(Tiểu luận) transport and insurance topic 10

Fill in the following information: Buyer, seller, forwarder, carrier/shipping lines, goods, weight, payment method, Incoterms conditions, loading port, discharge port 2 points...18 4.. C

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS & FINANCE

HO CHI MINH CITY

-MIDTERM REPORT

CLASS: A03ETRANSPORT AND INSURANCE

Lecturer: Ms Nguyen Tran Le

March 2024, Ho Chi Minh City

No Full Name % contribution to

the overall result Evalution of the results Task

TABLE OF CONTENT

I Introduction 3

II Detailed Content 3

1 What is transportation? 3

2 What is cargo insurance? .4

3 What is sea freight? 4

4 Common types of documents .5

III Assignment of set of document in practices 17

1 Name each type of document and arrange it in order of issuance (by time) (2 points) 17

2 Does this type of goods need insurance? Why and why not? Are there any special documents accompanying the goods? What is the purpose of that document? (If any) (1 point) 17

3 Fill in the following information: Buyer, seller, forwarder, carrier/shipping lines, goods, weight, payment method, Incoterms conditions, loading port, discharge port (2 points) 18

4 Who pays the loading and discharge costs, and who pays the main freight? Explain (1 pt) 18

5 What type of B/L? Explain (1 point) 19

6 Draw the delivery process for this shipment with all participating parties in section 3 (2 pts) 19

7 Is there any difference between the learned theory and the actual evidence? (1 pt) 19

Too long to read on

your phone? Save

to read later on

your computer

Save to a Studylist

I Introduction

Transportation represents an economic endeavor aimed at relocatinggoods and passengers between different points It holds a distinctivestatus as a sector of material production As Marx once articulated,

"Beyond mining, agriculture, and manufacturing, there exists a fourthrealm of material production, which evolves through handicrafts,

manufacturing, and mechanics This encompasses transportation,

encompassing both passenger and cargo conveyance."

"The transportation industry stands as a pivotal technical facetwithin the national economy It caters to the transportation requisites ofthe entire socio-economic framework while significantly contributing todomestic output and national revenue Transportation assumes a criticalrole in the process of distribution and circulation In likening theeconomy to a living organism, with transportation serving as its

circulatory system, transportation acts as the mechanism for deliveringvital nutrients to nourish the body's cells This chapter will delineatedefinitions, features, and the pivotal roles of transportation activitieswithin the national economy, alongside the intimate, intrinsic linkagesbetween transportation and foreign trade."

The objective of this report is to enhance comprehension andassimilation of marine transport insurance, along with exploring

practical applications of this knowledge in real-world scenarios

1 What is transportation?

Transport is the process of applying force to objects to movesomething from one location to another Transport is associated with thedaily needs of human living and production

First, transport is often associated with the activities of porting,carrying, carrying, lifting of man in primitive society Later, when theeconomic form became more complex, the forms of transport were

increasingly improved and diversified And over time, mere transportnow gradually formed transportation services

Cargo insurance is a contract to protect shippers from being

compensated for losses if goods are lost or damaged due to risks or shipaccidents occurring during delivery (these risks are specified in the

insurance contract)

Sea freight insurance is concluded through agreements and terms

of exchange agreed between the shipper and the shipping company

3 What is sea freight?

Sea transport or sea transport is a form of transporting goods

through the use of sea facilities and infrastructure to serve transportationactivities Depending on the route, type of cargo, means of transportationare boats and means of loading and disassembling goods such as cranetrucks Infrastructure to serve sea transport includes seaports,

transshipment ports

Sea transport is suitable for international or domestic trade

shipments in areas near the sea and adjacent areas where ships dock.Because shipping vessels are often large in size and tonnage, usually seatransport is widely applied to the import and export industry to carry largequantities of goods

Vietnam is a country with a long coastline, so the form of seatransport is very developed and strongly invested by the State in facilities,facilities and infrastructure systems Thereby promoting trade activities,export - import of domestic goods, a premise to help logistics services inthe country develop strongly

4 Common types of documents.

What is Incoterms?

Incoterms, which stands for International Commerce Terms,are a set of rules in global trade that outline what each party isresponsible for in international contracts These standardized terms arewidely used and recognized across many countries and territoriesworldwide The main points of these terms can be summarized into twokey aspects:

Defining the responsibilities of both the buyer and seller.Determining when and where responsibilities, costs, andrisks shift from the seller to the buyer

Incoterms help clarify who is responsible for what throughout theprocess of transporting goods internationally This includes aspectssuch as insurance, customs procedures, transportation costs, and

dealing with any loss or damage to the goods Additionally, Incotermsspecify the exact time and location of goods delivery, which helpsreduce misunderstandings and disagreements in international trade.This is especially important in diverse legal and commercial

environments where different parties may operate under varying rulesand regulations

In the context of international trade, invoices, also referred to asbills, play a pivotal role in the exchange of goods Particularly within thedomain of import and export activities, the sales invoice is crafted by theseller according to their own template, diverging from standardized formsprovided by tax authorities or governmental bodies—a departure from thepractice in domestic transactions Noteworthy details, including the

invoice number, date, seller, buyer, goods description, quantity, unit

price, and total amount, must be clearly outlined on this document Itssignificance lies in facilitating payment processing, tax reporting, andcustoms procedures

invoice and the Commercial Invoice In the initiation of internationaltrade contracts, both parties embark on negotiations to establish pricingterms Upon reaching an agreement, the seller issues a price quotationthrough a Proforma invoice, furnishing the buyer with an initial estimate

of shipment costs This provisional invoice, sometimes termed a

preliminary invoice, lacks payment validity and remains subject to

amendments owing to its tentative nature

Upon mutual consent on pricing, parties proceed to formalize aforeign trade contract, culminating in the delivery of goods by the seller

to the buyer Subsequently, the seller seeks remittance from the buyer,necessitating the issuance of a Commercial Invoice—an authoritativedocument carrying payment value This invoice serves as the cornerstonefor tax authorities and customs entities to ascertain invoice values for taxdeclaration and electronic customs clearance processes

A Packing List, or goods packaging document, provides a detaileddescription of the shipment intended for import or export All informationcontained within the list allows the buyer to ascertain what items havebeen sold by the seller, their quantities, facilitating quick and easy cross-referencing and verification

Based on the information provided in the Packing List, the buyercan estimate various parameters such as:

Appropriate means of transportation for the goods.

Necessary storage space for the goods

Methods for loading and unloading the goods to preventdamage or breakage, whether through the use of machinery or manuallabor

Anticipated duration for loading and unloading of the goods

By anticipating these details, the buyer can optimize costs andstreamline the inspection process, while the seller enhances their

credibility and the perceived quality of their products Once the seller hascompleted packaging the goods, they will send the packing list to thebuyer, enabling the buyer to thoroughly inspect the goods before

accepting delivery

A Bill Of Lading is an essential document for transporting goodsoverseas across various international maritime regions Acting as both areceipt and a contract, a bill of lading serves as the primary invoice forthe shipper It is a legally binding document that establishes obligationsbetween both the shipper and the carrier.

The Customs Declaration Form is a document where the cargo

owner (exporter) or the vehicle owner must provide comprehensive

details about the shipment when exporting goods from the territory ofVietnam

When a business intends to export a certain item, filling out thecustoms declaration form is one of the mandatory steps to be taken.Failure to submit the customs declaration form will result in the halt of alexport-related activities

Before allowing registration of the customs declaration form, thesystem will automatically check the list of businesses that do not meetthe requirements for registration (businesses with overdue debts

exceeding 90 days, businesses temporarily suspended, dissolved,

bankrupt, etc.)

If the business is on the aforementioned list, it will not beallowed to register the customs declaration form, and the system willnotify the declarant accordingly

A Classification Certificate, understood as an essential document inthe maritime industry, is issued by a ship classification society Thisdocument confirms that the vessel meets technical standards and

important safety requirements set forth by these organizations

A ship classification society is an independent organization

authorized by maritime authorities to carry out tasks related to inspecting,evaluating, and ranking ships These organizations assess technical

standards, design, construction quality, equipment, and safety of vessels,ensuring compliance with international regulations and standards

The Classification Certificate typically remains valid for a certainperiod and requires regular updates to ensure that the vessel consistentlymeets the latest technical and safety standards This document is a crucialpart of the registration and shipping process and is required for vessels toparticipate in international voyages

Cargo insurance for import and export is a type of insurance

provided by insurance companies to protect goods transported acrossborders, by sea, and by air This insurance covers risks such as loss,damage, or destruction of goods during transportation

The significance of import and export cargo insurance lies inensuring the safety of goods during transportation Shipping goodsacross borders and different regions may involve various risks such

as collisions, loss, damage due to weather conditions, or even traffic

accidents Import and export cargo insurance will provide

compensation for losses in the event of such incidents

This helps minimize risks for businesses and exporters, ensuringthat goods are transported safely and on time Furthermore, import andexport cargo insurance helps enhance competitiveness for businesses andnarrow the gap with competitors in the international market

Cargo insurance is highly important in international trade

Businesses need cargo insurance to minimize risks during import andexport processes Cargo can be insured under risk policies or profitpolicies Cargo can include any description, such as merchandise, goods,assets, and so on

Cargo insurance can reduce financial risks, expedite the release ofyour goods, is contractually required, provides insurance for the carrier'slimited liability, and allows you to have more control over insuranceterms

III Assignment of set of document in practices

Answer the following questions:

1 Name each type of document and arrange it in

order of issuance (by time) (2 points)

a Invoice (invoice, recording information about the value ofgoods and payment terms)

b Packing list (detailed list of items packed in the shipment)

c Ocean bill of lading (an important document confirming thecarriage of goods)

d Declaration of exported goods (customs clearance) (needs to

be filled out and submitted to the customs office for customsclearance of exported goods)

e List of goods eligible for customs supervision (needs to beprepared and confirmed before the goods are exported)

f Confirmation of registration of the exporting ship (for thecarriage of goods by sea, this form is required to confirminformation about the exporting vessel)

g Insurance policy (if applicable, is a document confirming theinsurance for goods during transportation)

2 Does this type of goods need insurance? Why

and why not? Are there any special documents

accompanying the goods? What is the purpose

of that document? (If any) (1 point)

- This type of goods requires large commodity value insurance

- Type of goods: sproket ensures the Protection of Enterprise Assets

by protecting them from loss, damage, fire and traffic accidents

( insurance documents )

3 Fill in the following information: Buyer, seller,

forwarder, carrier/shipping lines, goods, weight,

payment method, Incoterms conditions, loading

port, discharge port (2 points)

Buyer : UTSUNOMIYA INDUSTRY JAPAN CO.,LTD

SELLER : UTSUNOMIYA INDUSTRY VIETNAM CO.,LTD

FORWARDER : MP CONSOL CO.,LTD

Carrier/shipping lines : INTERASIA LINE LTD

VESSEL : INTERASIA PURSUIT NO52 (Interasia shipping

company)

Goods : Sproket

Weight : 2cases/632000GW(kgs)

Payment method : MA

Incoterms Conditions : DAP

Loading port : HOCHIMINH CITY

Discharge port : TOKYO, JAPAN

4 Who pays the loading and discharge costs, and

who pays the main freight? Explain (1 pt)

- Who pays the loading fee: UTSUNOMIYA INDUSTRY

Risk management: By being responsible for loading andunloading costs, policyholders also often have the status ofrisk managers during transportation This means they are

responsible for protecting their cargo, including paying thecost of safe and efficient loading and unloading operations.Universality: In many cases, the fact that the policyholder isresponsible for paying loading and unloading costs is aninevitable part of the freight process and risk managementassociated with this.

However, this may vary depending on the specific terms of theinsurance contract and the agreement between the parties involved Tobetter understand the responsibilities and costs in insurance transport, it isnecessary to consult the insurance contract and seek expert advice

5 What type of B/L? Explain (1 point)

The type of B/L: House B/L

6 Draw the delivery process for this shipment with

all participating parties in section 3 (2 pts)

Document rotation process in sea import and export