IMPORT&EXPORT.doc

IMPORT&EXPORT.

CHAPTER ONEINTRODUCTION

I STATEMENT:

Nowadays, Viet Nam become a developing country, we need, tocooperate, to do business, to enlarge the relations between our country andall of the countries on the world It is a key to overcome the weakness andto reduce the gap between the developing countries and underdevelopedcountry This can help our country access to the commercial in the area andwhole of the world.

When integrating into the market economy, Vietnam’s economyhas been developing and one of the most important products is furniture.

With the exporting and importing furniture, Vinapoly Company hastried to manage the business to fit the new conditions and has got a largeamount of best result when entering the world market in the future.

II PURPOSE:

My recognition of the importance of import and export especialfurniture in Vinapoly Company as well as combining the academicbackground and working in the fields of import and export in VianapolyCompany about two years and under the instruction of Ms Nguyen ThiKim Chung, my report will focus on this factors.

III SOURCE:

I read from Newspaper and magazine, internet, Use data fromreports of former students and Company, and take some references frombooks and Websites of import – export procedures I am working Importand Export of Vinapoly Company

Address: No.2, 10A Road, Bien Hoa Industrial Zone II, Dong naiProvince, Vietnam.

II FUNCTION AND DUTY

According over 10 years experience, Vinapoly Company has animportant position in furniture field.

Nowadays, Majority of Enterprises is all kinds of furniture products:Bentwood chair and chair back top, Table top for office furniture … inaddition, Our company has a team of the designers who have goodexperiences in designing and creating new sample of furniture It is alsoready to apply for all customer’s demands with best service and highquality.

Vinapoly Company very concentrate on the strategy and long termdevelopment of furniture, so it must update the value of goods and productgain market all over the world, it is ready to cooperate with nationalcountry: India, Germany, Korea, Japan, Import – export goods

ORGANIZATION CHART OF VINAPOLY COMPANY

GENERAL DIRECTOR

ADMINISTRATION DEPARTMENT

FINANCE & ACCOUNTING DEPARTMENT

TECHNICAL - BUSINESS DEPARTMENT

PERSONNEL DEPARTMENT

CHIEF ACCOUNTANT

TECHNICAL DEPARTMENT

EXPORT-IMORT DEPARTMENT

VINAPOLY CO., LTD OPERATES WITH THE FOLLOWING FUNCTIONS:

Customer’s required service.Updating the value of goods.

Designing and creating new modern samples.Receiving customer’s mail, fax, order.

Sending catalogues, quotation, samples, patterns.Import and Export goods.

II FOR DIRECT EXPORT:

Direct exporting occurs when a manufacturer or exporter sells directlyto an importer or buyer located in a foreign market area

- Thorough knowledge of foreign markets The product candetermine readily what adaptations of his product are necessary to fit theneeds and desires of foreign buyers.

- A full return from export sales As export business develops,there is no sharing of profits with other organizations.

- Help the exporting company can make a control of salespromotion and marketing strategies

- Own brand mark, trade mark, industrial designs are required.- The business executive must be competence at marketing, foreigntrade technique…

III FOR INDIRECT EXPORT

This is a kind of exporting methods that a company (called agents)which have right to export the goods will handle the exporting process forthe company (merchants) which do not have the right to export directly

The basic distinction between the two is the merchant takes title tothe products to be sold, while the agent does not The agent will receive aentrusting- commission This commission will be fluctuate between 0% and1,5%.

- Help small company have a chance to export their goods

- The middleman is usually the person who can have a thoroughknowledge of the law and the customs in foreign markets So the risks ofthe manufacturer will decrease.

- The middleman often has material facilities in foreign countries,the manufacturer can cut off the foreign-investment expenses.

- The manufacturer can not get in touch with the market.

- The manufacturer must satisfy the demand of the middleman- The profits must be shared.

VI COMMERCIAL CONTRACT:

International sale contract means an agreement that regulates therights and obligations of parties with regard to the sale and purchases of theproducts.

A common international sale contract usually has 03 main parts:

 Part 1: name of the contract, contract number, date and placecontract signed, name and address of 02 parties

 Part 2: the main articles of a contract Part 3: signature of the contract parties.

Main articles in a common international sale contract:ART1: Commodity

Define the name of the commodities The name should be writtenwith technical and commercial name, with name of manufacturer, withorigin country and so on.

ART 2: Quality

The commodities must be satisfied with the standard and qualitywhich has been regulated by two parties The quality can be defined bysamples, by describing in details, by standard of the exporter…

ART 3: Quantity

This article will define the quantity of the commodities, types ofweight (gross weight or net weight)…

ART 4: Shipment / delivery

Regulate the time of shipment, place of shipment, mode ofshipment, notification of delivery.

ART 5: Price

Currency of price, methods of identify price, discount, terms of sale

ART 6: Payment

Make clear of currency of payment, time of payment, method ofpayment, documentary credit …

ART 7: Packaging and marking

Packaging: quality of the packaging, the methods of providingpackaging, the price of the packaging.

Marking: specific marking and labeling are used on export to meetshipping regulations, to ensure proper handling and to help receiveridentify shipments.

ART 11: Force majeure

Force majeuce shall be understood to be unforeseeable,unavoidable and impossible to overcome Listing events are consideredforce majeuce such as war, riot, insurrections, strikes, lockout, governmentregulations, fire, explosion, flood, storm, earthquake and other abnormalnatural event

ART 12: Claim

Claim means a suggestion is brought our by one party because ofthe discrepancy in quantity (damage/shortfall) or quality and other issuesare not in conformity with contract.

In this article, two parties must negotiate about sequence of claim,claim period, liability of two parties for claim, required documents forclaim.

ART 13: Arbitration

Disputes between the parties can be resolved in one of two ways:by an amicable settlement between parties themselves, by arbitration Ifamicable settlement is not possible, most international contracts specifyarbitration Arbitration article shall be stipulated: applicable law, place ofarbitration, who shall bear arbitration costs?

ART 14: Other terms and condition

With the above-mentioned articles, we can not delete any articlebecause of having many risks

V THE METHODS OF PAYMENT

In general, most of the international sale contracts use L/C as the mostcommon methods of payment Although this is the most secure method ofPayment, it also has its own disadvantages Therefore, the exporter has to bemore careful and must cut the risks down at a minimum by follow the some tipbelow:

Risk from the issuing bank: this bank can not afford the payment for theexporter.

Solution:

- Choosing the issuing bank which has prestige in payment- L/C should be confirmed by the third party (confirming bank)

Risk due to not completing the L/C terms and conditions The main reasonsare: late delivery, inappropriate quality and quantity goods…

- Plan the schedule for the time of collecting the goods for export.If the schedule can not meet the L/C’s requirement, the company shouldhave an amendment

- In case of transmission (allowed): the exporter must investigatethe route and which one the shipping company can know thoroughly

- In case of partial (allowed): the company should pay attentionabout such as : how many times and the exact time of each partial? …

The risk of payment due to discrepant documents:Solution:

- Arrange skillful employee in exporting documentary department- Choose the goodwill partners

- Examine and investigate the L/C carefully

- Negotiate with the importer from the negotiating stage about thedocuments that the exporter has to submit to the paying bank.

Besides L/C, the company should diversify the method of paymentsbecause this is a high-fee and complicated method So, the enterpriseshould change to CAD or T/T… if the partners are prestige or habitual ones.

CHAPTER FOUR

PROCESS OF CUSTOMS PROCEDURE FORIMPORT AND EXPORT COMMODITY

I.MAKING CUSTOM PROCEDURE:

I have good chances to participate in carrying out customsprocedures for importing and exporting goods, the customs declarers mustsubmit and present a customs dossier at the headquarters of Customs Sub-branch and be responsible for legality and lawfulness of customs dossiersand accurateness of declared contents on customs declaration form.

To customs procedures in Viet Nam, I would like to focus on two points:

processing imports and exportsa Processing imports:

General procedures and requirements: Declaration, calculation,duty collection or notification tax, examination and release of goods.

Procedures for entry before clearance: After lodging the manifestto the customs offices as the check-point and accepted by customs, goodscan be unloaded to the warehouse

Import declaration: Goods imported are subject to customs

declaration within 30 days from the of arrival at the check-point.

Documentary requirement:

 Import declaration form. Import license (if any)

 Commercial contract (02 original )

 Commercial invoice (01 original & 01 Copy) Packing list (01 original & 01 Copy)

 Bill of lading (01 original or 01 Copy)

 Certificate of origin for goods requiring C/O (01 original) Other relevant documents.

Payment of duties and taxes: Duties and taxes can be collected atthe customs check-point or through the bank.

Examination and release of goods: Imported goods will be releasedafter duty collection and duty amount notification or duty collection andexamination.

b Processing export:

Time and place of loading of goods: Goods to be exported areallowed to be loaded at a specified port o r place for exportation Loadingtime should b e done during working hours by the customs office.

Export declaration: The export declaration form is the same as the importdeclaration form The validity period is 15 days from the date of itsregistration at the customs office.

 Certificate of origin for goods requiring C/O (01 original Form A/K) Other relevant documents.

Examination and release of goods: All goods for exportation mustbe examined by customs Customs can conduct on the spot examination ordetailed examination depending on the characteristics of the goods Oneexamination is completed, goods will be authorized to be loaded on thevessel.

II SHIPPING THE PRODUCT:

If the goods are exported with the term C or term D, the buyer hasthe duty to rent the transportation There are 02 common kinds oftransportation:

a) Transportation by air:

- Advantages : fast, flexible

- Disadvantages: high transportation freight, so it is just suitable for smallcargoes and high-value cargoes

b)How to choose the Conditions of insurance?

When the goods are exporting in CIP or CIF term, the seller hasduty to buy the insurance conditions satisfied the terms & conditions hasbeen agreed in the sale contract or in the L/C (if any) If the insuranceconditions do not make clear in the contract or L/C, the seller shouldchoose FPA or ICC(C) condition.

If the goods are exporting in D term, the seller should considercarefully The exporter should choose the conditions which are safe for ourgoods and can get the maximum profits.

After delivery, the exporters submit the payment-documentary tothe bank to get payment The payment-documentary needs to be exactly,suitable for the L/C (if any) or complied with the sale contract.

Especially, the furniture product, and exporting industry areconsidered one of the main exporting force in Vietnam and has taken As aresult, our country’s short-term target is enhancing the effective, turn-overfield and long-term target is step by step impulse our country become oneof the powerful furniture export countries in the future.

II RECOMMENDATION:

Vinapoly Company is a foreign company and its activities areimproving day by day; so, there are a lot of objective and subjectivedisadvantages Therefore, Vianpoly to enhance the furniture export to theJapan, Korea market

By analyzing and assessing the furniture product import and exportoperations of Vinapoly company from 1997 to 2007, I hope that thesefactors which have been analyzed and some approaches will distribute to

the direction of development, policies, strategies of Vinapoly Company topromote its power, take full advantage of opportunities, overcome thedisadvantages and reduce risks and boost the furniture product export ofcompany in the future

1 Vinapoly Company’ document

1 Ph.D Ñoan Thi Hong Van 2000 Syllabus of foreign trade techniqueStatistics Publishing House.

2 Vo Thanh Thu.November 2002 Business – Import and Export.

1 www.incoterms2000.com

5.http://www.encyclopedia.thefreedictionary.com/Negotiation

 Commercial Contract. Commercial Invoice Packing list

 Certificate of Origin Letter of Credit Bil of exchange Bill of Lading

 Certificate of fumigation