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July 10, 2001

Taipei Customs Bureau, Ministry of Finance to Strive for Advancing Customs Clearance Automation by Choosing FedEx as its Partner

Taipei, July 10, 2001 - As Taiwan's IT industry develops and the demands of international express delivery business increase, time-definite delivery service has become more significant than ever. In an attempt to rapidly achieve the goal of overall clearance automation and enhance Taiwan's global competitiveness, the Taipei Customs Bureau, Ministry of Finance has been working with Federal Express Corporation Taiwan Office (one of the world's largest express transportation company) to develop and reform the Customs Import Simplified Declaration System Phase II (dubbed as X3). This system is applicable to import items with values between NT$3,001 to NT$30,000 after tax. FedEx will be in piloting and initiating the testing program as it is scheduled to start operations as of August 15.

Following the implementation of the Customs Import Simplified Declaration System, FedEx has been able to transmit data to Trade-van Information Services Company through EDI (Electronic Data Interchange). As soon as the Trade-van Information Services Company receives the information, it will forward the data to customs. Thus, achieving the goal of customs clearance automation, e-revolutionized and paperless by means of FedEx's fast-speed and convenience network.

The convenience the X3 system has brought to clearance automation is undeniable. For example, the declaration of airfreight bills and shipping orders will be simplified; thus the speed of customs clearance will be increased. This unique X3 system is able to run independently without interfering with the regular air cargo customs clearance system. Moreover, the processing time for computers will be stepped up and then the operation of cargo custom clearance will run more smoothly. The results of the X3 system's pre-test were exceptional, it just took less than one hour to complete customs clearance procedures after cargo was delivered to CKS International Airport. The efficiency of X3 definitely contributed to creating a win-win situation for both parties.

Because the system is paperless, it's unnecessary for forwarders to print out declaration forms while transmitting the declaration data unless a special request comes from customs. As to the inspection of C3 declaration form, it will enable customs inspectors to check the declaration items through the overseas invoice adhering to the cargo or the computer screen. Thus, it will effectively cut down customs and express operators' manpower, resources and document storage space.

Even if computer is out of order, it only needs to print out the simplified declaration form without invoice. Printing out the proof of payment while releasing cargo enables express operators to make collections from owners of cargo as the import is let through from the warehouse. This system allows customers to prepay a large sum of the deposit and then makes deductions automatically after each transaction. No need for customers to pay tax item by item and thus can simplify the tax-payment procedure as well as save manpower. In addition, it will be more convenient for customers to obtain the second copy of the declaration form.

As mentioned above, Customs Import Simplified Declaration System - Phase II (X3) system will target import cargo with a value of between NT$3,001 and NT$30,000. Therefore, notebook components, chipsets, circuit boards, IC, LCD monitors, clothes and plastic product manufacturers will be greatly benefited by this innovative system.

During the process of reforming customs clearance, FedEx played a vital role contributing through their experience inventing Taiwan Express Brokerage System (TEB) for automated clearance and also provided their e-commerce technology for the Taipei Customs Bureau, Ministry of Finance.

FedEx, a US$15 billion subsidiary of Federal Express Corporation., connects areas that generate 90% of the world's gross domestic product in 24-48 hours with door-to-door, customs-cleared service and a money-back guarantee*. The company's unmatched air route authorities and infrastructure make it one of the world's largest express transportation company, providing fast, reliable and time-definite transportation of more than 3.3 million items to 211 countries each working day. FedEx employs approximately 145,000 employees and has more than 45,000 drop-off locations, 663 aircraft and 44,500 vehicles in its integrated global network. The company maintains electronic connections with more than 2 million customers via FedEx Powership®, FedEx Ship® and FedEx interNetShip®.

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