Your SlideShare is downloading. ×
0
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
FedEx China eCommerce & Express 2013
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

FedEx China eCommerce & Express 2013

896

Published on

Published in: Business
0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
896
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
5
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Express & E-Commerce in China Alan Turley Vice President, International Affairs Asia-Pacific FedEx Express
  • 2. Defining Express • Door-to-door service • Time-definite delivery (speed) • Track-and-trace capability • Guarantees • Own aircraft operations • Information-rich service • Own customs clearance • Global service • Logistics management
  • 3. About FedEx Corporation • World’s largest express transportation company • $42 billion annual revenues • 688 aircraft • 9,000,000+ shipments daily • 90,000+ vehicles • 300,000+ team members • Serving 220+ countries and territories 3
  • 4. FedEx’s China Network
  • 5. Asia-Pacific Hub in Guangzhou • • • • Began operations February 6, 2009 US$150 million capital investment More than 800 employees 16 high-speed sorting lines, 24,000 packages per hour • 146 flights per week • One of a kind in China: ◦ ◦ ◦ ◦ ◦ Own Ramp Control Tower Houses all government agencies SCL Regional Warehouse Dedicated Customs and CIQ Dedicated Immigration 5 5
  • 6. China Domestic Air & Ground Network 6 6
  • 7. Customs Clearance Categories Category Documents Express Clearance Personal effects / Individual articles Goods : Non-Dutiable Formal Entry Clearance Goods : Dutiable Main Descriptions • Without commercial value. • Declared Value is at least US$1. Required Paperwork • AWB • Declared Value < CNY1,000 (shipments from overseas except Hong Kong, Macau, Taiwan), or Declared Value < CNY800 (shipments from Hong Kong, Macau, Taiwan). • For single item personal effect/individual shipment, Declared Value can exceed the above limit subject to customs approval • AWB • Commercial invoice with the words “personal articles” • Copy of consignee’s ID card or passport • Without commercial value. • Shipment in which the assessed duty and tax is less than CNY50. • AWB • Commercial invoice • Shipment does not belong to above. • Declared Value > CNY 5,000 or shipment requires import license/permit, import tariff be levied, foreign currency to be collected, Value Added Tax-refunded for import or cleared with customs handbook. • AWB, Commercial Invoice, Packing List • Power Of Attorney, sales contract, Customs handbook or import license/permit, etc. • Certificate of Inspection for goods outwards (issued by CIQ) 7
  • 8. 3 Categories. - AWB - CI - Packing List - Others from Shipper Basic Doc Customs Declaration Docs - Import & Export License - CIQ Inspection Certificate - POA (Power of Attorney) - CCC - Processing Trade Handbook - IPPC Mark /Non-WPM - Duty Reduction and Exemption Certificate - Certificate of Import & - Purchase Contract Export Foodstuff - Certificate of Origin Label Audit - Business License Certificate of Importer /Exporter - Foreign Exchange for Customs Additional Doc for CIQ Additional DocVerification SheetOthers - Others 8
  • 9. Possible Shipping Models Model Shipment flow Features shipper Direct B2C Importer Importer B2B + B2C •Separate international and domestic shipping •FedEx CN domestic service provides reliable express (1-2days) and deferred (2-4days) services Consumer shipper •Shipper sends the shipments directly to end consumers •Shipment<CNY1000, no IOR is needed •Shipment> or=CNY1000, consumers have to appoint an IOR to clear customs Consumer •With proper setup, shipper could use TPC service for direct shipping to consumers •Appoint IOR to clear customs and pay duty & tax •Shipment clears customs under general trading mode Importer B2B2C Shipper Ship to Consumer Importer B2B2C International leg Shipper FedEx gateway Domestic leg Consumer DXP hub Consumer •Shipments are consolidated at origin •After arrival and customs clearance, shipment is transferred to FedEx domestic hub and broken down for final delivery to end consumers in CN •Need IOR to clear customs and pay d/t Consumer IOR = Importer of Record TPC=third party consignee
  • 10. International Priority DirectDistribution into China Express service of multiple pieces from a single origin to multiple recipients in China. Goods move as – one consolidated shipment via the FedEx International Express service; – clearing customs as one shipment with one consolidated commercial invoice at the Shanghai (PVG) gateway; and, – the individual packages distributed by FedEx China Domestic Time-Definite (DXP) service to the final consignees upon clearance. 10
  • 11. Features of Service Destinations 400+ cities throughout China* Clearance Shanghai, Beijing or Guangzhou Transit Time 2 – 5 days, depending on origin Shipment Size Individual packages up to 178cm hgt., 302cm lgth and 762cm lgth + wdth Billing option (Single Invoice) Freight charges: Bill shipper or 3rd party. Duty & Tax charges: Bill shipper, 3rd party, or Importer Of Record Other customs/handling fees: Cash settlement prior to shipment release Tracking option Internet tracking with end- to- end high level tracing capability; * In case of COD, the destination is limited to direct served cities 11
  • 12. Physical Flow: APAC shipper to China Consignees Shipper’s warehouse At point of origin, FedEx information system transmits final destination addresses AWB & Cross Reference Number (CRN) labels are printed and applied at point of origin FedEx receives shipment, packages scanned with information uploaded to FedEx network  Shipment is trucked from the gateway to China Domestic Distribution Centre Shipments delivered to end consignees Packages clear customs as a single shipment at the FedEx Gateway Electronic customs clearance begins enroute to Shanghai, Beijing or Guangzhou gateway Door To Door delivery from U.S. internet retailer to multiple China destinations within 2-3 days 12
  • 13. Physical Flow Within China (Shanghai Gateway) 5) Domestic delivery to 400+ cities in China within 1-2 days 1) Shipments from Origin to China PVGIP PVGDX 4) Domestic distribution by FX DXP 2) Arrival & Customs Clearance at Shanghai Pudong gateway (PVGIP) 3) FX DXP picks up shipment from PVGIP and trucks to FX Domestic Distribution Centre (PVGDX) 13
  • 14. Benefits of IPD Solution into China Reduction of Order to Delivery Cycle via: –reduction in transit time; reduced in-transit inventory, accounts receivable  by providing consolidated customs clearance, shorter transit times, and reduced handoffs. Reduction in the Use of Inventory: –shipments mover directly from origin to destination; no need of an intermediate distribution point. Improved Reliability Improved Visibility –a superior experience for customers with visibility from origin to final delivery 14
  • 15. Relevance of IPD Solution into China Suitable for organizations intending to: –penetrate the China domestic market –set up domestic distribution and warehousing facilities in China –improve their order to delivery cycle –exploring ways to reduce costs such as closing/ scaling down existing warehouse(s) in China IPD Solution for Inbound Shipments into China 2013/5/28 15
  • 16. What are the major reasons for customs delay? 1. Insufficient Shipment Information 2. Missing documentation to be provided by Chinese importers 3. Missing IPPC Mark on Wooden Packing Material 4. Packaged product should have been labeled in Chinese 16
  • 17. Common Reasons of Customs Delay Reason 1. On AWB and CI • Consignee contact person & telephone number • Harmonized Code • Country of Manufacture • Value for Customs - Must match with actual shipment - No Commercial Value (NCV) is not acceptable - Gift/ Sample has value at market price minus profit - Clearly identify declared value for CIF or FOB • Weight, number of cartons, quantity ( by appropriate measuring unit ) 17
  • 18. Common Reasons of Customs Delay Reason 1. Shipment Information • Commodity Description: What is the item ? Made of? Used for? “computer parts” “part # 123X” “shirts” “Drug” “X-Mas Gift” “computer keyboard” “telephone handset” “men’s cotton corduroy shirts” “Pain Killing Drug for Headache” “Gift: MP3 music player” 18
  • 19. Common Reasons of Customs Delay Reason 2. Documentation: missing declarations, licenses, permits by Consignee or Shipper: Reason 3. IPPC Mark on Solid Wooden Packing Material ISO Country Code XX-000 YY Manufacturer Code IPPC treatment method 19
  • 20. Common Reasons of Customs Delay Reason 4. Labeling -Packaged products should be labeled in Chinese Reason 5. Packaging  Avoid splitting shipment on the same day to same consignee from same shipper  Use a separate AWB for personal effects. Do not mix with other cargo 20
  • 21. Express and Chinese consumers  Consumers want speed, convenience and reliability but they don’t want to pay for it – Local e-commerce market is very competitive – Consumers have been spoiled  Local express firms have a bad reputation – But services are improving rapidly  Chinese firms have not planned & invested for peak 21
  • 22. Thank You! Title of Presentation (change on master slide) Date (change on master slide) 22

×