In order to consolidate the knowledge and help me catch up with the work, thecompany gave me a special training programme deeply about Logistics, FreightForwarder, Incoterms 2010, LCL, F
Trang 1TABLE OF CONTENTS
ACKNOWLEDGEMENT 2
PART I: INTRODUCTION 3
1 Internship Objectives 3
2 Internship Organization 3
3 Internship position 6
PART II: INTERNSHIP ACTIVITIES AT THE ORGANIZATION 15
TASK 1: 15
TASK 2: 16
TASK 3: 17
TASK 4: 17
TASK 5: 19
TASK 6: 20
TASK 7: 20
TASK 8: 21
TASK 9: 21
PART III: REFLECTION TO THE INTERNSHIP 23
1 Procedures of services 23
1.1 Sea importing service procedure 23
1.2 Airway exporting service procedure (Door to Port) 25
2 Real Business 25
2.1 Sea FCL Importing Service 26
2.2 Airway exporting service 27
PART IV: CONCUSION 29
REFERENCES 30
Trang 2On the very outset of this report, I would like to extend my sincere and heartfeltobligation towards all the personages who have helped me in this endeavor Withouttheir active guidance, help, cooperation and encouragement, I would not have madeheadway in the project
It is my radiant sentiment to place on record my best regards, deepest sense of gratitude
to Mr Phan Hong Viet, Director, Mr Nguyen Minh Dung, Vice Director, Ms Tran ThiPhuong, accountant for their careful and precious guidance during the internship at AnViet Logistics Joint Stock Company, which were extremely valuable for my study boththeoretically and practically
I am extremely thankful and pay my gratitude to my supervisor Mrs Tran Hong Nganfor her valuable guidance and support on completion of this project in its presently
I extend my gratitude to International School – Vietnam National University for giving
me this opportunity
Trang 3PART I: INTRODUCTION
1 Internship Objectives
As a last year student of International School – Vietnam NationalUniversity, I took part in the 6 weeks Internship programme in a logisticscompany The reason I choose to follow the logistics sector is that Iwanted to study and experience more about international shipment Iwant to learn the differences in using different kinds of container andhow to minimize costs using them
I also want to have more knowledge on the international tradingactivities, including 3PLs activities and learn more about the freightforwarders as well as customs check procedures
Besides, working in a logistics firm help me understand partly thesituation of Vietnamese companies in the global market, or importation/exportation, the way they negotiate with their foreign partners and whichmethods were used for transportation, sea or airway, which of theIncoterm conditions were applied in the contracts
Working as 3PL also gives me the general points of view in the Vietnamimport taxes, tariffs For example, how the C/O form E benefits theVietnamese companies
Trang 4 Headquater: No 34 Nghia Tan, Cau Giay, Ha Noi
Member of: FNC Group, TIACA
The networks of warehouses and partners all around the world bringcompany the advantages to ensure the best services on bothinternational and domestic transportation
2.4 Services
2.4.1 Connecting international forwarders and partners from other
countries The company is able to help customers in delivering/receiving imported/ exported goods with the competitive prices
Trang 52.4.2 Providing sea and airway transportations An Viet is responsible of
transporting containers, freights with the minimum costs andmaximum quality of services
2.4.3 Importing/ exporting goods from other nations to Vietnam and from
Vietnam to other nation
2.4.4 Customs clearance services:
Airport (Noi Bai, ICD My Dinh, Gia Lam, Tan Son Nhat, Expresscustoms), deliver goods within 24 hours
Seaport (Hai Phong, Ho Chi Minh, Da Nang), deliver goods within 24 –
Fumigation (applied for wooden packages to U.S., Canada, )
Phytosanitary (applied for food, bamboo products, )
Cultural licenses
Express
Inspection of labor safety and quality
Trang 6 Europe (Italy, France, Germany, Austria, Finland, Denmark, )
Asia (North Korea, India, Thailand, China, Taiwan, Hongkong,Singapore, Malaysia, Indonesia, Philipine, )
America (Chile,America, Canada, )
2.5.3 Inland transportation
China, Laos,
In order to develop business and gain customers satisfaction, the company openedbranch offices in Hai Phong, Ho Chi Minh, Lang Son In the future, the company isopening office in Da Nang to meet the market demands
The company discerns the importance providing safe and effective services andsatisfying customers, so that these services are the priority of the company
3 Internship position
The internship position I hold is dealing with few major retailers in both seaimports/exports and also in air import/exports
Trang 7In order to consolidate the knowledge and help me catch up with the work, thecompany gave me a special training programme deeply about Logistics, FreightForwarder, Incoterms 2010, LCL, FLC, Containerization, ECUS5VNACCS(Vietnam Automated Cargo Clearance System), and differences between HouseBill of Lading and Master Bill of Lading.
3.1 Logistics
Logistics is the overall management of the way resources are obtained,stored and moved to the locations where they are required Logisticsmanagement entails identifying potential suppliers and distributors;evaluating how accessible and effective they are and establishingrelationships and signing contracts with the companies who offer the bestcombination of price and service A company might also choose tohandle its own logistics if it is cost-effective to do so
3.2 Freight Forwarders
Freight Forwarders are professionals who take care of the more importantsteps regarding the shipment of your goods You can get all of thetransport information you require from a forwarder
Using the right freight forwarder can save time, money and establish amore competitive base for your product Using the wrong one can sendyou in the opposite direction If you have decided you need the assistance
of a forwarder, you must find one that suits your needs This sectioncovers the criteria for determining if the forwarders you select areappropriate for your type of product and the shipping destination
Trang 8Some forwarders are more familiar with certain aspects of trade thanothers Therefore, it is a wise business decision to interview eachforwarder In considering a forwarder, ask these questions Does theforwarder:
Have an office near your shipping port?
Have experience handling your type of product and shipment
to your market?
Have experience with the type of carriers you require?
Have a good credit rating?
Have favorable shipping rates and delivery schedules?
Receive good recommendations from carriers?
Belong to any professional associations or organizations?
Have a reputation for friendliness, competence, efficiency,reliability, cost-effectiveness, trustworthiness and using fairbusiness practices?
3.3 Incoterms 2010
Incoterms 2010 is the eighth set of pre-defined international contractterms published by the International Chamber of Commerce, with thefirst set having been published in 1936 Incoterms 2010 defines 11 rules,down from the 13 rules defined by Incoterms 2000 Four rules of the
2000 version ("Delivered at Frontier", DAF; "Delivered Ex Ship", DES;
"Delivered Ex Quay", DEQ; "Delivered Duty Unpaid", DDU) arereplaced by two new rules ("Delivered at Terminal", DAT; "Delivered atPlace", DAP) in the 2010 rules
Trang 9In the prior version, the rules were divided into four categories, but the
11 pre-defined terms of Incoterms 2010 are subdivided into twocategories based only on method of delivery The larger group of sevenrules may be used regardless of the method of transport, with the smallergroup of four being applicable only to sales that solely involvetransportation by water where the condition of the goods can be verified
at the point of loading on board ship They are therefore not to be usedfor containerized freight, other combined transport methods, or fortransport by road, air or rail
Trang 11destination or at transshipment points, meant for different consignees
at different ports Once after arrival of goods at destination the freightforwarder release goods meant for each consignee separately bycollecting necessary charges if any
The cost is calculated by figure from length 1m multiplied by width1m multiplied by Depth 1m = 1 ton (10Cbm)
3.5.2 FCL
If an exporter has goods to accommodate in one full container load,
he books an FCL (Full Container Load) to stuff his cargo In an
FCL cargo, the complete goods in the The term FCL What is FCLmeanssaid container owns by one shipper In an FCL owned by oneshipper, the cargo in the container need not have fully loaded cargo inthe container Let the cargo be half loaded or quarter loadedcontainer, if booked by one shipper under one shipment, the saidshipment is called FCL shipment
3.6 ECUS5VNACCS
Trang 12ECUS5VNACCS (Vietnam Automated Cargo Clearance System) wasdesigned as standardized modern electronic customs system, fully meetsthe requirements in customs processes of the system VNACCS / VCISfunded by Japanese Customs, while remains the typical features of ECUShas been used by agencies The new system is designed to extend theregistration procedures such as: registration for exempt categories;procedures applied for both traded and nontraded goods, simplifiedprocedures for low value goods, temporarily imported reexported goods.The operation codes are built so that users could select proceduredoptions in an easy way The system includes a full range of modules:
Automatic customs clearance e-Declaration
Electronic Payment Transactions e-Payment
Invoice Transactions report e-Invoce
National Single Window Systems Single Window
Ship declaration System e-Manifest
Shipping declaration System OLA
3.7 Differences between House Bill of Lading and Master Bill of Lading
House Bill of Lading Master Bill of Lading
issued by a Non-Vessel Operating
Common Carrier (NVOCC) or by a
freight forwarder to the person who
is their customer
is given to the shipping line, thecompany that is going to do the actualcargo transportation or to the carrier ofthe cargo This document will begenerated and handed over to theshipping line by the NVOCC or thefreight forwarder
The party to notify could be anyone, Notifications could be sent to anyone
Trang 13including the shipper, a third party or
someone that is named in the letter
of credit, if the shipment has one
that the freight forwarder or theNVOCC has chosen to inform aboutshipment arrival
The party listed as the consignee is
the person who put in the order for
the cargo at the destination port
At the destination port, the freightforwarder or NVOCC should have anagent that will act as the consignee.The shipper listed on the HBL is
typically the person who is selling
the cargo not their NVOCC or
freight forwarder
The shipper listed in the MBL is theparty that turned the MBL over to theshipping lane This should be theNVOCC or the freight forwarder
issued on what is called a back to
back basis with a master bill of
lading (MBL)
Care must be taken to ensure that theHBL and the MBL are not exact copies
of each other
Trang 14PART II: INTERNSHIP ACTIVITIES AT THE ORGANIZATION
The internship position I hold is with few major retailers in both sea imports/exportsand also in air import/exports I was helping with importing and exporting of productsfor the company’s customers There were nine job tasks for me that was attained whileworking here These job tasks made my internship position a valuable work experienceand also increased my knowledge in the sea freight process of supply chain The ninetasks are:
TASK 1:
Prepare and arrange critical sea freight documentation requirements and their impact
on sea freight shipments The fact is that even to move something small like a piece ofpaper or screw from China to Vietnam, documentation of the packages being shipped,its quantity, certificates of origin, does the country fall in the certain category of placethat Vietnam can ship from, and more questions should be answered for this small item
to enter Vietnam border gate Therefore, four main documentations required forchecking if the items in a shipment are going to the right place with the right item areCommercial Invoice, Packing List, Forwarder’s Cargo Receipt and Bill of lading Ineed to check all information on these four documents to make sure the purchase ordernumbers in these copies provided by the exporters are the same If the numbers are thesame, I enter the required information into the VNACCS (Vietnam Automated CargoAnd Port Consolidated System), a software allows users to practice the customsclearance online If the purchase order numbers are not the same or if some documents
do not have the purchase order numbers or if one or two documents are missing fromthe exporter, I note it down Then, I give the ones with the problem to my supervisorand he sends the exporter an e-mail requesting the new purchase order numbers or therequired documents necessary for the shipment to be delivered at the right place withthe right quantity There are other documents that are very important for shipment like
Trang 15the Certificate of Origin, Certificate of Manufacture, Certificate of Inspection,Certificate of Certification, Certificate of Analysis, Certificate of Free Sale, ImportLicense and Certificate of Insurance.
There are other transportation documents like the bill of lading, shipper’s letter ofinstruction, shipments of dangerous goods and manifest An Viet Logistics is a Non-Vessel-Operating Common Carrier which means they do not own any modes oftransportation but issue its own bill of lading and acts as a carrier The bill of lading isvery important for an international transaction for three major reasons Firstly, it is acontract between the shipping company and the shipper based on the Incoterms theyagreed on Second, it is a receipt for the goods Once the shipping company signs forthe goods, they ensure everything is in good condition If some items are not in thementioned condition, they are under soiled or foul bills of lading that reflect thecondition of the goods the carrier received
TASK 2:
Contact some sea freight operations and order the containers The purpose of this task
is to understand what type of containers are used and what kind of equipment are usedduring the whole freight operations and to know which vessel is selected for eachshipment As I mentioned in my internship objectives, I want to study a little bit moredeeply on the containerization After the training programme at the company, I realizedthat there are four major container types, the 20’, 40’, 40’ high and the 45 footcontainers I see which container is used while shipping An interesting fact is that a20’ container has a heavier payload because of its tri-axle chassis and the fact that the20’container is 2425 lbs lighter than the 40’ container Chassis are equipment used tocarry the load on the highway and sometimes the drivers are penalized if they arecarrying a heavy load