How Infineon Technologies Prepares for AED

Companies have an 18-month adjustment period to fully comply with the AED requirement. From 1 April 2013 till 1 October 2014, they can further fine-tune their processes, systems and information flow without facing penalties for non-compliance. Some businesses, such as Infineon Technologies Asia Pacific, have started early and began to streamline operations to meet the requirement.

Global semiconductor solution provider Infineon Technologies Asia has a manufacturing plant and an Asia-Pacific distribution centre in Singapore. Every month, it exports 22,000 shipments of goods out of the country. As such, Infineon wants to ensure that its customers are not affected by AED and no additional costs
are incurred.

The solution: to shorten the time required for their export declaration process. The company aims to do so by minimising manual data entry and fully harnessing the benefits of Electronic Data Interface (EDI).

EDI is the electronic exchange of business information, such as cargo data, with a company's business partners – instead of using a paper-based system.

Currently, Infineon's declaring agents receive 80 per cent of their data from Infineon through EDI. The declaring agents include additional shipping information before making the export declaration in TradeNet. Freight forwarders then transport the goods out of Singapore.

To further speed up the process, Infineon is aiming for 100 per cent EDI implementation. Since November 2012, the company has been working with two of its major freight forwarders to integrate their data systems with Infineon's, so that the forwarders will receive 100 per cent of the data needed for export declaration via EDI.

Once systems are integrated, the freight forwarders only need to add in cargo flight information before directly submitting the TradeNet declaration to Singapore Customs. The project will be carried out in phases.

"With full EDI implementation, we can not only comply with AED regulations, but also improve the accuracy of our data and increase productivity through reduced manual data entries," said Roxane Desmicht, Infineon's Senior Director, Corporate Supply Chain Asia Pacific.

Peter Dressler, Head of Global Logistics said: "With increasing security threats to the global logistics sector, Infineon understands the need to ensure the highest security for shipments and data. The AED initiative in Singapore is an important step towards this goal."

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