HAFFA ANNUAL REPORT 2017-2018 - FAPAA · 8/F, CHINA HONG KONG CENTRE, 122-126 CANTON ROAD, TSIM SHA...

8/F, CHINA HONG KONG CENTRE, 122-126 CANTON ROAD, TSIM SHA TSUI, KOWLOON, HONG KONG.

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HAFFA ANNUAL REPORT

2017-2018

For

FAPAA 45th Executive Council Meeting

Bangkok, Thailand

29th – 31st August 2018



Content

1. Chairman’s Report for the Year 2017-2018

2. Airfreight Sub-Committee

3. FAPAA Liaison Sub-Committee

4. FIATA Liaison Sub-Committee

5. Greater China Affairs Sub-Committee

6. Information Technology Sub-Committee

7. Legal Matters Sub-Committee

8. Logistics Policy Sub-Committee

9. Membership Sub-Committee

10. Public Relations Sub-Committee

11. Recreation & Sports Sub-Committee

12. Seafreight Sub-Committee

13. SME Development Sub-Committee

14. Training Sub-Committee (attached in a separate file)



Chairman Report for the Year 2017-2018

Date: 20 April 2018

Dear HAFFA Members,

Over the past year, the resilience that distinguishes Hong Kong’s freight and logistics service providers has

again been put to the test, yet more intensely than ever before. As entrepreneurs in the cargo supply chain,

HAFFA members played a vital role in helping raise business confidence to a much higher level. In 2017, we

all witnessed growth in both air freight (a strong +9.2% increase) and sea freight (+4.8%). Throughout what

was overall a good year, we nevertheless faced as many challenges as opportunities, and of greater intensity

than ever before. I look upon all of these as stepping stones to greater experience.

These major challenges included “Security” and “Safety”, both of which continue to top the Hong Kong cargo

business agenda. The ICAO New Policy Direction will necessitate huge changes to the Regulated Agent

Regime in Hong Kong by phasing out Known Consignors not recognized by CAD, and make it imperative to

explore off-airport screening facilities to digest 75% of total cargo throughput daily.

Very much thanks to the support of SB, THB, CAD, AAHK and Hon Frankie Yick, HAFFA proactively

communicated our views in meetings with the Government, urged the formation of a task force led by the Hon

Yick, issued a CAD Consultation Draft of the RACSF programme, and timely organized an ICAO briefing

attended by a full house of Members.

Thanks to the support of CAD and 3 Cargo Terminal Operators (CTOs), we responded to Members’ needs by

providing a CAD contact for x-ray machine assessment, and exclusive information to Members of x-ray

machine brands and models being used by CTOs.

Knowing the ICAO issues will necessitate substantial investment and change the landscape of our industry, we

fought for every ounce of available resources to resolve issues, created a dedicated webpage for Members

containing first-hand information, and sought discounted or value-added schemes exclusively for Members.

For security and safety, we have embraced the challenge of maintaining the drive for excellence front-of-mind

from the very first moment we began interaction with Government and trade partners on behalf of Members.

When we win, we win together!

As for safety matters, last year was again a hectic one for DG. Apart from the changes on lithium batteries

under the 59th Edition IATA DGR (2018), for which we provided an updated Best Practice (BP015) to

Members and the industry, a cargo fire incident occurred at the air cargo terminal on 04 November 2017. It

was noted that the cargo involved was tendered by a HAFFA member company. Soon afterwards, some

airlines began issuing embargo notices, and HAFFA communicated with CAD and the member concerned in a

timely manner to better understand the situation. It is understood that CAD promptly worked with the Fire

Services Department to seek the root cause of the issue, a factor crucial to any investigation.



Given the incident and the root cause of fire are both still under investigation, we believe that all parties

involved remain only suspects. While HAFFA does not compromise with air safety - we established the “Best

Practice for Consigning Lithium Cells / Batteries in HK” and organized safety training courses and

leading-edge DG seminars - we believe it is unfair to the member concerned, who was named in the airline

notice and is currently subject to an embargo by airlines, before the full investigation by local authorities has

reached any conclusions whatsoever. We issued a letter to CLG and to the individual airlines which have

issued notices to place embargos on the member concerned.

The Association sought to communicate the above issues to airlines, and to encourage them to consider

implementing other preventative safety measures instead of imposing embargoes as a remedy. It was hoped

that the problem could be resolved in a reasonable manner and airlines would lift the embargo notice quickly

so as to minimize the disruption to the business of the member concerned.

It remains a key role of HAFFA to represent Members’ interests; concerns received are treated constructively

as a source of inspiration for further improvement in the industry. The Association pledges to render assistance

to Members in an appropriate and efficient manner.

In view of the obvious rising demand in Asia for temperature controlled air cargo and transshipment, in our last

report we shared that HAFFA is in support of the AAHK drive to work on an “End-to-End” solution for the

processing of temperature controlled products.

To help our Members, an IATA representative was invited to deliver a presentation to the HAFFA Executive

Committee at which many questions raised by the Committee received answers from IATA. We have worked

with IATA so they may provide practical advice in the form of FAQs (which include fees involved, scope of

assessment, hardware requirements, training courses and training subsidies etc.), sent via News to Members.

A briefing session to Members was arranged on 28 August 2017. IATA provided Members with details of the

accreditation such as criteria, application procedures and associated costs. Members were able to better

understand the certification scheme, gain knowledge about the accreditation experience from the IATA experts,

and also express their views and comments on the program.

On the broader IT spectrum, last year we shared updates on the development of the Trade Single Window

(SW) in Hong Kong. In July 2017, the Commerce and Economic Development Bureau (CEDB) was invited to

give a presentation on SW to the HAFFA Executive Committee. The CEDB officials introduced the latest

development on SW and the revised proposal for the pre-shipment documentation regime. They also gave a

demonstration of the SW system (Phase 1) at the presentation. HAFFA raised many issues and exchanged

views with the officials. Apart from the technical aspect, we reiterated the concern on the issue of forwarder’s

liability when some traders make an under-declaration on a license application. It is essential to state clearly

the obligations of different parties in the Ordinance and educate the shipping community. Later on, HAFFA is

invited to join one of the six User Consultation Groups (UCGs) established by CEDB, where we shall continue

to provide advice to the Government on the implementation of the SW in Hong Kong and in particular, the key

outstanding issues of the pre-shipment proposal.

In summary, we presented our views to the authorities and forged ever closer relationships, in particular with

SB, THB, CEDB, CAD, Customs and AAHK. We have played and will continue to play an effective role as

the bond and bridge between government and our Members.



The Association also plays an important role in representing the Hong Kong freight forwarding and logistics

industry on an international level. HAFFA represents our members' interests at meetings of the IATA, FIATA

and Federation of Asia-Pacific Air Cargo Associations (FAPAA).

Under IATA’s Annual Financial Review (AFR), abundant efforts were made to formulate strategy and

organize another major Member Consultation Meeting in order to deal with the issue of the AFR. We have

received many serious concerns from Members and reflected these to IATA; we issued eight special circulars

and many news reminders to keep Members updated; and, after a majority vote not to support the ICAP final

proposal, we held intensive communications with IATA and ICAP airlines.

We presented this serious case to the IATA/FIATA Consultative Council (IFCC), and HAFFA’s efforts were

rewarded when IATA/CAC agreed to grant Hong Kong extra time of six months this year in the hope of

resolving the issue locally prior to AFR implementation.

Regrettably, however, we are still facing insufficient protection in this area. Our strong and effective

relationship with trade partners is particularly important to us in such difficult times. We are continuing this

vital dialogue by hearing from every Member, while remaining conscious of our capabilities and the exciting

possibilities which lie ahead.

For details of the above and the activities of many other sub-committees, Members please go into reports of

various sub-committees.

We will have to evolve and turn challenges into opportunities. Our industry has been flexible and adaptable to

change in the past, but the upcoming changes I expect to be much more dramatic. We hope to work together

with you to make new contributions to the sustained development of the international freight forwarding

industry in China, in the Asia Pacific Region and indeed throughout the world.

With that, I would like to express my pride and appreciation for the strong support we have received from our

Members, the most devoted HAFFA Committee Members, the Secretariat Staff and our government &

industry partners.

Best wishes for a healthy and prosperous year!

Yours truly,

Brian Wu

Chairman



AIRFREIGHT SUB-COMMITTEE

Chairman: JET-SPEED AIR CARGO FORWARDERS (HK) LTD – Mr. Gary Lau

Vice Chairman: RCS LOGISTICS LTD – Mr. Patrick Yip

Members: CARGO FREIGHT SERVICES LTD

CTI LOGISTICS (HK) CO., LTD

DIMERCO AIR FORWARDERS (HK) LTD

KERRY FREIGHT (HONG KONG) LTD

NAF GLOBAL LOGISTICS LTD

TRANS GLOBAL LOGISTICS (HONG KONG) LTD

U-FREIGHT LTD

WEN-PARKER LOGISTICS (H.K.) COMPANY LTD

WORLDTRANS AIR-SEA SERVICE LTD

CLEARFREIGHT HONG KONG LTD

DHL GLOBAL FORWARDING (HONG KONG) LTD

RHENUS LOGISTICS HONG KONG LTD

SEA-AIR LOGISTICS (HONG KONG) LTD

TRIMANSON EXPRESS LTD

VINFLAIR LOGISTICS LTD

YUSEN LOGISTICS (HONG KONG) LTD

I. Liaise with the Civil Aviation Department (CAD)

A. Update on Air Cargo Security – ICAO New Policy Direction

New ICAO Policy to be complied by 30 June 2021

As mentioned in the last Airfreight Sub-committee Annual Report

published on 18 April 2017, the new ICAO (International Civil Aviation

Organization) policy direction required phasing-out consignors not

approved by the appropriate authority for aviation security by 30 June

2021 the latest. Under the new policy direction, consignors will either

have to be approved by an appropriate authority, or have their air cargoes

subject to 100% security screening. However, at present, a consignor

recognised by its partnering Regulated Agents (RA) or aircraft operator

may still have its consignments treated as known cargoes. Thus, it will

necessitate big adjustments to the existing RAR in Hong Kong.

Led by the Security Bureau (SB), the Government has engaged with

HAFFA and other stakeholders of the industry in the formulation of a

roadmap and studied the feasibility of a series of measure to prepare the air

cargo industry for the new ICAO policy direction.

First Hand Information for Members EXCLUSIVELY - Consultation DRAFT Document Released by the CAD

It was projected that the air cargo screening capacity in Hong Kong may have to be expanded substantially

given Hong Kong’s huge export air cargo volume every day. It is impossible to screen all export cargo at the

airport due to the capacity constraints of existing cargo terminals and will result in serious traffic impact on

airport roads. Worst of all, it will jeopardize our well-known competitive edge of cargo consolidation.



As such, one of the pragmatic options to comply with

ICAO’s policy direction is to explore off-airport screening

(i.e. self-screening facilities by individual RA or other

common screening facilities outside airport etc.). To this

end, CAD has formulated a set of security protocol for air

cargo screening facilities seeking for comments, under

which any entity interested in operating x-ray screening

facilities for air cargo at off-airport locations may apply for

endorsement by CAD to become a Regulated Air Cargo

Screening Facility (RACSF).

In order to keep Members abreast of the latest change and development of this important matter (big

adjustments to the existing RAR will happen), with the permission of CAD, the Consultation Draft of RACSF

programme was circulated through HAFFA News so that Members can gain the first-hand information in the

industry for staying ahead of the business planning.

HAFFA Briefing Session on ICAO New Air Cargo Security Policy, 21 December 2017

With the support of the CAD, HAFFA proactively organized a briefing session on 21 December 2017 in which

officials of CAD gave a briefing on the new policy and the requirement of becoming a RACSF. Thanks to

Members’ enthusiastic support, we had a full house and the briefing session was concluded after a fruitful

“Question and Answer” session.

CAD Contact Window for X-ray Screening Equipment Assessment

X-ray Screening Equipment Brand Names and Models currently being used by CTO and Contact of Vendors

In response to Members’ needs, HAFFA has coordinated with CAD and three CTOs to prepare the captioned

information, and circulated to all Members via News on 16 January 2018. To represent Members’ interests,

HAFFA has met with the two vendors and is in the process of exploring with them for possible collaboration

and discount / value-added scheme exclusively for Members. We shall keep Members informed should there

be any essential update via HAFFA News and website.



FAQs Living Document (Exclusive for Members)

In view of the limited time at the Briefing Session whereby CAD officials were unable to answer all questions

raised, subsequently HAFFA worked closely with CAD to prepare many practical FAQs as a living document

sent via News to Members. Some questions (e.g. How many days shall the records be maintained by the

RACSF?) will be included at a latter stage after CAD finalize the framework of RACSF. HAFFA shall keep

following up with CAD to discern when these questions can be included in the FAQs.

Dedicated Webpage Created (Exclusive for Members)

Being a Member’s privilege, a topical corner called “ICAO New Security Policy Direction (including KC

under RAR be phased out at the latest by 30 JUN 2021)” has been created in the HAFFA website under

“Member Only” > “Cargo Security”, in which relevant documents in this report are posted, so Members may

access all up-to-date information by checking out this site from time to time.

[After login] http://www.haffa.com.hk/portal/Page/Default.aspx?id=1144

HAFFA will continue to work closely with the Government (Security Bureau, Transport and Housing Bureau

and CAD) and industrial stakeholders to formulate viable proposals with a view to minimizing the disruptions

to the trade.



II. Liaise with IATA

A. IATA Annual Financial Review (AFR) and Local Financial Criteria (LFC)

Subsequent to the update on AFR in the last Airfreight Sub-committee Annual Report published on 18 April

2017, HAFFA closely worked with ICAP (IATA Cargo Advisory Panel) and IATA HK office. The discussions

have been focusing on the review of the existing LFC as it contained some unreasonable criteria such as

applicant’s “paid up share capital should be equal or greater than total assets” in order to pass LFC.

HAFFA reflected the substantial financial difficulties Members would have encountered and provided many

counter proposed ideas to ICAP. At the end ICAP did not consider our ideas but proposed to HAFFA its final

proposal. Amongst other issues, there was a new proposed Tier System, under which even the IATA Agents

pass AFR (70 points), they are still required to pay BG that is equivalent to 17 days of annual average CASS

turnover. In the case of best result that IATA Cargo Agents attain full points (100 points), they are still

required to pay BG that is equivalent to 10 days of annual average CASS turnover.

After rounds of negotiation with ICAP, the Executive Committee further resolved to provide Members with

up-to-date information and advice on the communications with their CASS airlines through Special Circulars.

Example with dummy figures and calculation form were prepared for Members to better understand the

financial impact after the AFR implementation and do the calculation automatically.

The 2nd Member Consultation Meeting was

organized on 24 October 2017, in which

IATA and HAFFA representatives briefed

Members about the ICAP proposed LFC

and explained the consequences and

possible options. Subsequently, Members

were encouraged to provide their comments

through a feedback form. The Association

received many enquiries and tons of

comments regarding the difficult situation.

Apart from phone conversations with those

Members calling in to understand the

possible impact, all Members have received

documents about possible impact of support or object to the ICAP proposed LFC.

As a result, with Members’ strong support, we have received a high rate of response. The survey result

concluded that majority of HAFFA Members did not support the ICAP proposed LFC. The HAFFA Executive

Committee stayed neutral and resolved to base on majority Members’ vote to establish the HAFFA position to

IATA.

The HAFFA Position:

The HAFFA Executive Committee resolved not to support the ICAP’s Proposed Local Financial Criteria

(LFC) for the implementation of IATA Annual Financial Review (AFR) with effect from April 2018.

The above HAFFA position has officially been sent to ICAP/IATA in December 2018. As explained in the

IATA circular sent to their IATA agents before, if there is no support from HAFFA, the ICAP proposed LFC

would not be submitted to IATA airline meeting called Cargo Agency Conference (CAC). IATA would

conduct the AFR based on existing LFC starting from 01 April 2018.



The Executive Committee had lengthy discussions and decided to carry out further actions as set out below:

(1) HAFFA concerns were voiced out at international level – IATA-FIATA Consultative Council (IFCC)

HAFFA submitted a letter detailing the concerns to FIATA Airfreight Institute (AFI) and communicated with

AFI Chair Mr. Keshav Tanna in person to reflect the exact pains we encountered as well as indicate our wish

list. With the strong backup from FIATA AFI, IFCC agreed to recommend to CAC that AFRs in Hong Kong

be suspended for a period of 6 months, during which HAFFA and ICAP need to resolve the LFC issue at the

local level. We are gratify that the above IFCC recommendation was finally adopted at the CAC meeting held

on 12 March 2018 in Dallas, USA. That said, the AFR is put on hold till 01 October 2018. A new round of

ICAP/HAFFA Dialogue meetings will be arranged to negotiate for the LFC again. Please rest assured that

HAFFA will make good use of these 6 months to strive for the best for Members.

(2) HAFFA concerns were reflected to Hon. Frankie Yick and Transport & Housing Bureau (THB)

In response to Members’ view, the HAFFA Chairman has reflected the grave concerns of IATA to Hon.

Frankie Yick, Legislative Councilor. Hon. Yick understood the whole situation and channeled to senior

Government officials in the Transport and Housing Bureau.

(3) Study of Default Insurance Program (DIP) is underway

As mentioned in the Member Consultation Meeting on 24 October 2017, the LFC document stated that in case

agents are required to give financial support to IATA, it can be in the form of Bank Guarantee (BG) or

insurance bond (DIP). Therefore, it is necessary to provide Members with both options (BG and DIP) so that

they may make a viable commercial decision if they need to give financial security to IATA after the AFR

assessment. In this connection, HAFFA/IATA have approached potential insurance companies and urged

IATA many times to expedite the roll-out of DIP in Hong Kong market. The study of DIP is underway but slow

due to many complicated procedures involved under IATA, it is anticipated that it will take at least 6-8 months

to launch DIP provided that the entire process is smooth. We shall keep Members informed via HAFFA News

or Special Circular should there be any essential update in this regard.

To protect Members’ best interests, HAFFA has been striving for withholding IATA AFR through different

channels and/or mitigating the impact of its implementation, hence AFR has been suspended in Hong Kong for

over 6 years till now; we shall continue to represent your interests, give our best endeavor to provide insights

and essential information for you to make an informed decision in these difficult times.



B. IATA-FIATA Air Cargo Program (IFACP)

Nominated by FIATA’s Airfreight Institute (AFI), HAFFA

Chairman Mr. Brian Wu was appointed as a Voting Member of the

IATA-FIATA Governance Board (IFGB) where he serves as a

Forwarder representative in the governance of the activities of the

IATA-FIATA Air Cargo Program (IFACP).

In his role with IFGB, Mr. Wu represents the interests of all freight

forwarders, not only in Hong Kong but also across the Asia Pacific region. The IFGB represents forwarder and

airline interests equally in managing the IFACP, and provides policy, strategy and oversight guidance.

The IFACP is a culmination of almost five years of negotiations between carriers and forwarders. The

programme seeks to modernise and bring change to the existing IATA Cargo Agency Program, which has been

in place for more than half a century.

Addressing today’s air cargo challenges, the programme

covers issues related to security, safety, established practices

and standards, new and dynamic process changes, as well as

fostering technology to better streamline operations. It is

designed to encourage close collaboration between the

airlines and forwarders in order to improve and enhance

services and competitiveness. The governance of the IFACP

provides, for the first time, a joint delegate structure for

airlines and forwarders working together on a global,

principal-to-principal basis. IFGB recognized the role played

by forwarders in today’s marketplace as airline customers -

no longer as designated sales agents - and increases

consultation at all levels to achieve common goals.

The IFACP pilot has been launched in Canada in August 2017, outcome to be reviewed by IFGB before the

next roll-out.



III. Liaise with Airport Authority Hong Kong (AAHK)

A. Hong Kong International Airport (HKIA) becomes an IATA “CEIV Pharma Partner Airport”

Transporting healthcare products by air needs the establishment of complex logistical methods to maintain a

pharmaceutical shipment’s integrity. It requires specific equipment, storage facilities, harmonized handling

procedures and, above all, strong cooperation among the cold chain partners.

IATA has worked closely with the pharmaceutical industry stakeholders and regulators

in the creation of the CEIV Pharma program, which covers all aspects of time-sensitive

and temperature-controlled cargo shipping, including effective cool chain management

and risk mitigation. Through the sharing of best practices and expertise, IATA’s goal is

to show the industry how to obtain a larger share of the fastgrowing and lucrative

pharmaceutical logistics market. CEIV Pharma is a concerted effort to improve the level

of competency, operational and technical preparedness for the handling of

pharmaceuticals.

In Hong Kong, AAHK has taken the lead to negotiate with IATA for pursuing CEIV Pharma certification on a

community basis for HKIA. Seven companies (AAT, CX, CPSL, Hactl, HAS, JAS and SATS) have already

obtained the IATA CEIV Pharma certification in the first half of 2017, marking a successful completion of the

airport-led community approach to acquire the certification. HKIA has become an IATA “CEIV Pharma

Partner Airport” and the official declaration was made by IATA during the FlyPharma Conference Asia on 05

March 2018.

To help our Members, IATA representative was invited to deliver a presentation to the HAFFA Executive

Committee on 14 June 2017, during which many questions raised by the Committee and received answers

from IATA. We have worked with IATA so they may provide practical advice in the form of FAQs

(http://www.haffa.com.hk/files/CEIV_Pharma_QnA.pdf), which includes fees involved, scope of assessment,

hardware requirement, training courses and training subsidies etc., sent via News to Members’ easy reference.



In addition, a briefing session to Members was arranged on 28 August 2017. The guest speakers were Mr.

Ronald Schaefer (Assistant Director Cargo,

Ground Operations & CEIV Consulting,

IATA) and Ms. Yvonne Ho (General

Manager, Hong Kong & Macau, IATA), they

provided Members with details of the

accreditation such as criteria, application

procedures and associated costs. Through the

briefing session, Members were able to better

understand the certification scheme, gain

knowledge about the accreditation

experiences from the IATA experts and also

express their views and comments on the

program.

IV. Liaise with Carrier Liaison Group (CLG), HACTL, AAT and CPCT

A. Member’s concern on Airlines’ Embargo due to Cargo Fire Incident on 4 November 2017

A cargo fire incident happened in air cargo terminal on 04 November 2017. It was noted that the cargo involved

was tendered by a HAFFA member company. Soon after, some airlines started to issue embargo notice and some

other airlines just verbally informed of the same embargo message of that member (and/or the shipper concerned)

with immediate effect until further notice.

HAFFA timely communicated with the Civil Aviation

Department (CAD), CLG and the member concerned to better

understand the situation. It was understood that after the

incident, CAD has promptly worked with the Fire Services

Department (FSD) to examine all factors in a chain of events

that ends in such incident before they could conclude the root

cause of the issue that is absolutely crucial to any

investigation.

Given the incident and the root cause of fire were still under

investigation at that time, it is of HAFFA’s view that all

parties involved were only suspects. While HAFFA does not

compromise with air safety (we established the “Best Practice

for Consigning Lithium Cells / Batteries in HK”, we

organized safety training courses and leading-edge DG

seminars), we believe it is unfair to the member concerned

who was being named in the airline notice and being imposed

an embargo by airlines at this stage without any conclusion

from full investigation by local authorities. Moreover this act

has unfortunately caused ripple effects and adversely affected

the reputation and business operations of the member

concerned.



To represent our Members’ interest, HAFFA issued a letter to CLG on 09 November 2017. Thereafter, we sent

individual letter to airlines that have issued notice to place embargo on the member concerned. The Association

aimed to reflect the above issues to airlines and seek them to consider implementing other preventive safety

measures instead of embargo as workaround. It was hoped that the problem could be resolved in a reasonable

manner and airlines could uplift the embargo notice as soon as possible so as to minimize the disruption to the

business of the member concerned.

It has always been the goal of HAFFA to represent Members’ interests and render support services to Members in

need. Concerns received are treated constructively as a source of inspiration for further improvement in the

industry. The Association pledges to render assistance to Members in an appropriate and efficient manner.

B. Best Practice 015 - Best Practice for Consigning Lithium Cells / Batteries in Hong Kong

In response to the latest changes in lithium batteries under the 59th Edition IATA DGR (2018) (with effect

from 01 January 2018), the CLG–Dangerous Goods Working Group (DGWG) and HAFFA worked together to

provide an update of the Best Practice (BP) with operational guidance for Members and the industry. The

number of the BP is changed from “BP014” to “BP015” to avoid confusion in the market. That means,

“BP015” has replaced “BP014” with effect from 01 January 2018. The “Lithium Battery Quick Reference

Guide” has also been updated accordingly. Summary of the significant changes in BP015 as set out below:

BP015

Added Section D “Packing Requirements” in Part 1 (P. 3, BP015) in response to the latest segregation

requirements of packages (Table 9.3A) of UN 3480 and UN 3090.

Quick Reference Guide:

Changed/Added the IMP codes of UN 3480 Section IA and IB, and UN 3090 Section IA and IB.

Added the segregation requirements of UN 3480 and UN 3090 with some specific dangerous goods in

the important note.

“Adequate Instruction” as an alternative to training (Ref: DGR 1.6) under Section II.

BP015 and Lithium Battery Quick Reference Guide are available at:

http://www.haffa.com.hk/portal/Page/Default.aspx?id=157

Please note the best practice is

jointly issued by the CLG-DGWG

and HAFFA for industry reference

only. Shippers and freight

forwarders shall always follow the

IATA Dangerous Goods

Regulations and the requirement of

individual carriers for the air

carriage of shipments containing

lithium batteries at all times.



FAPAA LIAISON SUB-COMMITTEE

Chairman: CTI LOGISTICS (HK) CO., LTD – Mr. Ryan Hsu

Vice Chairman: TRIMANSON EXPRESS LTD – Ms. Janet Ng

Member: SIMX PROJECT X & TRADE COOPERATION ASSOCIATED LTD

Report on the 44th FAPAA ECM and AGM Meetings, 26 - 28 July 2017 in Kathmandu,

Nepal

(Extract of FAPAA Press Release)

The Federation of Asia-Pacific Aircargo Association (FAPAA) 44th Executive Council Meeting (ECM)

hosted by the Nepal Freight Forwarders Association (NEFFA), was held at the Hotel Soaltee Crown Plaza,

Kathmandu, Nepal between 26 and 28 July 2017.

The business meetings were attended by a total of 41 persons, comprising 21 international delegates from 13 of

the FAPAA region member economies, together with 18 local freight forwarding company member

representative delegates; a representative from IATA; and an official Media representative from Payload Asia

Magazine.

Source: Payload Asia



Opening Ceremony

The meeting was officially opened by Mr. Prakash Singh Karki, President of NEFFA, who highlighted the

expanding role of freight forwarders and the opportunities and challenges facing the sector in the region.

The Executive Council Meetings

The first day of the business meetings revolved around sub-committee reports and detailed discussions on the

various sectors of FAPAA activities. A summary of the main items follow below:

FIATA activity and liaison report. Chaired by Mr Paul Golland, Chairman, AFIF, Australia

FAPAA as a regional federation of country / and or region national Association members’, has a good

working relationship with the global freight forwarder representative body FIATA. The most recent

annual FIATA World Congress was held in Dublin Ireland, in October 2016 and the annual ‘Headquarters

Session’ meetings were held in Zurich, Switzerland in March 2017, at which many FAPAA delegates had

attended. Amongst other issues, an emerging matter was the imminent global introduction of the new

IATA/FIATA Air Cargo Program (IFACP) and members’ were interested as to how it would impact their

own specific territory, particularly in an administrative and operational sense.

The member from Australia (AFIF) advised that IATA and FIATA were both keen to introduce the new

program into Australia in early 2018, following the intended initial introduction in Canada. However,

AFIF had made it clear to both IATA and FIATA that it would continue to explore ways in which the new

program could benefit its membership in Australia, despite there being no clear tangible benefits to date

with the planned transitioning of the current Financial Review criteria at the time of inception of the new

program.

The aircargo forwarding industry, under the leadership of AFIF, noted that whilst such criteria would be

subjected to an independent legal review prior to full implementation, had also obtained its own legal

advice as to issues of potential concern in these matters. Furthermore, AFIF advised that it had also

discussed and kept the FIATA Airfreight Institute body of FIATA informed throughout the process.

In general, FAPAA members agreed to continue to work to achieve a meaningful dialogue with FIATA

on relevant air cargo issues affecting all parties within the sector.

IATA / CASS Forum. Chaired by Mr Brian Wu, HAFFA, Hong Kong, China

FAPAA continued its businesslike working relationship with IATA and Rodrigo (Rudy) Reyes (Regional

Manager, Airport, Passenger, Cargo and Security (APCS), Asia Pacific, based at IATA Singapore) was

invited to join the meeting to address a number of ongoing and emerging matters, including the

sometimes controversial Cargo Accounts Settlement System (CASS), where it operated within FAPAA

member countries’ in the region.

Other matters discussed with IATA were the aforementioned IFACP Program and operational and admin

issues; the handling efficiencies of which varied from country to country within the region. The IATA

Customer Portal also came in for some criticism in that costs associated with updates by members were

thought to be unreasonable.



Source: Payload Asia

(left) Mr Niral Kadawatharatchie of SLFFA, the new FAPAA chairman and (right) Mr Alec Koh of SAAA, ex-chairman FAPAA

Aircargo Security.

This vital issue is a regular Agenda item and members exchanged certain unclassified information on

developments as to program changes within their region. Australia had recently had a major upgrade to

their program, as required by the US TSA, introducing enhanced screening technology.

Training and Education. Chaired by Mr James Fang, TAFLA, Chinese Taipei.

Each FAPAA member country delivered a detailed report on the progress and status of this vital area

within their own Association. Progress continued to be made and once again it was clear that most

countries had either developed and were delivering, or in the process of developing, sector specific

training and education for and on behalf of their own membership. In the past, those Association members

who had an advanced training program had helped, or advised, those who were planning to introduce such

training programs and this aspect encapsulated a tangible benefit of being a member of the FAPAA

organisation as a whole.

Other Matters

There was discussion on other matters, including an overview from each member Association on its

annual ‘Country Report’, detailing major highlights affecting the industry in their own country or region.

In addition, the Council discussed potential eligible Asia Pacific countries and / or regions who may be

interested in joining FAPAA and the Council actively engages with such Associations’ to encourage them

to join the group where feasible. Publicity and Communication remains an important aspect of FAPAA’s

work and the Council appreciated the ongoing support of Payload Asia magazine for publishing articles

of relevance and interest to its wide circle of subscribers in the region. The Council also agreed to upgrade

and modernise its website, which also provides a central link to all FAPAA member Associations

websites.



Annual General Meeting

At the AGM, Mr Niral Kadawatharatchie of SLFFA, Sri Lanka was elected FAPAA Chairman for the next two

year term, whilst outgoing Chairman Mr Alec Koh, representing SAAA, Singapore, was given high praise for

his leadership of the organisation through his two year term and was formally invited to remain on the Board of

the Federation as Immediate-Past Chairman. The Council then elected other member Association

representatives to fill remaining executive positions on the FAPAA Main Board as follows:

Deputy Chair: AFIF, Australia;

Hon-Secretary: AFPI, Philippines;

Hon-Treasurer: BAFFA, Bangladesh;

Hon-Auditor: NEFFA, Nepal.

Next Meeting

The next FAPAA ECM and AGM will take place in Bangkok, Thailand, hosted by the Thai Airfreight

Forwarders Association (TAFA-T) on 28-31 August 2018.

All delegates congratulated host Association NEFFA who were given deserved accolades on facilitating a

first-class event. The local organising committee worked extremely hard to ensure all necessary arrangements

were in place and coordinated effectively.

The strength of FAPAA, a three-decade-old regional association, lies in the sharing of information and the

application of that understanding and knowledge within our own businesses. This enables the respective

memberships and their customers to interact and transact business under a more unified and standardized

approach within the region.

To compound our good future, we are fortunate to be able to continue strengthening our relationships with

many countries stakeholders at the FAPAA meeting. The continued success of FAPAA is dependent on every

link in the chain being strong, working together unified in purpose and goals, with the very aim to strive

towards enhancing the business environment for and uplifting the standards of our industry.



FIATA LIAISON SUB-COMMITTEE

Chairman: CTI LOGISTICS (HK) CO., LTD – Mr. Ryan Hsu

Vice Chairman: TRIMANSON EXPRESS LTD – Ms. Janet Ng

Member: SIMX PROJECT X & TRADE COOPERATION ASSOCIATED LTD

Report on the FIATA World Congress, 04 - 08 October 2017 in Kuala Lumpur, Malaysia

(Extract of FIATA Review No. 120, December 2017)

Members of 70 countries attended the 56th FIATA World

Congress (FWC) in 2017. “Logistics Bridging Global Trade”

was the theme of the 2017 FWC, which was co-hosted in

Malaysia by the Ministry of Transport and the Federation of

Malaysian Freight Forwarders (FMFF).

The Malaysian Minister of Transport opened the Congress

with an optimistic outlook on world trade in general and the strong development in Asia in particular: He

called upon the FIATA members to tap on the potential of the halal market and on e-Commerce, where

Malaysia has invested in multiple projects to facilitate the fulfilment of logistics in this growth area. FIATA

president Zhao Huxiang expressed his organization’s commitment to preparing its members for the challenges

posed by the increase in global trade and the advent of e-Commerce, digitalization and new technology.

Airfreight Institute - AFI

In the AFI Meeting, Ms Joana Nunes Coelho,

Governance Manager of the IATA-FIATA

Air Cargo Program (IFACP), gave members

a swift overview of the current status of the

new programme. She informed members

briefly how a Forwarder can join, explained

the formation and functions of the Regional

Councils and about Implementation of the

key milestones thus far achieved and those

which still needed to be achieved. She

explained further, that once the new IFACP is

rolled out in Canada, all current IATA

accredited agents would necessarily have to

sign up for the new programme as the old Cargo Agents programme would cease to exist; alternatively such

agents could then re-apply as CASS Associates.

Mr Bill Gottlieb, Chairman of Canadian International Freight Forwarders Association (CIFFA) Airfreight

Committee and FIATA Past President informed the house on the status of the IFACP Pilot launch in Canada

and progress thereof.

Two representatives of Asian Airlines namely Cathay Pacific and Malaysian Airlines offering services as

Cargo Carriers were invited to portray their views of trends and future of the industry.



Customs Affairs Institute – CAI

The CAI has a key role in addressing on behalf of FIATA the movement of goods across borders and one of the

key issues for members is the facilitation of that logistical movement of trade. To that end the outcomes of the

World Trade Organization Trade Facilitation Agreement (WTO FTA) and in particular the role of National

Committee’s on Trade Facilitation (NCTF) in facilitating the coordination and implementation of the TFA is

now paramount and CAI had put together a panel of speakers to address that issue from both a regulatory and

private sector perspective. Delegates enjoyed at this CAI Meeting a comprehensive series of presentation from

the speakers of World Customs Organization, International Trade Centre, World Bank Group and IATA.

The intent of the panel was to discuss whether the WTO TFA will be the silver bullet to stimulate trade or just

another shot in the dark. It was concluded that the private sector’s role in implementation is key to the success

of the TFA and NCTFs will be the place where government, regulators and the private sector come together to

deliver for each economy in a competitive and increasingly integrated global supply chain and international

trade.

Multimodal Transport Institute - MTI

Rail traffic between China and Europe has become more popular and Rail transport is an excellent alternative

to maritime transportation; especially from Chinese hinterland loading points. New opportunities and their

challenges and best practices for multimodal transports on the route Europe–Asia–Europe were debated. There

are critical aspects for smooth development of Asia–Europe transport corridors, is sufficient political support

provided, and a unification of trade laws and trade facilitation are essential to increase rail traffic on this route.

The main focus was to discuss transport opportunities on the Southern route via Kazakhstan – Caspian Sea –

Azerbaijan - Georgia and via the Black Sea to various European countries as an alternative to the well-known

Northern routes via Russia.

The “One Belt, One Road” (OBOR) strategy boosts the fast growth of international railway freight, especially

the China–Central Asia and China–Europe block train services. Currently there are over 10 cities in China run

block trains to over 11 destinations of 7 European countries. Volumes on China–Europe block train are in

multiplying growth. By 2020, it is planned to reach 5000 trains per year.



Mr Suwit Ratanachinda, Director Profreight, Bangkok said in his speech that 6617 km rail track are under a

project to link the ASEAN countries with China. These developments should provide a more environmental

friendly, efficient and economical mode of transport for passenger and freight. There are two lines under this

project which should connect Thailand, Cambodia, Vietnam and Myanmar. This programme aims to

strengthen cooperation among states of the Greater Mekong sub-region, in particular by developing transport

(motorways, railways and air connections).

This initiative will support trade between China and ASEAN members that are already bound by a free trade

agreement since 2010. In China, the provinces of Yunnan and Guangxi are the most involved in this

cooperation. The Asian Development Bank (ADB) estimated that Asia must spend USD 8 trillion on

infrastructure before 2020 to maintain its economic growth and living standards. It’s a massive demand that

China and Japan are eager to help fill, and one that can bolster their own slowing economies.

Handover for 2018: From Malaysia to the next FWC in India

The 2018 FIATA World Congress will be held in New Delhi, India between 26th and 29th of September 2018.

Details are available at: http://www.fiata2018.org.



Source: Highways Department

GREATER CHINA AFFAIRS SUB-COMMITTEE

Chairman: CARGO FREIGHT SERVICES LTD – Mr. Danny Wong / Mr. Raymond Chan

Vice Chairman: U-FREIGHT LTD – Ms. Amy Wong

Members: CTS INTERNATIONAL LOGISTICS CORPORATION (HK) LTD

SIMX PROJECT X & TRADE COOPERATION ASSOCIATED LTD


ACE PROTRANS FORWARDING LTD

TRIMANSON EXPRESS LTD



HAFFA/HKSC Joint Logistics Visit to Zhuhai 珠海物流考察團珠海物流考察團珠海物流考察團珠海物流考察團

HAFFA in collaboration with the Hong Kong Shippers’ Council (HKSC 香港付貨人委員會) organized a

logistics visit to Zhuhai on 25 October

2017.

After the opening of the Hong

Kong-Zhuhai-Macao Bridge (HZMB), the

land distance among Hong Kong, Zhuhai

and Macao will be greatly shortened. The

objective of the visit was to provide

opportunities for the delegates to gain a

better understanding on the possible

positive effects on the freight logistics

industry. It also served as a good platform

for Members to seize the business

opportunity arising from the opening of the

HZMB.

Led by Mr. Brian Wu (HAFFA Chairman), Mr. Danny Wong

(HAFFA Vice Chairman cum Greater China Affairs

Sub-committee Chairman) and Mr. Sunny Ho (Executive

Director of HKSC), the strong 52-member delegation visited

Hong Kong-Zhuhai-Macao Bridge extension line industrial

layout (港珠澳大橋延長線產業佈局), Zhuhai Logistics Park

(珠海物流園區) and Zhuhai-Hong Kong-Macao Cooperative

Logistics Park (珠港澳物流合作園 ). The delegates also

attended a large-scale seminar hosted by the Zhuhai Municipal

Bureau of Commerce at which Mr. Brian Wu delivered a speech

on behalf of HAFFA.



The feedbacks received from delegates were positive and encouraging. Interested Members are welcome to

suggest any Mainland destination for the HAFFA Delegation to China in Year 2018 - 2019 and we appeal for

your continuous support in joining the delegation.

High Level Transport Constituency Delegation to Beijing 航運交通界訪京團航運交通界訪京團航運交通界訪京團航運交通界訪京團

Invited by the Hon. Frankie Yick (Legislative Councillor under Transport Functional Constituency), Mr.

Danny Wong (HAFFA Vice Chairman cum Greater China Affairs Sub-committee Chairman) participated in

the high level Transport Constituency Delegation to Beijing (航運交通界訪京團) which was held on 17 – 20

September 2017.



The delegation visited the following Government bodies in Beijing:

Hong Kong and Macao Affairs Office of the State Council 國務院港澳事務辦公室

General Administration of Customs 海關總署

Ministry of Transport 交通運輸部

National Development and Reform Commission 國際發展和改革委員會

Some insights gained from the delegation:

Many discussions have started on the national policy of Belt

and Road initiative but so far no concrete implementation

details could be provided by the Chinese officials.

The new boundary control point (BCP) at Liantang 蓮塘 /

Heung Yuen Wai 香園圍 was expected to be operational in

2018. The Government has not promulgated whether the new

BCP would provide 24-hour clearance. In case 24-hour

operation, this BCP may replace Huanggang. In case no 24-hour operation, it will be an issue with result of

long queue of trucks due to no warehouse facilities nearby.

The three major aviation hubs in China are Beijing, Shanghai and

Guangzhou. Shenzhen is very aggressive to seize opportunities of air

traffic rights and increase market share. Shenzhen has cooperated with

Guangzhou to create double aviation hubs (雙樞紐). Hong Kong

cannot pursue toward this direction because of the status of special

administrative region (SAR), therefore not recognize as a region within

China to cooperate with other non-SAR region.

Although the construction of the third runway at Hong Kong

International Airport is underway, the issue of airspace rights has not

been solved, which may result in underutilization of the new runway.



Hong Kong-Zhuhai-Macau Bridge (HZMB) – HAFFA Wish List to Zhuhai Government

In light of the impending opening of Hong

Kong-Zhuhai-Macau Bridge (HZMB), Greater China

Affairs Sub-Committee plays a very active role and met the

Zhuhai Municipal Bureau of Commerce (珠海市商務局)

and Zhuhai Committee of Chinese People’s Political

Consultative Conference (珠海市政協) on 15 June 2017 and

10 July 2017 respectively. At the meetings, it was explored

how to grasp the opportunity for the industry upon

completion of Hong Kong-Zhuhai-Macau Bridge (HZMB).

Subsequently, HAFFA solicited suggestions from Members and prepared a

wish list as to how to make the best use of the HZMB. The official letter was

submitted to the Zhuhai Deputy Mayor Lu Xiaofeng (珠海市副市長蘆曉鳳

女士) in person on 24 November 2017 during the occasion of Asian Logistics

and Maritime Conference (ALMC).

Key activities in 2017-2018 at a glance

Date HAFFA Event Organizer(s) / Visitor(s)

09/06/2017 Mr. Brian Wu (Chairman) Hong Kong Land Transport

Council Founding and

Inauguration Ceremony 香港陸

路客貨運輸業議會創會暨就職

典禮

Hong Kong Land Transport

Council (HKLTC)

香港陸路客貨運輸業議會

13/06/2017 Mr. Joseph Leung

(Executive Committee)

Xuzhou Investment Seminar and

Networking Luncheon 徐州市

“徐港”合作投資懇談會及午

餐交流會

Xuzhou Municipal

Government

江蘇省徐州市人民政府




15/06/2017 Mr. Danny Wong (Vice

Chairman)

2017 Business Fair for

Economic Cooperation between

Xi’an and Hong Kong 西安˙香

港經濟合作交流會

Xi’an Municipal People’s

Government

西安市人民政府

15/06/2017 Mr. Brian Wu (Chairman),

Mr. Danny Wong (Vice

Chairman) and Executive

Committee

Meeting with Zhuhai Municipal

Bureau of Commerce to explore

the opportunity for closer

collaboration under the aspects

of airfreight, logistics and

e-commerce between Hong

Kong and Zhuhai

Zhuhai Municipal Bureau of

Commerce

珠海市商務局



Chairman), Mr. Eric Wong

(Vice Chairman) and

Executive Committee

Meeting with Zhuhai Committee

of Chinese People’s Political

Consultative Conference to

explore how to grasp the

opportunity for the industry

upon completion of Hong

Kong-Zhuhai-Macau Bridge

(HZMB)

Zhuhai Committee of Chinese

People’s Political

Consultative Conference

珠海市政協

10/08/2017 Mr. Brian Wu (Chairman)

and Mr. Raymond Chan

(Greater China Affairs

Sub-committee Chairman)

Greater Bay Area

Development – Logistics,

Transport and Shipping

Consultation Session 大灣區物

流、交通及航運界諮詢會

Savantas Policy Institute

匯賢智庫


Chairman)

Meeting with Academy of

Macroeconomic Research,

NDRC on Hong Kong’s status

and role in the development of

Belt and Road 國家發展改革委

員會宏觀經濟研究院 – 香港

在 “一帶一路”建設中的地

位和作用研究課題調研座談會

Hong Kong General Chamber

of Commerce (HKGCC)

香港總商會

17/08/2017 Executive Committee Meeting with the representatives

of Changsha Huanghua

Complex Bonded Zone 湖南長

沙黃花綜合保稅區

Changsha Huanghua Complex

Bonded Zone 湖南長沙黃花綜合保稅區


Chairman)

珠海投資環境暨首屆中國-拉

美國際博覽會推介會

Zhuhai Municipal Bureau of

Commerce

珠海市商務局


Chairman)

橫琴新區物流業茶話會 Hengqin FTZ (Hong Kong)

Representative Office

橫琴新區駐香港經貿代表處

17-20/09/2017 Mr. Danny Wong (Vice

Chairman)

High Level Transport

Constituency Delegation to

Beijing 航運交通界訪京團

Hon. Frankie Yick, Legislative

Councillor

立法會議員





Chairman)

CEPA 宣講會 Liaison Office of the Central

People’s Government 中聯辦

13/10/2017 Mr. Brian Wu

(Chairman) as Guest

Speaker

Taoyuan-Hong Kong City

Exchange, Asian Silicon Valley

Smart Logistics Summit

台港國際城市交流論壇

Hong Kong Business

Association of Taipei (HKBA)

臺北市香港商業協會

25/10/2017 Mr. Brian Wu

(Chairman) as Leader &

Guest Speaker and

Danny Wong (Vice

Chairman) as Leader

HAFFA/HKSC Joint Logistics

Visit to Zhuhai

珠海物流考察團

HAFFA and Hong Kong

Shippers’ Council (HKSC)

香港付貨人委員會

14/11/2017 Mr. Joey Cheung (Greater

China Affairs

Sub-committee)

第7屆陝粵港澳經濟合作活動

周暨中國(陝西)自由貿易試

驗區(香港)合作項目對接會

陝西省人民政府


Chairman)

京港跨境電商合作發展新模

式、新機遇高峰會

北京市政府

07/12/2017 Mr. Eric Wong (Vice

Chairman)

第十屆「深港合作論壇」深港

合作助力粵港澳大灣區發展

Central Policy Unit

中央政策組


Chairman) and Mr. Joseph

Leung (Executive

Committee)

Greater Bay Area Symposium -

Logistics and Trade Facilitation

大灣區物流與貿易便利化專題

論壇

Hang Seng Management

College (HSMC)

恒生管理學院

18/01/2018 Mr. Raymond Chan

(Greater China Affairs


廣東省國際貨運代理協會

2018年新春聯誼會

Guangdong International

Freight Forwarders

Association (GIFFA)

廣東省國際貨運代理協會


Chairman)

中聯辦新春晚宴 Liaison Office of the Central

People’s Government 中聯辦


Chairman) and Ms. Amy

Wong (Executive

Committee and Greater

China Affairs

Sub-committee Vice

Chairman)

南沙航運物流政策推介會及交

流午宴

Hong Kong Shippers’ Council

(HKSC)

香港付貨人委員會



INFORMATION TECHNOLOGY SUB-COMMITTEE

Chairman: ABLE FORCE FREIGHT LTD – Mr. Raymond Kan

Vice Chairman: GLOBAL ALLIANCE LOGISTICS (HK) LTD – Mr. Elmen Chu



Trade Single Window 貿易單一窗口貿易單一窗口貿易單一窗口貿易單一窗口 (SW)

On 12 July 2017, Commerce and Economic Development Bureau (CEDB) was invited to give a presentation

on Trade Single Window (SW) to the HAFFA Executive Committee. The CEDB officials introduced the latest

development of SW and revised proposal of pre-shipment documentation regime. They also made a

demonstration of SW system (Phase 1) at the presentation. HAFFA brought out many issues and exchanged

views with the officials. Apart from the technical aspect, we reiterated the concern on forwarder’s liability

issue when some traders make an under-declaration for licence application. It would be essential to state

clearly the obligations of different parties in the Ordinance and educate the shipping community. The

following suggestions were brought out to CEDB for their consideration:

Guide trader to make licence application through the SW platform for controlled shipment;

Request trader to make official declaration under SW as to whether or not a valid licence is required for

the shipment that trader is processing via the SW platform;

Platform to link with search engine for controlled items with enquiry hotline of relevant departments;

Pop-up message to remind trader of the legal implication and consequence of shipping controlled item

without valid licence.



CEDB has established 6 User Consultation Groups (UCGs) and the first joint briefing was held on 31 January

2018 in which HAFFA representatives have participated. The UCGs will provide advice to the Government on

the implementation of the SW in Hong Kong in particular the key outstanding issues of pre-shipment proposal.

Source: CEDB



The SW will be implemented in 3 phases with the following approximate timeline:

Source: CEDB

It is targeted to roll out Phase 1 around mid-2018, under which voluntary SW submission of 10 plus trade

documents will be covered (see below the list of documents). Final enhancements and testing will be carried

out in the first half of 2018.

Source: CEDB



Road Traffic (Construction and Maintenance of Vehicles) Regulations, Chapter 374A

LEGAL MATTERS SUB-COMMITTEE

Chairman: U-FREIGHT LTD – Ms. Amy Wong

Vice Chairman: AE CARGO SERVICES LTD – Mr. Ronnie Leung

Transport Department - Application for Excess Width Permit

- HAFFA being one of the Transport Department (TD) recognized organizations to issue supporting

letter exclusively for Members to apply for TD’s Excess Width Permit for Goods Vehicle

History: According to Road Traffic (Construction and Maintenance of Vehicles) Regulations, Chapter 374A,

the regulated overall width for Goods Vehicle is 2,500mm. Back in 1998, Transport Department (TD),

HAFFA and HACTL held meetings on the operational needs for trucks deployed in air cargo transportation

with body width of 2,580mm to facilitate loading and unloading of the Unit Load Devices (ULDs), these had

happened in early 1998 before moving to Chek Lap Kok airport. In late March 1998, TD agreed to allow a

maximum width of 2580mm for vehicle for use only in the air cargo industry, and required individual

application by relevant stakeholders.

Latest development: In recent

years, TD observed a notable

increase of applications with

various types of goods vehicle

which claimed for carriage of

air cargo with the support of

airway bill. TD considered to

review the assessment criteria

in order to control the issuance

of Excess Width Permit for the

sake of road safety. In this

connection, TD decided to

strictly control future

application of the issuance of

Excess Width Permit, being an

application of EXEMPTION to

air cargo transportation

industry.

HAFFA held meetings with TD

and other industry stakeholders;

many follow up discussions

were made with TD to explain

the importance of allowing the

maximum width of 2580mm in

the daily operation of our

Member forwarders and their

direct subcontractors.



Subsequently, TD heard our voice and finalized

the application procedure. TD officially

recognized HAFFA to be one of the

organizations to issue supporting letter to apply

for TD’s Excess Width Permit for Goods

Vehicle.

To support Members’ application, TD requires

a supporting letter from HAFFA (or other

relevant parties/associations) to certify the

applicant is of genuine continuous operational

need to carry air cargo Unit Load Devices

(ULD) of 96” width.

We fully understand that most of our Members

contracted out their local air transportation to

external truckers; HAFFA has also strived for

the need for us to certify the direct truck

subcontractor(s) of our Members. Finally, TD

allowed HAFFA to issue supporting letter to

HAFFA Members, or Members’ direct

subcontractor(s). However it is NOT allowed

to issue supporting letter to any

subcontractor/party beyond the direct

subcontractor of our Members.

Apart from the above, HAFFA was requested

by TD to produce an assessment and vetting

procedure in order to issue the supporting letter.

In this circumstance, HAFFA prepared an

application guideline and the application form

for Members to use when applying to issue the

supporting letter.

Details have been shared with Members via HAFFA News and are available at: [After login]

http://www.haffa.com.hk/portal/Page/Default.aspx?id=984



LOGISTICS POLICY SUB-COMMITTEE

Chairman: CN LOGISTICS LTD – Mr. Ringo Cheung

Vice Chairman: DIMERCO AIR FORWARDERS (HK) LTD – Mr. Eddie Law

Members: SIMX PROJECT X & TRADE COOPERATION ASSOCIATED LTD





HAFFA submission to the new Secretary for Transport and Housing

Arranged by Hon. Frankie Yick (Legislative Councilor under Transport Functional Constituency), HAFFA

and other logistics associations were invited for a meeting with Mr. Frank Chan, JP, Secretary for Transport

and Housing on 24 August 2017. The objective of the meeting was for the industry key representatives to meet

with Mr. Chan and let him (being the new Secretary) to better understand the current situation and problems

encountered by the freight and logistics sector.

HAFFA based on the records and prepared a submission with the following key issues that the Association has

reflected to the Government before but their concrete feedback is still pending.

Aviation Security - New International Civil Aviation Organization (ICAO) Policy Direction

High Cost of Air Cargo - Substantial Increase of Handling Charge

Cargo Fuel Surcharge Mechanism

Transshipment Facilitation

At the said meeting, HAFFA Chairman voiced out the above 4 issues and the letter was submitted to Mr. Chan

in person. As HAFFA is one of the appointed member by Chief Secretary for Administration as a member of

LogsCouncil with Mr. Chan being the chairman. We look forward to establishing a channel of communication

with the Government on an ongoing basis and to strengthening closer collaboration with them so as to look

after the best interest of Members and bring greater economic success to Hong Kong.



MEMBERSHIP SUB-COMMITTEE

Chairman: DIMERCO AIR FORWARDERS (HK) LTD – Mr. Eddie Law

Vice Chairman: NAF GLOBAL LOGISTICS LTD – Mr. Bruce Yau

Members: CTI LOGISTICS (HK) CO., LTD

WEN-PARKER LOGISTICS (H.K.) COMPANY LTD

AE CARGO SERVICES LTD


A. Membership

HAFFA admitted 5 New Ordinary Members during the year of 2017-2018, their names are listed below:

1. Apex Logistics International (HK) Ltd 4. TNR International Logistics Company Ltd

2. Janco Global Logistics Ltd 5. Vpower Finance Security (Hong Kong) Ltd

3. Master Cargo International (Hong Kong) Co., Ltd

HAFFA admitted 2 New Associate Members during the year of 2017-2018, their names are listed below:

1. Pan Asia Container Line Pte Limited

2. The Hong Kong Shippers' Council

During the year of 2017-2018 the following members ceased to be a member of HAFFA:

1. DHL Supply Chain (Hong Kong) Ltd

2. DAS Express (HK) Ltd

3. DHL Express (Hong Kong) Ltd

4. Sky Genius (Hong Kong) Ltd

5. Walker Logistics (HK) Ltd

And the total membership now stands at 320.

B. FIATA Licencee

FIATA Documents [including FIATA Multimodal Transport Bill of Lading (FBL) “as Carrier”, FIATA

Multimodal Transport Waybill (FWB) & Forwarders Certificate of Receipt (FCR)] in Hong Kong:

During the year of 2017-2018 the following members ceased to be FIATA Licencee:

1. Metrotrans Express Ltd (046)

2. P A C Pactrans Air Cargo (HK) Ltd (024)

The total number of members authorized to issue FIATA Documents now

stands at 62.



PUBLIC RELATIONS SUB-COMMITTEE

Chairman: BEL INTERNATIONAL LOGISTICS LTD – Mr. Brian Wu

Vice Chairman: JET-SPEED AIR CARGO FORWARDERS (HK) LTD – Mr. Gary Lau



I) Key Events with various Government departments and trade bodies


28/04/2017 Mr. Cliff Sullivan (Hon.

Treasurer)

Labour Day Reception 2017 Labour and Welfare Bureau

(LWB)

28/04/2017 Mr. Bruce Yau (Executive

Committee Member)

World Day for Safety & Health at

Work and The 9th Outstanding

Occupational Safety and Health

Employees Award Presentation

Ceremony

Occupational Safety & Health

Council (OSHC)

04/05/2017 Mr. Brian Wu (Chairman) Presentation Ceremony for 2016

Hong Kong Awards for

Environmental Excellence

(HKAEE) and Hong Kong Green

Organisation Certification

Hong Kong Productivity

Council (HKPC)

28/05/2017 Ms. Alice Lui (Secretariat) Aviation Industry Forum 2017 –

Smart Technology for Aviation

Civil Aviation Department

(CAD)

09/06/2017 Mr. Brian Wu (Chairman) The Opening Ceremony of the

HKIA Career Expo 2017

Airport Authority Hong Kong

(AAHK)

13/06/2017 Mr. Brian Wu (Chairman) Luncheon with Stakeholders in

Port and Maritime Logistics

Industry

Hong Kong Container

Terminal Operator

Association (HKCTOA)


Treasurer) as Judge and

Award Presenter

HKMA SME Club 49th

Distinguished Salesperson Award

(DSA) Programme Presentation

Ceremony

The Hong Kong Management

Association (HKMA)

20/06/2017 Mr. Brian Wu (Chairman) HKSTLA Supply Chain

Management Strategies Think

Tank Opening Ceremony

Hong Kong Sea Transport

and Logistics Association

(HKSTLA)

27-28/06/2017 Mr. Brian Wu (Chairman)

as Voting Member

2nd IFGB (IATA-FIATA

Governance Board) Meeting,

Montreal, Canada

IFBG (please refer to the

Annual Report under

Airfreight Sub-committee)

27/06/2017 Mr. Raymond Kan

(Executive Committee)

2017 Pyeongtaek Port Seminar &

Luncheon

Gyeonggi Provincial

Government

12/07/2017 Executive Committee Meeting on Trade Single Window

and Demonstration

Commerce and Economic

Development Bureau (CEDB)


and Ms. Alice Lui

(Secretariat) as Delegates

representing Hong Kong

44th FAPAA Executive Council

Meeting (ECM) and Annual

General Meeting (AGM),

Kathmandu, Nepal

FAPAA (please refer to the

Annual Report under FAPAA

Sub-committee)


Chairman)

SME One 5th Anniversary Cocktail

Reception


Council (HKPC)




10/08/2017 Mr. Brian Wu (Chairman) Meeting with Ms Annemieke

Ruigrok (Consul General, The

Netherlands Consulate in Hong

Kong) for the preparation of the

Netherlands Logistics Mission to

Hong Kong

The Netherlands Consulate in

Hong Kong

10/08/2017 Mr. Brian Wu (Chairman) Consultation Meeting on

2017-2018 Policy Address

Financial Secretary

24/08/2017 Mr. Brian Wu (Chairman) Meeting with the new Secretary for

Transport and Housing (Mr. Frank

Chan, JP) for him to better

understand the current situation

and problems encountered by the

freight and logistics sector

Hon. Frankie Yick,

Legislative Councilor


Chairman)

HKPC Smart Industry One

Opening Ceremony


Council (HKPC)

28/08/2017 HAFFA as Organizer IATA CEIV Pharma Certification

Briefing Session

HAFFA and International Air

Transport Association

(IATA)

11/09/2017 HAFFA as Supporting

Organization and Mr. Brian

Wu (Chairman) as delegate

Belt and Road Summit Hong Kong Trade

Development Council

(HKTDC)

13/9/2017 Mr. Brian Wu (Chairman) “Technology for Smart Logistics:

towards 2030+” Conference

Hong Kong Institution of

Engineers (HKIE)


as Panelist and Executive

Committee as Delegates

LSCM Logistics Summit 2017 Hong Kong R&D Centre for

Logistics and Supply Chain

Management Enabling

Technologies (LSCM R&D

Centre)

21/9/2017 Mr. Brian Wu (Chairman) HKPC International Conference -

Smart Future: A Global Perspective


Council (HKPC)


Chairman)

Cocktail Reception for the

Celebration of National Day

Hong Kong Media

Preparatory Committee for

the Celebration of National

Day

01/10/2017 Mr. Brian Wu (Chairman) 68th Anniversary of the Founding

of the People’s Republic of China -

National Day Reception

Home Affairs Department



Chairman) and Executive

Committee

Courtesy visit by the Mexico

Manzanillo Port Authority

Mexico Manzanillo Port

Authority


as Hong Kong Conference

Delegate

FIATA World Congress 2017,

Kuala Lumpur, Malaysia

FIATA (please refer to the

Annual Report under FIATA

Sub-committee)


as Voting Member

3rd IFGB (IATA-FIATA


Kuala Lumpur, Malaysia


Annual Report under


10/10/2017 Mr. Ryan Hsu (Executive

Committee)

Breakfast Seminar for the Kansas

City Southern - Shipping via

Mexico

ProMexico Hong Kong




16/10/2017 Executive Committee Holland Logistics Seminar,

Matchmaking & Networking

Reception

The Netherlands Consulate in

Hong Kong


Treasurer)

Summit on the New Directions for

Taxation

Financial Services and The

Treasury Bureau

24/10/2017 HAFFA as Organizer The 2nd HAFFA Member

Consultation Meeting – Annual

Financial Review (AFR) and ICAP

Final Proposal on Local Financial

Criteria (LFC)

HAFFA

24/10/2017 Mr. Brian Wu (Chairman) HAROPA, Ports of Le HAvre,

ROuen, PAris - The new maritime

Silk Road goes through HAROPA

ports - Round Table Meeting and

Cocktail Reception in Hong Kong

HAROPA Ports


Chairman)

ERB Annual Employer Luncheon Employees Retraining Board

(ERB)

04/11/2017 Mr. Brian Wu (Chairman) Hong Kong Polytechnic University

- 23rd Congregation (Faculty of

Business)

Hong Kong Polytechnic

University (Poly U)

07/11/2017 HAFFA as Supporting

Organization and Mr. Brian

Wu as Delegate

GS1 Hong Kong Summit 2017 GS1 Hong Kong

09/11/2017 Mr. Brian Wu (Chairman) Meeting on “Vocational

Qualifications Pathway (VQP)”

Qualifications Framework


Treasurer) as Guest

Speaker

Career Talk by HAFFA HAFFA and Hong Kong

University of Science and

Technology (HKUST)

16/11/2017 Mr. Brian Wu (Chairman) Consultation Meeting on the

feasibility study for Transhipment

Handling Facility (THF) and

Inter-modal Air Cargo Facility

(IAHF)

Airport Authority Hong Kong

(AAHK)


as Guest Speaker

Seminar on “Italian Ports – The

Bridge Between Asia and Europe”

& Signing Ceremony of MOU

between HAFFA and Spediporto

InvestHK and the

International Propeller Clubs

of Italy

23-24/11/2017 HAFFA as supporting

organization; Mr. Brian

Wu (Chairman) as Panelist

and Executive Committee

as Conference Delegates

Asian Logistics and Maritime

Conference (ALMC)

Hong Kong Trade

Development Council

(HKTDC)

01/12/2017 Mr. Bruce Yau (Executive

Committee)

“好僱主約章”起動禮暨研討會 Labour Department

07/12/2017 Mr. Brian Wu (Chairman) HK Polytechnic University 80th

Anniversary Celebration Dinner

Hong Kong Polytechnic

University (Poly U)

14/12/2017 Mr. Sydney Chan (Seafregiht

Sub-committee)

Customs Sea Cargo Customer

Liaison Group Inauguration and

Meeting

Customs and Excise

Department


Chairman)

Customs Annual Dinner Customs and Excise

Department




17/12/2017 Mr. Joseph Lee

(Recreation & Sports


as Award Presenter

HAFFA/HKSTLA Bowling

Tournament 2017

HAFFA and Hong Kong Sea

Transport and Logistics

Association (HKSTLA)


Chairman)

Consultation Meeting on

2018-2019 Budget

Financial Secretary

21/12/2017 HAFFA as Organizer HAFFA Briefing Session: ICAO

New Air Cargo Security Policy

Civil Aviation Department

(CAD)

12/01/2018 Ms. Alice Lui (Secretariat) GS1 Hong Kong Launch Ceremony

cum Media Briefing of 信心港商

城

GS1 Hong Kong

14/01/2018 Mr. Gary Lau (Vice

Chairman and Airfreight


as Judge

International Forklift and Pallet

Building Competition 2018

Hactl

23/01/2018 Mr. Brian Wu (Chairman) Consultation on Manpower

Requirement Projection to 2027

(MRP2027)

Census & Statistics

Department


as Guest Speaker

Career Talk by HAFFA HAFFA and Hong Kong

Polytechnic University (Poly

U)

26/01/2018 Mr. Brian Wu (Chairman) International Customs Day Customs and Excise

Department


Treasurer)

Trade Single Window User

Consultation Groups Joint Meeting

Commerce and Economic

Development Bureau (CEDB

26/02/2018 Mr. Brian Wu (Chairman) HKIA Spring Reception Airport Authority Hong Kong

(AAHK)


as Judge

CILT Award 2017 – Service

Excellence

The Chartered Institute of

Logistics and Transport in

Hong Kong (CILTHK)

05-06/03/2018 Mr. Raymond Wong

(Alternate Executive

Committee)

FlyPharma Conference Airport Authority Hong Kong

(AAHK)


as Voting Member

4th IFGB (IATA-FIATA


Dallas, Texas, USA


Annual Report under



as Judge and Award

Presenter

ICT Awards 2018 - Smart Mobility

Award Presentation Ceremony cum

Dinner

GS1 Hong Kong

II) Greater China Affairs Delegations / Events Please refer to a separate detailed report under “GREATER CHINA AFFAIRS SUB-COMMITTEE”.

III) Media and Others Throughout the year 2017-2018, HAFFA was interviewed by the media on various issues. With the help of the

Executive Committee Members, the PR Sub-committee endeavor to entertain all press enquiries. In making

comments, we adopt a factual, objective approach with the interest of HAFFA members being our first

priority.



RECREATION AND SPORTS SUB-COMMITTEE

Chairman: WORLDTRANS AIR-SEA SERVICE LTD – Mr. Joseph Lee

Vice Chairman: NAF GLOBAL LOGISTICS LTD – Mr. Bruce Yau

Members: GLOBAL ALLIANCE LOGISTICS (HK) LTD


HAFFA / HKSTLA Joint Bowling Tournament, 17 December 2017

Supported by Hong Kong Logistics Management Staff Association (HKLMSA), HAFFA collaborated with the

Hong Kong Sea Transport and Logistics Association (HKSTLA) for its seventh year to organize a Bowling

Tournament on 17 December 2017 at Magic Fun Bowling World, Tsuen Wan. A total of 10 teams signed up

for the tournament to contend for five awards after four games.

Congratulations to the winners, they were:

Team Champion - Star Rainbow Logistics Hong Kong Limited

Team 1st Runner-up - Grand Light (Int'l) Shipping Co.

Team 2nd Runner-up - Scanwell Logistics (Hong Kong) Limited (Team 1)

Best Female Bowler - Ms. Kimberly Lau / Star Rainbow Logistics Hong Kong Limited

Best Male Bowler - Mr. Ng Cheung Wah / Star Rainbow Logistics Hong Kong Limited

As a token of encouragement, apart from the nicely-designed trophies, winning teams were also awarded with

cash as prizes. This event offered a wonderful platform for the industry practitioners to strengthen friendship

and all bowlers enjoyed an exciting morning of bowling and fun!



SEAFREIGHT SUB-COMMITTEE

Chairman: TRANS GLOBAL LOGISTICS (HONG KONG) LTD – Mr. Eric Wong

Vice Chairman: CARGO FREIGHT SERVICES LTD – Mr. Raymond Chan

Members: SIMX PROJECT X & TRADE COOPERATION ASSOCIATED LTD


CLEARFREIGHT HONG KONG LTD



Seminar on “Italian Ports – The Bridge Between Asia and Europe” and signing ceremony

of a MOU of cooperation between HAFFA and Spediporto (Italian Freight Forwarder

Association) on 21 November 2017

A new reform, named after Mr. Delrio (the Italian

Minister of Infrastructure and Transports) is going

to give a new connotation to the Italian port

system, for the relaunch of its portuality and

logistics. The Delrio reform is part of a national

strategic plan designed to boost development to

the economy and to foreign trade through

modernization of transport, logistics and services.

An important part of this plan is the approved

“South Decree”, in which a specific Article

establishes the creation of Special Economic

Zones in Southern Italy. Two of these, in

Campania and Calabria, have been promptly

approved by the respective regional governments

and will begin to operate in the short term, while

others will follow.

The International Propeller Clubs of Italy has taken the opportunity of the

Hong Kong Maritime Week to organize a large delegation including major

players of the Italian maritime and logistics sector, to present the Italian port

system, the new laws that will regulate its reorganization and the emergence

of new Special Economic Zones, the goals that the Italian port system aims

to achieve and the opportunities for Hong Kong companies to take

advantage of the Delrio reform and the new Italian Special Economic

Zones.

The seminar was held on 21 November 2017. Participating Members not

only learned in advance all the new opportunities open to the world of

logistics and international transport in the important Mediterranean basin,

but also met the Italian delegates and established strategic partnerships in

several Italian ports and who are looking for partners in Hong Kong to

develop their businesses in Asia.



At the event, the HAFFA Chairman Mr. Brian Wu delivered a welcome note and signed a Memorandum of

Understanding (MoU) with Italy’s Spediporto, the Association of the Genoa Freight Forwarding companies.

The agreement looks to further develop the relationship between the two Associations and their members,

while providing opportunities to share information and establish regular dialogue on salient policy issues.

Through the agreement, both Associations will seek collaborative opportunities in freight forwarding activities,

and to share expert guidance on common subjects. HAFFA and Spediporto will, in the event of any trade issues

between members, aim to establish a channel of communication for effective resolution of any dispute.



SME DEVELOPMENT SUB-COMMITTEE

Chairman: SIMX PROJECT X & TRADE COOPERATION ASSOCIATED LTD – Mr. Joseph Leung

Vice Chairman: TRANS GLOBAL LOGISTICS (HONG KONG) LTD – Mr. Eric Wong

Members: DHL GLOBAL FORWARDING (HONG KONG) LTD


Belt and Road Opportunities for SMEs

Belt and Road Initiative is a visionary, long-term plan which offers Hong Kong companies unparalleled

opportunities in the years to come. However, it seems that there was a lack of forwarder’s representation under

Government-led promotions on the Initiative. As such, HAFFA approached Hong Kong Trade and

Development Council (HKTDC) to seek for possible collaboration with an aim to enhance our presence under

the Initiative. In November 2017, HAFFA was invited by HKTDC to become one of the Strategic Partners of

its Belt and Road Initiative-related Promotion. Members may find the logo of the Association and other

strategic partners from the HKTDC website: https://beltandroad.hktdc.com/en/partners.

We hope that the collaboration with HKTDC can give SME Members in particular an unrivalled head-start in

tapping the vast opportunities ahead.

More info about Belt and Road Initiative is available at HAFFA website under > INFO CENTRE > CHINA

AFFAIRS > Belt and Road Initiative: http://www.haffa.com.hk/portal/Page/Default.aspx?id=782

Date: 20 April 2018 (END OF REPORT)

Source: Hong Kong Trade Development Council

HAFFA ANNUAL REPORT 2017-2018 - FAPAA · 8/F, CHINA HONG KONG CENTRE, 122-126 CANTON ROAD, TSIM SHA...

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