Invest in TaiwanDepartment of Investment Services, MOEA
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DHL is a leading global express delivery and logistics service provider. Founded in 1969 and headquartered in Brussels, Belgium, DHL is part of the Deutsche Post World Net (DPWN) group, one of the largest shipping consortia in the world. Since 2003, DPWN has consolidated its subsidiaries, including DHL, Danzas Air and Ocean, and Euro Express, to form the new DHL, which now serves 220 countries and regions with over 120,000 delivery points, its own fleet of 250 planes, 60,000 miscellaneous ground vehicles, 118 hubs, and over 170,000 employees around the world. In 1998 it was voted the "most globalized company" by Global Finance magazine.
The operational performance of DHL Taiwan is often ranked among the top 15 of all of DHL's overseas operations, and has been recognized by DHL's global headquarters. It is clear from the outstanding performance achieved by DHL Taiwan in these global performance assessments that Taiwan occupies an important position in the global shipping business.
DHL's branch office in Taiwan was established in 1973, making DHL the first express delivery company to have a presence on the island. In 1990 it formed an alliance with channel operator 7-Eleven, and began offering international express delivery service from over 3,300 7-11 stores throughout Taiwan. Since 1999, DHL has been implementing an investment plan dubbed "Moving on to 2005 - Plow Deep into Taiwan", which saw the construction of a logistics center at CKS International Airport. The center was officially activated in 2002, and a memorandum of agreement for a strategic alliance was signed with the Taipei Customs Bureau of the Ministry of Finance allowing DHL to perform inspections on imported and exported goods on its own. The year 2003 saw the establishment by DHL of the largest logistics center in southern Taiwan, in Kaohsiung; this center will help to strengthen the international logistics capability of enterprises in the southern part of the island.
DHL is currently the largest express delivery company in Taiwan. It has a market share of 40%, and close to 1,000 employees; it provides service from 10 locations, and from the logistics center at CKS International Airport. The investment plan to "plow deep into Taiwan" has been implemented step-by-step since 1999, with the activation of a service center in Kaohsiung in April 2003 and the opening of the Hsinchu service center scheduled for October 2003. In addition there is DHL's strategic alliance with 7-Eleven, which has an island-wide presence in Taiwan. DHL is becoming the express delivery operator with the densest service network on the island.
DHL has invested in various transportation facilities and measures to raise quality in Taiwan on a large scale, and has invested in a new transportation hub in Hong Kong so as to connect with the hub at CKS International Airport. This will be of significant benefit to the planning and operations of Taiwan's hi-tech sector.
Taiwan is located at the center of East Asia. Flight times to Hong Kong, Beijing, Shanghai, Seoul, Tokyo, Bangkok, and Manila are all under 3 hours. The average flight time from Taiwan to the 7 major cities of the West Pacific is shorter than from any other major city in the Asia Pacific. The superior geographical location, ample shipping facilities, excellent ground, air, and sea shipping environment, fast and convenient customs clearance procedures, and high level of information technology utilization all make Taiwan the ideal location for a transshipment center.
Taiwan's Directorate General of Customs has implemented the automation of customs clearance processes for both import and export, and over 99% of logistics operators are now using the on-line customs clearance system. According to statistics compiled in August 2002, all customs declarations can be processed and cleared in 0.994 hours. Those declarations requiring no review or inspection can be cleared in less than 10 minutes. In 1996 the Taipei Customs Bureau established an express delivery section, which processes customs clearance 24 hours a day. Large express delivery operators like DHL, UPS, FedEx, and TNT have all set up hub operations at CKS International Airport.
To facilitate the shipping and distribution operations of domestic and international vendors, Taiwan has instituted cargo clearance regulations for distribution centers. Goods reorganization and simple reprocessing can be performed inside distribution centers, while goods stored inside the centers are treated as bonded goods. Customs clearance can be performed 24 hours a day and is managed by the operators themselves, with the customs authorities performing occasional audits.
In recent years there has been a pronounced increase in the shipment of products from Taiwan by air not only to the US and Europe, but also to mainland China. On the import side, in addition to raw materials and components imported into Taiwan for research, development, and further processing, corporate headquarters, manufacturers, and customers have also seen a significant increase in demand for express delivery services due to sample verification needs.
Taiwan is an ideal transportation hub for the Asia Pacific. In terms of shipping by either air or sea, Taiwan possesses the advantages of shortest distances, fastest speed, and lowest costs. With the Greater China market as a whole growing rapidly, Taiwan will need more professionally managed international logistics companies to participate in the development of the Asia Pacific market.
Related News: [September 7, 2005] DHL opens quality control center in Taipei
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