report course name import export management research on the export process of a shoe manufacturing company of infinity enterprise

INTERNATIONAL UNIVERSITY – VIETNAM NATIONAL UNIVERSITY HCMC SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENTREPORT Lecturer: Ngô Thị Thảo Uyên PROJECT: Research on the Export process of a

INTERNATIONAL UNIVERSITY – VIETNAM NATIONAL

UNIVERSITY HCMC SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT

REPORT

Lecturer: Ngô Th ị Thảo Uyên

PROJECT: Research on the Export process of a shoe manufacturing company of Infinity Enterprise

GROUP 8

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

TABLE OF CONTENTS

I Introduction 3

1 Company structure 3

2 Product 3

3 Market ………… ……… 3

4 Logo & Slogan ……… 4

5 Mission ……… ……… ……… 4

6 Vision .4

7 Department 5

8 Export Section 5

II Export Process 6

1 Export products ……… … ……….6

1.1 Sneaker ……… … ……… 6

1.2 Sport Sandal ……… ……… 7

1.3 Comfort Sandal ……… ……….7

2 Export procedure ……… 7

2.1 Market Research & Setting Objectives of Distribution……… 7

2.2 Trade Regulations………8

2.3 Making Contacts ……… 8

2.4 Quotation and Terms.……… 8

2.5 Contract Execution……… 9

2.6 Custom Clearance ……… 10

2.7 Getting Paid……… 10

III Advatage and Disadvantage ……… 10

1 Advantage……… 11

2 Disadvantage……… 11

IV Reason and recommendation……….11

1 Reason……… 11

2 Solution………12

V Conclusion

VI Appendix

VII Reference

I INTRODUCTION

1 Company structure

- Structure of import-export office:

▪ Head of Import-Export Department

▪ Export Sales Staff (Export)

▪ Purchasing staff (Import)

▪ International payment staff

Infinity’s products are distributed through a system that expands from south to north,

156 marketing stores, creating steady jobs for over 8000 people Infinity Enterprise

produce a wide range of products with an annual production of over 10 million pairs, including high-quality sports shoes, trendy women's shoes, leather western shoes, canvas shoes, … Infinity has established 4 representative offices in Vietnam, with a total of 20 sales outlets and more than 200 sales points, in order to steadily establish Infinity products

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

as the market leader in the cross-border market Infinity has exported to over 40 nations worldwide, including Italy, France, the United Kingdom, the United States, Russia, Japan, South America, Infinity is also trusted by international customers with well-known brands, who have chosen Infinity Enterprise to execute many large-value orders

4 Logo & Slogan

- Slogan of my group is “ For the journey ahead”

- With trendy designs and a wide range of styles, we hope that each step and customer experience will be cherished and moved forward to create life's most remarkable

bounces

5 Mission

- Constantly develop and increase the quality of product supply with Infinity brand

identity of "Prestige - Quality."

- Improving and enhancing the quality of product supply in order to better satisfy the ever-increasing and diverse needs of consumers, as the brand implies

6 Vision

- Core Values: To become the most popular and well-known footwear manufacturing

brand among consumers

- Main goals: enhance product quality, boost efficiency, improve export product competitiveness

- To expand into a major consumer goods manufacturing corporation in Asia

- Maintaining its leadership position in Vietnam and actively integrating with the rest of the world, the company has grown to become a major consumer goods manufacturer in Asia

• Calculate the cost and time

• Make contracts and customs declarations

• Research freight quotations for possible transporational partners

• Contact and come to agreement with the freight company about the selected route of transporting goods and the price of transporting the goods

• State and come to agreement about the terms and responsibility in transporting the goods

II EXPORT PROCESS

1 Export product:

- Shipped from INFINITY Enterprise in Vietnam to Onitsuka Tiger in Japan

- Products are exported: Sneaker, Sport Sandal, Comfort Sandal

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

+ Uppers: Action Leather is soft, stretchy leather that is less prone to scratches

Auxiliary materials: merry mesh, cosmo, foam, as lining, strengthening, giving the shoe a snug fit, allowing the wearer to feel airy and comfortable

+ Midsole: EVA (Etylen Vinyl Acetat - is a kind of polymer copolymer Ethylene and Vinyl Acetate with light properties, high elasticity) or PU (polyurethane) and ethyl vinyl acetate

+ Outsole: Rubber (Soft and flexible, does not absorb water, so it can go on all types

of roads) natural rubber has soft properties and good adhesion while compound

rubber is hard and durable

+ Socklining: made mainly from EVA, the 2-layer insole has a combination of

Ortholite and EVA

+ Sandal strap: made from high-quality materials and accessories, mainly horizontal

strap, sporty design

+ Soles: made from TPR or made from rubber (High friction anti-slip service for picnics, picnics, camping or very suitable for students, students when going to school, while ensuring ventilation without violating the regulations of the school) or EVA material Croslite (has the ability to deodorize and antibacterial), or phylon

+ Sandal strap: Leather or rubber

+ Soles type: flexible rubber, EVA (wear-resistant, good waterproof and shock

absorption)

• Price: 500.000 - 800.000vnd

2 Export procedure:

2.1 Market Research & Setting Objectives of Distribution:

- Our target markets are established footwear brands that need quality and competitive price range for their products Our main importer is the Onitsuka Tiger brand from Japan, which is a shoe brand well-known for their athletic and fashionable designs

- We will export directly through a forwarding company and sea travel

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

- The INCOTERM we will use in this transaction is CIF for exporting By using this term,

it makes the seller, which is INFINITY, take up the cost and insurance payment for sea

freight, thus giving INFINITY more control over the exporting process As VietNam’s

gorvernment encourages exporting over importing, and VietNamese sea freight company offers cheaper prices over foreign competitors, by taking up control in the sea travel process, INFINITY can reduce its product price significantly

- Our pricing for each product is conducted as such:

• Sneaker: $65.06 - $216.87 / pair

• Sport Sandal: $13.01 - $65.06 / pair

• Comfort Sandal: $21.69 - $34.70 / pair

1 Seller: INFINITY Enterprise, Viet Nam

2 Buyer: Onitsuka Tiger, Japan

3 Products: Sneaker, Comfort Sandals, Sport Sandals

• Price:

1 Sneaker: $65.06 - $216.87 / pair

2 Sport Sandal: $13.01 - $65.06 / pair

3 Comfort Sandal: $21.69 - $34.70 / pair

• Payment:

INFINITY is responsible for the cost of transportation in VietNam and the cost of sea freight and insurance from Cat Lai port to Kobe port, also the local charges in Cat Lai port Onitsuka Tiger is responsible for the cost of transportation in Japan, local charges in Kobe port, payment for the agreed amount of orders The payment will be made via MUFG BANK KOBE BRANCH, with the method of Irrevocable Credit Payment and agreed on how much is the total payment in the sales contract without any deduction or discount The payment will be a total of $2,197,830, with the quantity of 30000 pairs of footwears and in three containers 40

• Risk and Insurance:

Using the CIF method, the risk and insurance will be covered by INFINITY until the goods have arrived and ready to be taken off board at Kobe Port The risk will be

transferred to Onitsuka Tiger at the moment the goods are being taken off the ship

• Inspection:

Until and unless Onitsuka Tiger has checked the condition of the goods and gives

written notice to INFINITY, the goods are assumed to be in good order and condition

• Cancellations :

Orders booked are not subject to cancellation, modification or deferred without the prior written consent of INFINITY and is at INFINITY’s sole discretion to accept or reject the writing

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

- INFINITY will produce the whole pairs of sneakers, comfort sandals, sport sandals, the boxes of which these shoes are in, the logo, design of the shoes and the boxes according to Onitsuka Tiger finalized design specified before the manufacturing process, the wrapping papers of the shoes

b Packing and Labeling:

- INFINITY will pack and label the shoes and their boxes according to the terms

determined by Onitsuka Tiger but only with consent of the design being directed by

Onitsuka Tiger

c Arranging Shipment:

- INFINITY will work with_(Fast Shipping) forwarding company to calculate the cost

of shipping, arrange the location of loading at INFINITY’s manufacturing/warehouse site, the location of unloading at the Cat Lai port or at a determined point at Cat Lai port

- INFINITY will work with Cat Lai port to calculate and pay for the local charges at Cat Lai port

- INFINITY will work with _(Fast Shipping)_ forwarding company to calculate the sea freight fee from Cat Lai port to Kobe port, and determine the sail off time at Cat Lai port and arrival time at the Kobe port of the goods Send Onitsuka Tiger a Notice about the time

of arrival of the goods

d Prepare Export Documentation:

- INFINITY will prepare the documents mentioned above:

- INFINITY will pay for the insurance fee of the sea freight travel journey of the

shipment agreed with Onitsuka Tiger

2.6 Custom Clearance:

- Arranging Export Clearance:

INFINITY will prepare and fill out customs clearance at the Cat Lai port to go to Kobe port, INFINITY will pay for the Customs clearance fee at the Cat Lai port Details are specified in the Sales Contract

- Using the Irrevocable Credit payment method helps INFINITY to relieve some of the off both the seller and the buyer's end Because the seller doesn't have to worry that they will lose the money because the mutual will pay back whole, and the buyer doesn't have to pay in all immediately because they can pay periodly

IV REASON AND RECOMMENDATION:

1 Possible reasons of those problems:

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

- Despite the fact that a number of businesses have invested in the Company to support the manufacture of materials for the leather and footwear industry such as leather, technical textiles, form-forming accessories, soles, plastic, and so on, small businesses only meet around 40% of company demands In order to have sufficient production materials,

businesses must spend a significant amount of money on importing raw materials and auxiliary materials

- One of the most labor-intensive businesses is footwear Thousands to tens of thousands

of tons in labor can be employed by a company Covid 19 insisted, however, that the production follow the "three on-site" model Many enterprises, however, had to delay operations due to a failure to adjust to changing conditions and infrastructure This results

in the retirements of a significant number of workers

2 Solution:

- The use of computers by timekeeping personnel is the first answer that cannot be

overlooked This is the tool that produces outcomes and provides the most value to the company It has tools for collecting and storing employee, worker, and other data in order

to build report files that serve a variety of human resource management goals such as check-in, timekeeping, and wage calculation

- Infinity Enterprise assists food and businesses during wage performance, training to improve employee abilities; jointly control and promptly carry out procedures for

employees supported by state assistance packages, helping to maintain security

- In addition to the company's lack of recruitment resources, many businesses consider technical research solutions to improve capacity and reduce employee stress, such as increasing production line speed from 7% to 40% of production lines, and quickly

responding to products supplied to the market, especially during peak years

V Conclusion:

The better the production and circulation in todays modern market economy, the more forwarding enterprises emerge Vietnam is in the process of opening up to the global economy, which means that export activities must be centered on investment We require highly specialized expertise of this subject to be able to export swiftly and efficiently Furthermore, enterprises must be familiar with both Vietnamese and international trade rules

As a result of this Infinity enterprise export processing project, Group 8 was able to learn about a footwear firm, as well as gain a basic understanding of the process of

exporting footwear and other papers Procedures required to export a single pair of shoes

We are quite grateful for the opportunity to gain a thorough understanding of the export market through this project, as well as a lesson for our group to gain more

import-experience in this field in the future Ultimately, despite a lack of time and knowledge for this job, our staff did its best to complete the report completely We hope that this research will be useful practical significance for the organization and contribute to its future

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

Sales contract

Commercial Invoice

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

Booking confirmation

Packing list

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

Custom declaration form

Bill of Lading

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

Ceritificate of Origin

Sercurity form

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

[4]https://damvietxnk.weebly.com/blog/huong-dan-khai-hai-quan-vnaccs-tai-cchq-ck-cang-of-sale.html

[5]https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/10858-term-[6]https://www.tecotec.com.vn/tin-chuyen-nganh/phan-luong-hai-quan-doi-dieu-can-biet [7]https://tongcuc.customs.gov.vn/portal/index.jsp?pageId=26&cid=1192

[8]https://hptoancau.com/quy-trinh-nhap-khau-hang-hoa-cho-nguoi-moi-bat-dau/

[9]https://www.baoviet.com.vn/insurance/?fbclid=IwAR0w_WPgJaxZEKxZUWzCuD3eXMDxoAMze6DQP3oj4rW_X0Ut9vMUY0qTPP0

[10]https://baohiemxangdau.net/giay-chung-nhan-bao-hiem-hang-hoa-xuat-nhap-iiB5w1x9s

khau.html?fbclid=IwAR3JlkTnDxsYmTcxPJ4DEsHQGrquBNelqFwDPuE238yR6gwVu-[11]https://www.bk.mufg.jp/global/globalnetwork/asiaoceania/pdf/Application_for_Collection_of_Documentary_Bills_under_LC.pdf?fbclid=IwAR23RCQDmhX4dipSbls5MOuQ6cGNzp9EyYumhsgZG5_jnNCg1ZxcEQNjGZc

INTERNATIONAL UNIVERSITY, HCMC IMPORT – EXPORT MANAGEMENT

Timeline of export process