Part III Shipping Maters ( Revised OCT 01, 2004 )


A. Shipping address

1. Direct ship to / consign to
Taikoo (Xiamen) Aircraft Eng. Co. Ltd.
20 DaiLiao Road,
Xiamen 361006
P.R. China
Attn : Shipping Section
Tel : 86-592-5737499, 5737488 Fax: 86-592-5730135

2. Indirect ship to / consign to
Taikoo (Xiamen) Aircraft Eng. Co. Ltd.
C/O "name of forwarding/shipping agent"
(your appointed shipping agent) or
(TAECO's shipping agent) ( Appendix A and B )

B. Shipping / Forwarding Agent

1. TAECO's listed shipping/forwarding agents have been working with TAECO for more than 5 years. They know well about our operation and Import / Export China formalities .Cargoes can be handled via any one of the closest to you.

2. If you ship via your appointed agent, make sure they know the China I/E formalities well.They should be strong enough to handle direct / indirect / transship cargoes into China.

C. Shipping Method

1. By Air transport

a. Fax prepared customs invoice and packing list to this office for correctness before proceeding for shipment.

b. Fax MAWB copy to this office for follow-up action.

c. Ensure to cut separate AWB for different commodities as mentioned in part I and the requirement of Declaration sheet of SWPM or heat treatment certificate as mentioned in Part II.

d. Overseas CX flights can be directly connected to KA flight HKG-XMN without passing through the I/E processes in the last entry port before arriving Xiamen.

e. Direct transit connection other than CX-KA has to be agreed between airlines to airlines such as connecting to CZ HKG-XMN.

f. Only very limited Dangerous Goods can be accepted by air-freight into Xiamen

i.e. KA HKG-XMN and CA SIN-XMN.

g. Important:

All overseas shipment routing to TAECO, the first entry port into China must be Xiamen e.g. Shipping Port ¨C HKG-XMN, SIN-XMN etc..

First entry port other than Xiamen such as Overseas-BJE-XMN, -SHA-XMN, -CAN-XMN will create lots of additional process; local applications for customs approval of port to port transfer is required. The original transfer approval has to be sent to the entry port for port release. Inland sealed container/truck is also a must for transporting to Xiamen. Final release of the cargo has to go through local customs inspection procedure.

This creates a lot of documentation, processing time, additional costs and handlings. Shippers are strongly requested NOT to route the cargo where the first entry port NOT Xiamen.

2. By Air Hand ¨C Carry

On extreme critical / AOG situation, aircraft parts / components which packed within the airline acceptable weight and dimension are allowed for import with the pre-requisite of 100 % accurate Invoice and Packing List and flight number. This service is chargeable to customer with airfare USD420.00, manpower USD280.00 and / or overnight accommodation USD50.00 if applicable. Handling of Customs clearance, airport pick ¨C up, delivery to site etc are all inclusive in the manpower charge. Customs formalities charges and Over ¨C weight charge of the cargo will be billed on actual.

Advanced document such as invoice and packing lists must be provided before 11 am during Monday to Saturday for pre-import application.

3. By Sea transport

a. Fax / E file prepared customs invoice and packing list to this office for confirmation of correctness before proceeding for shipment.

b. Fax BOL copy to this office and notify the clearance arrangement. (release cargo with original BOL? Telex release? Surrender?)

c. Ensure to cut separate BOL for different commodities as mentioned in Part I and the SWPM requirement per Part II.

d. If the shipment comes with more than one container, separate container material bills which indicating each container·¯s number of boxes, boxes numbers, boxes contents, weight etc. are required.

e. If the “port of discharge” not in Xiamen, the second voyage arrangement (BOL) must copy to this office and the handling agent contacts must be notified. (recommended to use TAECO’s shipping / forwarding agent).

f. Refer to C.1.g

4. By road transport

a. Repeat C.1.a,b,c: C.2.b

b. Recommend consign to our forwarding agent in HKG.

5. By express mail/parcel

a. Repeat C.1.a,b,c

b. Use "DHL", DHL is the only air-courier with direct entry port in Xiamen where we feel much more comfortable to get cargoes released.

* ( Put customs invoice value under U$50.00 for documents. )

c. Do not mail through Fedex, UPS, BAX, BAE, TNT due their routings to China are not directly into Xiamen. Their customs clearance/application has to be done in Guangzhou/Shenzhen for Southern region’s and BJE/SHA for Northern regions. Problem as belowed:

1. Duty must be paid in those entry port where TAECO is not liable to pay duty

2. Mail has to be cleared in those entry port

3. Time wastage for above processes

4. Loss tracking

5. Beyond our control

5. Bulky Shipments

Oversized/over-weighted bulky components such as mod kits, pylon tools and dangerous goods have to stop-by for transhipment (I/E) from Hong Kong to Xiamen by sea or road transport. Such cargoes can be consigned to TAECO·¯s forwarding agent in HKG.

6. Rush Shipment

Ship by separate/single AWB/BOL whenever possible so special collection can be

arranged.

7. Consolidated shipment

a. Consolidation consigned to single consignee in same destination is acceptable provided the Part I and Part II complied.

b. Consolidation for multi (more than one) consignee is not acceptable where import application has to be applied by individual parties in concerned. Cargoes will only be released upon all application approved and cargoes inspected. Any documentation/goods discrepancy/deviation from any one of the consignee may lead the cargoes bonded for release until problem fixed.

c. For cost saving, loose container load shipped in loose cargo is recommended if goods volume less than a container load. Loose cargoes in one single container is of course more secured.

8. By Ferry Flight (customers only)

Categorize the cargo in individual AWB as per Part 1 must be complied.

Customers are strongly requested to ship the “Preloads / Predraws such as SB kits, Tooling, basis servicing spares, components, paints/chemicals etc. to arrive TAECO 3 weeks before aircraft input. This will allow TAECO to check/inspect/report for discrepancies and receive into our computer system so everything get ready before the aircraft input.

AWB, original customs invoice and packing lists are required and must be accompanied with the aircraft. Fax the full set document to this office when ready. Do not load un-listed goods on board. Bill of material lists sent by diskette/E-mail in excel format are requested to help our computer data up-load.

D. Customs clearance


1. Customs clearance for sea freight container is 3-5 working days provided all documentation (BOL, INV, PL etc.) in hand with NO discrepancy before its arrival.

2. Air freight takes 1-2 working days for routine cargo and next day for critical.

3. AOG Hand-Carry cargoes with reasonable weight / dimension can be cleared within one hour after flight arrival provided advance notice with shipping Invoice and Packing List 6 hours before flight arrival on working days or 24 hours before the non-working days. Original Invoice and Packing List must be accompanied with Hand ¨C Carry cargo.

E. Key contacts :

S.C. Yu - V.P. - Material Management E-mail scyu@taeco.com
Tel: 86-592-5737690 Fax: 86-592-5730206 MP: 86-13606087456

Joseph Lin - Engineering Procurement Manager E-mail josephlin@taeco.com
Tel: 86-592-5737698 Fax: 86-592-5730206 MP: 86-13806027123

Y.Y. Lee - Store Operation & Project Manager E-mail yylee@taeco.com
Tel: 86-592-5737467 Fax: 86-592-5730135 MP: 86-13950120677

Shirley Lee - Project & Material Planning Manager E-mail shirleylee@taeco.com
Tel: 86-592-5737693 Fax: 86-592-5730206 MP: 86-13950069290

Lawrence Keung - Project & Material Planning Leader E-mail lawrencekeung@taeco.com
Tel: 86-592-5737019 Fax: 86-592-5730206 MP: 86-13599913033

Lin Shi Ying - Import / Export Manager E-mail sylin@taeco.com
Tel: 86-592-5737691 Fax: 86-592-5730135 MP: 86- 13806000066

Ben Huang - Import / Export / Customs Officer E-mail benhuang@taeco.com
Tel: 86-592-5737499 Fax: 86-592-5730135

Please contact as appropriate.

Appendix A-1

TAECO FORWARDING AGENT ( Revised Jul 2004 )

USA - LAX: Air-Sea Forwarders, Inc.( Head Quarter )

Address: 9009 LA Cienega Boulevard, Inglewood, CA 90301, U.S.A.
Tel: 310-216-1616
Fax: 310-216-2625
Contact: Todd Hinkley – V. P. ( TAECO Project )
Tony Santos – Manager
E-mail: laxthin@airseainc.com / laxasan@airseainc.com

USA – SEA: Air-Sea Forwarders, Inc.

Address: 1200 South 192nd Street, Seattle, WA 98148, U.S.A.
Tel: 206-243-9802
Fax: 206-243-9736
Contact: Matthew Lehman – Manager
E-mail: seamleh@airseainc.com / asfsea@ariseainc.com

USA – Other Ports Contact Air-Sea Forwarders, Inc. LAX Head-Office

Air-Sea Forwarders, Inc. – Atlanta
Air-Sea Forwarders, Inc. – Boston
Air-Sea Forwarders, Inc. – Chicago
Air-Sea Forwarders, Inc. – Dallas
Air-Sea Forwarders, Inc. – Houston
Air-Sea Forwarders, Inc. – Miami
Air-Sea Forwarders, Inc. – New York
Air-Sea Forwarders, Inc. – San Diego
Air-Sea Forwarders, Inc. – San Francisco

SINGAPORE: Euro Pac Air Express Pte Ltd.

Address: 21 TOH GUAN ROAD EAST #08-13114 TOH GUAN CENTRE, SINGAPORE 608609
Tel: 65-63167667 / 63167655 / 62250188
Fax: 65-63167595
Contact: Mr. Ho Chung Tat ( MD ) / Mr. Steven Soh
E-mail: hoct@europac.com.sg

Appendix A-2

HONG KONG: Global Shipping Agency Ltd.

Address: Unit G, 19/F, Seabright Plaza, 9-23 Shell Street, North Point, Hong Kong
Tel: 852-28829706
Fax: 852-28829610
Contact: Mr. Dixon Chan - Manager
E-mail: dixonchan@iname.com / globalshipping@iname.com

HONG KONG: Hong Kong Oriental Shipping Company

Address: 2006-07 20/F, Kai Tak Comm, Bldg.,317-321 Des Voeux Rd., Central, Hong Kong
Tel: 852-2541-6582
Fax: 852-2850-6270
MP 852-9367-1934
Contact: Mr. Kei Wai
E-mail: info@hkoriental.com

HONG KONG: Hong Kong A/C Eng. Co. Ltd.

Address: 80 South Perimeter Road, Hong Kong Int’l Airport, Lantau, Hong Kong
Tel: 852-27676818
Fax: 852-23827746
Contact: Mr. O.L. Chau – Officer
E-mail: henry.chau@haeco.com

U.K. European Spedition Ltd. ( Sea Shipment )

Address: Bowler House Harvey Road, Burnt Mills, Basildon, Essex SS13, IDD
Tel: 44-01268-729420
Fax: 44-01268-590679
Contact: Mr. Mike West.
E-mail: operations@eurospec.co.uk

European Agents of AIR-SEA Forwards,Inc.

Netherland
Amsterdam

VCK Air B.V.
Pelikaanweg 29
1118 DT Schipol-South Airport
The Netherlands
Contact: Mr. Pim Vreeman
Tel: 31-20-654-9100
Fax: 31-2060-10273
p.vreeman@vckair.nl

England
London

Air Sea Worldwide (UK) Ltd.
Unit 6, Maple Ind. Estates
Maple Way, Feltham
Middlesex, TW13 7AW, England
Contact: Karen Hill
Tel: 44-208-751-1309
Fax: 44-208-751-1319
karen.hill@airsea.co.uk

France
Paris

Lemoine Perignon / Daher
Zone De Fret 4- Rue Du Chapeli
95722 Roissy Charles De Gaulle, France
Contact: Ms.Dominique Couvez
Tel: 33-1-4816-5163
Fax: 33-1-4862-3052
d.couvez@dahergroup.com

Germany
Frankfurt

Leschaco Air Cargo Gmbh
Cargo City SUD Bldg.556
D-60549 Frankfurt, Germany
Contact: Mr. Ulrich Sensche / Mr.Radowitz
Tel: 49-69-698-0340
Fax: 49-69-6616-2670
sensche_ulrich@leschaco.de

Toulouse
Daher SA
Zone De Fret
31700 Blagnac, France
Contact: Ms.Caroline Noyelle
Tel: 33-5-3460 4824
Fax: 33-5-6130 0526
c.noyelle.dahergroup.com

Hamburg
Leschaco Air Cargo Gmbh
Luftfracht Gebzude 200
D-22335 Hamburg, Germany
Contact: Ms. Susanne Carstens / Mr. Reinhard Kuhne
Tel: 49-40-5075-2225
Fax: 49-40-5000-413
carstens_susanne@leschaco.de

Australian Agent

International Cargo Express Pty.,Ltd.
39 Lambeck Drive
Tullamarine, Victoria?3043
Australia
Contact: Mr.Michael Porret / Export Mgr.
Email: Michaelp@icecargo.com.au
Tel: 61(0)3 9338 4755
Fax:61(0)3 9338 8789

CTS in Japan
(1) Nissin Corporation

Nissin Corporation
NO.5,Sanbancho,Chiyoda-ku
Tokyo,Janpan
Contact: Masayo Inaba(Ms.) ------Tokyo Office
Tel: 81-3-3238 6607
Fax: 81-3-3238 6608
Nissin Corporation
Nanko Aircargo Center
No.4-11-16,Nanko Higashi,Suminoe
KU,Osaka 559-0031 Janpan
Contact: Mayu.hamamoto
Tel:81-7-24-565461