course work of internationnal trade transaction topic projecting tuna export to japan

MINISTRY OF TRANSPORT VIETNAM MARITIME UNIVERSITY FACULTY ECONOMICS INTERNATIONAL BUSINESS DIVISION COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION TOPIC : PROJECTING TUNA EXPORT TO JAPAN Lecturer Name of students Group Class : Doan Trong Hieu : Vu Ngoc Duy Khanh – 55257 Le Viet Anh – 55260 : 12 : N05-CLC HaiPhong 04/2017 Contents INTRODUCTION CHAPTER 1: OVERVIEW ON COMPANY 1.1.Overview on company 1.1.1 Name, Address 1.1.2 : Business Field 1.1.3 Organiziton Structure 1.2 Present About Product CHAPTER 2: MAKING THE EXPORT PLAN 2.1.Studying the market 2.1.1 Domestic market 2.1.1.1.Domenic Demand 2.1.1.2 Domestic tuna prices 2.1.2 Export market – Japan market 2.1.2.1Demand for consumption 2.1.2.2 Competition in the Japan market 2.1.2.3 Tuna import regulations in to Japan market 10 2.1.2.4 The social-cultural environment, economic environment, legal and political environment 11 2.2 Determine the target 12 2.2.1 In short term 12 2.2.2.In long term 12 2.3 Research, select partners 13 2.3.1 Introduce partners, distribution system 13 2.3.1.1.Introduce partners 13 2.3.1.2.Distribution system 13 2.3.2 Expected content of the foreign trade contract 14 2.4 Contents of contract performance 20 2.4.1 Make a flowchart of implementation process 20 2.4.2.Content of steps to performing the contract 21 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION 2.5 Analyzing of financial performance 24 2.5.1 Total capital and business capital 24 2.5.2 Expected cost 24 2.5.3 Expected revenue 26 2.5.4 Effective finance indicator 26 CONCLUDE 27 Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION INTRODUCTION In the period of the current economy together with the rapid development of science and technology, international trade activities are increasingly strong worldwide This activity is ingrained in the economic development of the world in general and in all countries in particular The countries, regardless of their size, religious, political and cultural differences join the world economic integration process in order to develop their economies, affirming their position in the national area Along with that integration process, Vietnam has been constantly creating new strengths, new customers and affirming its position In recent years, Vietnam has implemented the regime of opening up the economy, expanding cooperation with many countries in the world and also achieved remarkable achievements Not only economic integration is a process of cooperation, but it is also a process of competition, an opportunity and challenges, especially for Vietnamese enterprises Recognizing the importance and benefits of import-export activities, Saigon Fisheries Import-Export Corporation has been trying to find new partners and expanding market However, one of the major challenges for our fisheries sector is to plan seafood exports to overseas markets One of our largest import markets and generate substantial revenue at present is the Japan market This is considered one of the strategic markets where the company needs to promote its strength as well as seek more partners to increase market For the reasons I have mentioned above, I investigated the topic "Preparing export plan for frozen tuna to Japan market" Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION CHAPTER 1: OVERVIEW ON COMPANY 1.1.Overview on company 1.1.1 Name, Address - Name: Sai Gon Seaproducts Import Export Joint Stock Company - Address: 87 Ham Nghi, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City -The subordinate units : 1)Sea Saigon Refrigeration Branch: Road No 12, Song Than II Industrial Zone, Binh Duong Province 2)Branch of Shipping Enterprise - 200 Dien Bien Phu - P7 - District 3)Warehouse Enterprise Branch - 3218C (678) Au Co - Ward 14 - Tan Binh District 4)Branch of Phu Vien Seafood Processing Enterprise - Bo De commune Gia Lam district - Hanoi - Phone: + 84- (0) 8-89.14.22.19 - Fax: + 84- (0) 8-914.22.36 - Website: seaprodexsg.com seaprodexsaigon.com 1.1.2.Business Field The strengths of company is export and processing of seafood,it also does business in a number of other areas based on maximizing the available capacity of the Corporation and its affiliates The company's operations consist of four main areas / markets: - Processing and exporting seafood - Cold storage service - Import and trade Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION -Iron and steel, machinery, equipment, plastic beads, chemicals, packaging paper, consumer goods 1.1.3 Organiziton Structure Shareholders Mâanagement President Vice President ACCOUNTING DEPARTMENT FINANCE DEPARTMENT SHIPPING BRANCH Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 SALES DEPARTME NT BRANCH OFFICE SERVICE DEPARTMENT SEASAIGON STORE BRANCH Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION 1.2 Present About Product -Japanese fishing gear, fishing vessels are equipped with satisfactory storage The fish are guided to platforms by divers for harvesting They are euthanised humanely, by an immediate spike into their brain This method is known as “iki jime” in Japanese It is a technique that minimises stress as lactic acid in their system that can change their flavour It takes approximately 40 seconds to get the fish into an ice slurry or refrigerated sea water, which keeps quality at a premium On board the tuna harvest boats are representatives of Japanese companies who scrutinise the product before export They look for good shaped fish that have suffered no damage in the harvesting process A segment is taken from the tail to determine quality A strong, deep red colour and good fat deposits are considered extremely favourable -Also, we have learned about Japanese fishing experience on how to keep tuna fresh and process of tuna according to a guide by the Japanese.The process of tuna production is carried out step by step to ensure the quality of tuna Tuna after thorough selection and purchase will be washed quickly through cold water, then loaded into a perforated conveyor belt.Wash water will escape through the holes on the conveyor belt so that tuna will remain cool and soft To keep the tuna cold during the process we will put ice water between layers of tuna.Temperature maintained from 10oC to less during the process Then it will be the process of removing fish head Removing fish heads we will be divided into five categories depending on the size of fish After removing the head and sorting,fish are ready to go into the peeling area At the sector of peeling some fishs will be tail-dug and some will retain and market two types Fresh tuna are frozen and canned, frozen at the same time to ensure the quality, freshness of tuna.On holidays, wedding, tuna dishes are selected top, is a familiar specialty, many people love Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION CHAPTER 2: MAKING THE EXPORT PLAN 2.1.Studying the market 2.1.1 Domestic market In the Vietnamese economy, seafood is a rapidly growing sector, contributing 4% to GDP, 8% to exports, and 10% to employment in the country From 2013 to 2016, Vietnam's fishery output increased from 75.382 to 86.513 Metric ton (Table 1) Binh Dinh, Phu Yen , Khanh Hoa contributes about 50% of the total aquaculture production in the country The fisheries sector ranks fourth in terms of exports, followed by industries such as oil and gas, apparel and footwear sector In 2016, Vietnam's seafood exports reached USD 8.84 billion, an increase of more than 17% compared to 2015 The contributor was tuna with export USD 1.6 billion, up 15% Compared to 2015 According to customs, fresh and frozen tuna accounted for 56.3 percent of the exports and the rate of processed tuna fell to 40.7 percent from 43.6 percent last year The US, EU, ASEAN, China, Israel, Japan, Canada, and Mexico were the largest markets, accounting for 84.2 percent of the total exports TABLE TOTAL AQUACULTURE PRODUCTION BY YEAR Year 2012 2013 2014 2015 2016 Total fishing vessels 2720 2198 2239 2226 - Tendency about Fishing vessels (Last year =1) 1,004 0,909 1,008 0,998 - Productivity (1000 CV) 421,5 480,9 696,6 830,5 - Tendency about Productivity (Last year =1) 1,169 1,141 1,449 1,192 - Exploited (ton) 75.382 76.593 78.328 83.462 86.513 2.1.1.1.Domenic Demand The domestic aquaculture market in general and the domestic tuna market in particular, although potential, but the organization is small, the consumption of Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION large size tuna is limited In addition, many local businesses research and evaluate that the country market is still very difficult Enterprises have to spend time, effort, capital to investigate the market, set up distribution system, enterprises also have to change the design, consumption needs in the country Further , poor infrastructure and poor circulation of aquatculture production in the country is also a factor in the development of the domestic market to change conditions is a long process Therefore, the strategy of the immediate business is still focused on expanding tuna exports to foreign markets 2.1.1.2 Domestic tuna prices Currently, ocean tuna prices range from 130,000 to 145,000 VND / kg, still stable compared to previous months The fishermen said that with the current price, after deducting costs, each fishing vessel receives an average interest of 120.000.000-150.000.000 VND / ship TABLE : TUNA PRICES HAVE BUILDING UP IN DEPARTMENT OF EXPLOITATION AND PROTECTION OF AQUATIC RESOURCES OF KHANH HOA PROVINCE FOR NEAR LASTEST MONTHS Products Skipjack Tuna Size Price (VND/KG) 21-30 130.000 31-50 140.000 51-80 145.000 2.1.2 Export market – Japan market 2.1.2.1Demand for consumption Recognizing that Japan is an important market and can not lose, businesses that accept rising costs are still trying to invest to increase tuna exports to this market Tuna exports to Japan started to improve since January 2017 Tuna exports in February increased sharply by 53% to over $ 36.6 million The quality of tuna exports has improved significantly As a result, total tuna exports in the first two months rose 16 percent over the same period last year, to over $ Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION 70.5 million Of which, the export value of loin and fillet of tuna products accounted for the highest proportion, with 46%, followed by canned tuna with 31% TABLE 3: PRODUCTION OF TUNA INPORT OF JAPAN IN 2016 PRODUCT HS CODE AVERAGE PRICE (USD/TON) VALUE (103USD) WEIGHT(TON) 1.287.983 126.211 HS03 Fresh Tuna/ Frezze Tuna 10.205 HS030 Prepared 10.935 1.1060.290 96.963 HS16 Caned Tuna 11.065 655.922 59.279 10.735 2.991.297 278.649 Total Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION country.Additionaly, AEON will use the direct distribution method, tuna products of the company will be sold with the brand of AEON and sold directly to consumers in Japan 2.3.2 Expected content of the foreign trade contract PARTNER From: AEON Group 4th Floor, Tokyo Tatemono Gotanda Building 8F, Higashi Gotanda 1-6-3, Shinagawa ku, Tokyo 141-0022 Japan Tel +81 (3)5789 2536; Fax +81 (3)5789 2537 Represented by Mr Shigeo Tokuda – Director Shingawa ku, Tokyo,27th of January, 2017 BUSINESS INQUIRY To: Seprodex Sai Gon 87 Ham Nghi, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Viet Nam Tel: (84-8) 39 144 927 - (84-8) 38 222 171 Fax: (84-8) 39.142.236 Represented by Mr.Le Viet Anh– Managing Director Dear Sir, I am writing to inquire the business offerings of Seprodex Sai Gon , as I have received a leaflet on your company recently through the mailers I read with interest the various types of products related to tuna, and wish to enquire further about the sales offer as displayed on the leaflet I am particularly interested in hi tech production line I would be extremely delighted if you could furnish me with more information on the type of tuna I look forward to hearing from you on my enquiry soon Yours sincerely, Director Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 14 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION OUR COMPANY From: Seprodex Sai Gon 87 Ham Nghi, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Viet Nam Tel: (84-8) 39 144 927 - (84-8) 38 222 171 Fax: (84-8) 39.142.236 Represented by Mr.Le Viet Anh– Managing Director Ho Chi Minh, Viet Nam,29th of January,2017 OFFER To: AEON Group 4th Floor, Tokyo Tatemono Gotanda Building 8F, Higashi Gotanda 1-6-3, Shinagawa ku, Tokyo 141-0022 Japan Tel +81 (3)5789 2536; Fax +81 (3)5789 2537 Represented by Mr Shigeo Tokuda – Director Dear sirs, We would like to thank you for your letter of 27 January and we were pleased to learn that you liked our tuna We are happy to offer you the goods on the following terms and conditions, subject to our final acceptance upon receipt of your order We are pleased to offer you those machines at the price of 14000USD/ MT The price is to be understood to be FOB Ho Chi Minh port We feel sure that our offer will be of interest and assistance to you and we shall be glad to send you further information should you require it We look forward to your early order and assure you that any of yours orders will have our best attention Yours faithfully Managing Director Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 15 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION PARTNER From: AEON Group 4th Floor, Tokyo Tatemono Gotanda Building 8F, Higashi Gotanda 1-6-3, Shinagawa ku, Tokyo 141-0022 Japan Tel +81 (3)5789 2536; Fax +81 (3)5789 2537 Represented by Mr.Shigeo Tokuda– Director Shingawa ku, Tokyo,4th of February, 2017 ORDER To: Seaprodex Sai Gon 87 Ham Nghi, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Viet Nam Tel: (84-8) 39 144 927 - (84-8) 38 222 171 Fax: (84-8) 39.142.236 Represented by Mr Le Viet Anh – Managing Director Dear Sir , Thank you very much for your offer We are pleased to establish business relation and are placing an order for 508 MT of tuna We could accept all of your terms and conditions Could you grant us s discount at 5% for next order We are looking to your prompt confirmation of the order Yours sincerely Director After receiving orders from foreign partners and based on the results of financial analysis when implementing export contracts with partners, based on the selection of export partners with the gross revenue export and gross profits, high foreign currency, the company cooperate with AEON Japan is a partner in this export The company sent a letter of aproprove to AEON Japan with contents : Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 16 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION OUR COMPANY From: Seprodex Sai Gon 87 Ham Nghi, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Viet Nam Tel: (84-8) 39 144 927 - (84-8) 38 222 171 Fax: (84-8) 39.142.236 Represented by Mr.Le Viet Anh– Managing Director Ho Chi Minh, Viet Nam,10th of February,2017 ACCEPTANCE To: AEON Group 4th Floor, Tokyo Tatemono Gotanda Building 8F, Higashi Gotanda 1-6-3, Shinagawa ku, Tokyo 141-0022 Japan Tel +81 (3)5789 2536; Fax +81 (3)5789 2537 Represented by Mr Shigeo Tokuda – Director Dear Sir, We have received your order and very pleasure We agreed with all your request about the goods with their specification, the quantity, the delivery time and the payment method Please send us your confirmation in the near furture Yours faithfully, Managing Director PARTNER From: AEON Group 4th Floor, Tokyo Tatemono Gotanda Building 8F, Higashi Gotanda 1-6-3, Shinagawa ku, Tokyo 141-0022 Japan Tel +81 (3)5789 2536; Fax +81 (3)5789 2537 Represented by Mr.Shigeo Tokuda– Director Shingawa ku, Tokyo,20th of February, 2017 CONFIRMATION To: Seaprodex Sai Gon 87 Ham Nghi, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Viet Nam Tel: (84-8) 39 144 927 - (84-8) 38 222 171 Fax: (84-8) 39.142.236 Represented by Mr Le Viet Anh – Managing Director Dear Sir , We are very happy to have dealing with you We send this conformation to ensure that we’re sure with all the iterms, we gave in our order Please send me a sighed contract as soon as possible Yours faithfully Director Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 17 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION CONTRACT After receiving a confirmation letter from your partner in Japan, the company sent its representative to negotiate and sign the contract On the basis of agreements accepted by both parties in the Order, Acceptance and Confirmation both sides have quickly reached an agreement and come to sign the export contract with the following content: SALES CONTRACT No: 0146 - 11 Date February 27 th, 2017 Between: SEAPRODEX SAI GON 87 Ham Nghi, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Viet Nam Tel: (84-8) 39 144 927 - (84-8) 38 222 171 Fax: (84-8) 39.142.236 Account No USD 003.1.37.001811.6 or VND 003.1.00000196.6 in VietcomBank Ho Chi Minh Branch Represented by Mr Le Viet Anh - Managing Director Hereinafter called "party A" And : AEON Group Tel +81 (3)5789 2536; Fax +81 (3)5789 2537 Represented by Mr Shigeo Tokuda – Director Hereinafter called "party B" We, both parties, agree to sign and implement this contract with the following conditions and terms: Article 1: Description Commodity : Tuna Country of origin : Viet Nam Article 2: Quantity 508 MT (more or less 5%) by the seller Article 3: Price Unit price : 14000USD/ MT Total amount of the contract: USD 7.112.000 Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 18 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION Say: United state dollars seven million one hundred and twelve thousand These prices are understood FOB Ho Chi Minh port as per Incoterms 2010, and packing charges included Article 4: Packing Frozen Tuna grade must be Packed in PVC bag of 1kg net each, which must be packed in export customany cartons of 50kgs net each Article 5: Payment * Payment by Irrevocable and confirmed L/C at sight *Confirming charges will be borne by the “party A” * Validity of Irrevocable L/C: witthin 3days after delivery All charges regarding L/C amendment shall be borne by the party requires L/C amendment * Documents for payment: Payment shall be made upon presentation to the bank of the following documents: - Clean Shipped on board Ocean Bill of lading, original, in triplicate - Commercial invoice, original, in triplicate - Quality/Quantity certificate issued by the Viet Nam Chamber of Comerce Industry in triplicate - Certificate of original in triplicate, issued by the authorized body - Packing list in triplicate Article 6: Delivery The goods will be delivered latest at 5th of June, 2017 - Partial shipment : Not allowed - Transhipment : Allowed - Port of loading : Ho Chi Minh port, Viet Nam Article 7: Inspection of goods In respect of quality to weight for each shipment certificate of inspection and certificate of weight issued by VINACONTROL at loading port shall be taken as final All claim by the buyer shall be made within 30 days after arrival of the goods at port of destination Article 8: Penalty In the event that the Buyer fails to open L/C under this contract in due time, the Seller will have the right to demand from the Buyer the payment of a penalty in the amount equivalent to 1% per day of the contract amount.The seller fails to deliver the goods in due time, the Buyer will have the right to demand from the Seller the payment of a penalty of 1% per day of the value of goods not delivered Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 19 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION Article 9: Arbitration Any disputes or discrepancies which may arise out of the contract or in the connection therewith shall at first be settled amicably on mutual understanding In the course of execution of this contract all dispute not reaching an amicable agreement shall be settle by Vietnam foreign trade Arbitration attached to the Viet NamChamber of Commerce Industry, Whose decision shall be accepted as final by both parties The fees for arbitration and/or orther charges shall be born by losing party, unless otherwise agreed The language of arbitration shall be English Article 10: Force Majeure In case of unforeseen causes recognized by both parties as Force Majeure under evidence thereof, the contracting parties shall not be liable for performance of the terms of this contract However, if such cause of Force Majeure comes to an end, the contracting parties shall be liable for performance of this contract unless otherwise mutually agreed The party claiming relief from performance of an obligation under the contract due to Force Majeure shall inform the other party thereof by cable within (five) days after the commencement of such Force Majeure and confirm it within a (three) days by registered airmail Article 11: Other terms This contract will be covered by the provision of Incoterm 2010 By signing this contract,previous correspondence and negotiation connected here with shall be nul and void Any amendment of the terms and conditions of this contract must be agreed to by both parties in writing This contract is made in 04 originals in the English language, two for each party For/And on behalf of The Seller Seaprodex Sai Gon For/And on behalf of The Buyer AEON Group 2.4 Contents of contract 2.4.1 Make a flowchart of implementation process Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 20 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION Signing Contract Inspection L/C Liquidation Applying for export license Solving of complaints Preparation and inspection for good Payment procedures The export procedures Delivery goods on Ship 2.4.2.Content of steps to performing the contract  Applying for export license A records include : The application for license, contract, quota certificate shall be forwarded to the licensing office of the Ministry of Industry and Trade After days from the date of receipt of the application, the Licensing Division will respond Open L / C and check L / C Company urges buyers to open L / C on time After receiving L / C, check: - Compare the provisions in the contract and regulations in L / C as appropriate, carefully check each sentence, each word - The type of L / C is suitable to the type of L / C specified in the contract - The L / C opening bank, the paying bank, or the bank confirming the relationship with the bank of the company or not, is in accordance with the regulations - The amount of L / C is enough to pay for your goods or not, if not enough, request to correct or sufficiently enough L / C - Delivery deadline and validity of L / C are inconsistent The term of L / C is enough for the seller to circulate the voucher - The requirements for payment documents are clear and easy to implement, if anything that makes it difficult for the company to request a revision  Making a loan at a bank Immediately after signing the contract, the company proceeds to borrow capital from Vietcombank Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 21 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION Loan amount is 50 billion VND Interest rate: 1.25% / month On 22/02/2017 completed the procedures On February 23 the company received the loan Payday Loans: 23/06/2017  Purchasing materials - auxiliary materials The company will purchase materials from fisher  Package : After buying enough materials , the company conducts frozen tuna processing in accordance with the process of ensuring the goods are delivered on request tuna is wrapped in layers which can keep the temperature cool and moist For convenience of loading and unloading The job of packing the goods, coded by the company's packaging production Tien Huy Testing and quarantine of goods: Prior to delivery, the company conducts inspection of the quality, quantity, weight, packaging to ensure accuracy as required by the buyer  Carry out the export procedures *) Customs procedures The owner shall fill the details of the goods on the declaration form so that the customs office shall examine the paperwork The requirements of this claim are true and correct The content of the declaration includes such items as: Category: Business, Name : Tuna Quantity: 508 tons Value: $ 7,122,000 Customs declarations must be accompanied with a number of other documents, but mainly: export permits, invoices, packing lists, detailed lists *) Customs declaration : Profile include : - customs declarations (2 originals, photocopy) - Export license (visa): original - Packing list - Commercial invoice (Commercial Invoice) Bring the dossier to the customs office to open the customs declaration *) Inspecting the goods: * Showing goods: Export goods must be arranged in order, convenient for control Shippers must bear the cost and labor of opening and closing packages The requirement Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 22 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION of presenting the goods is also the honesty of the owner In order to carry out inspection and supervision procedures, the goods owner must submit customs procedures * Implementing customs regulations: After the importer informs the time of arrival at the port, the ship's name, they send the shipment After that, the enterprises register for inspection at the customs department and the customs department shall have to inspect If it matches the declaration, customs department will seal Customs officers write their comments on the status of goods in the declaration, sign and return to the captain of customs procedures and sign and seal the two customs declarations transferred to the shipping company After exporting the goods, a customs declaration is forwarded to the customs office, a company's self-report to the shipping company  Shipping For goods delivered by sea, the goods owners shall have to: - Based on the details of the export goods, make a table of registration of freight for the carrier in exchange for the queue map - Exchange with port authority to keep track of hours worked - Arrange means to bring goods to port and queue on board - Get the vice captain and change the receipts of the deputy to take the bill of lading The bill of lading must be the perfect bill of lading, loaded and transferable  Payment procedures After the goods have been delivered through the railing, the staff in charge of the company shall prepare the payment documents as required by L / C Then send to the bank to open L / C through the bank announced that Vietcombank (branch in Ho Chi Minh) to collect money The set of documents includes: Commercial Invoice Clean on board Bill of lading Packing list C/O Certificate of quantity Certificate of quality Notice of shipment  Complaints and solving of complaints When performing the contract, if the exporter is claiming compensation, serious consideration should be given to the consideration of the customer's request The resolution must be urgent, timely and reasonable Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 23 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION  Liquidation After fulfilling the contractual obligations, the parties will liquidate the contract 2.5 Analyzing of financial performance Based on the ORDER of the customer, we have established the table of expenses which the revenue and profit from the export contract for the partner as follows 2.5.1 Total capital and business capital Expected total investment for the project is: 140.000.000.000 VND Funding sources include: Capital of the business : 90.000.000.000 VND Loan capital of the Bank: 50.000.000.000 VND with rate 15%/year Expected loan term is months => Expected bank loan interest : 50.000.000.000 x (15% :12) x4 = 2.500.000.000 VND 2.5.2 Expected cost * Cost of materials - auxiliary materials (domestic collections) per lot (508 tons) No Payment Tuna Auxiliary materials Loading and unloading from means of transportation into storage Cost of storage Total * Production expense: No Costs Wage Social insurance, health insurance (22% wage) Water and electricity Depreciation expense Package, label Total Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Unit price (VND/kg) 140.000 Quantity (ton) 508 Amount (VND) 71.120.000.000 9.000.000 5.000.000 4.450.000 71.138.450.000 Per ton (VND) 9.534.000 2.097.480 Amount (VND) 4.843.272.000 1.065.519.840 500.000 50.000 200.000 323.000 204.000.000 25.400.000 101.600.000 6.239.791.840 Page 24 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION * Export expenses : No 10 11 12 13 14 15 16 Costs Cost of banking transactions Expense for buying export form Expenses for export license application C /O fees Cost of inland transportation Customs fees Preserved fees Scale fees Inspection fees B/L fees Cost of renting loading facilities Cost of tallying and deliverying Cost of sending documents Transfer fee at the Bank Expenses for L / C notification of the Bank Export tax Total Quantity 0,15% of L/C value Sheets Unit price(VND) 0,15% x 71.120.000.000 5.000/Sheet Amount (VND) 106.680.000 Sheet 200.000/Sheet 200.000 Sheet 40.000.000 40.000.000 Sheets 30.000/Sheet 50.000.000 100.000 100.000 200.000 1.000.000 60.000 50.000.000 100.000 100.000 200.000 1.000.000 100.000 100.000 10.000 250.000 200 USD 4.182.000 20 USD 418.200 0% 203.300.200 * Summary Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 25 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION No Costs Costs for materials Production expense Export expenses Other costs Reserve fund = 3% x [(1) + (2) + (3) + (4)] Total VAT tax (10% of total profit) Bank interest (1.25% / month) Total of costs Amount (VND) 71.138.450.000 6.239.791.840 203.300.200 10.000.000 2.327.746.261 79.919.288.300 7.991.928.830 2.500.000.000 90.411.217.130 2.5.3 Expected revenue Revenue: 14000 USD/MT =>Total revenue = 14000 x 508 =7.112.000 (USD) = 156.464.000.000VND (exchange rate : 22.000 VND/USD) 2.5.4 Effective finance indicator a) Rate of return Profit before tax = Revenue – Cost = 156.464.000.000 – 90.411.217.130 = 66.052.782.870 (VND) Profit after tax = Profit before tax - Corporate income tax = Profit before tax x 78% = 66.052.782.870 x 78% = 51.521.170.640 (VND) Rate of profit at cost: Prevenue = Profit after tax x 100% = 51.521.170.640 x 100% = 32.9 % Revenue 156.464.000.000 The rate of return is 32.9 % which is reasonable, so it is a project feasibility b) Exchange rate of export Rexport = 7.112.000/90.411.217.130 = 1/12712 (USD/VNĐ) In order to earn $ 1, the company needs to spend 12,712 VND, which is smaller than the actual exchange rate of 22,000 VND / USD This shows that the export plan is reasonable and profitable for the company Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 26 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION CONCLUDE Promoting the export of products to foreign countries in order to raise the prestige of enterprises on the international market Domestic enterprises want to try to integrate into the integration economy That is why it is important to make a business plan that is essential for any business to undertake Thanks to the accounting of the costs help businesses know the cost of their own and also know how much profit is achieved By making plans, the work in the export process is well organized by the company in a certain order, which makes the work is carried out quickly, savings cost increase profits It can be said that business plan is one of the most important steps in every business, with foreign trade officials being one of the key players to succeed at this stage In the export plan that we presented above, it can be seen that the company will make a profit on the performance of this contract but the profit is not much However, it has contributed to solving many problems such as: employment , stimulating production for enterprises This is my presentation about an export plan, due to the limited knowledge so my presentation is inevitable shortcomings I look forward to receiving further instruction from teacher Thank you sincerely ! Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 27 COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION References : 1) Incoterms 2010 2) Wedsite : www.customs.gov.vn http://vietnambiz.vn www.thuvienphapluat.vn Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page 28 ... are still trying to invest to increase tuna exports to this market Tuna exports to Japan started to improve since January 2017 Tuna exports in February increased sharply by 53% to over $ 36.6 million... above, I investigated the topic "Preparing export plan for frozen tuna to Japan market" Le Viet Anh - 55260 Vu Ngoc Duy Khanh - 55257 Page COURSE WORK OF INTERNATIONNAL TRADE TRANSACTION CHAPTER 1:... compared to 2015 The contributor was tuna with export USD 1.6 billion, up 15% Compared to 2015 According to customs, fresh and frozen tuna accounted for 56.3 percent of the exports and the rate of