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Field trip report: The procedure of receiving imported goods to bonded warehoused in green logistics centre tập trung trình bày các vấn đề cơ bản về: Introduction of the company; the procedure of receiving imported goods to bonded warehoused in green logistics centre (GLC); strengths and weaknesses of the process.
VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION FIELD TRIP REPORT Name of student: Nguyen Thi Thuy Duong ID: 49874 Class: GMA0303 Place: GREEN LOSGISTICS CENTRE INSTRUCTOR: Vu Thi Thu Hang 09/2015 CONTENT PREFACE CHAPTER 1. INTRODUCTION OF THE COMPANY 1.1 Introduction of Vietnam Container Shipping Corporation (VICONSHIP) 1.1.1 History 1.1.2 Functions 1.1.3 Organization 1.2 Introduction of Green Logistics Centre ( GLC) 1.2.1 General introduction 1.2.2 History 1.2.3 Functions 1.2.4 Organization 1.2.5 Facilities 10 1.2.6 Orientation production operations 11 CHAPTER 2. THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE (GLC) 2.1 Bonded warehoused 2.1.1 Definition .13 2.1.2 Characteristics of goods in bonded warehoused .14 2.2 Responsibilities of the parties involved in the operation of bonded warehouse 2.2.1 Responsibilities of bonded warehoused owners 14 2.2.2 Responsibilities of customs bonded warehoused 14 2.2.3 Responsibilities of goods owners (or forwarder) .14 2.3 The procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) 2.3.1 Diagram of process .15 2.3.2 Describe the process 17 CHAPTER III. STRENGTHS AND WEAKNESSES OF THE PROCESS 3.1. Strengths. 27 3.2. Weaknesses. 27 3.3. Suggestions to advance the effect of the process 27 CONCLUSION LIST OF FIGURES Figure 1.1: The organization map of Viconship Figure 1.2: the instruction of finding GLC on the maps Figure 1.3: The organization map of Green Logistics Centre (GLC) Figure 2.1: Bonded warehouse in Green Logistics Centre (GLC) Figure 2.2: Diagram of the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) Figure 2.3: The customs procedure Figure 2.4: applications for transfer gate Figure 2.5: VAT invoice PREFACE Logistics is a tool to link the activities in Global Value Chain and is seen as a tool, a means to link many different areas of business strategy. Logistics is very important for economic development in Vietnam Logistics services contribute to improving management efficiency and reduce costs in the production process, enhance the competitiveness of enterprises Logistics services contributed to increase the business value of the transport companies Acknowledging the importance of logistics in economics development in Vietnam, I decide to take my field trip in Green Logistics Centre, a developing logistics company in Haiphong. I hope this field trip will provide me practical knowledge, enhances my understanding of theories studied at the Vietnam Maritime University. In this report, I discuss about the procedure of receiving imported goods to bonded warehoused. By observation and practice, I expect to present clearly and accurately this procedure at Green Logistics Centre My report presents in detail the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre before analyzing and comparing it with the procedure in fact. By unbiased evaluation, I give some comments about the strengthes, weaknesses as well as proposing suggestions to improve this procedure more efficiently and advanced In general, this report includes 3 chapters: Chapter 1: The introduction about company In this chapter, I present history and development of Vietnam Container Shipping Corporation and Green Logistics Centre, business functions of the company, organizational structure, evaluating generally business situation of the company in two recent years. Chapter 2: the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre This chapter is about the main topic of this report. The full procedure is presented specifically following each step The role of each position in the company is also highlighted through each period in the procedure. Chapter 3: Strengths and the weaknesses of the process This chapter is about the strengths and the weaknesses of the process Depending on strengths, weaknesses and the risks affecting the procedure, some suggestions to improve the activities at Green Logistics Centre THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE CHAPTER 1. INTRODUCTION OF THE COMPANY 1.1 Introduction of Vietnam Container Shipping Corporation (VICONSHIP) 1.1.1 History VIETNAM CONTAINER SHIPPING CORPORATION (VICONSHIP) is one of leading Freight Forwarders and Shipping Agency Companies in Vietnam and has been actively providing its services since 1985. Founded in 1985, Vietnam Container Company (VICONSHIP) is a stateowned enterprise specializing in providing services to shipping agents, warehousing, loading, unloading and transporting container During the establishment and development, VICONSHIP has undergone significant stage. In April 2002,Haiphong VICONSHIP equitized and became a corporation under the name "Vietnam Container Shipping Joint Stock Company” VICONSHIP network operations in both the North CentralSouth with four 100 % owned subsidiaries, one branch and one joint venture Business Scope extended terminal operators, shipping, gradually forming a closed chain logistics services. VICONSHIP Green Port is a major port of Haiphong and plays a key role in business operations With initial charter capital equalization than 25 billion VICONSHIP continuous increases of charter capital in the form of shares issued internal issue for existing shareholders. To date the Company's charter capital is 80.3 billion. Corporation Vietnam Maritime VINALINES is the largest shareholder with 28.16 % stake and an important contribution to support the business activities of the Company. VICONSHIP was Ho Chi Minh City Stock Exchange listing approval and will be up in the first quarter of 2008 HOSE 1.1.2 Functions a. Shipping agent VICONSHIP is the only shipping agency's of two largest shipping company in the world in Vietnam. They are MSC and TSLines As ship's and shipping agent, on behalf of shipping company and operators, VICONSHIP follow the governmental procedure when vessel enter and leave the port, undertake loading, unloading and delivery of cargo of those vessels, providing port, cargo and general protective agent's services, cargo handling service, stevedoring facilities, bunkering, bonded stores, fresh water, medical services and supplies, preparing shipping documents, general transportation and accommodation of crewmen, marine surveyors, vessel chartering, drydocking Vessel repair services b. CFS Warehousing With its own warehouse of 5,000m2 which is located next to container main port of Haiphong, VICONSHIP is ready to meet customer's need for storage, transportation, and distribution processing of goods through the established nationwide transportation network. Warehousing & export packing provide full range of services to meet all requirements for ocean and domestic shipments Service includes the consolidation and stuffing of equipment and supplies into container, flat rack and platform as well as securing and blocking materials. Products handled by us are of numerous different types. to guarantee the safety of merchandize is our responsibility c. Multimodal Transport Container Inland Haulage & Logistics: VICONSHIP offers a complete range of container logistic custody, dispositioning, inland transportation, maintenance, and repairs, leasing arrangement As a pioneer in container transport with its own trucking fleet, the company has a full scale system, which uses specialized tractors, and trailers, trucking services are available to all part of Vietnam for any type of cargo, no matter how large in scales or small in lot. Use of specially equipped vehicles operated by special licensed drivers has given the company a solid reputation. rapid, safe and precise work is demanded for linking the vital land & marine routes 1.1.3 Organization a. Function of departments Figure 1.1 : The organization of VICONSHIP Shareholders Shareholder is the top power group in company. It includes the shareholder who have right to vote and decide the issues related to laws and regulation of company. Group examines the annual financial report and determine annual budget. Besides, shareholder can dismiss member of supervisory board and board of management Supervisory board Shareholder elects member of supervisory board and they function independently with board of management This group represents the shareholder and supervises all aspect of business operation. There are three members in group and their incumbency is five years The Board of Management The Board of Management is the governing body of the Company, has full authority to decide on behalf of the Company the implementation of the rights and obligations of the Company are not under the jurisdiction of General Meeting of Shareholders. The Company's Board of Management has 09 members; each term of each member is 05 years. Chairperson elected by Board of Management Board of director Board of director includes four members: general director and three vice general director. General Director is person who manages and takes responsibility for every aspect of economic activity. General Director also is legal representative of company b. Subsidiaries Infacon company: business warehouse; sales of gasoline, oil, supplies and accessories; shipping agent and ship broker Da Nang Viconship: Agent container services, shipping agency; shipbroker; transportation of imports and exports, goods in transit; Multimodal Transport International; T.S Lines: As agents of container; Freight forwarding and import and export inland container transport; Brokerage and import goods; Business Warehouse and storage buildings; Marine terminal operators, shipping business, shipping business multimodal 10 Orientation production operations: Following the competition increased, GLC leaders require continue enhancing to 10% the marketing and 5% the customers by 2018. Besides, they search and find out the reasonable incentives such as reducing documents, reducing the cost when have large quantity of stored goods to take more customers for company The Research and plan establishment of a representative office of GLC in Hanoi purposing take care of FWD, customers and representative factories in Hanoi, Bac Ninh, Bac Giang operate in the hard competition context when Yusen, SITC, Nippon prepare to put into operation Company continues adding refrigerated containers, temporarily imported reexported goods through bonded warehouses to increase 12% profits in 2020 Seriously follow reducing costs plans which was submitted the CEO in 2010 about: costs of customs procedures, costs of pulling the outside shell through Yard, transport rental costs, which are decreased from 5% to 2%; utility costs, supply materials, repair vehicles costs, the costs of VPP, meeting costs went to 3% in 2020 Company will train the second job for staff to increase the effect of job rotation between departments Besides, they disseminate awareness of executing discipline and maintaining equipment for employees of company in third quarter in 2015 15 CHAPTER 2. THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE (GLC) 2.1 Bonded warehoused 2.1.1 Definition 16 Figure 2.1: Bonded warehouse in Green Logistics Centre (GLC) Bonded warehouse are store or site areas set up on the territory of Vietnam separated with the adjacent area for temporary storing, keeping or carrying out a number of services concerning goods brought in from abroad or from the country under bonded warehouse leasing contracts signed between store owners and goods owners under the inspection and supervision of the Customs Goods temporarily stored or preserved in bonded warehouses, if destined for export, are those for which the customs procedures have been cleared for export: if brought from abroad, they are goods awaiting further transport to other country(ies) or the clearance of procedures for import into Vietnam, and not yet liable to import duty Bonded warehouse and all goods and vehicles entered, left or stored and preserved in bonded warehouses shall be subjected to inspection, supervision, and management of the customs authorities 2.1.2 Characteristics of goods in bonded warehoused Goods temporarily stored or preserved in bonded warehouses, if destined for export, are those for which the customs procedures have been cleared for export: if brought from abroad, 17 they are goods awaiting further transport to other country(ies) or the clearance of procedures for import into Vietnam, and not yet liable to import duty Goods owners shall be assured of ownership over their goods left in bonded warehouses 2.2 Responsibilities of the parties involved in the operation of bonded warehouse 2.2.1 Responsibilities of bonded warehoused owners Any shifting of goods within a warehouse or from one warehouse to another shall be notified to Bonded Warehouse Customs Warehouse owners shall inform Bonded Warehouse Customs before the performance thereof and be subject to Bonded Warehouse Customs' supervision throughout the course of such performance Bonded warehouse owners shall open books for following up the taking out and delivery of goods from warehouses according to the forms and the reporting and recording regimes prescribed by the General Department of Customs Every year, warehouse owners shall make inventory of stocks outstanding in bonded warehouses under Bonded Warehouse Customs' supervision. Every 06 months and 1 year, bonded warehouse owners shall report to Bonded Warehouse Customs on the operation of warehouses 2.2.2 Responsibilities of bonded warehoused customs Bonded warehouse customs is always present at the inspection, supervision and management of goods brought into or out and retention of stored according to regulations of the General Department of Customs. Bonded warehouse customs opens books to monitor and record full import goods warehouse to ensure the goods brought into the warehouse and properly stored product goods, the amount under the lease warehouse They regular contact customs gate to monitor the situation in the domestic transit for goods, warehoused. Every day, when the time of work the end, Customs Bonded warehouse owners proceed with sealing all doors warehouse 2.2.3 Responsibilities of goods owners (or forwarder) Goods owners or forwarder must comply with all the provisions relating to all activities of the bonded warehouse, provide sufficient information necessary for the shipment to the warehouse owner and the customs authorities to collate, check and supervision. Goods brought into bonded warehouses must correct the warehouse leases 18 2.3 The procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) 2.3.1 Diagram of process *Note: (1): Forwarders received documents related to goods from customers (2a), (2b): Documentation Department conducts customs procedures of imported goods to bonded warehouses. Then, forwarder will bring these records to the port to get goods in, also report to Warehouse Management Department to plan for goods imported to bonded warehouse (3a), (4a): Forwarder goes to the seaport to complete customs procedures for bringing goods in bonded warehouses (3b): Warehouse management Department plan prepared for goods imported to bonded warehouse (4b): Forwarder and Storekeeper delivery goods to bonded warehouse 19 Figure 2.2: Diagram of the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) (5): Documentation Department completed customs procedures for goods imported to bonded warehouse (6): Report to customers that goods imported to bonded warehouse and invoice settlement with them 2.3.2 Describe the process a. Step 1 Forwarders received documents related to goods from customers (usually the customer will inform Documentation Department send forwarder to obtain documents in their office) B / L ( Bill of Lading) or SBL (Sea Way Bill) (Surrendered / original); Invoice (original + copy); Packing list; 20 Certificate of Origin (C/O if available); Other documents b. Step 2 When the goods arrive at the port, the carrier shall give notice and arrival to Documentation Department or customer Documentation Department gives B / L to Forwarding Department Forwarding Department go to carrier to receive delivery orders c. Step 3 Documentation Department based on these documents to do all of steps: *Step 1:Making bonded warehouse lease between goods owners and bonded warehouse owners => Customs Branch signed (3 sets: goods owners, bonded warehouse owners and customs) *Step 2: Making customs declaration of bonded warehouses => Registration opens declaration at Customs Department The customs procedure staffs for imported goods have to produce Notice arrival, manifest, B/L the letter of authorization when they go to ship authorities to get Delivery Order. During this process, Staffs represent Forwarders pay fees: D/O, cleaning container fees and accrued fees in case that Forwarder Company does not transfer the cost into account of shipping office Staff needs to refer the delivery orders and official document of transporting the container to private warehouse included customs declaration (01 original), bill of lading 01 (copy), 01 manifest 21 Figure 2.3: The customs procedure The customs staff checks the detail between report and documents. Three are 3 types of cargos classified: Green line: Customs Staff confirms customs clearance based on information of customs declaration Yellow line: Customs Staff will check documents before he/she confirms customs clearance Red line: Customs Staff will check the documents and actual situation before he/she confirms customs clearance *When the declaration are streamed in Red line, Documentation Department must do 2 steps: Step 1: Give all documents related to goods to customs checks. After that, customs forward documents to the goods inspection team Step 2: Prepare merchandise available to customs officers check reality 22 The customs staff confirms customs clearance and returns the customs procedure staffs In Port, the tasks of staff are paying the loadingunloading fees. Then, port staff has to check and compare the container number, seal number, gross weight… especially on description of goods. In case, IMO (International Maritime Organization) was written in the description meaning the container storages dangerous goods, staff must to pay 50% dangerous goods fee. * Step 3: Making applications for transfer gate (transportimported goods from gate to bonded warehouse) => Customs Department signed (two copies) Figure 2.4: applications for transfer gate d. Step 4 (4a) Documentation Department delivered customs documents to Forwarding Department 23 01 application for transfer gate; 01 declaration bonded warehouses (4b) Documentation Department noticed and delivered to Warehouse Management Departement customs documents (declarations, B / L, Invoice) all information about goods e. Step 5 : Forwarding Department do all steps: Notification to transport department to prepare container trucks Making customs procedure at the gate Delivery goods to container trucks (during reception, if detected disrepair, container punctured, dented, must notify shippers,take photographs and make a report with the port department to report to customer) Send documents of goods to container truck driver or forwarder, and they bring them to bonded warehouse (bonded warehouse declaration, goods delivery records of border customs, other documents if available) f. Step 6: Transporting goods to bonded warehouse Driver or forwarder report to the guard The Guard write container truck number, container number, time arrive at bonded warehouse to monitor book Driver or forwarder give documents of goods to warehouse management department g. Step 7: Warehouse Management Department The bonded warehouse manager checks again the unloading plan (preparing number of workers operating container) to set the reasonable plan when customs procedure staff announce. Besides, he/she notifies the forwarders the plans and invites inspectors and customs monitor. Then, he/she has to show the detailed information of plan for employees included time, number of stevedores, number of forklifts… Warehousekeeper receives the manifest from customs Procedure staffs Storekeeper, inspectors, and customs monitor check number of seal, container situation with information in 24 the bill of lading, manifest cargos before opening the container to operate. Next, storekeeper takes photographs the situation of container and cargos during unloading containers. Following the manifest and actual situation, warehousekeeper leads warehouse handlers unloading and arranging The goods are folded in plots, owners, types, loadingunloading instruments The task of warehouse keeper counts and checks the shipping marks, volumes, number of packages. In addition, he/she defines the cargo situation and confirms the case of losing cargo (if available). After that, warehouse keeper builds up the operation records that are correct with information of deed. Storekeeper and customs sign together In case of goods damaged, storekeeper musts stop immediately and promptly take photographs to forwarders to coordinate handle. Inspectors confirm the actual condition of the goods before and while drawn from containers. When finish, they make the assessment report certified by storekeepers, customs supervision, inspectors. Next, storekeeper receives the report to set up the imported cargo file Bonded warehouse workers have task about loading cargos on Pallets on the principles: the heavy cargos under the light cargos. The cargos are neatly lined and cautiously bound to avoid bad case The tasks of Forklift drivers are delivering cargo to correct place in warehouse schedule through instrument of warehousekeeper. Drivers have to update the location of pallets on the racking system The location updating is recorded on pallet sheet attached, then sent to Storekeepers to form a receiving cargo document. Keepers submit the statistics department when finished Especially on the process of operating goods into the warehouse, forklift drivers update location and inform incurrent for storekeepers with VHF Staffs of the statistics department receive entire documents from storekeepers after the end of operating container to build up the report which is sent for Forwarders, warehouse managers included information of imported goods in warehouse Besides, they coordinate with storekeepers inform cargo situation detected during the unloading process Finally, statistics staffs must update the goods location on monitoring notebook 25 h. Step 8: Documentation Department based on the actual quantity of goods to write the receipt; make customs procedure for imported goods to bonded warehouse and give it to customs bonded warehouse signed, complete the customs procedure bonded warehouse i. Step 9: Documentation Department report to Customer Service, Customer Service input data and report to customer; send customs documents (copy) to customer and also save files (bonded warehouse and customs bonded warehouse) j. Step 10: Customers payment Figure 2.5: VAT invoice Customer Service statistical volumes and send to customer to pay 2.3 Case study This study case for the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) 26 CHAPTER III. STRENGTHS AND WEAKNESSES OF THE PROCESS 3.1. Strengths Green Logistics Centre bonded warehouse located in Dinh Vu Industrial Zone, next to many factories, and most of goods in bonded warehouse are industrial raw materials so, it make transport and delivery good to customer more convinient Green Logistics Centre is the new logistics company, but it becomes the prestigious partner with many other companies through 3 years The human resource of company has much experience of working, so many issues existed during running the process in bonded warehouse are quickly solved Procedures customs in bonded warehouses quite complete. Staff warehouse close coordination with customs to inspect shipments warehoused in order to prevent commercial fraud With modern equipment and facilities, bonded warehouse creates the best condition business activities and a safe environment. Containers are managed by modern information technology. GLC has container positioning information system which helps shippers to find their container, time and fee saving for port and shippers. 3.2. Weaknesses Cartons that had been stuck upsidedown lead to difficult to check information on the cartons by storekeeper. Cargoes inside are also easily damaged if process of stacking does not implement exactly as demand Goods are classified according to each individual box, with symbols to remember and distinguish, but is not checked regularly 27 Environment warehouse lack of control equipment, measuring the impact on commodities. Preservation issues so that goods are safe requires more attention The customs procedure take a lot of time and must do many steps Some people said that some forklift drivers work carelessly and sluggishly 3.3. Suggestions to advance the effect of the process Replace the employees who make uncomfortable serving for customers Besides, company should regularly update equipment and facilities to up high services for customers Upgrading storage systems, equipped with loading and unloading facilities, more concerned about the working conditions of manual workers because the goods in bonded warehouse mostly industrial materials should be a negative impact on the health of employees, or in the process of bagging coffee very much created as blowing dust affects the respiratory system staff Training young employees have strong professional, dynamic, creative and timely complement to the experienced staff retiring 28 CONCLUSION After the report, I hope to provide sufficient information about the procedure of receiving imported goods to bonded warehouse in Green Logistics Centre (GLC). In general, this procedure is quite complex and requires logic and harmony in all the system. All the parties are required to understand each step, each related document and partners when joining this procedure. Besides, I also provide personal ideas about this procedure, what is good and bad, what is necessary to improve and attached solutions for the terminal to develop more and more in the future. The internship gave me insight and more specific understanding about the business that I had studied theoretically at the university, also the experiences when I have chances to participate the work with employees here. However, due to limited qualifications, restricted knowledge and having less time to practice, my report is unavoidable to have shortcomings. I look forward to receiving comments of the teachers in the department. Sincerely thank you! 29 ... Figure 1.3: The organization map of Green Logistics Centre (GLC) Figure 2.1: Bonded warehouse in Green Logistics Centre (GLC) Figure 2.2: Diagram of the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC)... strengths, weaknesses and the risks affecting the procedure, some suggestions to improve the activities at Green Logistics Centre THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE CHAPTER 1. INTRODUCTION OF THE COMPANY... CHAPTER 2. THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE (GLC) 2.1 Bonded warehoused 2.1.1 Definition .13 2.1.2 Characteristics of goods in bonded warehoused