based on the above basic information and add relevant information write the sale contract with complete and accurate terms

L/C includes the total contract value within 7 days from the date the buyer receives the contract performance guarantee specified in this contract.. The buyer will present the following

UEH UNIVERSITY SCHOOL OF BUSINESS INTERNATIONAL BUSINESS — MARKETING FACULTY

UEH UNIVERSITY

FINAL ASSIGNMENT

EXPORT-IMPORT MANAGEMENT Lecturer: Bui Thanh Trang Student name: Hoang Vien Phương Grade: IBC02

Major: International Business Student ID: 31201022093

Table of Content

Q1 Based on the above basic information and add relevant information, write the sale contract with complete and aCCUTAf€ {€TITS c1 E1 91H HH TH Hà HH HH nh HH rà 1 Q2 As seller, discuss in detail the procedure of the sales contract in QÏ «sex 6 Q3 As buyer, discuss in detail the procedure of the sales contract in QL 13 Bibliography ooo nẼ n ố ố ốốố ốố ố 16

Q1 Based on the above basic information and add relevant information, write the sale contract with complete and accurate terms

Represented by Mr Bui Minh Ho Hereinafter referred to the Seller

And: BT Co., LTD (Japan) Address: 7-3-1 Hongou, Bunkyo-ku, Tokyo-to, 113-0033, Japan

Tel: (04) 022 023 125 Fax: (04) 022 023 125

Represented by Mr Michikatsu Tsugikuni Hereinafter referred to the Buyer

After discussing, both parties have agreed to sign the contract with the following terms and conditions

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Origin: Central Region Vietnam Free from fermented, mouldy and spongy beans Not roasted, not decaffeinated

Robusta Coffee Nuts to be free from live insects after fumigation on board the vessel, fit for direct human consumption in the country of origin

As sample agreed by both parties shipped (Sample No )

3 PACKING: In bulk or in new jute bag (net 60 kg, hydrocarbon free) at the Buyer option

The goods are to be packed in the Manufacturer’s Standard Export 4 QUANTITY: 200 MT more or less 5% at the Seller’s option 5 PRICE

- Price to be understood CIF Saigon Port, Incoterms 2020

- Unit price: 1,500 USD/MT - Total amount: USD 300,000 +/- 5% - Say Total: US dollars three hundred thousand/ 5% (five per cent) more or less on merchandise quantity shipped is acceptable

7 PAYMENT TERMS AND DOCUMENTS e By 100% L/C 60 days from Bill of Lading date

e Payment by irrevocable L/C at sight for 100% of the invoice value, in favour of the Seller e Issuing bank: Norinchukin Bank, Japan

e Notifying Bank: Vietcombank, HCM city, Vietnam e Beneficiary: ABC Trading Co, Ltd

L/C includes the total contract value within 7 days from the date the buyer receives the contract performance guarantee specified in this contract L/C is valid and expires at most 15 days from the date of issue

The buyer will present the following documents within 21 days from the date of signing the bill of lading:

e Signed commercial invoice in three originals and three copies e Packing list with Detailed serial number: 3 originals e Certificate of Quality and Quantity issued by Manufacturer in three copies

e Full set Bill of Lading marked “Freight prepaid” to pay at destination made out to order of

Tokyo Commercial Bank, Japan e Certificate of Origin form AJ (or VJ) issued by the import and export management office

of the Ministry of Industry and Trade in two copies e Certificate of Insurance

e Insurance policy or certificate in duplicate for at least LLO pct of CIF invoice value and blank endorsed with claims payable at destination in the currency of the draft covering: institute cargo clauses (A) institute war clauses (cargo)

® One set of copy shipping documentation (01 B/L, 01 Packing list, 01 Commercial Invoice, O1 Insurance Policy, 01 copy of Certificate of Origin and Certificate of Quality) must be sent via email or fax to the buyer within five working days of shipment

8 INSPECTION

The BUYER shall inspect the Goods on their arrival at the place of destination If there is a dispute regarding the quality, quantity, or packaging circumstances in the Contract, then the BUYER shall notify the SELLER of any discrepancy without delay

If the BUYER does not notify the SELLER of any such discrepancies within 60 Days of the arrival of the Goods, the seller will resolve such claim within 30 days

9 INSURANCE: The seller will pay for insurance, Insurance policy or certificate that covers

110% of the invoice value in the invoice currency and includes the product name, invoice number, and issue date as well as the claim payable in Ho Chi Minh, Vietnam

12 FORCE MAJEURE OR ACTS OF GOOD

Flood, fire, strike or other labour disturbances, acts or omissions of government or other competent authorities, war declared or not, riot, civil commotion, sabotage, acts of god which may be occurred shall be considered as force majeure The party that bears force majeure has to notify the other party of the force majeure cases by fax/telex within five (05) days upon the force majeure taken place Such force majeure cases, if any, must be certified by the Chamber of Commerce of the country concerned

The party unable to carry out its obligations under the contract shall advise the other party of the commencement and termination of the circumstances preventing performance of the contract within 5 days

13 EFFECTIVE DATE: the contract will come into force from December 15, 2022

Q2 As seller, discuss in detail the procedure of the sales contract in Q1

Consider payment terms Export

License

Be cleared

Deliver the goods procedures customs

Present

shipping documents for

Diagram 1: The procedure of the sales contract as a seller

1 Export licence 2 Consider payment terms

3 Prepare goods for export - Product preparation The seller needs to prepare the exact amount of coffee, with a shipping quantity of 200 MT, more or less 5%

- Product packaging: Coffee is a unique product that is packed according to its own requirements and export norms When shipping green coffee, it is usually packaged in a 20-foot container and is always lined with an inner carton around the container to ensure that there are no sharp items that will rip the bag, as well as a removing moisture bag

Bulk shipment: This sort of bag typically weighs 10kg and is fastened to the four corners of the container - 1 Bulk bag for a 20ft container, as illustrated above, can hold around 21 tons of coffee This method is known as blow-closing because it necessitates the use of a device to blow the coffee inside the bag

Jute bag shipment: packaged in jute bags According to global coffee industry regulations, if coffee is packaged in jute bags with a volume of 60kg/bag, we get 320 jute bags carrying coffee = one 20ft container

4 Inspect goods During the import and export procedure, we frequently encounter certifications of commodities such as animal/plant identification, fumigation, quality or quality and weight analysis, which the buyer needs the seller to attach to other commercial documents These responsibilities are typically performed by inspection businesses (third parties) Typical coffee product services include:

@ Inspection service:

© Quality inspection of coffee © Quantity inspection

© Weight inspection

© Quality assessment of coffee by tasting method

e Fumigation Service: ® Certification Service:

© Product conformity certification o HACCP certification

Weight and Quality Certificate An independent third party, issuing the certificate of weight It has been developed and validated that the goods have been calculated the real weight based on ISO standards

Certificate of Fumigation The fumigation provider will spray the chemical on the wooden pallets during the fumigation process Furthermore, after the container is finished, the fumigation business will spray it again The incubation period is at least 24 hours and may be up to 72 hours

Phytosanitary Certificate When exporting or importing agricultural products or raw materials of plant origin, a phytosanitary certificate is nearly always required This certificate is issued in Vietnam by branches of the Plant Protection Department of the Ministry of Agriculture and Rural Development

The seller must send it to the importing country's Plant Protection Agency (enter the name according to the international regulations of the importing country)

1 Name and address of the exporter 2 Name and address of the importer 3 Quantity and type of packaging 4, Sign, code: can be the symbol of the goods lot, contract number or L/C number

5 Place of production: the place where this product is produced

6 Means of transport: vehicle name, trip number, bill of lading number and the delivery date of

bill of lading 7, Port of entry: name of the port of discharge 8 Product name and weight: name of the type of goods, net weight and gross weight of the shipment

9 The scientific name of the plant

If there are no additional declarations, the sections below will be left blank or filled with XXX Finally, the certificate must contain information about the date, place of issue, name and signature of the person performing the plant quarantine, and must also include the seal of the certifying

agency

5 Transportation contract Booking confirmation is a hold or reservation confirmation used to reserve a place on a cargo ship The cabin storage on the ship is only valid when chartering a liner Because the consumer only reserved a portion of a seat on the ship, which follows a set route and schedule In this situation, the shipper is the forwarding company EVERGREEN LINE The forwarding company will make the actual booking on the exporter's behalf First, they obtain the essential shipment information from the customer, such as the cargo name, loading port, unloading port, and so on Staff from the company will email the shipping line to make reservations and pick up empty containers Certificate of Origin:

Currently, the import and export of commodities between Vietnam and Japan are expanding rapidly and benefiting from numerous advantages This is done to implement a Certificate of Origin, C/O Form VJ, which will assist commodities traded between the two countries in lowering import and export taxes This will assist firms in lowering expenses and increasing profits According to laws, an exporter must submit the whole set of documentation listed below to the

HS code List of raw materials and condiment

Norms of consumption of raw materials and condiment: Sign and stamp Production process

Input ingredients’ import declaration and invoice

6 Insurance contract In a CIF transaction, the seller delivers the goods, which have been authorised for export, on the ship at the port of shipping The items’ transportation to the target port is paid for by the seller, who also secures and pays for a minimum level of insurance protection for the goods during their trip

When the seller transfers the goods to the ship, the risk is transferred to the buyer All additional transportation expenses, such as import clearance and customs, incurred after the port of destination are the buyer's responsibility

7 Be cleared customs procedures Customs declaration must be declared and transmitted

- All information, including port codes, type codes, customs codes, and a variety of other specialised information, must be filled in by the seller

- The declaration will be assigned a number once the information is completed The seller

toms clearance of export customs declarations: - Green Stream: Accepted goods and documents - Golden Stream: Profile must be reviewed for validity - Red Stream: Documents and goods must be re-checked on the customs electronic system toms clearance and declaration liquidation:

- Sellers must pay all taxes in order to accomplish customs clearance - When the customs clearance procedures are completed, the seller prints the barcode and

meets with customs to liquidate the declaration - After customs stamps the barcode, the seller prints the necessary documentation for the

driver to take the items out of the port Deliver the goods

Present shipping documents for payment Due to the payment by L/C, the seller must notice:

1) The importer (buyer) arranges for the opening of an L/C in the exporter's favour by the issuing bank (seller)

2) The LC is sent from the issuing bank to the designated bank, which then sends it on to the exporter

3) The exporter sends the merchandise and related paperwork to a freight forwarder

12

4) The freight forwarder ships the items, and the exporter or dispatcher then sends the necessary paperwork to the designated bank

5) The designated bank collects payments from the issuing bank on behalf of the exporter and

verifies that documents conform to the LC

6) The issuing bank debits the importer's account 7) Documents for claiming the goods from the carrier and clearing them through customs are

released to the importer by the issuing bank However, there are some policies the Seller must regard unless they could violate the contract:

e Bank sends documents to the seller within 5 working days (According to UCP 600) e The seller must submit documents for payment within the validity period of the L/C e Instead of the buyer's bank must pay in advance to the seller's bank, to ensure their interests

they will ask the buyer to pay in advance After delivering the goods, the company needs to complete the necessary documents or documents to get the remaining amount (if any) as shown in the above 02 processes or will wait for feedback on the missing or incorrect goods quality (if any) and make monetary compensation

10 Claim & Solving Claim