The process of forwarding services to import tires

THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS DEPARTMENT OF INTERNATIONAL BUSINESS - - BACHELOR THESIS THE PROCESS OF FORWARDING SERVICE TO IMPORT TIRES AT YUSEN LOGISTICS DANANG Academic advisors: Nguyen Thi Thuy, Ph.D Student’s name: Vo Van Tien Class: 41K01.2-CLC Danang, May 2019 ACKNOWLEDGEMENT As the greatest chance in my life, going on the internship at Yusen logistics Danang significantly benefited me in many ways Thankfully, Yusen Logistics Danang provided me a professional and open working-environment to learn as well as improve my self After gaining a great deal of specialized knowledge from the lessons, I finally apply it in real circumstances through this opportunity Moreover, I am extremely grateful for having a thorough help from Mr Phu operation staff from Customs Clearance Dept, who carefully showed me every single procedure from the most straightforward step to the whole complicating practices Special thanks to Ms Tuyen, the head of Customs Clearance Dept, who provided me helpful statistics as well as the specialized guidance to facilitate my thesis on the appropriate direction, regardless of her busy works Besides, I also appreciate all the wonderful people there, who gave me a chance to work with and extremely supported me during my internship at Yusen Logistics Danang Finally, I express my deepest sense of gratitude to Ms Nguyen Thi Thuy, my academic advisor, for her professional and precious guidance despite her full schedule This is my second chance to receive her thorough instruction, which is absolutely valuable for my study and thesis in the aspects of theory and practice as well Working with these amazing people is seen as a remarkable milestone in my whole academic life Therefore, I certainly take advantage of it for self-development and my career orientation and hope to have prospectively corporation with all of you Best regards DaNang,……………………………………… (Student’s signature) VO VAN TIEN i TABLE OF CONTENT ACKNOWLEDGEMENT i TABLE OF CONTENT ii LIST OF FIGURE vi LIST OF TABLE vii LIST OF ABBREVIATIONS viii INTRODUCTION CHAPTER THEORETICAL FRAMEWORK I Service: Service: .4 Service characteristics and evaluation: Freight forwarding service: Forwarder: 4.1 Definition: 4.2 The roles of forwarders: 4.3 The provided services: II Process of forwarding service: Process of service: 1.1 Definition: 1.2 Characteristics of the service process: 10 1.3 Service process evaluation: 10 Process of forwarding service: .13 2.1 General stages of a whole process of forwarding service: 13 2.2 Documentation: 14 2.2.1 Bill of lading 14 2.2.2 Certificate of origin: 16 ii 2.2.3 Commercial Invoice: .17 2.2.4 Packing list: 17 2.2.5 Sales contract: 17 2.3 Process of forwarding service evaluation: 17 III Imported tires: General information of imported tires: 2 Legal basis: 2.1 Certificate of Conformity: .4 2.2 Customs documentation: .5 CHAPTER Yusen Logistics Danang: I General information: Overview: Vision, mission, and value: .8 Field of business: 3.1 Provided services: 3.1.1 International freight forwarding: 3.1.2 Ocean Freight Forwarding: 28 3.1.3 Contract Logistics: 28 3.1.4 Distribution: 29 3.2 Customers and partners: .29 II Organizational structure: 30 Structure: 31 Duties and responsibilities of each department: 31 2.1 Branch Director: 31 2.2 Senior General Manager: 31 2.3 Freight Forwarding Dept (FFD): 28 iii 2.4 Customs Clearance Dept (CCD) 28 2.5 Business Dept (BD) .28 2.6 Finance Accounting Dept (FAD) 29 2.7 Trucking Dept (TRD) 29 2.8 Warehouse: 29 III Business performance: 30 CHAPTER Process of forwarding service for imported tires 34 I Overview of the process of forwarding service to import tires at Yusen Logistics Danang: 34 II Process analysis 38 Receive and check the documents from the customer: 38 Register the regulatory inspection of quality of imported goods 39 Receive and check arrival notice: 40 Electronic customs declaration: .41 Submit for paper documents checking: .46 Consultation: 48 Trucking procedure .52 7.1 Exchange for Delivery Order (D/O) and pay container holding fee at shipping agent: 53 7.2 Receive and pick up container at the port 54 7.3 Transport to the private warehouse of BSTVN: .54 Services settlement and documents handover 56 III Evaluation: 56 P-PLAN 56 D-DO: 58 C-CHECK 59 A-ACT 59 iv IV Recommendation: 60 Timing .60 Use of human resource 61 Infrastructure 62 Others: 63 CONCLUSION 64 REFERENCES 65 APPENDIX APPENDIX 12 APPENDIX 15 v LIST OF FIGURE Figure 1.1 The Flow Diagram 12 Figure 1.2 List of supplying markets for tires imported by Viet Nam Figure 2.1 Business model of Yusen Logistics Figure 2.2 Organizational structure 31 Figure 3.1 Overview of the process of forwarding service to import tires 37 Figure 3.2 Receive and check the documents from the customer 38 Figure 3.3 Register the regulatory inspection of quality of imported goods 39 Figure 3.4 Electronic customs declaration 42 Figure 3.5 Import declaration box 43 Figure 3.6 Screen to insert value of declaration 43 Figure 3.7 Screen to insert cargoes' information 44 Figure 3.8 Flow report and clearance status 45 Figure 3.9 Submit for paper documents checking 46 Figure 3.10 Consultation of price 49 Figure 3.11 Trucking procedure 52 vi LIST OF TABLE Table 2.1 Values of Company Table 2.2 Customers of Yusen Logistics Danang 30 Table 2.3 Business result of Yusen Logistics Danang from 2016-2018 32 Table 2.4 Business result of Yusen Logistics Danang in 2018 32 vii LIST OF ABBREVIATIONS Abbreviations Explaination ISO The International Organization for Standardization B2B Business to business FIATA International Federation of Freight Forwarders Associations L/C Letter of Credit C/Q Certificate of Quality B/L Bill of Lading C/O Certificate of Origin VCCI Vietnam Chamber of Commerce and Industry CFS Container Freight Station BSTVN Bridgestone Tire Sales Vietnam Limited Liability Company EIR Equipment Interchange Receipt Co., Ltd Company Limited SOP Standard of Procedure viii INTRODUCTION Logistics industry, or Freight forwarding industry in specific, plays a crucial role in expanding trade by significantly facilitating international trade Building a specialized infrastructure for logistics requires advanced technology and huge capital, which is the main reason why many companies must outsource logistics services for costs cut-down It is going to be evident that having a reliable freight forwarder is an indispensable part of any supply chain This national industry is still young in Vietnam, but it has played, to somewhat extent, an active role in assisting trade by simplifying trade and documentary procedures, which in turn contribute to cost reduction Getting over a lot of difficulties and barriers, Vietnam freight forwarding industry had considerable growth and reached the significant achievements due to the international economic integration and the widely spread of hi-tech commerce as well as automatic industry According to the Report of Vietnam Logistics 2017, Vietnam logistics industry saw significant growth with 14-16% increase and the scale of around 40-42 billion USD/year Besides, challenges and difficulties still remain considerable It is clear that the weak network of ports, warehouses and logistics enterprises attenuate the sustainable development of the logistics industry Furthermore, the customs formalities are too complicatedly inter-woven and rigid, which dramatically decelerate the flow of trading merchandise Specifically, despite the high requirement for timeliness of goods delivery, the customs clearance time remain so long: 105 hours for exported products and up to 132 hours for imported ones ("Vietnam Logistics Report 2017," 2017) During my internship at Yusen Logistics Danang, I had a chance to immerse myself into Logistics environment and learned a lot of about the working process, the facts as well as the existing hindrances in this industry Accordingly, I decided to choose the topic “Process of forwarding service to import tires at Yusen Logistics Danang” for my thesis I take the process into analysis since it is considered as a core of an excellent forwarding service A forwarder must build their own a well-structured process of forwarding service, which helps the service to be performed in forwarder’s preferences In another word, process plays a crucial role in customer’s perceived value and forwarding service quality However, while performing a process of forwarding service, there are many incurred and unexpected problems, thus, doing this topic can indicate me how a 10 11 APPENDIX 12 13 14 APPENDIX 15 16 17 ... Overview of the process of forwarding service to import tires 37 Figure 3.2 Receive and check the documents from the customer 38 Figure 3.3 Register the regulatory inspection of quality of imported... including the overview of enterprise, the services they provide and so on - Finally, in Chapter 3, I mainly emphasize the Process of forwarding service to import tires here Then, I evaluate the process. .. forwarding service to import tires Figure 3.1 Overview of the process of forwarding service to import tires 37 II Process analysis Receive and check the documents from the customer: Figure 3.2