Assignment planning forwarding project for transport route from dinh vu industrial zone to kope port (japan)

BỘ GIAO THÔNG VẬN TẢI TRƯỜNG ĐẠI HỌC HÀNG HẢI VIỆT NAM KHOA KINH TẾ BỘ MÔN KINH TẾ NGOẠI THƯƠNG ASSIGNMENT PLANNING FORWARDING PROJECT FOR: NAME OF PRODUCT: T-SHIRT TRANSPORT ROUTE: FROM DINH VU INDUSTRIAL ZONE TO KOPE PORT (JAPAN) Class: International forwarding and transportation – N03 Lecturers: Trần Hải Việt Group member: Nguyễn Thùy Dương – 82597 Nguyễn Ngọc Huyền – 83483 Phạm Ngọc Phương – 84481 Đỗ Thị Hà My – 84058 Hải phòng – 2022 TABLE OF CONTENTS IMAGE CATALOG TABLE LIST ABBREVIATION INTRODUCTION CHAPTER 1: LAW AND THEORY 1.1 Law 1.1.1 National Law 1.1.2 : International law .7 1.2 Theory 1.2.1 Basic definition 1.2.2 Other definitions .9 CHAPTER 2: GOODS AND TRANSPORTATION WAYS 11 2.1 Goods 11 2.1.1 Merchandise characteristics 11 2.1.2 Packaging .11 2.1.3 Containerization of goods .12 2.2 The mode of transport 17 2.2.1 Destination and departure 17 2.2.2 Route design 18 CHAPTER 3: IMPLEMENTATION OF THE PROCESSING PROCESS20 3.1 Organizational chart 20 3.2 Describe each step of the process .20 3.3 Set up delivery contract .26 3.4 Cost .30 3.4.1 Local fees .30 3.4.2 Cargo transportation .31 3.4.3 Other fees 31 3.4.4 Overheads 32 CONCLUSION 33 REFERENCES 34 IMAGE CATALOG Image 1: Packing T-shirts 11 Image 2: Necessary signs when transporting goods 12 Image 3: H-shaped tape method .12 Image 4: Container 20 feet .13 Image 5: Choose a package type 14 Image 6: Choose a pallet 15 Image 7: Confirming the container size 15 Image 8: Packing and arranging the box 15 Image 9: The carton for packing garment products needs to be large in size 16 Image 10: 3D model after the goods are loaded into the container 16 Image 11: Forklift truck 17 Image 12: Route from Suoi Dau Industrial Park to Cam Ranh port 18 Image 13: Picture of the distance from Dinh Vu port to Japan Kobe port .19 Image 14: Diagram of forwarding export process 20 Image 15: Contract 21 Image 16: Port to 23 Image 17: Dry cargo container 24 TABLE LIST Table 1: Container size 20 14 Table 2: Characteristics of forklifts 17 Table 3: Local costs of the forwarder .30 Table 4: Table of local fees .31 Table 5: Tariff table 31 Table 6: Other Fee Schedule .31 Table 7: Table of total fees 32 ABBREVIATION No ABBREVIATION B/L Bill of lading C/O Certificate of Origin CIF DWT EIR Employer’s Information Requirements ETA Estimated Time of Arrival FCL Full Container Load FIATA International Federation Forwarders Associations FWD Forwarder 10 ICC International Chamber of Commerce 11 MBL Master Bill of lading Meaning Cost, Insurance, Freight Deadweight Tonnage of Freight INTRODUCTION The twenty-first century has been a stable century for the world as a whole, and for Vietnam in particular Foreign commerce is a vital driver of economic growth and a solid foundation for a healthy economy As Vietnam becomes the WTO's 150th member, we face new challenges and impediments that we must overcome in order to succeed in international commerce The process of economic integration must adapt to the present trend of economic opening in order to stay up with the general tendency of the times, which is to capture information International trade, in general, and import-export trade, in particular, play a role in this framework by providing the velocity for the economy's development to follow its trajectory Each economic unit, each business, is a social cell that contributes to the country's overall development over time Many firms have participated in this type of logistics service as a result of their foresight and understanding of the economy's integration trend This activity is growing and making a substantial contribution to the country's development I chose the topic "Organizing the delivery of products" because I wanted to learn and enhance my understanding of forwarding, especially under the enthusiastic instruction of Mr Tran Hai Viet - Lecturer of Economics at Vietnam Maritime University T-shirts are exported from the Dinh Vu industrial zone to the Kobe port in Japan." Structure of the thesis The content of the graduation report consists of chapters: Chapter 1: Law and theory Chapter 2: Cargo and Transport Routes Chapter 3: Implement the delivery process Chapter 4: Problems and Solutions CHAPTER 1: LAW AND THEORY 1.1 Law Import and export freight forwarding must be based on legal basis, such as national law and international law 1.1.1 National Law  Pursuant to Vietnam Maritime Code 2015 Article 145 Contracts for carriage of goods by sea A contract for the carriage of goods by sea is an agreement between a carrier and a shipping charterer in which the carrier collects the charterer’s shipping service charge and transports the items by ship Products from the point of origin to the point of destination Machines, equipment, raw materials, fuel, consumables, and other moveable property, including live animals, containers, or similar items provided by the shipper for the purpose of packaging commodities transported under a carriage of goods by sea, are referred to as cargo contract of Article 148 Transport documents Bills of lading, waybills, sea waybills, and other shipping documents are examples of shipping paperwork The enterprise issues a bill of lading in the form of a bill of lading for use at sea, which must be transmitted to and preserved at a specialized maritime state management agency A bill of lading is a transport document that proves the carrier received the goods in the quantity, type, and condition stated on the bill of lading for transportation to the destination; proof of ownership of the goods used for disposition and receipt; and evidence of a contract for the carriage of goods by sea A bill of lading by sea is one that specifies that the commodities are transported by at least two maritime carriers The sea waybill is proof that the items were received in the condition described on the sea waybill; it is evidence of the contract of maritime freight carriage A sea waybill cannot be transferred Other transport documents are documents whose content and value have been agreed upon by the carrier and the charterer Obligations of the delivery person (Article 154) The delivery person must make certain that the goods are properly packed and labeled with signs and codes The carrier has the power to refuse to load products that not match the specified packing requirements on board the ship The shipper shall supply the carrier with the relevant paperwork and instructions for explosive, flammable, and other dangerous items, or the type of cargo required, within a reasonable period Whenever loading, transporting, storing, and unloading, use extra precautions The shipper is responsible for any losses incurred as a result of the provision of relevant documentation and instructions being delayed, erroneous, or invalid Pursuant to the Commercial Law 2005 Article 34: Goods delivery and related papers The seller is responsible for delivering the items and documentation in accordance with the contract’s amount, quality, packing and preservation techniques, and other stipulations In the absence of a written agreement, the seller must provide the products and related papers in conformity with this Law Article 35: Delivery Address The seller is responsible for delivering the products to the agreed-upon location If there is no agreement on the delivery location, the following will be used to decide the delivery location: a) If the goods are land-based objects, the seller must deliver them to the location where they are located; b) If the contract includes provisions for goods transportation, the seller must deliver the goods to the first carrier c) If the contract does not provide for the transportation of goods, and the parties know the location of the warehouse, the place of loading, or the place of production or manufacture of goods at the time of entering into the contract, the seller must deliver the goods there; d) In all other cases, the seller must deliver the goods at the seller’s place of business, or if there is no business location, the goods must be delivered at the seller’s residence Purchase Payment (article 50) The customer is responsible for paying for the products and receiving them as agreed The buyer must adhere to the payment methods and make payments in accordance with the agreed-upon sequence and processes, as well as the legislation If the items are lost or damaged after the risk has been transferred from the seller to the buyer, the buyer must still pay the purchase price, unless the loss or damage is caused by the seller’s negligence Receiving goods (Article 56) The buyer is obligated to get the goods as promised and to assist the seller in delivering the goods to the buyer’s satisfaction 1.1.2 : International law  In accordance with the International Convention on Bills of Lading, which was signed on August 25, 1924 in Brussels  In accordance with the United Nations Convention on the International Carriage of Goods of 1978  In accordance with the International Multimodal Transport Convention of 1980,  In accordance with the Protocol to Amend the International Bill of Lading Convention (Visby Protocol 1968)  Multimodal transport documents (Norms for Multimodal Transport Documents), No 48, effective January 1, 1992, according to UNCTAD and ICC rules Because the Code is discretionary law, the parties must resort to the contract while using it 1.2 Theory 1.2.1 Basic definition - According to the International Freight Forwarders Association (FIATA) Federation regulations on transportation services, "forwarding services" are defined as "any type of service associated with the storage, consolidation, handling, packaging, transportation, or distribution of goods, as well as consulting services in connection with such services." "The forwarder is the person in charge of ensuring that the products are carried in compliance with the commission contract and in the shipper's best interests." The forwarder is also responsible for all aspects of the commission contract, including storage, warehousing, customs clearance, products inspection, and so on " "Any person who appoints to deliver the products by his own means of transportation (does the shipper) and any person who is liable to the shipper by instruction commitment to take such duty (contractor delivery)" - According to the 1978 Hamburg Rules: or implicit The buyer's obligation to accept exists alongside the seller's obligation to deliver The buyer is obliged to take delivery of the goods as agreed and to take all reasonable steps to assist the seller in delivering the goods Therefore, the buyer must not only facilitate the delivery of the goods to the seller, but also take reasonable steps to facilitate the delivery of the goods Appropriate tasks such as organizing camps, organizing for recipients, providing specific information on issues to the seller before the seller delivers the goods Step 1: The seller and the forwarding company sign the contract The order of entering into a contract is the process by which two parties reach an agreement towards mutual benefits After that, the seller and the buyer establish a contract through the process of discussion, exchange and negotiation, the seller signs a contract with the forwarding company to carry out the procedures for transporting the goods to the buyer This step occurs after the seller and buyer sign a contract for the sale of goods At this step, the forwarder will represent the seller to complete the procedures related to customs declaration, hire means of transport, purchase insurance of goods, documents, etc We cannot deny the role of the forwarding company in the transportation of goods… Image 15: Contract The forwarder will receive a number of goods documents from the seller, including: - Contract of sale of goods between the seller and the buyer - List of goods - Commercial invoice 23 After the forwarder receives some documents from the seller, it is their responsibility to check the documents and to notify the seller if the documents are inconsistent Step 2: The forwarder hires the mode of transport Depending on the commercial terms signed in the foreign trade contract, the arrangement with the shipping company and the international shipping costs will be the responsibility of the buyer or the seller Booking step: The staff of the forwarding company will email or call the shipping lines to know the schedule, we can check the schedule of the shipping lines on the website like: https://shippingschedule.com.vn Documentation must be completed on this booking request and sent to the shipping company by email or in person The shipping lines will send the forwarding company a booking form which contains some information such as: - Name of ship - Number of trips - Port of loading / unloading - ETD / ETA Step 3: Buy cargo insurance Cargo insurance is insurance for external risks causing loss of or physical damage to the insured goods, occurring during transit (and/or temporary storage during transit) transportation) is carried out by any means of transport, within the territory of Vietnam or on a worldwide scale Depends on the sale of goods, the sales contract is based on CIF, Kobe port, Japan, Incoterm 2010, so the 24 seller needs to buy insurance with 110% of the CIF price The forwarding company must insure the seller on basis A of ICC 1982 Image 16: Port to Step 4: Select the container The selection of containers for packing is especially important, for those new to logistics services, it is necessary to pay attention to the necessary parameters on the container, the characteristics of each type of container to match the goods The selection of containers is quite difficult and directly affects the information on the documents as well as the shipping costs After the forwarder receives the booking form or adjusts the order from the shipping line, the forwarding company staff must submit some documents to the shipping line to collect the container: - Reservation slip - Introduction to shipping lines - Identity papers of the forwarder 25 A dry container, also known as a warehouse container, is a transport tool with a steel frame structure, durable steel walls, suitable for repeated use Designed with international standard sizes to suit many modes of transport, convenient in transit between modes of transport, and easy to import and export goods from containers Image 17: Dry cargo container This saves on warehouse space as well as construction time and costs, making it suitable for many weather conditions and all types of terrain Step 5: Do customs procedures The company's customs declaration opening department, after receiving Booking from the shipping company, opens the export customs declaration, the necessary important documents include: + Booking Note + Contract of sale + Commercial invoice 26 + Packing List The above information will be updated and transmitted on ECUSS5VN software The customs authority, after checking the information about the shipment declared by the customs declaration department of the Logistic company, will return the results of the channeling: 1- Green channel: Clearance 2- Gold Stream: Check your profile (additional fee) 3- Red channel: Checked (Check the file and cut the lead to check the goods in the container and there will be an additional fee) After the customs declaration is cleared, the company's field staff will bring this declaration to the shipping company or to the port yard to submit and wait for the ship to be released after weeks of operation, then liquidate the declaration Step 6: Domestic shipping Use the carrier's reservation confirmation to pick up an empty container Take the container from the empty supply yard to the warehouse for packing To avoid confusion, carefully check the product for the correct quantity and appearance before packing and sealing the lead clip The seller must prepare workers, forklifts to pack the goods into the empty container and make the packing list, container number, sealing number and send it to the forwarding company for shipping instructions Step 7: Follow the shipping instructions After completing the customs declaration, the forwarder sends the Shipping Instructions to the carriers 27 Based on that document, the shipping line sends B/L of draft Enterprises must check the draft B/L carefully after receiving the B/L Draft because if there are errors, the enterprise must bear all responsibility After checking all details and confirming such information, the shipping line will issue MBL in originals and copies Step 8: Payment The forwarding company is responsible for paying all fees related to the shipping prior to receipt of the B/L The forwarding company will send all documents and invoices related to the exported goods and require the seller to pay all fees, including: - Customs procedures - CCC (container cleaning fee) -CIC (container unbalance charge) 3.3 Set up delivery contract TRANSPORT SERVICE CONTRACT - According to the Civil Code and Commercial Law passed by the 9th National Assembly of Vietnam (the 7th session) on June 14, 2006 and took effect from January 1, 2006 - At the request of both parties This contract is signed on April 14, 2022, between: PARTY A: NAM&CO LONDON CO., LTD Address: RP62+5GC, Nam&Co Building London, Street, Pham Van Dong, Anh Dung, Duong Kinh, Hai Phong Tax - code: 2700791456 Tel: 0225 3581 901 Representative: PHAM MINH NAM as Director 28 PARTY B: GREEN PACIFIC LOGISTICS CO., LTD Add: 618 Ngo Gia Tu Ward, Hai An District, Hai Phong Office: Son Hai Building, 9th floor, 252 Le Thanh Tong Tax code: 0201888314 Representative: Mrs Nguyen Thi Phuong Thao as a Director Clause 1: Scope of the service Part B assigns Part A to clear customs procedures, contract with shipping lines, yards, stores and related parties, transport and deliver goods to Part B's buyers The instructions related to the goods, methods and routes of transportation will be confirmed by email or fax, which will be considered as proof of confirmation by both parties Clause 2: Responsibilities of Part A Part A is responsible for: Arrange appropriate vehicles for each shipment to ensure security and on-time delivery as required by Part B Delivery to Part B according to the principle: “closed container” for FCL shipments and “truck sealed” for LCL shipments Inform the delivery plan to department B, the vehicle number, the driver's phone number so that department B can arrange to receive the goods well Coordinate with B and other related parties to carry out the delivery and receipt of goods according to the plan Take the original customs declaration, bill of lading, FCR (goods delivered and received) of the entire export shipment and transfer to part B Part A will advance part B to pay all arising fees (if any) ) and will collect from Part B of the monthly debit note 29 Send the Debit Note and all invoices (including part A issued and/or other invoices pursuant to clauses 4.2 and 4.3 of this contract) by the end of the 5th day of the following month Clause 3: Responsibilities of the DISCLOSURE Part B is responsible for: Provide Part A with a complete set of documents related to the processed shipment and take responsibility for the legality of the shipment Notify Part A (at least 24 hours before delivery) of the delivery plan by: - For imported goods: Send Incoming Notice, Bill of Lading and related documents by email Notify the plan to receive goods at the warehouse specified in Part B - For export goods: Send booking slip or empty container delivery order Notice of delivery plan at the warehouse specified in part B In an unexpected situation, the two sides cooperate to carry out the incident Well arrange labor and equipment to receive goods when the trucks of Part A arrive at the locations specified in Part B Cooperate with Part A and related parties to handle goods according to the plan Paying fees, charges, fees and expenses incurred on time (if any) to department A Liquidation with Customs Clause 4: Cost and payment method Goods handling fees and/or charges shall be arranged and agreed upon by the two parties in accordance with the appendix of this contract On behalf of Part B, Part A will pay handling fees, doc fees, THC, CFS fees, container cleaning fees and other fees to other parties Other fees: Overtime cost: Twice as much as usual Road travel fee: In the event that Part B holds a Part A vehicle until the next day or more than hours from the time the Part A vehicle arrives at its 30 planned destination, Part B must pay the pre-paid fee according to the notice price Payment: - Part B will pay Part A in cash or by bank transfer, as shown on receipts issued by Part A or legal documents of transaction banks Payment time: +) Part A will send a monthly Debit note (Statement of Account: SOA) during the period from 04 to 05 of the following month +) Part B will check and confirm SOA for Part A within the 5th to 10th of the month After the 10th of the month, if Part A has not received any confirmation from Part B, we will apply SOA as the final assertion +) Part B must pay all costs, fees, charges and expenses under SOA by at least the 15th of each month Especially for Sea Freight and Air Freight: If Part B requires Part A to pay such fees on behalf of Part B, then Part B must pay Part A the entire amount within 02 days after Part A pays the shipping lines and/or airlines (even if unpaid part B has received the original invoices) Any delay in payment of Part B is deemed to be contrary to the terms of this contract and Part B must pay an additional amount of 0.1% of the debt due to late payment without investigation In the event that Part B fails to pay on time as specified above, Part A has the right to take one/all of the following actions: - Keep the original documents or goods of Part B until all debts including collection fees are paid - Take the necessary measures to hold Part B stock or discontinue Part B service - Cancel this contract Part B pays Part A by wire transfer according to the following information: Trustee : GREEN PACIFIC LOGISTICS CO., LTD 31 Bank account: (VND): 190657871 Bank name: Techcombank (Hai Phong Branch) Clause 5: Delivery method The delivery and receipt of goods is carried out according to the principle: "closed container" for FCL shipments and "truck sealed" for LCL shipments Clause 6: General clause: Both parties undertake to perform all the terms of this contract This contract is governed by the laws of Vietnam In the process of handling, if there are difficulties, problems or disputes, the two sides will solve them in the spirit of mutual assistance before bringing them to the People's Economic Court of Hai Phong city The Court's decision will be the legal basis to bind both There are four (04) origins of this contract Each party keeps two (02) copies with the same legal value This contract will be effective from the date of signing until one or both parties wish to cancel REPRESENTATIVE OF THE REPRESENTATIVE OF PARTY A PARTY B Mr Dao Trong Nghia Mrs Nguyen Thi Phuong Thao 3.4 Cost 3.4.1 Local fees 32 (Prices above include 10% VAT) Table 3: Local costs of the forwarder Numerical order Local fee Unit price Number of (USD) containers THC Seal LÀM CCC CIC 175 số 40 14 60 Total (USD) 1 1 175 số 40 14 60 297 Numbers Total (USD) TOTAL Table 4: Table of local fees 3.4.2 Cargo transportation Numerical Cargo order transportatio n Inland Ocean Unit price (USD) 30 USD / truck 160 USD / cont 1 30 40 40HC Total (Prices above include 10% VAT) 70 Table 5: Tariff table 3.4.3 Other fees Numerical order Other fees Lift up - Lift up Port Unit price Number of Total (USD) 30 USD / cont containers (USD) cont 40 HC 30 cont 40 HC 20 40 HC 20 USD / cont infrastructure Service fee for 40 HC export customs 50 USD clearance Other total fees (USD) (Prices above include 10% VAT) 33 50 100 Table 6: Other Fee Schedule 3.4.4 Overheads Numerical order Remuneration Local fee Freight Other fees Overheads (USD) Table 7: Table of total fees 34 price (USD) 297 70 100 467 CONCLUSION International freight distribution is now a highly regarded activity that is used in a variety of areas Our country's economy has benefited greatly from the development of delivery activities, which is equivalent to that of other countries throughout the world International freight forwarding has aided the growth of domestic service industries, attracting a significant amount of foreign investment, extending the import and export process, and establishing our country as a stable economic hub around the world We can see that Vietnam's economy has made significant progress by aggressively engaging in international freight forwarding activities It adds to the appeal of this activity This activity has aided in the development of specialty and experience in import and export, as well as favorable conditions for the development of solid ties between Vietnam and other countries As a result, Vietnam can be described as a potential market, a renowned and open market for investors from all over the world Once again, we would want to express our gratitude to Mr Tran Hai Viet, who energetically assisted us during our studies, providing us with numerous advice to ensure that we completed this topic successfully We eagerly await his views and suggestions on the major exercise's content so that we may gain more experience for future tasks Thank you very much! 35 REFERENCES FIATA International federation of freight forwarder, FIATA.com Pier2pier.com for calculate container Freight Forwarding notebook MAERSK.COM shippingline webite Assignment start date: 23/05/2022 23/05/2022 Assignment due date: Student Lecturer Nguyễn Thùy Dương – 82597 Nguyễn Ngọc Huyền – 83483 Phạm Ngọc Phương – 84481 Đỗ Thị Hà My – 84058 Trần Hải Việt 36 HAIPHONG, 2022 37