I

SPECIALIZED ASPECTS IN
INTERNATIONAL LOGISTICS

CHINA

GROUP MEMBERS
ROHIT KRISHNA
SANDHYA.N
T.M.VIJAYARAGHAVAN
NAGALAKSHMI.G
JOBIN MATHEW
MAHESH.M

1. What are the rough dimensions of the countries? (in miles)

3,705,410 sq mi of land and China's coastline along the Pacific Ocean is 9,000 mi.From that
6835 mi coastline has been used extensively for export-oriented trade.

2. What is the population? What percentage lives in the 3 largest cities?

Population - 1,376,049,000 (As per 2013 census),
3 Largest cities with population
a) Shanghai

-34.0 million

b) Guangzhou -25.0 Million

c) Beijing

-24.9 million

Percentage 6.09%
3. What is the predominant language? How widely used English in business?

Predominant Language used in china is Standard Mandarian.

As of 2010,In china. English is probably the third largest language by number of native
speakers, after Mandarin and Spanish.
4 China: Political stability index (-2.5 weak; 2.5 strong)
For that indicator, The World Bank (govindicators.org) provides data for China from 1996 to 2014.
The average value for China during that period was -0.46 points with aminumum of -0.66 points in
2010 and a maximum of -0.17 points in 1996.

5 Currency, Exchange Rate

Renminbi
International symbol is CNY
Abbreviated RMB, with the symbol

Chinese Yuan = 0.15 US Dollar

1 US Dollar = 6.67 Chinese Yuan

2009-2016
Highest: 7.2841 CNY on 21 Feb 2010.
Average: 6.3875 CNY
Lowest: 6.0413 CNY on 14 Jan 2014.

6) Time Zones
UTC+08:00
Noon in Cambridge, US = 12am (Midnight) in Beijing

7) Packaging and labeling regulation in China

Packaging

It must be in conformity with medical and safety regulations. Packaging materials must not be
poisonous or dangerous and must be easily degradable and recyclable. All wood packages should
carry an IPPC mark, or they will be subject to further requirements.
Languages Permitted on Packaging and Labeling
All products sold in China must have their labels or notes in Chinese.
Unit of Measurement
The metric system is used in China, but Chinese measuring units are also used.
Mark of Origin "Made In"
Information on the country of origin of the product must clearly be indicated.
Labeling Requirements
Name and address of the distributor registered in the country.
Specific Regulations
Labels for food products must contain the net weight, the list of ingredients, the address of the
Chinese distributer, the date of production and the expiry date.
The General Administration of the RPC Condition for the Supervision of Quality, the Inspection and
the Quarantine (AQSIQ) must be competently handled by the labeling management. All wood
packages should carry an IPPC mark, or it will be subject to further requirements. Products requiring
the China Compulsory Certification CCC mark, in addition to undergoing an application and testing
process, must have the mark physically applied on products before entering or being sold in China.
Standards Used In china
There are four levels of Chinese standards. The most widely implemented are the :
National Standards (GB)
Local Standards (DB + *)
Enterprise Standards (Q + *)
Professional Standards :
FZ - Textiles
QC - Automobiles
SJ - Electronics
JB - Machinery
YY - Medicine
8) Freight regulations
Effective from Feb 15, 2014
Regulations:
A Carrier can only sign contracts with actual Beneficiary Cargo Owners (BCO) and MoT certified
NVOCC.

All Service contracts/rates should be filed with the SSE prior to their use by CMA CGM customers.
All Contract price/rates will only be valid after 24 hours of filing with the SSE.
The list of NVOCCs can be found on MOTs website List of approved NVOCCs on MOTs website
If you are an NVOCC who accepts liability as a carrier. A business engagement with CMA CGM is
possible only when you are registered with the MoT with your name listed in the MoT certified
NVOCC list on MoT official website.
A contract can only be used by the contractual customer and its associates who are a part of the
contract.
Only contractual customer name or that of its associated entities for a service contract can appear on
B/L.

9) Major saltwater Ports

Anhui
Fujian
Guangdong
Jiangsu
Liaoning
Macau
Shandong
Shanghai
Tianjin
Zhejiang

Most of these ports are located near the metropolitan areas along the east coast where 39.8%
of total population reside.
10. What business terms / financial instruments used for import commercial transactions

Introduction about the trade in China

The European Union and China are two of the biggest traders in the world.
China is now the EU's 2nd trading partner behind the United States and the EU is China's biggest
trading partner.
As with most countries, regulations governing the import of goods and their subsequent sale on
China's domestic market are complex
The overview of import regulations aims to provide some insight into the complexities of exporting to
China
Guanxi or relationships, are of particular importance in China; relationships with government
bodies, investors, partners, and even with staff
Guanxi is often an important factor in the vendor selection process as well as when a companyis
engaging with agents, consultants and business partners.

The importance of the establishment and maintenance of guanxi in China increases the opportunity
that corrupt practices will arise in the course of regular business affairs
Imports
As a result of major changes during the last two decades in the structure of the global economy, the
US has largely recognized that liberal trade policies are on balance good for domestic consumers,
workers, and businesses alike. The encouragement of imports has generally led to the vitalization of
economies in other countries and, in return, greater de- mand for US products. In addition, imported
products offer US consumers a wide range of choices of products to buy, while the competition
between foreign and US products helps keep domestic prices down. Because US imports have
outpaced exports during the last two decades, the current US focus is on increasing exports and
opening new markets abroad for US products. Nevertheless, the US remains the world's top import
market.
Settlement of Import Trade Transactions
The most common terms of purchase are as follows:

Consignment Purchase
Cash-in-Advance (Pre-Payment)
Down Payment
Open Account
Documentary Collections
Letters of Credit

1. Consignment Purchase
In a consignment purchase arrangement, the importer/distributor makes payment to the overseas
supplier only after sales to end user is made and payment received. Consignment purchase terms can
be the most advantageous to an importer/distributor. It is also considered the most risky term for the
overseas supplier.

2. Cash-in-Advance (Pre-Payment)
Under these terms of purchase, the importer must send payment to the supplier prior to shipment of
goods. The importer must trust that the supplier will ship the product on time and that the goods will
be as advertised. Basically, Cash-in- advance terms place all of the risk with the importer/buyer. An
Importer may find his seller requiring prepayment in the following circumstances:
(1) The Importer has not been long established.
(2) The Importer's credit status is doubtful, unsatisfactory and/or the country political and economic
risks are very high.
(3) The product is in heavy demand and the seller does not have to accommodate an Importer's
financing request in order to sell the merchandise.

3. Down Payment
The Buyer pays the Seller a portion of the cost of the goods "in advance" when the contract is signed
or shortly thereafter. There are advantages and disadvantages of down payment terms. The down
payment method induces the Seller to begin performance without the Buyer paying the full agreed
price in advance. The disadvantage is that there is a possibility the Seller may never deliver the goods
even though it has the Buyer's down payment. This option must be combined with one of the other
options to cover the full cost of goods.

4. Open Account
Unsecured Open Account terms allows the importer to make payments at some specific date in the
future and without the buyer issuing any negotiable instrument evidencing his legal commitment to
pay at the appointed time. These terms are most common when the importer/buyer has a strong credit
history and is well-known to the seller. The buyer may also be able to demand open account sales
when there are several sources from which to obtain the seller's product or when open account is the
norm in the buyer's market. This mechanism offers the seller no protection in case of non-payment.
However, an exporter can structure his open account sale transaction to minimize the risk of nonpayment. For example, the exporter can reduce the repayment period and retain title to the goods until
payment is made. Even then, it is difficult to enforce this especially if the goods have been either
resold by the buyer or consumed in some other processing activity. Despite the dangers, open account
terms with extended dating are becoming more common in international trade. Exporters that offer
open account terms are increasingly obtaining credit insurance to mitigate the potential open account
credit risks.
5. Documentary Collections
A Documentary collection is a process, in which the seller instructs his bank to forward documents
related to the export of goods to the buyer's bank with a request to present these documents to the
buyer for payment, indicating when and on what conditions these documents can be released to the
buyer.
Merits of documentary collection
1. Low cost. Low banking fees, help reduce financial expenses and control the costs.
2. Easy to use. Simple procedures, easy to use as compared with L/Cs.
3. Lower risk. The importer can only take delivery of the goods after acceptance or payment, which
helps reduce the risks for the exporter as compared with open account sales.
Required Documents
1. The following documents are required when applying for export collection:
the power of attorney for collection and the complete set of documents for documentary collection.
2. The following documents are required for first-time applications:
business license (original and duplicate copies), permit for operating import and export trade,
authorization letter of legal representative
When to use Documentary Collections?
Since Documentary Collections transactions entail some measure of trust, it advisable to use the
mechanism when the following conditions apply:

When the exporter and importer have a well established relationship

When there is little or no threat of a total loss resulting from the buyer's inability or refusal to pay
When the foreign political and economic situation is stable
When a letter of credit is too expensive or not allowed
6. Letter of Credit
A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller , will be
received on time and for the correct amount
There are various types of letters of credits like
Revocable, Irrevocable, Confirmed, Unconfirmed, Clean & Documentary, Fixed, Revolving,
Transferable, Back to Back etc. Most common and safe LC is Irrevocable Letter of Credit.

11. How large is the typical supermarket

The Supermarket industry in China is a part of China's retail trade sector. Supermarkets retail a broad
range of food and daily goods. Most of the goods carried by supermarkets are purchased from
domestic manufacturers. Operators, generally known as supermarkets or hypermarkets, then retail
these goods to the general public
Industry Products
Food Beverage, wine and tobacco products Apparel and clothing Kitchen products Cosmetics and
jewelry Fruit and vegetables Stationery products Other products

Industry Activities
Grocery retailing Supermarket operations Hypermarket operations

12. Do any of the large U.S discount retailers have store in this country

Name of the company

Sales

Number of stores

McDonald's Corporation

11500

2100

Wal-Mart (China) Investment

Co., Ltd

72376

411

Yum! Brands Inc

50700

6600

13. Decribe the highways and rail infrastructure

Roads Sector in CHINA
Chinas expressway network of 65,000 kilometers (40,389 miles) is the second largest in the world,
next only to the U.S.
By 2020 the government plans to reach three million kilometers (1.86 million miles) of expressways
and highways, up from two million kilometers (1.24 million miles) in 2008.
China houses more toll roads than any other country, with Chinese toll roads representing more than
70% of the worlds total toll roads.
The government finances the majority of the road projects through its own budget and debt, while the
private sector plays a limited role.
The toll road sector was one of the three most profitable businesses in China for 2009, along with real
estate and finance.
The network will have a total length of about 85,000 km (53,000 mi), including seven originating
in Beijing; the Beijing-Shanghai, Beijing-Taipei, Beijing-Hong Kong-Macau, Beijing-Kunming,
Beijing-Lhasa, Beijing-rmqi, and Beijing-Harbin expressways. Half of the projects are already
completed

New numbering system

New system, which dates from 2004 and began use on a nationwide level beginning late 2009 and
early 2010, integrates itself into the present-day G-series number system. The present-day network,
termed the 7918 Network (also known as the National Trunk Highway System (NTHS)), uses one,
two or four digits in the G-series numbering system, leaving three-figured G roads as the China
National Highways.
The new 7918 Network is composed of
7 radial expressways leaving Beijing (G1-G7)
9 vertical expressways going north to south (double digit G roads with numbers ending in an odd
numeral)
18 horizontal expressways head west to east (double digit G roads with numbers ending in an even
numeral)
The network is additionally composed of connection expressways as well as regional and
metropolitan ring expressways.

Numbering rules
All expressways in this network begin with the letter G. (For regional expressways, the letter S is used
instead.)
All expressways have a thin band on top of the sign. For national expressways, this will be red; for
regional expressways, it will be orange-yellow.
For radial expressways leaving from or ending in Beijing, use a single digit from 1 to 9 (e.g. G1, G2).
For north-south expressways, use an odd number from 11-89 (e.g. G13, G35).
For west-east expressways, use an even number from 10-90 (e.g. G30, G46).
For regional expressways in the 7918 network, use numbers from 91-99 (e.g. G91, G93)
For the parallel expressways running alongside primary expressways, add the direction signal "W",
"E", "N", "S" after the primary expressway number (e.g. G4W).
For connection expressways, use "1" plus an order number after the main line (e.g. G1511).
For city ring expressways, use "0" plus an order number after the main line number, starting from the
smallest possible number.
14. How bad is the traffic in China?

INTRODUCTION
Traffic congestion is a condition on transport networks that occurs as use increases, and is
characterized by slower speeds, longer trip times, and increased vehicular queueing. The most
common example is the physical use of roads by vehicles. When traffic demand is great enough that
the interaction between vehicles slows the speed of the traffic stream, this results in some congestion.
As demand approaches the capacity of a road (or of the intersections along the road), extreme traffic
congestion sets in. When vehicles are fully stopped for periods of time, this is colloquially known as
a traffic jam or traffic snarl-up. Traffic congestion can lead to drivers becoming frustrated and
engaging in road rage.

Causes

Traffic congestion on Marginal Pinheiros, near downtown So Paulo. According to Time magazine,
So Paulo has the world's worst traffic jams. Drivers are informed through variable message signs the
prevailing queue length.
Traffic congestion occurs when a volume of traffic or modal split generates demand for space greater
than the available road capacity; this point is commonly termed saturation. There are a number of
specific circumstances which cause or aggravate congestion; most of them reduce the capacity of a
road at a given point or over a certain length, or increase the number of vehicles required for a given
volume of people or goods. About half of U.S. traffic congestion is recurring, and is attributed to
sheer weight of traffic; most of the rest is attributed to traffic incidents, road work and weather events.
Traffic research still cannot fully predict under which conditions a "traffic jam" (as opposed to heavy,
but smoothly flowing traffic) may suddenly occur. It has been found that individual incidents (such as

accidents or even a single car braking heavily in a previously smooth flow) may cause ripple effects
(a cascading failure) which then spread out and create a sustained traffic jam when, otherwise, normal
flow might have continued for some time longer.

Negative impacts
A frustrated driver in traffic jam.
Traffic congestion has a number of negative effects:
Wasting time of motorists and passengers ("opportunity cost"). As a non-productive activity for most
people, congestion reduces regional economic health.
Delays, which may result in late arrival for employment, meetings, and education, resulting in lost
business, disciplinary action or other personal losses.
Inability to forecast travel time accurately, leading to drivers allocating more time to travel "just in
case", and less time on productive activities.
Wasted fuel increasing air pollution and carbon dioxide emissions owing to increased idling,
acceleration and braking.
Wear and tear on vehicles as a result of idling in traffic and frequent acceleration and braking, leading
to more frequent repairs and replacements.
Stressed and frustrated motorists, encouraging road rage and reduced health of motorists
Emergencies: blocked traffic may interfere with the passage of emergency vehicles traveling to their
destinations where they are urgently needed.
Spillover effect from congested main arteries to secondary roads and side streets as alternative routes
are attempted ('rat running'), which may affect neighborhood amenity and real estate prices.
Higher chance of collisions due to tight spacing and constant stopping-and-going.

Countermeasures
It has been suggested by some commentators that the level of congestion that society tolerates is a
rational (though not necessarily conscious) [citation needed] choice between the costs of improving
the transportation system (in infrastructure or management) and the benefits of quicker travel. Others
[who?] link it largely to subjective lifestyle choices, differentiating between car-owning and car-free
households.
Road infrastructure

Metered ramp on I-894 in Milwaukee, Wisconsin U.S. The queue of cars waiting at the red light can
be seen on the upper portion of the picture.
Junction improvements
Grade separation, using bridges (or, less often, tunnels) freeing movements from having to stop for
other crossing movements
Ramp signaling, 'drip-feeding' merging traffic via traffic signals onto a congested motorway-type
roadway
Reducing junctions
Local-express lanes, providing through lanes that bypass junction on-ramp and off-ramp zones
Limited-access road, roads that limit the type and amounts of driveways along their lengths
Reversible lanes, where certain sections of highway operate in the opposite direction on different
times of the day/ days of the week, to match asymmetric demand. These pose a potential for
collisions, if drivers do not notice the change in direction indicators. This may be controlled
by variable-message signs or by movable physical separation
Separate lanes for specific user groups (usually with the goal of higher people throughput with fewer
vehicles)

The HOV lanes in Highway 404 in Southern Ontario are separated by a stripped buffer zone that
breaks occasionally to allow vehicles to enter and exit the HOV lane.
Bus lanes as part of a busway system
Express Toll Lanes
HOV lanes, for vehicles with at least three (sometimes at least two) riders, intended to
encourage carpooling
Slugging, impromptu carpooling at HOV access points, on a hitchhiking or payment basis
Market-based carpooling with pre-negotiated financial incentives for the driver
Urban planning and design

City planning and urban design practices can have a huge impact on levels of future traffic
congestion, though they are of limited relevance for short-term change.
Grid plans including fused grid road network geometry, rather than tree-like network topology which
branches into cul-de-sacs (which reduce local traffic, but increase total distances driven and
discourage walking by reducing connectivity). This avoids concentration of traffic on a small number
of arterial roads and allows more trips to be made without a car.
Zoning laws that encourage mixed-use development, which reduces distances between residential,
commercial, retail, and recreational destinations (and encourage cycling and walking)
Carfree cities, car-light cities, and eco-cities designed to eliminate the need to travel by car for most
inhabitants.
Transit-oriented development are residential and commercial areas designed to maximize access to
public transport by providing a transit station or stop (train station, metro station, tram stop, or bus
stop).

During rush hour, right turns onto the side street shown here are prohibited in order to prevent rat
running
Congestion can be reduced by either increasing road capacity (supply), or by reducing traffic
(demand). Capacity can be increased in a number of ways, but needs to take account of latent
demand otherwise it may be used more strongly than anticipated. Critics of the approach of adding
capacity have compared it to "fighting obesity by letting out your belt" (inducing demand that did not
exist before). For example, when new lanes are created, households with a second car that used to be
parked most of the time may begin to use this second car for commuting. Reducing road capacity has
in turn been attacked as removing free choice as well as increasing travel costs and times, placing an
especially high burden on the low income residents who must commute to work.
Increased supply can include:
Adding more capacity at bottlenecks (such as by adding more lanes at the expense of hard
shoulders or safety zones, or by removing local obstacles like bridge supports and widening tunnels)
Adding more capacity over the whole of a route (generally by adding more lanes)

Creating new routes

Traffic management improvements (see separate section below)
Reduction of demand can include:
Parking restrictions, making motor vehicle use less attractive by increasing the monetary and nonmonetary costs of parking, introducing greater competition for limited city or road space. Most
transport planning experts agree that free parking distorts the market in favour of car travel,
exacerbating congestion.
Park and ride facilities allowing parking at a distance and allowing continuation by public
transport or ride sharing. Park-and-ride car parks are commonly found at metro stations, freeway
entrances in suburban areas, and at the edge of smaller cities.
Reduction of road capacity to force traffic onto other travel modes. Methods include traffic
calming and the shared space concept.
Road pricing, charging money for access onto a road/specific area at certain times, congestion levels
or for certain road users
"Cap and trade", in which only licensed cars are allowed on the roads. A limited quota of car licences
are issued each year and traded in a free market fashion. This guarantees that the number of cars does
not exceed road capacity while avoiding the negative effects of shortages normally associated with
quotas. However, since demand for cars tends to be inelastic, the result are exorbitant purchase prices
for the licenses, pricing out the lower levels of society, as seen Singapore's Certificate of
Entitlement scheme.
Congestion pricing, where a certain area, such as the inner part of a congested city, is surrounded with
a cordon into which entry with a car requires payment. The cordon may be a physical boundary (i.e.,
surrounded by toll stations) or it may be virtual, with enforcement being via spot checks or cameras
on the entry routes. Major examples are Singapore's electronic road pricing, the London congestion
charge system, Stockholm congestion tax and the use of High-occupancy toll lanes, predominately in
North America.
Road space rationing, where regulatory restrictions prevent certain types of vehicles from driving
under certain circumstances or in certain areas.
Number plate restrictions based on days of the week, as practiced in several large cities in the world,
such as Athens, Mexico City, Manila and So Paulo. In effect, such cities are banning a different part
of the automobile fleet from roads each day of the week. Mainly introduced to combat smog, these
measures also reduce congestion. A weakness of this method is that richer drivers can purchase a
second or third car to circumvent the ban.[citation needed]
Permits, where only certain types of vehicles (such as residents) are permitted to enter a certain area,
and other types (such as through-traffic) are banned. For example, Bertrand Delano, the mayor
of Paris, has proposed to impose a complete ban on motor vehicles in the city's inner districts, with
exemptions only for residents, businesses, and the disabled.

Bike lane constructed in congested areas to encourage use of the alternative transportation.
Policy approaches, which usually attempt to provide either strategic alternatives or which encourage
greater usage of existing alternatives through promotion, subsidies or restrictions.
Incentives to use public transport, increasing modal shares. This can be achieved through
infrastructure investment, subsidies, transport integration, pricing strategies that decrease the marginal
cost/fixed cost ratios, improved timetabling and greater priority for buses to reduce journey time e.g.
[Bus Lanes], [BTR] .
Cycling promotion through legislation, cycle facilities, subsidies, and awareness campaigns. The
Netherlands has been pursuing cycle friendly policies for decades, and around a quarter of their
commuting is done by bicycle.
Promotion of more flexible work place practices. For example, a flexible workplaces pilot was
undertaken in Brisbane, Australia during 2009 to test the applicability of a voluntary travel behaviour
change program to achieve transport system outcomes, particularly as they related to managing
congestion, either through mode shift or peak spreading. During the one-month Pilot, amongst almost
900 Brisbane CBD workers across 20 private and public sector organisations, shifts of more than 30%
out of the morning and afternoon peak travel was recorded.
Telecommuting encouraged through legislation and subsidies.
Online shopping promotion, potentially with automated delivery booths helping to solve the last mile
problem and reduce shopping trips made by car.
Traffic management

Traffic congestion detector in Germany.

Use of so-called Intelligent transportation system, which guide traffic:

Traffic reporting, via radio, GPS and mobile apps, to advise road users
Variable message signs installed along the roadway, to advise road users
Navigation systems, possibly linked up to automatic traffic reporting
Traffic counters permanently installed, to provide real-time traffic counts
Convergence indexing road traffic monitoring, to provide information on the use of highway onramps
Automated highway systems, a future idea which could reduce the safe interval between cars
(required for braking in emergencies) and increase highway capacity by as much as 100% while
increasing travel speeds[citation needed]
Parking guidance and information systems providing dynamic advice to motorists about free parking
Active Traffic Management system opens up UK motorway hard shoulder as an extra traffic lane, it
uses CCTV and VMS to control and monitor the traffic's use of the extra lane

Other associated
School opening times arranged to avoid rush hour traffic (in some countries, private car school pickup
and drop-off traffic are substantial percentages of peak hour traffic).[citation needed]
Considerate driving behaviour promotion and enforcement. Driving practices such as tailgating and
frequent lane changes can reduce a road's capacity and exacerbate jams. In some countries signs are
placed on highways to raise awareness, while others have introduced legislation against inconsiderate
driving.
Visual barriers to prevent drivers from slowing down out of curiosity (often called "rubbernecking" in
the United States). This often includes accidents, with traffic slowing down even on roadsides
physically separated from the crash location. This also tends to occur at construction sites, which is
why some countries have introduced rules that motorway construction has to occur behind visual
barrier
Speed limit reductions, as practiced on the M25 motorway in London. With lower speeds allowing
cars to drive closer together, this increases the capacity of a road. Note that this measure is only
effective if the interval between cars is reduced, not the distance itself. Low intervals are generally
only safe at low speeds.
Lane splitting/filtering, in which some jurisdictions allow motorcycles, scooters and bicycles to travel
in the space between cars, buses, and trucks.

16. Is security an issue in logistic?

Yes, it is an issue in logistics.

1. Organised Crime
Organised crime is increasingly found in industries where there is traditionally little awareness of, or
exposure, to their activities, where gaps in regulations can be exploited and/or where the penalties for

crime are not sufficient to deter criminal behaviour. The Transport Industry presents opportunities for
this exploitation by organised crime. (Australian Crime Commission, 2007.)
From Ray Mancinis own experiences through the role as the security contractor for transport
companies, organised crime members were able to infiltrate other companies by being an owner
operator contractor or as a contract truck driver.
One transport company employed a contract truck company to transport their freight locally; however,
this companys owner had strong links to an organised crime syndicate and in fact employed members
from his group.
More importantly the fact that there is no dedicated national law enforcement unit
targeting/combating organised theft of freight within Australia, especially involving organised crime
gangs, has permitted these crime syndicates to flourish.
Previously a joint venture by Australian Federal Police (AFP), Customs and various state law
enforcement agencies created the RAFT project (Reduce Aviation Freight Theft), which introduced a
multiagency approach to investigating the theft of aviation theft. However, after a period of time in
many states this project was abandoned and the intelligence was handled by AFP in Canberra. (To the
authors knowledge, Queensland is the only state that still maintains the RAFT Project that involves
security employees from transport companies).
I acknowledge that many states law enforcement services do have a gang crime squad to investigate
organised crime gangs activities, however many crimes perpetrated within the transport/logistic
industries is more than often not reported or over looked by the police due to the crimes themselves
being a lower priority or there were no avenues of inquiry.
The RAFT Project was conceptually a positive move by the law enforcement agencies, however it
was hamstrung as it targeted aviation freight not necessarily road freight.
The Transported Asset Protection Association (TAPA) is a unique forum that unites global
manufacturers, logistics providers, freight carriers, law enforcement agencies and other stakeholders
with the common aim of reducing losses from international supply chains. (TAPA, n.d.)
According to the European Union, the theft of high value, high risk products moving in supply chains
in Europe costs business in excess of 8.2 billion Euro dollars a year. The threat from organized
criminals is increasing and becoming more violent. (TAPA, n.d.)
Recommendation:
The RAFT project including the Joint Aviation Investigation Team (JAIT) should be re-created and
implemented on both a national and state level, involving both road and aviation transport companies
and the respective security companies (involved in the protection services for the various transport
companies).
Continual security awareness training for employees and security personnel to reduce apathy
displayed by employees and managers in the respective transport companies.
The provision of TAPA training to staff and the adoption of TAPAs minimum security standards.
Regular auditing of security by a qualified TAPA auditor or security personnel trained in TAPA
certification standards.
2. Terrorism
Transport companies have, today, transformed into transnational companies, providing international
freight services across the globe. As such, dramatic increases have occurred in the demand of express

service delivery of international freight utilising aviation services, including both freighter and
passenger aircraft.
However, the increase demand of international freight services increases the risks of terrorist activities
within this area.
For example, in 2010, two separate items of freight (printer cartridges) were detected to contain
Improvised Explosive Devices (IEDs). These items had already been loaded onto two separate
freighter aircraft in the United Kingdom for flights into the United States. Imagine the carnage if these
two IEDs exploded over heavily populated areas. This could have replicated the disaster over
Lockerbie Scotland in 1988.
Note: Pan Am flight 103 (Boeing 747) exploded over Lockerbie, Scotland, after a bomb hidden in
luggage exploded causing debris to crash into the Scottish village of Lockerbie below. 270 people
were killed, including 11 people who were on the ground.
Whilst the transport industry already has measures in place such as screening and security checks to
reduce the risks of IEDs and other explosives or chemicals being loaded onto aircraft, the devious
minds of criminals/terrorists continue to improvise methods to circumvent detection strategies.
These incidences have caused a growing awareness in the industry for improved security. Many
governments have made it mandatory for improved freight screening and security procedures to
prevent breaches.
According to the Australian Government (n.d.), transport systems continue to be attractive targets for
terrorists seeking to inflict mass casualties, economic damage, instill fear and create spectacular media
imagery. Transport security encompasses aviation, air cargo supply chains, maritime and mass
passenger transport systems such as road and rail.
The Office of Transport Security (OTS) is responsible for regulating and monitoring transport and air
cargo security on behalf of the Australian Government. OTS is responsible for administering an
intelligence-led, risk-based preventative security regime. OTS works with the aviation and maritime
industry to achieve sustainable and proportional preventative security measures that are
commensurate with the nature and level of the terrorist threat.
Supply chain security for air cargo is regulated in Australia under the Aviation Transport Security Act
2004 and Aviation Transport Security Regulations 2005. It is administered under the Regulated Air
Cargo Agent (RACA) and Accredited Air Cargo Agent (AACA) schemes.
The RACA scheme regulates air cargo security for a range of industry participants through the
preparation, implementation and compliance of a Transport Security Program compiled by the
respective transport companies and the regulated shipper scheme that includes:
Cargo terminal operators at airports
Express post services
Freight forwarders (including express freight companies)
Regular international postal services
All freight for international destinations via the aviation industry is processed according to the
Unknown Shipper Process.
However, due to time constraints lack of knowledge or lack of communication this process is often
neglected increasing the odds and risks that an unlawful item or substance could be loaded onto an
aircraft.

It is interesting to note that, in Australia, surface (road) transport security arrangements are under state
and territory jurisdiction with OTS working to coordinate the dissemination on best practice
information on security measures. Implementation of preventative security measures is the
responsibility of owners and operators of the individual transport companies.
Recommendations:
Training/information is required for transport operators and employees in relation to RACA and
security awareness for the security of their freight.
Updated and continual training required for security and transport employees (company or contract) in
the areas of transport/logistics and aviation security requirements, including RACA and other
regulatory or convention requirements, including the Unknown Shipper Process.
Provision of suitably trained and qualified security guards to provide professional and quality
guarding services within the transport/logistics industry.
3. Theft of freight
Criminals utilise employees to gain intelligence or provide information as to which transport company
is transporting the various brands or products of high value electronic freight (for example Apple,
Panasonic and JVC electronic items).
Criminals will target transport company employees to provide information as to the specific
companys weaknesses and areas of opportunity in order to target the company in their plans to
commit offences.
These plans could culminate in offences being committed across various states (causing various
jurisdictional issues with law enforcement agencies) and whilst the freight is in transit (difficult to
track and delays the discovery of the crime). For example high value freight is often targeted on the
Sydney to Perth tour as it is a three day transit tour, thus delaying the discovery of the crime and
reducing the possibility of apprehending the perpetrators.
Many employees in the transport industry are low income earners, which increases the risks of these
employees to provide information, steal freight or provide accessibility for criminals to access freight,
in order for the employee to supplement their low wages through bribes or pay offs.
On the sociological side, we need focus only upon the broad reality of contemporary economic life. It
is a fact of life that the majority of the work force will struggle to survive with the wages that they
earn. In more cases today many people live in excess of their earnings, which is powered by the
yearnings to have more. This desire to live at a level excessive to their earnings causes frustrations
with their working life and conditions which can be reflected onto their attitude towards their
employer. (Mann & Al-Khadha, n.d.)
Mann and Al-Khadha (n.d.), suggests that many employees do not enjoy their jobs, or do not enjoy
much of what they do at work. They work in order to get money to live. While they work they follow
orders from others, with which they do not necessarily agree. Often they have no knowledge of the
decisions underlying such orders, who made them or why.
The employees desire to have a better life and possess more expensive items is created as by what
Mann and Al-Khadha (n.d.) suggest as marketing efforts to stimulate ever more wants for ever more
consumer goods. New products can be presented as compensations for the general powerlessness,
frustration, insecurity, domination and struggle of the majority of the population. Here is another
major source of duress for many people the duress of thwarted desires, along with envy and
resentment of those who apparently have everything while doing nothing to deserve it.

This stress is then reflected by the employees attitude towards their employer or business. One of
these attitudes is called rationalised actions.
Rationalised action can be described with the example that an employee looking to steal an item and
rationalises their actions with the fact that the company is making millions but not looking after their
workers.
Many workers are transient temporary labour hire employees who have no allegiances to the
respective hiring transport company and are hired as no one else has a desire to complete a four hour
split shift ranging from 0200 to 1000 hours and 1500 to 2100 hours.
As such the risks of theft and damage due to poor handling skills and lack of training is increase ten
fold, especially since the turn over of staff is significant and the continual training of these personnel
is a large cost burden to the parent company.
Whilst many large transport/express companies are implementing up to date technology to allow
customers to track their consignment over the internet and also to provide internal visibility of a
specific consignment or item, many companies have not.
However, the transport companies that have implemented the track and trace scanning recognize that
many employees do not scan the freight for a variety of reasons, including laziness, lack of time or so
that the item itself can be stolen.
Transport companies that conform to the TAPA convention security standards, still suffer the
indignity of losses through theft or compliance failures as employees have failed to comply with
policies or procedures.
Many incidents lack the appropriate security investigation to uncover the root cause so that
procedures or strategies can be implemented to reduce the incident or risk of the specific failure
occurring in the future.
Recommendations:
Training is provided on a continual basis for all employees and contractors to maintain their
knowledge of scanners, scanning disciplines and scanning compliance requirements.
Adequate and frequent training of freight handlers to handle the freight in a correct manner to reduce
the risks of damage or injury to the freight handler.
Security personnel are involved in the handling, securing, sorting, scanning and loading of high risk
freight. Therefore the security personnel must also be adequately trained in the handling and sorting
requirements of high risk freight or freight classed under an Enhanced Security Program
requirement.
Provision of the appropriate training to security personnel / transport staff to enable the thorough
conduct of factual investigations and subsequent root cause analysis.
Security personnel / transport employees must have the knowledge to conduct security audits and risk
analyses so as to reduce the risks of theft or shrinkage.
4. Transport Companies
Transport companies operate under increasing financial challenges caused by the worlds markets,
including fuel. Various natural disasters, such as the Iceland Volcano Eruptions can bring air traffic to
a stand still, costing companies millions of dollars.
Transport companies profit margins are not as large compared to other industries such as the
mining/resource sector. Therefore freight is moved as rapidly as possible and as per the contractual

agreement with the customer, to ensure the highest level of profit and more importantly return
business of a satisfied customer.
However, it is this rapid handling of freight that causes process failures to occur. Efficiency versus
expedience is always an issue with the movement of freight and a headache to security personnel
tasked to investigate missing freight, as expedience will always be put first.
Further, the lack of customer service units and/or appropriate security personnel coupled with the lack
of appropriate training can delay the early detection of lost or stolen freight, which, in turns increases
in attempting to locate the freight.
Recommendations:
The appropriate training is provided to employees to equip them with the knowledge and tools so they
are capable of conducting inquiries to locate freight or to report freight missing as soon as possible.
The provision of easily accessible training tools and workshops, which are cost effective, and do not
waste employees and employers time.
5. Security Companies
With the various security issues experienced across the world and with new challenges being faced
with every new day, numerous security firms have been formed to meet the growing demand for
private security as law enforcement agencies are battling to cope with increases in demands for their
services.
Many security companies offer security guarding services within Australia and are competing against
each other to obtain business. Many companies attempt to under quote their competitors to dangle the
cheaper cost carrot in front of transport company managers/directors in their attempts to win the
contract. As such these security companies have to reduce their costs in the only areas where possible,
including staff wages/conditions and training. This results in the supply of under trained and unwilling
security guards.
The supply of a security guard, who is tasked to watch a CCTV system and sit at a guard hut to
provide access control to a depot, is no longer acceptable or viable. Security personnel now and in the
future need to be fully trained on a variety of subjects (i.e. investigate losses, understand and use
complex electronic surveillance equipment, knowledge of the transport/logistics industry), be able to
multi task and have that willingness to conduct other transport related duties such as pallet counts,
refuelling vehicles, audits etcetera to assist in providing the cost effectiveness to the transport
industry.
In the authors experience a cheaper service doesnt always equate to a cost effective solution.
Unfortunately and it is still happening with security companies attempting to run with small margins
and thus supply a blanket of security guards at a cheaper rate. Many of these security employees are
not paid according to the specific awards and are not trained to an appropriate level.
However, I also note that there are also competent security companies in the market who are
passionate about the security industry and maintain their longevity within the security industry
through the provision of a quality security service, which is reflected by their employees.
Recommendations:
That security companies who provide the appropriate level of security services associated or aligned
with a registered training organisation and who have transport industry trained / experienced guards
should be sourced to provide the requisite guarding requirements for the various transport companies.

In any hire or tender process, transport companies are encouraged to request references from other
transport companies and investigate the incumbent security company to ascertain other evidence of
what specialist transport/logistics security services they have provided in the past.
Conclusion
The transport/logistics industry is rapidly evolving and transforming due to many factors that are
being faced today and in the future that include costs, increasing demand for movement of high value
freight and global security risks.
However, with these changes the industry must embrace the appropriate high level of security to
ensure that their assets, employees and customers freight are protected to minimise risks from theft
and losses.
The old clich that security is a cost that cannot be retrieved is a thing of the past. The more savvy
transport companies are now utilising security services and protection of freight as a selling tool to
customers in order to win their business or to increase their bottom line of their profit and loss
statement.

17. Phone systems

Telecom operators
Main article: Mobile phone industry in China
As of 2009, the telecom operators in China are exclusively Chinese: two fixed-line operators with
nationwide licenses - China Telecom and China Unicom - three mobile carriers - China Telecom
(CDMA and CDMA2000), China Mobile (GSM and TD-SCDMA) and China Unicom
(GSM and WCDMA). The State has control and majority ownership of all of them. Most of them are
financed in Hong Kong.
China Telecom is one of the largest telecommunication SOE in China, including 31 semiautonomous provincial enterprises in mainland China. It runs land-line and mobile phone networks,
operates PAS system and provides telecom network-based voice, data, multimedia and information
services. In 2008, the company acquired CDMA network from China Unicom. A second focus point
is broadband based on Ethernet and ADSL. In Jan 2009, China Telcom was one of the three
companies having 3G license, CDMA2000.
China Mobile operates basic GSM services and value-added services such as General Packet Radio
Service (GPRS) data transfer, a TD-SCDMA 3G network, IP telephony and multimedia. It ranks the
first in the world in terms of network scale and customer base.
China Unicom merged with China Netcom in October 2008 and obtained WCDMA license in Jan
2009. The company offers mobile phone services, operates domestic and international landline
network, and provides broadband multimedia services and IP telephony and value-added services.
China Netcom was acquired by China Unicom in October 2008.
China Satcom was licensed to engage in all kind of satellite related services such as transponder lease,
domestic television broadcasting, public Very Small Antenna Aperture(VSAT)

communications, video conferencing, data broadcasting, IP telephony and satellite based high-speed
Internet access. In March 2009, the company announced its basic telephone services (excluding
satellite transponder lease and sales) were merged with China Telecom. The other part, satellite
related services will be merged with China DBSAT
China TieTong, formerly affiliated with the national rail network, is a smaller operator that merged
with China Mobile in May 2008.
China Voice Holdings Corp is also licensed to engage in video conferencing, data broadcasting, IP
telephony and satellite based high-speed Internet access and is the largest corporation in conjunction
with foreign owned corporations which hold many of the state run contracts for the Chinese
government.

Main Telephone Providers in mobile phone network

China Telecom - landline, Internet and mobile
At: Main office 31 Jinrong Street, Xicheng District, Beijing 100033
Tel: 10000 - 24-hour customer helpline
China Unicom - landline, Internet and mobile
At: Main office 21 Financial Street, Xicheng District, Beijing 100140
Tel: 10010 - 24-hour customer helpline
China Mobile - mobile telephone operator
At: Main office 60/F, The Center, 99 Queen's Road Central, Hong Kong
Tel: 10086 - 24-hour customer helpline
- See more at: https://www.angloinfo.com/china/how-to/page/china-housing-setting-up-homelandline-telephone#sthash.6GBaPTf5.dpuf

Main Telephone Providers in landlines

China Telecom - landline, Internet and mobile

At: Main office 31 Jinrong Street, Xicheng District, Beijing 100033
Tel: 10000 - 24-hour customer helpline
China Unicom - landline, Internet and mobile
At: Main office 21 Financial Street, Xicheng District, Beijing 100140
Tel: 10010 - 24-hour customer helpline
18 Internet access
China has now surpassed 649 million users, outnumbering the entire U.S. population. The growth of
mobile internet is largely credited for the increase, with 80% of users -- 557 million -- using
smartphones and tablets to connect. Despite the huge number and rapid growth of connectivity, the
overall population size means that still a majority (52.1%) of Chinese have no access to the internet.
China Internet Users
721,434,547

Internet Users in China (2016*)

Share of China Population: 52.2 % (penetration)
Total Population : 1,382,323,332
Share of World Internet Users: 21.1 %
Internet Users in the World: 3,424,971,237
Chinas internet usage
Year

Internet
Users**

Penetration Total
(% of Pop) Population

2016* 721,434,547

52.2 %

1,382,323,332

2015* 705,914,032

51.3 %

1,376,048,943

2014

675,131,785

49.3 %

1,369,435,670

2013

624,031,531

45.8 %

1,362,514,260

2012

573,330,272

42.3 %

1,355,386,952

World internet usage

Internet
users

Rank

Percentage[9]

China

721,434,547

52.2%

India

462,124,989

34.8%

United States

286,942,362

88.22%

Brazil

120,111,118

60.1%

Japan

115,111,595

89.8%

Country or area

19 China Gasoline prices, liter

Gasoline prices: We show prices for China from 06-Jun-2016 to 12-Sep-2016. The average value for
China during that period was 0.95 U.S. Dollar with a minimum of 0.92 U.S. Dollar on 08-Aug-2016
and a maximum of 0.97 U.S. Dollar on 27-Jun-2016. For comparison, the average price of gasoline in
the world for this period is 1.14 U.S. Dollar.
That is 3.88 $ per gallon

CHINA
0.98
0.97
0.96

0.95
0.94
0.93
0.92

China

0.91
0.9
0.89

20) TRADE REGULATIONS

China became a WTO Member on 11 December 2001. China has gradually liberalized its foreign
trading system and has continued to reduce administrative barriers to trade. According to Chinas
amended Foreign Trade Law which went into effect from July 2004, all types of enterprises, including
private enterprises, can register for the trading right.
According to WTO, China's average applied MFN tariff rate was 9.4% in 2013, progressively down
from 15.3% in 2001. The average tariff was higher for agricultural products at 14.8% while the
average tariff for non-agricultural products was 8.6%.
Starting from 1 June 2015, the import tariff rate on daily consumer products including certain
garments, footwear, skincare products, and paper diapers are slashed, at a rate averaging 50%. In this
round of adjustment, the import tariff on suits and furskin apparels is lowered from 14-23% to 7-10%;
import tariff on short boots and sports shoes goes down from 22-24% to 12%; import tariff on paper
diapers will drop from 7.5% to 2%; while that on skincare products from 5% to 2%.
VAT on imported goods at basic rate of 17% for general goods and at a lower rate of 13% for some
foodstuffs, grains and edible vegetable oils, gas and other energy products for domestic use, books
and newspapers, magazines, feedstuffs and fertilizers, etc.
Customs and quarantine system
China adopted the practice of quarantine inspection before customs declaration in customs
clearance. Import Goods Clearance Slips and Export Goods Clearance Slips stamped with the special
seal of inspection and quarantine authorities are issued to goods subject to entry-exit inspection and
quarantine. The Customs will examine and release the goods against the Import Goods Clearance Slip

or Export Goods Clearance Slip issued by the entry-exit inspection and quarantine authorities at the
place of customs declaration.
China practises a system of pre-shipment inspection for wastes imported as raw materials. Wastes to
be imported must measure up to Chinas environmental protection standards and must be inspected
and approved by inspection organisations recognised by the General Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ) before shipment.

Product standards
Import commodity inspection is required for all goods in the published Inspection List, or subject to
inspection pursuant to other laws and regulations. Safety licence and other regulatory requirements
apply to imports of medicines, foodstuffs, animal and plant products, and mechanical and electronic
products.
China implemented its new system of compulsory product certification on 1 May 2002. Under the
new system, a unified catalogue, standard, mark and fee schedule are in place and the CCC (China
Compulsory Certification) mark has replaced the Great Wall CCEE and CCIB marks used in the old
system. The CCC mark is the certification mark for products which are allowed to be imported, sold
or used in China. Catalogues of products requiring CCC mark have been drawn up and promulgated
through public notice.
The CCC catalogues cover the major product categories of electrical wires and cables, circuit switches
and electric devices for protection or connection, low voltage electrical apparatus, small power
motors, electric tools, welding machines, household appliances and appliances for similar uses, audio
and video apparatus, information technology equipment, lighting apparatus, motor vehicles and safety
parts, motor vehicle tyres, safety glass, agricultural machinery, firefighting equipment, preventive
safety technology products, telecommunications terminal equipment and wireless LAN products.
Details can be found in the CNCA websites dedicated webpage on CCC (Chinese).

Free trade agreements with China

Currently, China has 13 free trade agreements (FTAs) signed and implemented, and 6 FTAs under
negotiation.
Besides the Closer Economic and Partnership Agreements with Hong Kong and Macau, China has
FTAs in force with ASEAN, Pakistan, Chile, New Zealand, Singapore, Peru, Costa Rica, Iceland,
Switzerland, Korea and Australia. It is currently negotiating FTAs with the Gulf Cooperation Council
(GCC) countries, Norway, Japan-Korea, Sri Lanka, Regional Comprehensive Economic Partnership
(RCEP) and ASEAN FTA upgrade negotiation.
Reduced import tariff rates may be applied to certain commodities imported from FTA countries into
China.
21) EXPORT IMPORT DOCUMENT IN CHINA
Documentation is one of the difficult parts of international trade, even for veteran importers and
exporters. We often received emails from China Import Magazine readers, seeking help for
documentation preparation, application and issuing.
It takes a while to compile the complete list of documents formats related with China import and
export. If there is anything that I missed out, please do let me know by leave a message.

Documentation Samples List

Shipping documents
bill of lading
commercial invoice
packing list
air waybill
consular invoice
customs invoice
weight memo
Documents related with China Customs
customs declaration form (in Chinese)
Documents issued by Entry-exit Inspection And Quarantine Of The Peoples Republic Of China
inspection certificate (in Chinese)
certificate for raw silk classification and conditioned weight
certificate of analysis
fumigation/disinfection certificate
phytosanitary certificate
animal health certificate
veterinary (health) certificate
health certificate
sanitary certificate
inspection certificate of quantity and weight
quality certificate
Certificate of Origin
certificate of origin for imports of agricultural products into the european economic community
certircate of authenticity freshemperortable grapes
certircate of authenticity tobacco
certificate of origin(textile products)
certificate of origin form f for china- chile fta (Form F)
certificate of hong kong origin
china-singappre free trade area preferential tariff certificate of origin
form for the Free Trade Agreement between the Government of the PeopleS Republic of China and
the Government of New Zealand
certificate of origin china-pakistan fta (Form P)
certificate of origin asia-pacific trade agreement (Form B)
asean-china free trade area preferential tariff certificate of origin (Form E)
form a
certificate of origin
Export Permit, Quote or License
export licence for dual-use items and technologies of PRC
permit/certificate for import/export & re-export (convention on international trade in endangered
species of wild fauna and flora)
clearance notification for environmental management on import/export of toxic chemicals
temporary textiles export licence of the peoples republic of china
Insurance Documents
Insurance Policy
Insurance Policy Application Form

22. How common is bribery in trade transactions and what are the legal ramification

Form of representation

Registrations, certifications and licencing requirements

Business scope
Intellectual property protection
Foreign exchange regulations
Local tax and import duties
Dispute resolutions
labor law compliances

23. How strong are the Unions?

In the last decades, China's booming economy has greatly benefited from globalization and trade
liberalization. China has found a niche as the world's manufacturing centre and it is playing a crucial
role in a growing number of global supply chains. This research focuses on the performance of
international and domestic transport and logistics systems as perceived by Chinese importers and
exporters. A broad literature review of Chinese meteoric logistics industry development is provided.
Results and analysis of in-depth interviews with Chinese importers and exporters are presented. These
interviews provide significant information regarding international freight transport chains, the impact
of delays on supply chain operations and the subsequent costs, companies' delay and disruption
planning, and managers' perspectives on future transport and logistics developments.

24. Software system used in logistics industries

The following are some of the software commonly used in the logistics and supply chain side

Transwide - cloud-based transport management software

V-work - Mobile Workforce Management
Omadi - Dispatching, management & CRM for the towing industry
My Yard
Ship wire- Enterprise logistics for everyone
Real time vale network - Demand Driven Supply Chain Management in the Cloud

25. What are the reputed institutions and knowledge resources providing logistics and supply
chain certificate?

FUDAN UNIVERSITY- Master in Logistics and Operations Management

TONGJI UNIVERSITY - Master programe for Supply Chain and Logistics
BEIJING JIAO TONG UNIVERSITY - Master in logistics management and engineering
ZHEJIANG UNIVERSITY - Master of Engineering in Logistics Management