FASTER CLEARANCE & REDUCED COST BENEFITS TARGETED AT PHILIPPINES SEMICONDUCTOR & ELECTRONICS INDUSTRIES
25 August 2005 - Global Exchange Services (GXS)

Traditionally, the preparation, submission, and approval of customs documentation have been conducted manually, requiring large amounts of paperwork and re-keying of data. These procedures led to a high potential for human error, took hours to execute and often created a bottleneck in the supply chain. GXS' eCustoms solution has the potential to dramatically reduce both clearance cycle times and transaction costs for the Philippines' semiconductor and electronics industries, which account for about 70 percent of the country's exports. With GXS' sophisticated logistics solution, the country expects to boost its global competitiveness through operational efficiency improvement.

'Migrating from EDI to cost-effective and secure transactions over the Internet is a very important step for us, for companies that do business with us in the Philippines, and for our economy as a whole. This is consistent with our vision of electronic-to-mobile governance for the Bureau of Customs,' said Alexander Arevalo, Philippines Customs' Commissioner. 'Electronics are the Philippines dominant export. By implementing GXS' RosettaNet-based eCustoms solution, we now can provide companies with a competitive advantage to turn imported components into finished products for export.'

The implementation and pilot testing of the RosettaNet-based eCustoms solution was successfully completed in October 2004. Intel Technology Philippines, the Philippines Economic Zone Authority and DHL Danzas, the logistics provider that facilitated testing, participated in the pilot. Freight forwarding and logistics firms using GXS On-Demand B2B Services for RosettaNet include DHL Express, DHL Danzas, Exel Logistics and Federal Express (Philippines) through eKonek, all of which are linked to the Philippines Bureau of Customs. The RosettaNet solution behind the Philippines Bureau of Customs implementation is being delivered through GXS' distributor, InterCommerce Network Services. Its Customs Workstation System enables forwarders to process the PIP3B18 as Export Declaration for submission to Customs and PEZA. InterCommerce has more than 10 years' experience in delivering Customs-related solutions to the Philippines market.

'This is a landmark project for GXS as well as for the global electronics industry. It further validates GXS' important role in developing and propagating RosettaNet standards,' said Ben Wong, GXS vice president for Asia-Pacific. 'The Philippines Bureau of Customs has set an example for Customs authorities across the region, demonstrating that they too can be active partners in cutting costs and improving the efficiency of global supply chains. Following the success of the eCustoms practice in the Philippines, we believe RosettaNet will gain traction across the Association of Southeast Asia Nations.'

RosettaNet standards provide a common, global e-business language that aligns processes between trading partners. They enable seamless and secure, real-time B2B transactions through system-to-system integration between customers and trading partners. One key advantage of RosettaNet standards is the ability to build reusable interfaces throughout an industry characterized by multiple trading partners.

'The ability to facilitate trade, while reducing cycle times and costs, at both local and global levels, is a true indicator of RosettaNet's benefit to the industry,' said Steven Yeo, vice president of RosettaNet Asia. 'By further automating and standardizing the customs declaration process, companies now can conduct business through countless ports of entry and exit, in any country, with a single customs declaration form.'

RosettaNet, a subsidiary of GS1 US, is a non-profit consortium dedicated to the collaborative development and rapid deployment of open, e-business process standards that align processes within global trading networks. RosettaNet standards and services provide a common language for e-business transactions and the foundation for integrating critical processes among partners within the global supply chain. Companies that use RosettaNet's proven standards benefit from added cost-savings throughout supply chain processes, improved e-business communications with trading partners, enhanced product life cycle management capabilities, and added customer satisfaction. For more information about RosettaNet, visit www.RosettaNet.org

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