LSCM Logistics Summit 2016 “IoT, eCommerce and Smart City’s Opportunities in the Belt-and-Road Region” What should we do to keep Hong Kong as an international and regional logistics and transportation hub in the Belt-and-Road Region – A perspective from the Logistics Industry 29 September 2016
The Belt and Road Initiative Introduced by President Xi Jin Ping in September 2013 to connect Asian, European and African countries more closely and promote mutually beneficial cooperation. The Belt : the Silk Road Economic Belt (SREB) The Road: the 21 st Century Maritime Silk Road (MSR) Premier Li Ke Qiang in March 2014 called for accelerating “the Belt and Road” construction in the government’s work report Source: www.china.org.cn
HKSAR Government’s Stance The Chief Executive Mr. Leung Chun-ying, in 2016 Policy Address mentioned “one belt, one road” 48 times. announced to set up a steering committee under his chairmanship to formulate strategies and policies for Hong Kong’s participation in the Belt and Road Initiative. announced to establish a Belt and Road Office to take forward related studies and liaise with the mainland authorities and various sectors in Hong Kong. Financial Secretary Mr. John Tsang led business mission to visit Hungary, Poland and Germany last September. in 2016-17 Budget Speech, he stated that Government will continue the promotion efforts to deepen the understanding of the business sector and the community of new markets along the routes.
Hong Kong’s Strengths Strategic Location World class infrastructure Hong Kong Port Hong Kong International Airport Extensive road network Financial Centre Reliable and efficient workforce Quick and transparent customs procedures Clean Government Free port status Simple and low tax regime Reliable security, quality assurance and intellectual property protection
Efforts by HKSAR to promote Logistics Industry Manpower Steering Committee on Population Policy Set up HK$100 million Maritime and Aviation Training Fund (April 2014) Review and repositioning of the vocational training Importation of Talent/Labour Admission of Mainland Talents and Professionals launched in 2003 Quality Migrant Admission Scheme launched in 2006 Immigration Arrangements for Non-local Graduates launched in 2008 Supplementary Labour Scheme launched in 2006
Efforts by HKSAR to promote Logistics Industry Land New sites have been identified Tuen Mun West Areas 38 and 49 (10 ha) • Hung Shui Kiu New Development Area (61 ha) • Topside development at Hong Kong Boundary • Crossing Facilities (HKBCF) Island of Hong Kong- Zhuhai-Macao (HKZM) Bridge (130 ha) Tuen Mun Areas 40 and 46 (10 ha) • North East New Territories New Development Areas • (36 ha)
New Logistics Sites Shenzhen Ping Che / Ta Kwu Ling) 5 2 3 4 1 Shenzhen Bay Bridge Hung Shui Kiu Existing crossing Hong Kong Hong Kong Tuen Mun points: Areas 49, 38, 46, Internationa 1 – Lok Ma Chau 40 l Airport Zhuhai 2 – Man Kam To Kwai Tsing Container 3 – Sha Tau Kok Hong Kong Terminal 4 – Shenzhen Bay Zhuhai-Macau Topside Macau development Bridge New crossing point: of HKBCF (HKZMB) 7 Island of 5 – Liantang / 7 HKZMB Heung Yuen Wai
Efforts by HKSAR to promote Logistics Industry Trade connection Free Trade Agreement (FTA) with ASEAN countries Investment Promotion and Protection Agreement (IPPA)+ Deepen understanding on the business opportunities in the Belt-and-Road Region Created a designated website Belt and Road Summit in May
Single Window United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Recommendation No.33 – “Single Window” is a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once . Asia-Pacific Economic Cooperation (APEC) The Sub-Committee on Customs Procedures of APEC is proposing to make it an objective to develop a “Single Window” system within each APEC economy by 2020 , and to promote international interoperability among the systems within APEC. Source: Consultation Paper on Development of Trade Single Window in Hong Kong
What is happening in China Premier Li Keqiang emphasized in his 2014 Government Work Report that China should promote the one-stop review and approval and single-window (SW) clearance mechanism. The single-window pilot project is one of the Customs’ focuses. In 2014, first SW system was promoted in the Shanghai Pilot Free Trade Zone. In 2015/16, SW system for international trade is going to be promoted to all sea ports in the coastal areas. By the end of 2016, SW system will start to expand to central and western regions. In 2018, SW system will apply to the whole country.
Single Window in Hong Kong Trade facilitation systems by the Customs and Excise Department – “Electronic Cargo Clearance Platforms” Air Cargo Clearance System Electronic System for Cargo Manifests Road Cargo System CEDB’s “Government Electronic Trading Services” (GETS) Combine into a “Single Window” platform Source: Consultation Paper on Development of a trade single window in Hong Kong
Importance of Single Window About 70% of Hong Kong’s Import & Export are China oriented. Hong Kong’s “Single Window” platform should be connected with China’s. Once connected with China, we will have the opportunity to connect with other ASEAN countries in the future in view of the growing trade flow among the two places. Develop a “Single Window” for international trade – ITDS (International Trade Data System) in accordance with World Customs Organization standard. Promote trade transactions to be done in Hong Kong – An international trading hub. Source: Consultation Paper on Development of a trade single window in Hong Kong
Argentina Ghana Peru Armenia * Grenada Philippines * Australia Guatemala Poland * Austria Hong Kong SAR, China Portugal Belize Hungary * Puerto Rico (US) Benin Indonesia * Qatar * Bosnia and Herzegovina * Israel * Russian Federation * Brazil Japan Rwanda Bulgaria * Jordan * Senegal Cameroon Kenya Serbia * Canada Korea Singapore * List of Chile Kosovo Sri Lanka * China * Lithuania * Sweden Colombia Luxembourg Switzerland Economies Republic of Congo FYR of Macedonia * Syrian Arab Republic * Costa Rica Malaysia * Taiwan, China Cote d’lvoire Mauritius Thailand * with Single Denmark Mexico Tunisia Dominican Republic Mongolia * Turkey * El Salvador Morocco United Arab Emirates * Windows Fiji Mozambique United States France Netherlands Uruguay The Gambia Norway Vietnam * * are economies along the Belt and Georgia * Pakistan * Road region (total 27). Germany Paraguay Source: World Bank’s Doing Business Report in 2014
What do we aim at? Combining our excellent foundation in physical goods handling and mature financial system with the “Single Window – ITDS”. Attract traders to come to Hong Kong for business. International Trading Hub with transactions to be done in Hong Kong. Source: www.unece.org Staged approach to developing a Single Window
What is the progress? A three-month public consultation had been carried out from 11 April to 12 July 2016. A dedicated project management office (PMO) under the CEDB to coordinate with the relevant departments, engage the industries and prepare the detailed design and implementation programme for the “single window” platform has been set up. Single window system will be carried out in phases: Phase I – 2018 Phase II – Q4 2021 Phase III – Q4 2023
LSCM Logistics Summit 2016 “IoT, eCommerce and Smart City’s Opportunities in the Belt-and-Road Region” What should we do to keep Hong Kong as an international and regional logistics and transportation hub in the Belt-and-Road Region – A perspective from the Logistics Industry 29 September 2016
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