Operator appointed to provide electronic services for submission of trade documents

The Government announced today (April 7) that Global e-Trading Services Ltd (Ge-TS) has been appointed to provide electronic services to the trading community for submission of import and export declarations and dutiable commodities permits to the Government.

"The appointment will be effective from January 2004. Ge-TS will compete with Tradelink Electronic Commerce Ltd (Tradelink), the current exclusive service provider, for the provision of these services to traders," a spokesman for the Commerce, Industry and Technology Bureau said.

"We expect Tradelink and Ge-TS to compete in price and quality, and in developing other value-added services, to the benefit of the trading community," the spokesman added.

"Ge-TS has committed to setting its user fees at levels significantly lower than the prevailing fees charged by Tradelink for comparable services."

"Under the terms of the appointment contract, Ge-TS cannot charge fees higher than those set out in the contract throughout the contract period."

Ge-TS' appointment is for a period of five years from 2004 to 2008, and is extendable by the Government for another two years.

"Meanwhile, the Government is negotiating with Tradelink on the provision of services on a non-exclusive basis from 2004 to 2008," the spokesman said.

"The presence of two operators from 2004 onwards will bring about competition in the market place and permit traders to choose between the services offered by them."

"We will monitor closely the operation of Tradelink and Ge-TS to ensure fair competition. While we have no plan for the time being to launch a new tender exercise to identify a third operator, we do not rule out doing so should circumstances so warrant," the spokesman emphasised.

Background

In 1992, the Government granted an exclusive franchise to Tradelink to provide electronic services to the trading community for submission of official trade-related documents to the Government. The franchise will expire at the end of 2003. The Government mounted an open tender exercise in 2002 with the aim of engaging two more operators so as to inject competition into the market.

Altogether three bids were received. Only two bids met the tender requirements fully. One was made by GACOlink Ltd, which has now changed its name to Ge-TS. The other bid was made by OnePort GETS Ltd, which subsequently withdrew its bid because its parent company had entered into a business alliance with Tradelink to provide e-commerce solutions for the trade and transport sectors and, as a result, might not be able to comply with the tender requirement relating to cross-ownership restriction laid down by the Government.

Monday, April 7, 2003

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