PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY

i MINISTRY OF INDUSTRY AND TRADE COLLEGE OF FOREIGN ECONOMIC RELATIONS FACULTY OF FOREIGN LANGUAGE INTERNSHIP REPORT Topic PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY IN UNIVERSAL GLOBAL LOG.

MINISTRY OF INDUSTRY AND TRADE COLLEGE OF FOREIGN ECONOMIC RELATIONS FACULTY OF FOREIGN LANGUAGE INTERNSHIP REPORT Topic: PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY Instructor: M.A LE TUYET VAN Student’s name: NGUYEN THI MINH NGUYET Student’s code: 1310020535 Course: 17 (Business English 17K) Ho Chi Minh City, May 2016 i MINISTRY OF INDUSTRY AND TRADE COLLEGE OF FOREIGN ECONOMIC RELATIONS FACULTY OF FOREIGN LANGUAGE INTERNSHIP REPORT Topic: PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY Instructor: M.A LE TUYET VAN Student’s name: NGUYEN THI MINH NGUYET Student’s code: 1310020535 Course: 17 (Business English 17K) Ho Chi Minh City, May 2016 ii ACKNOWLEDGEMENT  Firstly I would like to appreciate the period that I have studied at the College of Foreign Economic Relations, I have been taught, received and accumulated invaluable and useful knowledge by teachers and professors I also appreciate the practicing at Universal Global Logistics Joint Stock Company who helped me to reinforce the knowledge that I have learned, helped me to test the theory that I was taught Beside that I got new knowledge and much experience which will be helpful for me in the future To complete for this report, I would like to appreciate to the Board of Directors of Universal Global Logistics Joint Stock Company, I also appreciate all members of Import and Export Department who have created good conditions and good environment for me, gave me opportunities to work as a member of company with the realistic works, supported me to collect data and information I also would like to express sincere thanks to the School Administrators who created the studying environment friendly and healthy with very practical course and close with reality I would like to thanks all teachers, professor of College of Foreign Economic Relations in general and Faculty of Foreign Language in particular who have taught me for the past three years Specially, I appreciate Ms Le Tuyet Van and all teachers in College Of Foreign Economic Relations who have mentored me to complete this internship report Finally I would like to wish our College will continue the successful development and continue training more and more students I also wish the Universal Global Logistics Joint Stock Company to achieve all business targets which have been set up so far iii iv INSTRUCTOR’S COMMENTS  ……………………………………………………………………………………… ……………………………………………………………………………………… …………………………………………………………………………… ………… ………………………………………………………………….…………………… ……………………………………………………………….……………………… …………………………………………………………….………………………… ………………………………………………………….…………………………… ………………………………………………………….…………………………… ……………………………………………………………………………………… ……………………………………………….……………………………………… …………………………………………….………………………………………… ………………………………………….…………………………………………… ……………………………………………………………………………………… ……………………………………………….……………………………………… ……………………………………………………………………………………… ……………………………………………….……………………………………… ……………………………………………….……………………………………… ………………………………………………….…………………………………… ………………………………………………….…………………………………… v PREFACE  Viet Nam has been a member of the WTO since 2007, Vietnam's economy has been going to approach the world’s economy and the opening of the market has made Vietnam's economy enormous transforming So, the exchange and purchasing goods is a necessary demand, they contribute to the country's rich, connect and bring the countries of the world snuggled together To meet the increasingly demand of the exchange of goods the freight forwarding company was born, grown up increasingly and powerfully In recent year, International Freight Trading has become more important and it has become one critical element of developed countries Not only did it create the initiative in foreign economic relations but also accelerate the process of the importation and exportation, it is the motivation to boost the production development Although the International Freight Trading activities not need much capital, they can create the stable profit In Vietnam, the freight forwarding activities are very young and they not shown all of their potential However, in recent years the number of registered business enterprises in this field has increased significantly and has create a competition environment among the forwarding companies Many Universal global logistics company has not been there as the competing trends Realizing that trend, with the unique advantages in the exporting goods and forwarding by airway, the Universal Global Logistics Joint Stock Company has been gradually asserted its brand with good quality of service, reasonable prices to meet growing demand of customers Therefore, I chose the topic: “Procedures and settlement of exported good by airway in Universal Global Logistics Joint Stock Company” Those operations take the main source of profits for the company They also show me how the theory I have learned is applied in actual fact They also help me to consolidated knowledge and experience for the job after graduation vi TABLE OF CONTENTS  CHAPTER 1: OVERVIEW OF UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY………………………………………………………………1 1.1 History and development of Universal global logistics joint stock company…………………………………………………………………………… 1.2 Missions of Universal global logistics joint stock company……… 1.3 Organizational structure of Universal global logistics joint stock company……………………………………………………………………………2 1.3.1 The structural chart of the company……………………………………… 1.3.2 The Human Resources situation of the company………………………… 1.4 Situations and results of current business activities of Universal global logistics joint stock company……………………………………………………………….4 1.4.1 Situations……………………………………………………………………4 1.4.2 The results………………………………………………………………… 1.5 Current strengths and weakness of Universal global logistics joint stock company……………………………………………………………………………7 1.5.1 The strengths……………………………………………………………… 1.5.2 The weakness……………………………………………………………… CHAPTER 2:PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY (FRESH FLOWER CHRYSANTHEMUM INDICUM FOR CO.,LTD FRESH STRAWBERRY KHANH BICH ON 11 MARCH 2016) IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY…… ……9 2.1 Receiving information from customers………………………………………10 2.2 Booking Airline……………………………………………………………….10 2.3 Preparation of Documents………………………………………………… 11 vii 2.4 Request for Phytosanitary Certificate from plant protection sub department region II (28 Mac Dinh Chi, Da Kao Ward, District 1, Ho Chi Minh City)………………………………………………………………….…………….11 2.5 Customs Procedure………………………………………………………… 12 2.6 Taking over goods at TCS warehouse, scaling and paying labor fee……….16 2.7 Customs clearance……………………………………………………………16 2.8 Sending documents and taking bill from China Airline……………………17 2.9 Mailing the documents to the Japan Plant CO., LTD……………………… 17 2.10 Evaluation procedures and settlement of exported goods by airway in universal global logistics joint stock company…………………………………17 2.10.1 The strengths………………………………………………………………17 2.10.2 The weakness…………………………………………………………… 18 CHAPTER 3: CONCLUSIONS, RECOMMENDATIONS AND EXPERIENCES………………………………………………………………… 18 3.1 Summarizing the content…………………………………………………….18 3.2 Recommendations for company…………………………………………….20 3.3 Experiences on this internship………………………………………………21 3.3.1 Benefits…………………………………………………………………… 21 3.3.2 Shortages………………………………………………………………… 21 3.4 Conclusion…………………………………………………………………….22 viii ABBREVIATIONS  TCS Tan Son Nhat Cargo Services Company Limited CO., LTD Company Limited MAWB Master Air Way Bill ix LISTS OF TABLES  Table 1.1: Table 1.1: Demonstrate literacy of employees in the company Table 1.2: The situation of the company's operations period 2013- 2015 LISTS OF CHARTS, PICTURES Chart 1.1: Showing the percentage of degree-educated employees of the company: (in 2016) Chart 1.2: The results of service business activities of Universal global logistics joint stock company period 2011-2013 Picture 2.1: General procedure Picture 2.2: The interface of Vnaccs Picture 2.3: Declare general information and information of exporter Picture 2.4: Declared in the general information about the bill of lading Picture 2.5, 2.6, 2.7: Goods declaration list Picture 2.8: Declaration processing results x 2.3 Preparation of Documents: - The documents which the department staff prepared include: + Commercial invoice: origin + Packing list: copies + Airway bill: copy + Electronic customs declarations: origins - Besides, there are also some other papers such as: + The referral of the company for forwarder + Poll receiving customs dossiers + Business license import and export operations + Reception cards electronic customs declaration + Quarantine certificate (for goods subject to quarantine) 2.4 Request for Phytosanitary Certificate from plant protection sub department region II (28 Mac Dinh Chi, Da Kao Ward, District 1, Ho Chi Minh City): +Step 1: Phytosanitary Registration: before exporting, employees who are authorized by customers must process the Phytosanitary registration at least 24 hours prior with the quarantine authorities region II +Step 1: Phytosanitary Registration: employees are authorized by customers going Phytosanitary registration at least 24 hours before with the quarantine authorities region II before exporting + Step 2: Submitting document to Customs Receiver and return it to Results department +Step 3: Quarantine agency is responsible for taking and checking the completeness and validity of documents as prescribed regulation +Step 4: Phytosanitary agency will issue certification for company based on physical examination results 11 Department will issue sets of quarantine certification include: origin and copies Department will keep copy and packing list The company is supplied origin (send with documents via airline to importing country), copy for Universal global logistics joint stock company will send to customers 2.5 Customs Procedure: Step 1: Start Ecus Picture 2.2: The interface of Vnaccs Step 2: On the interface will appear at the top of the window Step 3: Next to register the export declaration forms 12 Picture 2.3: Declare general information and information of exporter Picture 2.4: Declared in the general information about the bill of lading 13 14 Picture 2.5, 2.6, 2.7: Goods declaration list After the customs system receives full information, they will respond and provide contact for documents declaration After about 10 minutes later, the Customs will feedback ramification of declarations and consignments Described as Picture 2.8 below: Picture 2.8: Declaration processing results 15 2.6 Taking over goods at TCS warehouse, scaling and paying labor fee: After truck transports goods to the Tan Son Nhat Airport, driver will hand over them to the company forwarders At that time, forwarder will label to goods as regulation of the airline that the company had reservations before Preparing to measure weight of goods: It is depending on the big or small quantity of goods that the airline is able to load to the scale tray or pallets, TCS employees will measure the total shipment weight and calculate weight based on the volume of shipments Based on that, they will measure chargeable weight and the forwarder could pay for the labor fee based on that chargeable weight 2.7 Customs clearance: Customs officers will approve and stamped on the customs declaration right after the customs declaration is forwarded to surveillance room After paying for labor fee, forwarder will take green inter and two customs declarations to liquidate the declarations At liquidation table, forwarder will directly stamp to the 2nd declarations and completely full fill information to that form Completing filling information on the copy of declaration and the list of goods that are eligible to pass the monitoring department then return them to the customs officers of monitoring department Customs staff review and verify the information on the declaration and then return to the forwarder green inter associated and the list of goods that are eligible to pass and stamped by customs supervisor Forwarder takes the two above documents to TCS warehouse to staff of airline which company has booked and informed that goods have been clearance then the airline staff load goods on board 16 2.8 Sending documents and taking bill from China Airline: After the goods have been clearance, forwarder will come to the office of the China Airlines to send the documents and MAWB via that flight to Japan Plant CO., LTD Forwarder will wait for the airline staff to prepare bill They have to wait at the airline office to get white inter, Phytosanitary registration and bills (forwarder will take the first bill to return to the Fresh Strawberry Khanh Bich CO., LTD., the remaining sheet will be taken by the forwarder) After taking the bill from the airline, forwarder has to check whether the information on the bill is matched the information on white inter or not If there are mistakes, the airline staff are demanded to revise the suitable bill 2.9 Mailing the documents to the Japan Plant CO., LTD: After forwarder takes AWB from the airline, the employees of the Universal global logistics joint stock company will send these documents by mail or fax to Japan Plant Co., LTD and they will prepare to receive the goods with full information on the documents At the same time, the Universal global logistics joint stock company also keeps the documents mentioned above 2.10 Evaluation procedures and settlement of exported goods by airway in universal global logistics joint stock company: 2.10.1 The strengths: - The application of electronic customs declaration greatly assists deliverer - Modern equipment almost fully meets work requirements for employees - Customer information is managed in system Therefore, employees are easy to observe, easy to update information, ensure the consistency and accuracy of information 17 - The company has warehousing and own car so convenient for getting goods In addition, departments are fully equipped with computers, Internet, telephones create more favorable conditions for the work - The import procedure is proceeded by professional forwarders who have a lot of experiences, good skills and good relationship with related persons in each stages - To ensure the process and plan is correct, The Board of Directors always check the implementation of the import contract 2.10.2 The weakness: - The company is located quite far from Tan Son Nhat airport, so the transportation costs are not cheap - Departments are separated There are still a number of processes for nature crafts, they sometime cause delay of shipments - Besides, the investment and development about the promoting company image as well as the company's services business is not really effective to reach out to customers CHAPTER 3: CONCLUSIONS, RECOMMENDATIONS AND EXPERIENCES 3.1 Summarizing the content - Organization structure of company is quite tight and logical, departments work together closely - The education of employees is high (71.43% of employee are university level) - Net profit of the company increased steadily since 2103-2015 Overall, the company is on track of the business process based on the development of rational methods Besides that, the support of the state's policy regarding “improvement of efficiency in production process and the export business activities in 2013-2015” has made extremely good achievement of company 18 - The staff worked with high responsibility, enthusiasm and extensive experience in the field of import-export - The process of exporting goods by airway at Universal global logistics joint stock Company includes steps: + Step 1: Receiving information from customers: this is the simple step, the company received basic information from customers + Step 2: Booking Airline: after receiving information from customers, the Company will book airlines and the airline will send feedback of date to transfer goods to importing country + Step 3: Preparation of Documents: document department has to prepare: commercial invoice, packing list, airway bill, electronic customs declaration + Step 4: Request for Phytosanitary Certificate from plant protection sub department region II: employee will be authorized by customer registered Phytosanitary for goods (Fresh Flower Chrysanthemum Indicum) If it is eligible, the agency will issue certificates to the company + Step 5: Customs Procedure: employees implement electronic customs declarations on the computer and supply the information required for the shipment + Step 6: Taking over goods at TCS warehouse, scaling and paying labor fee: deliverer of the company come for receiving the goods, weigh and pay for the labor fee of items that stored at temperature of degrees + Step 7: Customs clearance: Customs officers sign, stamp on the customs declaration right after the customs declaration is forwarded to surveillance room + Step 8: Sending documents and taking bill from China Airline: After the goods have been clearance, forwarder will come to the office of the China Airlines to send the documents and MAWB by that flight to Japan Plant CO., LTD + Step 9: Mailing the documents to the Japan Plant CO., LTD: After forwarder takes AWB from the airline, the employees of the Universal global logistics joint stock company will send these documents by mail or fax to Japan Plant Co., LTD 19 and they will prepare to receive the goods with full information on the documents 3.2 Recommendations for company: - Renovating office: a comfortable workspace will make the creativity and excitement for employees to work Company can have the rooms wider or it is better to leasing the old office and find new office - Beside that, the company should also pay attention to the issue of promotions for large shipments, or regular customers So, company will increasingly create attractiveness to customers - Company should look for more customers With a number of current customers, it is not small but for stabilizing business, it is not enough So to look for new customer is essential Company should create comfortable conditions for the marketing staff as flexible working time, avoid restrictive, must have good remuneration policy for employees when find new customers - The company should consider attracting more capital Because company operate in various fields which spread out the capital, when there is urgent demand but customers could not pay for debt and cash fund is not remain, good taking work will be delayed and it will make unwanted additional expenses The company can gain the capital by a bank loan, or looking for more cooperation in order to create large capital With that method, company could be positive in taking goods, rapid development and raise up the reputation and competitiveness in the marketplace - Furthermore, it is demand to have training sessions every weekend, that works will improve the specific knowledge of staff, encouraging competition between departments by sales index, increasing annual bonus - To maintain relationships with customers, company should have the parties every year to meet customer for conversation Thus, the prestige of the company is constantly raised and new customers will constantly look for them - The company should have more incentives for employees, such as salary increases after months, employees expect to get a raise after months, but each time wages 20 increased only 100.000-200.000 VND, it makes them feel frustrated and not want to stick with the company - Currently, Vietnam joins the WTO, the state subsidy for the industries will decrease, gasoline price will increase, and life expense will increase also If the salary keep as before, employee’s life will become difficult Since it would lead to job performance decrease, employee will have tended to leave the company Such companies will have many difficulties in business Normally, Business target is profit but it should not take employees to depression by setting impossible target If the company could build suitable policies, the effectiveness of labor productivity of the company will increase significantly 3.3 Experiences on this internship: 3.3.1 Benefits: - Contacting the process of making goods The steps of exported goods from the first step to final - Putting training into practices, especially in specialized subjects - Not only I learn about forwarding, customs declaration, but also prepare the documents and declarations from him (her) in the company - Understanding more about the process of exported goods go abroad, … - Learning and accumulated plenty of experience in the field of export and import - Besides, there are answers to questions about practice, about the knowledge learned when doing not know the actual process - In addition, I learn more about while logistics company 3.3.2 Shortages: - Sometimes, I not know how to apply the knowledge that I have studied to work in a flexible manner - Experience in the translation of documents was not enough and I could not avoid the shortcomings 21 - Because of not being trained in import and export, it is hard to understand advance knowledge - It is a short practicing period, so it is difficult for me to fully understand the difficulties, trouble of import-export work 3.4 Conclusion: It is said that procedure is an important element of the import - export operations In Vietnam, the strong growth of international trade as well as the rapid development of the service have given both opportunities and challenges to Companies who are operating import- export business Universal global logistics has just been founded for years therefore it has been missing of some experiences in their field of activity The procedure of export which is implemented by the company is for the satisfaction for customers, reducing the costs and time However, while performing there is also disadvantage and the company need to improve its It is hope that the listed solution in previous section and this report could be helpful solution for the company and its development in recent and future By the internship, I got a better overview of the procedures and the settlement of exported good by airway in Universal Global Logistics Joint Stock Company This internship report showed that the procedures and settlement of exported is a complex process It requires the person in charge to be knowledgeable, professional in foreign trade operations, they must clearly understand and be updated the regulations of the State, Laws and regulation of Vietnam During the practice at Universal Global Logistics Joint Stock Company I was learning a lot of experiences, directly proceed with reality work And I also found that the knowledge that I received by College Of Foreign Economic Relations is very good, it will be necessary for my future works Both that knowledge and the practical experience of the internships will give me confidence to be able to get jobs in the import-export companies 22 REFERENCES  - Some of references documents of Universal Global Logistics Joint Stock Company - Website: http://customs.gov.vn/default.aspx - Web: http://uni-global.com.vn 23 APPENDIXES  24 25 ... global logistics joint stock company also keeps the documents mentioned above 2.10 Evaluation procedures and settlement of exported goods by airway in universal global logistics joint stock company: ... OVERVIEW OF UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY 1.1 History and development of Universal global logistics joint stock company Founded July 2010, the company has taken business opportunities... development of Universal global logistics joint stock company? ??………………………………………………………………………… 1.2 Missions of Universal global logistics joint stock company? ??…… 1.3 Organizational structure of Universal global