Topic Import Process Of Packaging Material (Pvc Heat Shrink Film) From China To Vietnam.pdf

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS ---[0--- FINAL REPORT TOPIC: IMPORT PROCESS OF PACKAGING MATERIAL PVC HEAT SHRINK FILM FROM CHINA

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS

-[0 -

FINAL REPORT

TOPIC:

IMPORT PROCESS OF PACKAGING MATERIAL

(PVC HEAT SHRINK FILM) FROM CHINA TO

ACKNOWLEDGEMENT

Foreword, with deep gratitude our team would like to send our most sincere thanks to

Ms Pham Thuy Thuy Dung — Lecturer in International Trade Practice Along with her passionate commitment to education combined with her new and creative ways of learning through teaching That brought a breath of fresh air and made this topic something special Helps us deepen our existing knowledge and quickly absorb many new lessons and extremely useful practical experiences Therefore, Ms Dung has become a great source of motivation to help us develop more learning spirit and desire

to gain more knowledge

Furthermore, the methods and tools she suggested and led to support research and reporting were extremely appropriate and effective This subject has taught many useful and practical skills, particularly in the field of economics Due to our lack of experience in writing research reports as well as our lack of knowledge, the half-time work certainly still has some limitations I hope you and your friends will give us your feedback I will continue to improve and develop in the future

Words of gratitude cannot fully express our deep gratitude to Ms Dung Finally, my team wishes you and your friends a good educational path and more success for the future

COMMENTS FROM LECTURE

TABLE OF CONTENT

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INTRODUCTION

Trade, cooperation, and strong links between countries and economies are expanding in the context of globalisation, which is a shared tendency across all countries around the world From there, the Vietnamese economy has an opportunity to expand and develop

in neighbouring and global countries

One of the critical necessary for helping Vietnam quickly bring about change and connect into the global flow is the expansion of import-export activity Import-export business is one of the most essential sectors for developing countries to engage in the worldwide division of labour, build their economies, and enrich themselves At the same time, the advancement of science and technology, developments in international law, and the elimination of customs barriers, participation in the World Trade Organisation (WTO), and the signing of bilateral, multilateral, or, more recently, accession to the ASEAN Economic Community (AEC) Victnam provides various benefits to import-export companies in order to gain access to a huge number of potential customers worldwide Import and export are gradually becoming a national economic resource, a factor that encourages the country's development

To ensure the efficiency and stability of import and export activities, each country, or each import-export corporation in particular, must develop and establish its own international goods forwarding process This process will have a direct impact on the country's and firms’ import-export activities Understanding this, I choose the topic

"Analysis of LAP TIN PACKAGING CO.,LTD's PVC Shrink Film Import Procoss." The report is divided into four chapters:

CHAPTER 1 1.1 Overview and history of the development of plastic packaging in Vietnam

In all areas of packaging production and supply, plastic packaging 1s considered the fastest growing and has the largest position in the Vietnamese market, especially when our country participates in a globally integrated economy of WTO demand

1.1.1.When did the plastic packaging industry start?

Currently, there are no accurate documents that accurately record the history of the plastic packaging industry, there is only sparse information from many unofficial sources

In early times, people used naturally available materials such as leaves and tree bark to store food or hunt and collect items These are also the first types of packaging in human history Through the evolutionary process and development of science and technology, many types of packaging with different designs, characteristics and materials emerged Due to people's increasing need for preserving objects and food, they are becoming more and more diverse

Originally, people could only use natural materials or rudimentary packaging

to store solid products It wasn't until ceramics and terracotta were invented that people could actually absorb and store liquids Glass packaging appeared

next

Little by little, expensive packaging made of wood or glass also revealed many disadvantages For example, it is difficult to recover and difficult to decompose

in the environment, affecting crop areas

Later, when people began to extract oil and use finished products made from oil, it was also the time when they invented plastic packaging - a type of

packaging that meets most of the product packaging needs of people The previous type of packaging was not possible

Since then, plastic packaging has become an integral part of people's everyday lives Not only does it play an important role in the movement of goods, but it

is also becoming an important sector of the economy that supports socio- economic development No matter where in the world or in Vietnam 1.1.2 How did the plastic packaging industry develop?

The plastics sector is still relatively new, both internationally and in Vietnam,

as compared to other established industries like mechanics, energy, electronics, chemicals, textiles, etc., but it has seen significant growth Only behind the textile and telecommunications sectors, the plastics industry saw some of the fastest-growing goods last year, making it one of Vietnam's fastest-growing sectors between 2010 - 2020, with an annual growth rate of 16% to 18% (only after the telecommunications and textile industries) with some of the fastest- growing products Growth reached almost 100% per year

With its rapid development, the plastics industry is considered a dynamic sector of the Vietnamese economy This growth comes from a large market with great potential and especially because Vietnam's plastic industry is just beginning to develop compared to the world and plastic products are used in all parts of the world Life includes plastic packaging products, building material plastic products, household plastic products and high-tech plastic products 1.1.3 What is the export and import value of the Vietnamese plastic industry?

For many years, the plastics industry has always had a trade deficit, with export sales significantly lower than import sales The value of the trade deficit increased from $7.3 billion in 2015 to $14.6 billion in 2020 Many reasons lead

to trade deficits in the plastics industry Firstly, domestic plastic materials can only cover about 20% at present, the remaining Vietnam needs to import up to 80% of its materials from abroad Secondly, a large proportion of imported plastic materials are used to manufacture products that serve as inputs for other industries such as electronics, automobiles - motorcycles, construction, etc

However, when exported, the value of the plastic components increases which

is not included in the export turnover of the plastics industry Third, the main products of the plastic industry are packaging, household appliances and construction plastic pipes, which mainly serve the domestic market, while exports are insignificant

Unit: Billion USD

Source: Compiled from [TC Trademap

Vietnam's plastic import sales nearly tripled from $5.4 billion in 2010 to $19.6 billion in 2020 The average import growth rate of the plastics industry during 2010-2019 is about 13%

In the structure of plastic imports over the years, imported plastic raw materials always account for more than half of the plastics industry's total import

Source: General Department of Customs

1.1.4 Number of packaging enterprises in Vietnam

The plastics industry is one of Vietnam's relatively young industries, but has a very rapid growth rate To date, there are more than 4,000 companies in this industry, of which more than 99% are private companies, mainly concentrated

in the southern region (which accounts for over 80% of plastics companies across the country), as it is a concentrated area act Many manufacturing industries produce plastic packaging products The majority of plastics industry companies are small and medium-sized enterprises, of which more than 90% of Vietnamese plastics companies process plastics abroad without building their brands

The competitiveness of Vietnamese plastics industry companies is generally still low due to predominantly small size and limited technological level Currently, Vietnamese plastic companies mainly use Chinese technology Machinery, equipment and production lines imported from China account for more than 40%

Nguyen Ngoc Sang, chairman of the Vietnam Packaging Association, said the Vietnamese packaging industry generally has a fairly high and stable growth rate In the period 2015-2020, the average growth rate is 13.4%/years

Statistics from Vietnam Packaging The association shows that there are currently about 14,000 packaging companies in Vietnam Of these, around 4,500 are companies in the paper packaging sector and around 9,200 are in the plastic packaging sector

"The future of the packaging industry will continue to grow with the development of Vietnam's economy, so the packaging industry is also an

attractive industry for investment capital from many countries,” Mr Sang emphasized

However, Mr.Sang also noted that Vietnam's packaging industry is also facing many challenges It is necessary to increase competitiveness through effective management, implement digital transformation and expand the packaging industry imto an industrial sector Green meets the requirements of a sustainable economy

1.2 Reasons for choosing China to import raw materials

Since Vietnam's plastic packaging market is still young, the plastic industry's production lines and machinery are completely dependent on imports Plastic packaging products — mainly imported from China and Taiwan Generally, the equipment and technology used to produce plastic products in Vietnam are mainly Chinese technology

Despite strong development in recent years, Vietnam's plastics industry is still known only as an economic-technical industry specializing in plastics processing, although it is not completely proactive in sourcing raw materials for production activities The plastics industry currently requires around 4.5 - 5.5 million tons of raw materials such as PE, PP, PS, PVC every year to supply manufacturing companies In general, the current plastics industry only takes a proactive approach to around 15-20% of input materials and chemical additives

Importing plastic materials and products in the period 2018-2022

Unit: Billion USD

From the above data, we can see that China is one of the countries that Vietnamese companies trust and choose to import raw matenals This can prove that raw matenals from China are actually of good quality and reasonable prices For this reason, the Lap Tin company is no exception It chose to import PVC shrink film materials from China for production to ensure customers the best product quality

LAP TIN PACKAGING CO., LTD

“CREATE SOLUTIONS TO HELP ENHANCE YOUR PRODUCTS THROUGH PACKAGING.”

We specialize in manufacturing Shrink Film Packaging, Heat Transfer Film, In-Mold Laminating Film, and some machines and components

1.3.1 Basic information

Founded in 2004, the company was initially a family business specializing in the production of plastic bags and inflating some basic types of shrink wrap to supply the domestic market The company's products are distributed by small traders in wholesale markets and a system of partnerships and agents in the westem provinces who cover the goods with the main purpose of avoiding external influences such as dirt, dust and dirt Bacteria, water, mold, shock affect the quality of goods and products Protect products from water, dirt, bacteria and mold

Later, due to the increasing demand for plastic packaging, the company began

to expand the market by ordermg more machines and producing printed packaging instead of the previously transparent packaging Since then, we have continuously worked on researching and developing products in the area of printing and packaging to meet the increasingly diverse needs of customers The equipment is regularly improved, and printers with 1 to 10 colors are operated by highly qualified employees Lap Tin now specializes in providing packaging products such as shrink films, heat transfer films, im-mold

laminating (IML) films and technical advisory support to new customers We regularly update new technologies in the industry and hope to provide the most effective solutions for your packaging in food, beverage, household goods, the plastic industry, etc

1.3.2 Mission, Vision, Core Value

To achieve current achievements, LAP TIN PACKAGING CO., LTD always carries out production and business activities, builds culture and corporate governance based on the vision — mission — core values that the company keeps mentioning:

Invest in more modem machines and equipment systems, develop the image of the communication segment, and bring beautiful and high-quality packaging to customers and consumers

We continue to focus on the core of packaging production but will expand into special, safe and high-quality packaging product lines - to increase the value and reputation of customers’ products and to protect products Customers’ products are always complete when they reach the consumer

The prestige and trust of customers in our products are always our top priority Moreover, the board and all employees of the company are always listening and learning We will constantly develop - constantly research - to offer good products and advanced technology address all customers And become the most reliable partner for complex soft plastic packaging for all customers, from small to large, from domestic to mternational

In addition to expanding the domestic market, we continue to develop in the international market, bring Vietnamese packaging products to other countries, and participate in the global supply chain - bringing common prosperity

1.3.3

years

1.3.3.1 Revenue Analysis

Situation and operating results of the company in 3

Table 1.1 Business result of the company in 3 years 2020-2022

Target 2020 2021 2022

insurance and Service

60,000,000,000

52,528,423.430 50,000,000,000

42,236,181,778 40,000,000,000

i Revenue from insurance and service provision ll Revenue from financial activities

Figure 1.1: Chart of fluctuations in revenue from 2020 to 2022

Through calculation, in general, the company's total profit after tax in 3 years is positive In individual terms, in 2020 compared to 2021, the profit rate decreased by 86,442,284 Dong, equivalent to a decrease of 52% In 2022 compared to 2021, profit will decrease by 19,315,540 VND, equivalent to a decrease of 24% The ratio of profit after tax to net revenue over 3 years is 0.016%, 0.002% and 0.001% respectively This

is due to the influence of factors:

¢ Revenue from sales and service provision over 3 years has changed, specifically

in 2021 compared to in 2020, sales revenue and service provision increased, resulting in total profit after tax reduced by | amount equivalent to 86,442,284 VND, equivalent to 52% In 2022 compared to 2021 decreased, causing total profit after tax to decrease by 19,315,540 Dong, equivalent to 24%

The ratio between sales revenue and service provision compared to net revenue over the years has a big change: 100% in 2020, 402% in 2021, and 502% in 2022 This means sales activities stabilize and grow year by year

« Net revenue from sales and service provision over 3 years has changed, specifically year in 2020 compared to 2021 increased revenue from sales and service provision, making a total profit after tax an increased amount equivalent

to 31,968,528,750 VND similarly increasing to 299.9% Compared to 2021, an

increase in 2022 that leads to total profit after tax will increase by | amount, equivalent to 10,292,241,650 VND, corresponding to an increase of 110.4% The ratio of net revenue from sales and service provision over 3 years also changed

« Revenue from financial activities has fluctuated over the years, increasing and decreasing over the years

Specifically, in 2020 compared to 2021, revenue from main transport activities increased, causing profits to increase by 1,751,798 VND, equivalent to 1,145% In

2022, compared to 2021, revenue from financial activities decreased, causing profits to decrease by 1,065,976 VND, equivalent to 55%

The ratio of revenue from financial activities and net revenue over the years has also changed

Specifically, in 2020 it is 100%, mn 2021 itis 1145% and in 2022 it is 45%

¢ Revenue deductions over the years have varied greatly, especially in 2020 which was zero Specifically, in 2021 compared to 2020, the increase in deductions caused profits to decrease by 149,215,230 VND In 2022 compared

to 2021, deductions continue to increase, causing profits to decrease by 217,642,156 VND, equivalent to 45.85%

The ratio between deductions and net revenue also changes Specifically, in 2020 it is 0%, in 2021 it is 0.536% and in 2022 it is 0.279% This shows that deductions tend to increase over the years

1.3.3.2 Cost analysis

Table 1.2: Costs in the company's income statement

Figure 1.2: Fluctuating cost of expenses from 2020 to 2022

¢ Cost of goods sold over the years has fluctuated up and down Specifically, in

2020 compared to 2021, the cost of goods sold increased, causing profit to decrease by 86,442,284 VND, equivalent to 52%o In 2022 compared to 2021, the cost of goods sold will increase, causing profits to decrease by 19.3 to 15,540 VND, equivalent to a decrease of 24%

The ratio of cost of goods sold and net revenue over the years has also changed Specifically, in 2020 it is 100%, mn 2021 itis 175.15% and in 2022 it is 118%

¢ Financial expenses fluctuate over the years, increasing and decreasing over the years Specifically, 2020 compared to 2021 is stable, neither increasing nor decreasing In 2022 compared to 2021, financial costs increase, causing profits

to increase by 85,729,518 VND, equivalent to 37.5%

The ratio of financial expenses and net revenue over the years has also changed Specifically, in 2020 it is 0%, in 2021 it is 0%, and in 2022 it is 137.5%

Selling expenses have increased over the years In 2021 compared to 2020, selling costs are increasing, causing profits to decrease by 67,817,389 Dong, equivalent to 670% In 2022 compared to 2021, selling expenses increase, causing profits to decrease by 4,192,332 Dong, equivalent to 6%

The ratio of selling expenses and net revenue has increased over the years, specifically

in 2020 it is 0%, in 2021 it is 100% and in 2022 it is 106.2%

Business management costs over the years have fluctuated up and down Specifically, in 2021 compared to 2020, business costs decreased, causing profits to decrease by 67,255,887 Dong, equivalent to 8.3% In 2022 compared

to 2021, business costs will increase, causing profits to decrease by 3,289,904 VND, equivalent to 0.45% The ratio of business management costs and net revenue over the years has also changed Specifically, in 2020 it is 100%, in

2021 it is 108.3% and in 2022 it is 100.45%

Other costs fluctuate over the years Specifically, in 2021 compared to 2020, other costs increased, causing profits to decrease by 31,816,471 dong, equivalent to 91.25% In 2022 compared to 2021, other expenses increase by 89,058,895 Dong, equivalent to 71.85% The ratio of other expenses and net revenue over the years also changed Specifically, in 2020 it is 100%, in 2021 it

Other profit 3,105,260 34,290,490 123,299,534

0 Profit from Profit from financial mm _ Other profit Total profit before Ra Total profit after |

insurance & Service activities tax tax Provider

m2020 m2021 m2022 Figure 1.3 Company profits from 2020 to 2022

« Other income changes over the years Specifically, in 2020 compared to 2021, other income increased, causing profit to increase by 631,241 VND, equivalent

to 95.3% In 2022, compared to 2021, other income will decrease, causing profit

to decrease by 612,390 VND, equivalent to 92.6% The ratio of other income

and net revenue over the years also fluctuates Specifically, in 2020 it is 100%,

in 2021 it is 195.3% and in 2022 it is 102.7%

¢ Profit or loss in the company has decreased year after year Specifically, in 2021 compared to 2020, the company's profit or loss will decrease by 86,442,284 Dong, equivalent to 52% In 2022 compared to 2021, the company's profit or loss will decrease, causing profit to decrease by 19,315,540 Dong, equivalent to 24% The company's profit or loss ratio and net revenue over the years also change Specifically, in 2020 it is 100%, in 2021 it is 48% and in 2022 it is 22%

CHAPTER 2

2.1 Overview of the PVC shrink film

PVC plastic is also found in many other types of objects around us PVC plastic is in everything from clothing, signs, flooring, and packaging PVC shrink wrap is one of the most commonly used materials in the packaging industry After many years of research, in 1926 when Dr Waldo Semon discovered the method of plasticizing PVC, this was the first breakthrough to overcome the disadvantages when processing PVC After that, research and inventions on stabilizers for PVC were published one after another

By 1933, many forms of PVC had been synthesized in the US and Germany, but it was not until 1937 that PVC was produced on a complete industrial scale

in Germany and then in the US

2.1.1 Introduction to PVC shrink film

PVC shrink film, also known as PVC heat shrink film, 1s produced from virgin PVC resin (abbreviation for Polyvinyl-chloride), a thermoplastic made from the polymerization reaction of vinyl chloride (CH2=CHCI)

PVC shrink film is most widely used for many different applications, it is suitable for making soft drink and mineral water bottle labels or for packaging canned products, pet food, stationery, or other types of consumer goods PVC heat shrink film also works very well when used in combination with automatic heat shrink film machines The product when covered with PVC shrink film will be covered by a durable, waterproof, protective sealing layer, with a shiny appearance and absolutely no wrinkles That's why PVC shrink film is one of the effective packaging solutions for your products, you can also print on PVC shrink film if you need

2.1.2 Classification and uses

Basically, PVC shrink film is divided into two main types:

products such as bottled water, pet bottled soft drinks, shampoo bottles, etc The characteristic of this type of printed PVC shrink film is that it can be designed 360 degrees % around the product, eye-catching colours, and difficult to fade or tear like other types of packaging

2 Non-printed PVC shrink film: Used to make shrink film to wrap 06, 12, bottles, or make a protective film on the outside of paper packaging such as cosmetic boxes, perfume boxes, children's toy boxes

Regarding the purpose of use, PVC shrink film is divided into the following

types:

° Heat shrink film roll: Is a thin, light heat shrink film, in the form of a long tube wrapped around a paper core, with diverse sizes depending on usage needs

requirements of each product, to help you pack faster

In addition, based on the soft/hard nature of the membrane, people

can also distinguish two more types:

° Rigid PVC shrink film: this type is produced in an extruder or laminating machine at high temperatures of 160-180 degrees Celsius, mainly composed of PVC powder, in addition to adding some substances such as heat stabilizers, lubricants, additives Hard PVC films are mainly used to make water pipes, gas pipes, gasoline, etc or used to cover metal machinery working in corrosive environments

shrink film is used to produce flexible products such as labels printed on cosmetis boxes, drinks, and packaging, food packages

2.1.3 Application of the product and market characteristics

The applications of PVC shrink film: used to close and cover all products of different shapes and sizes, helping the product to be preserved better while increasing its value and making it more attractive in the eyes of consumers Used to produce shrink film, stretch film, protective gloves, participate in the process of converting other types of plastics, industrial films, multi-layer films Characteristics of PVC heat shrink film include:

High durability, not easy to break or tear

luxurious

1 Dustproof and waterproof to

preservation

2 Increases

packaging

durability when

3 Diverse sizes and designs,

suitable for all types of

3 The plastic content determines the quality, so

requirements that need to be newly produced, making sometimes

it difficult to have available products and taking time

4 Difficult to decompose, creating toxins that pollute the environment

PVC heat shrink film is applied to preserve, package, and wrap all products for many different sizes and designs We can easily see PVC heat shrink film applied to products such as cosmetics, beverages, clean water, insulating products, water pipes, consumer products, electronic technology products, export products

PVC heat shrink film has many advantages and benefits when used in packaging and protecting goods Here are some of its outstanding advantages:

Good dirt, grease, waterproof, gas repellent: PVC heat shrink film creates a tight and water-resistant coating, which protects goods from agents that can harm products

Good ductility, bearing and impact: PVC heat shrinkable film has plastic properties, making it resistant to forces and shocks during transportation, loading and unloading products without causing damage or loss

High strength: PVC heat-shrinkable film has the ability to hug and adhere tightly to the goods when shrinking the film, creating a safety coating This helps ensure the sustainability of the product during transportation and storage Brand promotion: PVC heat shrink film can print brand images and logos on the upholstery This helps create brand recognition and promote products effectively

Cost savings: PVC heat shrink film has a relatively low cost, and the packaging effect it brings is stable This helps businesses save costs in the packaging process and protect goods PVC heat shrink film has many advantages, making it an ideal packaging material for many industries The PVC heat shrink film market in Vietnam has grown significantly due to the growing demand in these industries

Pharmaceutical packaging

Packaging for cosmetic chemical products

Packaging for electronic products

Packaging for industrial products

Packaging for beer products

- Rigid PVC film: PVC film is produced from materials such as PVC film powder, lubricant powder, heat stabilizer These materials are mixed with a mixer and then put into an extruder or machine lamination to puree at high temperature Rigid PVC film products are used as gas and gasoline pipes at temperatures of about 60 degrees, to protect metals im corrosive environments and many other applications

- Soft PVC film: It is a PVC film with plasticizers mixed into the production ingredients With its flexible nature, soft PVC film is widely used and can be used to make some products such as thin films, coatings, pastes, foam plastics

2.2 Theoretical basis of the import process of a batch of goods according to the textbook

There are 6 steps in the basic process of importing a shipment:

Step 1: Inquiry

This is the first step into trading Price asking is the buyer's request to the seller for the price and other commercial conditions necessary to purchase the goods Asking the price does not bind the lability of the price inquirer Asking the price is essentially just an exploration for delivery Therefore, as an importer, when asking for the price, we need to find out carefully about the company that

we intend to ask the price for

Step 2: Offer

An offer is an offer to enter into a contract for the sale and purchase of goods that is transferred to one or more identified persons The basic content of an offer: Name of goods, quantity, specifications of dignity, price, payment method, location and time limit of delivery, and some other conditions such as packaging, and symbols Offers can be made by the seller or buyer If the buyer's offer is called an offer to buy, if the seller's offer is called a sale, the quoted price is also an offer When formulating an offer, the offeror must based on specific conditions consider the following issues: To whom to send, when to send, the type of offer, the effective time of the offer, and the basic content of the offer for the most appropriate and optimal

Step 3: Order

An order is an offer to conclude a commercial contract by a buyer, so in principle, the content of the order must be full of necessary contents for the conclusion of the contract In practice, people only place orders with customers who have regular relationships, or the two parties have signed long-term contracts and delivery agreements in multiple installments, the content of the order only states separate conditions for that order As for other conditions, the two parties apply according to the conditions of the signed contract in previous transactions

Step 4: Counter-offer

When the recipient of the offer does not fully approve the offer but makes a new offer, the new offer is a refund When there is a refund, the pre-offer is considered to expire

Step 5: Acceptance

Acceptance is the complete acceptance of all conditions of the offer, at which the contract is established Any legally valid acceptance must satisfy the following conditions:

° Must accept the acceptance of the offer

° Acceptance must be made during the period of validity of the offer

Step 6: Confirmation

After agreemg on the trading conditions, the two parties record the results achieved and then hand them over to each other, which is confirmation The acknowledgment is usually made in two copies, signed by both parties and each party holds one copy

In addition, in the import process, there are negotiations: negotiations by mail, negotiations by telephone, and negotiations by meeting directly

After negotiation, the two commercial parties sign the contract A contract is

an agreement between the parties, the seller or exporter who is responsible for delivering goods and transferring ownership of goods to the buyer, also known

as the importer, the buyer is obliged to pay the full amount under the contract The contract can be considered as signed only in cases where the parties have signed the contract The parties must have a legal address specified in the contract In addition, the contract of sale can be oral, or partly oral, it can also

be by gesture as in the exchange and auction An oral contract or gesture without a written gesture must then be made in writing when it has been agreed upon orally or signaled According to Vietnam's Commercial Law, the form of

an import contract must be a document

2.3 Relevant policy documents for importing PVC shrink film

Importing plastic film is one of the fastest ways to meet the needs of users To

be able to import this item, importers must have foreign trade knowledge and understanding of customs laws In this report, our team would like to present the procedure for importing PVC shrink film, import duty, VAT and import policy of PVC shrink film - plastic wrap for goods and food

Shrink wrap import policy:

Procedures for importing PVC heat shrink film are regulated by the following legal documents:

Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;

Decree No 69/2018/ND-CP dated 15/05/2018;

Decision 18/2019/QD-TTg dated 19/04/2019;

Circular No 21/2017/ TT- BCT dated 23/10/2017;

Decree No 43/2017/ND-CP dated April 14, 2017;

Circular No 19/2019/TT-BXD dated 31/12/2019;

Decree 128/2020/ND-CP dated October 19, 2020

According to the above documents, PVC shrink film products do not belong to the list of goods banned from import When importing this item, it is necessary

to pay attention to the following points:

When importing heat shrink film, goods must be labeled according to 43/2017/ND-CP;

Determine the right hs code to properly identify taxes and avoid penalties

+ Imported shrink film stickers:

Labeling on imported goods is not a new regulation However, since Decree 128/2020/ND-CP was issued, the labeling of imported goods has been more closely monitored Labeling of goods aims to help administrative agencies manage goods, identify origin and units responsible for goods Therefore, labeling on goods is one of the indispensable stages when carrying out procedures for importing plastic film covering goods from different countries Label context: In addition to labeling, label content is also very important Labeling contents of items are specified in Decree No 43/2017/ND-CP For plastic film items covering goods of all kinds, the contents of a full label include the following information:

° Information of the exporter (address, company name);

° Those are the basic label contents that need to be affixed to the goods

+ Placement of labels on goods

Sticking labels on goods is necessary, but sticking in the nght place is more important When importing, the label needs to be affixed to the surfaces of the package such as: On the carton, on the wooden bale, on the product packaging

Or anywhere as long as it's easy to check and visible Labeling in the nght position will help save time for inspection when carrying out procedures for importing plastic films covering goods of all kinds

+ Risks encountered without labeling

Labeling on goods is caught m accordance with the law If the goods are not labeled when imported or the contents of the goods label are wrong Then importers face the following risks:

° To be fined according to regulations and fines specified in Article 22 of Decree 128/2020/ND-CP;

origin will be rejected;

loading and unloading

+ Determination of HS code of shrink film

Determining the HS (Harmonized System) code is the most important step when carrying out import procedures for any type of goods Defining the HS code will determine import duties, VAT, and import policies In order to determine the correct HS code of shrink wrap, we need to understand the characteristics of the goods: Material, composition, and characteristics of the product

+ HS code PVC shrink film