Project international business export corn cob pellets to japan

VIETNAM MARITIME UNIVERSITY ECONOMICS FACULTY ECONOMIC FOREIGN TRADE PROJECT INTERNATIONAL BUSINESS EXPORT CORN COB PELLETS TO JAPAN Lecturer: Doan Thi Thu Hang Student: Do Thi Thu Huyen - 78395 Do Hong Hanh - 77886 Nguyen Thi Hoai Thuong - 79976 Nguyen Nhat Mai – 78944 Vu Thi Minh Ngoc – 79239 Pham Khanh Hoang – 78148 Class: International business – N02 Group: 06 HẢI PHÒNG – 2021 TABLE OF CONTENT LIST OF FIGURES i LIST OF TABLES .ii THE FOREWORD CHAPTER 1: BUSINESS INFORMATION 1.1.General Introduction .3 1.2 Cope and field of activity .3 1.2.1 Career business 1.2.2 Product .4 1.3 Organizational structure .6 1.4 Infrastructure CHAPTER 2: TARGET MARKET RESEACH 10 2.1 Market research 10 2.1.1 Economic 10 2.1.1.1 Overview .10 2.1.1.2 Economic Relations 11 2.1.2 Political and legal environment .11 2.1.2.1 Political 11 2.1.2.2 Legal .11 2.1.3 Cultural 12 2.2 Market potentials of corn cob pellets 13 CHAPTER 3: IMPLEMENTING BUSINESS PLAN 16 3.1 Select a target market segment 16 3.2 Building the marketing mix strategy 16 3.2.1 Export product strategy 16 3.2.2 Export pricing strategy 17 3.2.3 Export distribution strategy .18 3.2.4 Export promotion strategy .19 3.3 Build relationships with customers 20 3.3.1 Special offers 20 3.3.2 After-sales customer support 20 3.4 Customer selection .20 3.5 Negotiate and sign contracts .21 3.5.1 Negotiate 21 3.5.2 Contracting 21 3.6 Execution of export contracts .21 3.6.1 Prepare goods for export 21 3.6.2 Apply for a phytosanitary license 22 3.6.3 Transportation organizing 23 3.6.4 Customs procedures 24 3.6.5 Payment 26 CHAPTER 4: PROJECT’S ECONOMIC EFICIENCY ESTIMATION 28 4.1 Cost .28 4.1.1 Cost of production, labor and packaging 28 4.1.2 Shipping and export fees 29 4.2 Revenue 29 4.3 Profit margin - Rate of return .29 4.3.1 Profit margin 29 4.3.2 Rate of return 30 CONCLUSION 31 APPENDIX 32 LIST OF FIGURES No Name Page 1.1 Corn cobs 1.2 Corn cob pellets 1.3 Production process 1.4 Organization chart of the company 3.1 Transport route from Tan Vu port to An Duong industrial zone 24 i Recommandé pour toi Suite du document ci-dessous (9) Tax expenditure - IELTS International bussiness and Logistics There are many disadvantages when living in the city International bussiness and Logistics 93 100% (13) Ôn tập thi vào 10 môn tiếng anh năm 2022-2023 ĐÁP ÁN ĐỀ 1-15 International bussiness and Logistics 90 100% (1) 95% (41) Ngữ pháp - danh cho nhung ban mat goc tieng anh International bussiness and Logistics 88% (8) LIST OF TABLES No Name Page 1.1 Product Description 1.1 Cost of production and product packaging 28 4.2 Cost of transportation and export 29 4.3 Total revenue 29 ii THE FOREWORD In the trend of globalization of the world economy, business activities The international market is strong and plays an important role for both businesses and nation International business is about making investment decisions in production or exchange, buy, sell, and supply goods and services beyond borders of a country, in regional markets and in global markets To make the right decision, businesses need to understand the business environment international, is the difference in political-legal environment, economic environment, cultural environment Moreover, businesses need to study strategy business, penetration method, personnel change, product supply chain chemical…The project team would like to thank Mrs Doan Thi Thu Hang for her enthusiastic help and guidance in the process of implementing this topic However, with the limited amount of knowledge, it is difficult to avoid errors in the content and presentation form, the group is looking forward to receiving her suggestions for further improvement in the next research times Because of the importance but also the complexity of the activity international business, students majoring in foreign economics need to have basic knowledge knowledge and skills necessary to capture today's needs Make map The project is the most comprehensive study on the international integration process of a country specific business Help synthesize knowledge of subjects, apply and put into the project as practical application, creating favorable conditions for professional capacity development subjects for work after graduation This project is implemented by group called "Make a business plan Corn cob pellets in Japan market” includes chapters: Chapter 1: BUSINESS INFORMATION Chapter 2: TARGET MARKET RESEACH Chapter 3: IMPLEMENTING BUSINESS PLAN Chapter 4: PROJECT’S ECONOMIC EFICIENCY ESTIMATION Due to limited understanding, it is difficult in our group's article avoid certain errors and omissions I hope the teacher will help I recognize and correct my mistakes Finally, I would like to thank lecturer Doan Thi Thu Hang for supporting us to complete this project BNNPTNT) + Packing List: Photocopy and original presentation for comparison + Sale and purchase contract (copy and present the original for comparison) - Step 2: The plant quarantine agency is responsible for receiving and immediately checking the validity of the dossier according to regulations - Step 3: Based on the results of the inspection of the dossier, the plant quarantine agency will decide the quarantine location at the border gate of exportation and arrange for a civil servant to immediately inspect the batch of objects - Step 4: The plant quarantine agency issues a Phytosanitary Certificate (using the form specified in Appendix V, issued together with Circular 33/2014/TT-BNNPTNT) to the batch of objects within 24 hours from the date of issue at the beginning of the quarantine for the batch of articles that meet the phytosanitary requirements of the importing country 3.6.3 Transportation organizing - Step 1: The Exporter sends Booking Confirmation including information of the shipment such as: + Commodity: Corn cob pellets + Quantity: 40 MT + Type of container: 2x20’ + Port of Loading: HAIPHONG PORT + ETD, ETA + Port of Discharing: YOKOHAMA PORT, JAPAN 25 + Vessel, Voy + Full Return Location, Closing time… - Step 2: Choose container at CY Checking hygienic codition of container, watertight status of containers, pay attention at door slots, ventilation doors - Step 3: Hiring and arraging trucking to transport empty container to warehouse Hiring trucking delivers from Tan Vu Port to An Duong Industrial Zone about 21.6 km Figure 3.1: Transport route from Tan Vu port to An Duong industrial zone - Step 4: Packing and seal loaded container When packing goods into containers, a number of principles must be ensured: + The total weight of both goods and aviation packing devices does not 26 exceed the maximum allowable load + Goods must be spread evenly across the container floor to keep the center of the container as low as possible; + Avoid too much, overloaded + Avoid the load on the shaft of the transport vehicle + Avoid instability for transportation - Step 5: Delivery the goods from warehouse (An Duong Industrial Zone) to Tan Vu port to export Note the closing time 3.6.4 Customs procedures Corn cob pellets with HS code 23021000 belong to normal goods that not require specialized inspection, so customs declaration procedures should be carried out immediately Customs procedures include: - Preparing documents: In order to transport the shipment from Vietnam to Japan as well as clear customs in both countries, it is necessary to prepare documents This includes all types of documents: + Sale Contract + Commercial Invoice + Packing List + Booking Note + Equipment Interchange Receipt (EIR) 27 - Declare and transmit customs declarations for the export of goods CornPLus, Inc., uses customs declaration software directly on the ECUSS5-VINACCS system Based on the prepared documents, enter the necessary information into the declaration system: + Export Declaration (EDA): Declare export information by EDA service before registering the export declaration Fill in the criteria on the EDA screen (109 indicators) + Export declaration registration (EDC): When receiving the declaration registration screen (EDC) response from the system, After the company staff checks that the declared information is correct, they send it to the system to register the declaration - Threading, checking When the declaration has been registered, the system automatically distributes it, including streams: green, yellow, and red + Green channel declaration: Exempt from checking document details and obtaining customs clearance on the software + Golden channel declaration: Prepare a set of paper documents according to the instructions in Circular 38 and bring them to the customs subdepartment for customs officers to see + Red channel declaration: Customs checks the actual goods after checking the valid documents (like the above yellow channel) Cornplus's consignment of recycled corn cobs exported to Japan has been returned as "Green channel" 28 After receiving the returned result as the Green channel, the company's staff prints the barcode and the customs clearance declaration from the website of the General Department of Customs, then they go to Hai Phong Customs Branch to complete the procedures In addition, you need to bring some other documents, such as: + Equipment Interchange Receipt + Infrastructure Expenditure At this time, Customs will stamp internally on the declaration - Customs clearance After the declaration is cleared and passed through customs supervision, the company's staff returns the declaration and the barcode sheet to the shipping line so that the shipping company can carry out procedures to confirm the actual export with the supervisory customs when the goods are on board The export tax on recycled corn cobs to Japan is 0% 3.6.5 Payment According to the contract, the two companies use the payment method T/T at sight (Telegraphic Transfer) to pay - After Cornplus Company transfers the goods and documents to the importing company - When the importing company has finished checking the goods and documents, it writes a money transfer order and sends the dossier to the request for remitting bank to the Cornplus company - After checking and finding that it is valid and capable of paying, the remitting bank will set up a procedure to transfer money through an agent bank and send a debit note (receipt of payment to the importing company) 29 - The agent bank transfers payment (credit and credit to the Cornplus company) 30 CHAPTER 4: PROJECT’S ECONOMIC EFICIENCY ESTIMATION 4.1 Cost 4.1.1 Cost of production, labor and packaging Table 2.1 - Cost of production and product packaging Total amount Items Quantity Unit price Corn cob The cost of delivery Cost of wrapping, packing, 40 tons trucks 86 USD/ton 50 USD/truck 3440 100 40 tons USD/ton 360 people 20 USD/person 160 label Labor cost Depreciation of fixed assets Bill of electricity, water, ( USD) 217 74 telephone Total cost of production 31 4351 4.1.2 Shipping and export fees Table 4.2 - Cost of transportation and export Items Price Trucking Customs fees Phytosanitary license fees THC Seal Fees VGM Lift On-Lift Off B/L Fees Infrastructure expenditure AFR Total cost 50 USD/cont x 130 USD/set 13 USD/set 180 USD/cont x USD/cont x 25 USD/con x 120 USD/con x 50 USD/set 11 USD/con x 35 USD/set Total amount (USD) 100 130 13 360 18 50 240 50 22 35 1018  Total cost = 4351 + 1018 = 5369 USD 4.2 Revenue Table 4.3 - Total revenue Items Price Total amount Corn cob pellets 391.3043 USD/MT x 40 15652.172 4.3 Profit margin - Rate of return 4.3.1 Profit margin Profit before tax = ∑revenue - ∑cost = 15652.172 – 5369 = 10286.172 USD Income taxes = 2057.234 USD (tax rate 20%) Profit after tax = Profit before tax - Income taxes = 8228.938 USD 32 4.3.2 Rate of return Rate of return = x 100% = x 100% = 52,57% With the rate of return like this, the company decides to accept the order and conduct to fulfill the order 33 CONCLUSION Based on the knowledge we have learned in class and some knowledge Learn more about International Business in general and skills drafting and developing a contract in particular, a contract for the performance of "export Corn cob pellets to Japan” was created with all the efforts of the Members of the group Through in-depth study and research on the contract information, we have a better view of the operation foreign trade, on the steps to establish a market entry strategy market, how to execute a contract and study the risks associated with the economy socio-economic We can also apply the knowledge we have learned in class sugar and reinforce that priceless asset This is really a stepping stone For students majoring in Foreign Trade Economics with a solid foundation service for future work With that inspiration, we will try study well, strive to become a global citizen to be able to contribute their strength to develop a rich and strong Vietnam, on par with other countries five continents superpower Once again, my team would like to express our deepest gratitude to Professor Ms Doan Thi Thu Hang – who enthusiastically guided us to complete well Largest assignment in the subject of International Business Despite my best efforts, though However, due to limited knowledge as well as practical experience, my group is very Looking forward to receiving valuable advice and suggestions from her to improve more Future We sincerely thank you! 34 APPENDIX SALES CONTRACT No: TP-201110-12 Date: 10-Feb-2022 THE SELLER: CORNPLUS VIETNAM MANUFACTURING AND TRADING CO., LTD ADD: An Duong Industrial Zone, Hong Phong Commune, Bac Son, An Duong District, Hai Phong City, Viet Nam Tel/Fax: (031) 6668888 Represented by: Ngo Thuy Duong - Director THE BUYER: FEED ONE CO., LTD ADD: 2-23-2, TSURUYACHO, KANAGAWA-KU TS PLAZA BLDG YOKOHAMA, KANAGAWA, 221-0835 Japan Tel/Fax: (84-24) 66808505 Represented by: TAKASHI YAMAUCHI Both parties have agreed to sign this sales contract on the following terms and conditions: ARTICLE 1: COMMODITY & SPECIFICATION & PRICE & QUANTITY 35 1.1 COMMODITY: Corn cob pellets 1.2 SPECIFICATION AND PRICE No Specification Unit Quantity Unit price (USD) AMOUNT (USD) Corn cob pellets MT 40 391.3043 15,652.172 TOTAL 40 USD 15,652.172 TOTAL AMOUNT: USD 15,652.172 (US Dollars Fifteen Thousand Six Hundred Fifty Two And One Hundred Seventy Two Cents) The price understood FOB HAI PHONG PORT, VIETNAM (INCOTERMS 2010) ARTICLE 2: SHIPMENT 2.1 Latest Date of shipment: Apr 29, 2022 2.2 Port of Loading: HAI PHONG PORT, VIETNAM 2.3 Port of Discharge: YOKOHAMA PORT, JAPAN ARTICLE 3: PAYMENT 3.1 Payment term: 100% by TT 3.2 Bank information 36 Beneficiary: CORNPLUS VIETNAM MANUFACTURING AND TRADING CO., LTD Address: An Duong Industrial Zone, Hong Phong Commune, Bac Son, An Duong District, Hai Phong City, Viet Nam Bank information: Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank) Bank address: No 234 Tran Nguyen Han Street, Le Chan, Hai Phong Account USD No: 1016432617001 SWIFT Code: MCOBVNVX Tel: (024) 771 89 89 Fax: (024) 771 88 99 3.3 Payment documents After completion of shipment, the following originals documents shall be sent directly to the Buyer via courier express: - Full set of “Clean on board” bill of lading marked “freight collect”: 03 originals and 01 copy - Signed commercial invoice: 03 originals - Packing list: 03 originals - Certificate of Phytosanitary: 03 original All Banking charges and any customs duties, taxes, fees and other costs arise outside Vietnam are for the Buyer’s account All Banking charges and any customs duties, taxes, fees and other costs arise inside Vietnam are for the Seller’s account ARTICLE 4: PACKING 25KG PP bag with pallet 37 Shipping Marks On Bags: As per Cornplus’s Design ARTICLE 5: FORCE MAJEURE 5.1 The Seller shall not be held responsible for the delay in shipment or nondelivery of the goods due to force majeure, which might occur during the process of manufacturing or in the course of transit Seller shall advise Buyer immediately of the above-mentioned occurrence and within 14 days thereafter, Seller shall send by air mail to Buyer for their acceptance a certificate of the accident issued by local police department where the accident occurred as evidence thereof 5.2 Under above circumstances, the Seller however is still under the obligation to take all necessaiy measures to hasten the delivery of the goods In case the accident lasts for more than 10 weeks, the Buyer shall have the right to cancel the Contiact ARTICLE 6: ARBITRATION Any dispute which can not be setlled in an amicable way to be submitted for the decision of the International Arbitration Center of Vietnam Chamber of Commerce and Industry in Hanoi, Vietnam The decision taken by this arbitration shall be final and binding for both parties Arbitration fee to be by the loosing party ARTICLE 7: REMARKS 7.1 Any signature to this contract by facsimile shall be deemed as an original 7.2 This contract shall come into effect without any further notice from the date of issue 38 7.3 Unless otherwise agreed in writing by bothparties, these conditions supersede any earlier discussions/contracts, negotiations or agreement Buyer's Signature Seller's Signature 39