology in this stage. The QR code
applies to fruits and vegetables goods while the
cost is less expensive than RFID. He said both QR
codes RFID not only brings better performance in
business but also convenient life. Participants
discussed the matters of RFID technology and
other potential applications of RFID on automatic
identification with Prof. Huang and Mr. Pang
“RFID changes the supply chain industry radically!”
Vice President of SCSA – Mr. Jimmy Pang
This event allowed our members explore how RFID
works, apply and enhances the business operations and
customer satisfaction. All students widened the board of
knowledge with such valuable visit. There will be more
company visit in the future. You are able to explore
company operations thorough SCSA visiting event.
W ith development of RFID technology, our life
become much convenient. For example,
using Octopus for transportation and
merchandising in supermarket. RFID take a dominant
position in multitude of application for automatic
identification and this application is all surrounding us.
Our YMC members, had the opportunity the newest
technology applying RFID system in the biggest RFID
centre - Hong Kong Science and Technology Park on 6
February. The visit delivered a valuable experience who
broaden our members’ view of the latest application of
RFID on product traceability, ensuring product safety
and quality. The participating members could see vari-
ous RFID model which demonstrated the daily RFID
applications in particular area, like hospitalization, bag-
Enhance your knowledge in the supply chain security
and safety;
Enjoy welfare and privileges for young members, access
to first hand industry information
Strengthen the network with fellow members and
industry experts
Hands on experience with events organization
First committee on supply chain security for young
people, territory for pioneer spirit
16
Supply Chain
Security Association 2010 August
Upcoming Events
17
Supply Chain
Security Association 2010 August
Dangerous Goods Regulation (DGR) Training Course
Education and Training
Regulation Agent Regime (RAR) and Dangerous Goods Awareness Training Course
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
AUGUST 2010
RAR Security Workshop
Trainees from different companies discuss the real case solution. Students were concentrated on the exercise.
- All training courses are using problem-based solving techniques
Problem-based learning (PBL) is an exciting alternative to traditional classroom learning.
With PBL, your teacher presents you with a problem, not lectures or assignments or exercises. Since you are not handed "content", your learning becomes active in the sense that you discover and work with content that you determine to be necessary to solve the problem.
In PBL, your teacher acts as facilitator and mentor, rather than a source of "solutions."
Problem based learning will provide you with opportunities to
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
SEPTEMBER 2010
18
Examine and try out what you know Discover what you need to learn
Develop your people skills for achieving higher performance in Improve your communications skills
State and defend positions with evidence and sound argument Become more flexible in processing information
Practice skills that you will need after your education meeting obligations
Dangerous Goods Awareness (DGA) Training Course
Supply Chain
Security Association 2010 August
Month Activities Description
Final Year Project Recruitment
19
SCSA 2010 (July—Dec) YEAR PLAN
TRAINING Jul Aug Sept Oct Nov Dec
RAR Training*
RAR Training (Half Day - Re-fresher Training)*
RAR & DGA Training*
DGA Training (Full Day)*
DGA Training (Half Day - Re-fresher Training)*
5 Days DGR (IATA)**
3 Days DGR (IATA)**
CUHK Supply Chain Security Workshop
Trucking Security Operation En-hancement
ISO Auditor Training
SEMINAR Jul Aug Sept Oct Nov Dec
DG and Battery Seminar
Police Seminar on SCS
AEO Seminar
ROCARS Seminar
World Conference Jul Aug Sept Oct Nov Dec
IATA World Cargo Symposium in Canada
FAPPA Meeting
TAPA Asia AGM Meeting
SCSA Young Member
Committee
KEP - Training Jul Aug Sept Oct Nov Dec
Final Year Project Presentation Workshop
Essential Social Skills for Fresh Graduates
Introduction to Supply Chain Security Management
Drama-Based Series - Essential Interview skills
Overviews on the job market in HK Air Cargo Industry
University Talk
Company Visit
19
Supply Chain
Security Association 2010 August
Mr. Maric Cheng, our instructor, taught students how to prepare a good presenta-