Chapter 2: Analysis of the reality of delivery and receipt of imported medical equipment by air at
2.4. Analyzing and evaluating the process of receiving imported medical equipment from
2.4.1. Overview of medical equipment goods delivered by the company
According to the 2020 import-export tariff, the medical equipment that the
company delivers and receives belongs to the group of "Equipment and tools for medical, surgical, dental or veterinary industries, including equipment for recording click charts, flashing, other electromedical equipment and vision testing equipment.” with item code 9018, 0% export tax and 5% import tax. These consignments, when exported or imported, usually require a Certificate of Free Sale (CFS) issued by the health ministry of the host country. This is an item that is considered difficult to import and export due to
complicated procedures, some items on the list need to apply for a license to be allowed to export or import. Since switching to import and export specializing in medical
products, the company's customers are mainly manufacturers, distributors, and contractors of medical equipment for hospitals and clinics.
Medical equipment used in Vietnam is mostly imported from European countries, Korea and China, so the company has focused on import routes from these countries.
Here are the company's main import routes:
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60 Table 2. 13: The company main import routes
Country Port of departure Port of destination
Germany
Berlin-Schửnefeld International Airport (SXF)
Noi Bai International Airport (HAN)
Tan Son Nhat International Airport (SGN)
Tegel International Airport (TXL) Tempelhof International Airport (THF)
Düsseldorf International Airport (DUS)
Frankfurt International Airport (FRA)
Münster Osnabrück International Airport (MO)
France
Charles de Gaulle Airport (CDG)
Noi Bai International Airport (HAN)
Tan Son Nhat International Airport (SGN)
Paris International Airport (FRA) Lyon International Airport (LFHJ) Le Harve International Airport (LFOY)
Russia
Belgorod International Airport
(EGO) Noi Bai International
Airport (HAN)
Tan Son Nhat International Airport (SGN)
Domodedovo International Airport (DME)
Vnukovo International Airport (VK)
Korea
Gimhae International Airport (PUS)
Noi Bai International Airport (HAN)
Tan Son Nhat International Airport (SGN)
Incheon International Airport (ICN)
Japan
Fukuoka International Airport (FUK)
Noi Bai International Airport (HAN)
Tan Son Nhat International Airport (SGN)
Chubu Centrair International Airport (NGO)
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61 Kansai International Airport (KIX)
Tokyo International Airport (HDN) Osaka International Airport (OSA)
China
Beijing International Airport (BJS)
Noi Bai International Airport (HAN)
Tan Son Nhat International Airport (SGN)
Shanghai Hongqiao International Airport (SHA)
Guangzhou International Airport (CAN)
Hangzhou Xiaoshan International Airport (HGH)
Chengdu International Airport (CTU)
Table 2. 14: Results of delivery of medical equipment shipments of the company in the past 3 years
Units: Number of shipments Year
Type 2018 2019 2020
Type A 238 320 305
Type B 145 156 201
Type C 123 162 152
Type D 117 88 95
Total 623 726 753
(Source: Airseaglobal accounting department) Based on the above table, it can be seen that the number of shipments of class A medical equipment of the company over the years is always higher than that of other products. This can be explained because Class A goods have the lowest level of danger, any business can import and trade as long as it is shown in the business registration that they are trading in medical equipment. For medical equipment of grades B, C and D, it can be imported more easily than grade A without having to make a declaration of eligibility,
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62 but in order to be sold to the market or to enter the tender, businesses need to make a declaration of eligibility to trade. Class B, C, and D medical equipment requires professional qualifications of employees in the enterprise, factory standards or vehicle standards.
The total number of medical equipment shipments had a strong growth in 2019 and slowed down a bit in 2020. The reason is that before 2019 the import tax of medical equipment was 10% and from 2019 onwards. The import tax of this item is only 5%, not to mention some items, if there is a C/O, they will enjoy VAT incentives.
2.4.2. Process of delivery and receipt of imported medical equipment of the company
Figure 2. 6: The process of delivery and receipt of medical equipment by air at Airseaglobal Vietnam Joint Stock Company
(Source: Airseaglobal Operations Department) 2.4.2.1. Get documents
After the Sales department closes the order to ship the book, the customer sends a set of documents to the Sales department for information on the declaration. The set of documents sent by the customer includes:
• Business registration: Include company information, business code, company's representative.
Get documents Check the set of documents
Make a customs declaration
Tax Notice Clearance
procedures Do procedures
to pick up goods
Pay and return original documents to
customers
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• Invoice (commercial invoice): Shows the customer's shipment value to the shipper, the information on the basic commercial invoice includes shipper information, invoice number, invoice date, and product name (model) , manufacturer, country of manufacture), quantity of weight, package, payment terms (most orders are purchased under EXW and FOB terms).
• Purchase and sale contract of the business: Shows shipper information, consignee, contract number, contract date, information of goods purchased and sold, payment conditions,...
The agent of the exporting country comes to pick up the goods at the shipper's location (for shipments under EXW terms) or the shipper will deliver the goods to the agent (if according to FOB terms). The airline issues the original bill of lading (Airway Bill) to Airseaglobal company and the company will issue a supplementary bill of lading (House Bill) to send to the importing company to check the information. For the original bill of lading, the main information includes:
• Shipper information: Company name, address, information, contact phone number (if any);
• Consignee information: Airseaglobal joint stock company name and company address;
• Bill of lading number, bill of lading issue date, flight information, flight date;
• Information about goods: Name of goods, number of weights, number of packages, number of pallets;
• Information about departure and arrival locations.
For sub-bills:
• Consignee information: It will be the importer's information, company name, address and contact phone number (if any) that needs to be checked correctly to avoid correction during delivery;
• Sub-bill number, bill of lading date.
After the parties confirm the accuracy of the original bill of lading and the supplementary bill of lading, the agent department of Airseaglobal Joint Stock Company
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64 will send the information back to the airline and the airline will correct the information (if there is any need to correct it). ) and issue the official bill of lading to the agent to prepare the declaration. Cus Department receives the documents and prints the documents to prepare for the declaration.
2.4.2.2. Check the set of documents
❖ Carefully check the information on the documents.
The documents of the shipment will be sent to the documents department staff to check the information and make the declaration. For air shipments, key documents usually include:
Commercial contract (Sales contract): Contract number, contract date, payment method, payment conditions, description of goods,...
Commercial Invoice: Exporter name, invoice number, invoice date, payment terms, invoice unit price, goods name, quantity of goods,...
Details of PKL (Packing List): Weight, volume, weight, number of packages,...
Air waybill AWB (Airway Bill): Bill of lading number, bill of lading date, flight name, flight date, loading location, unloading location,...
Arrival Notice (AN): Information on the arrival notice includes the date of arrival, unloading location, expected customs clearance storage location code, weight, number of packages,...
Some additional documents can be sent by guests such as: Certificate of Origin (Certificate of Origin), receipt slip, announcement slip, classification table of goods,...
❖ Check data between documents.
Check the conformity, information between documents if there is any mismatch, contact the customer to confirm again.
❖ If the set of documents is missing or invalid, the Ops staff will notify Sales to complete the full set of documents to submit to the customs declaration.
❖ Look up Harmonized System code for goods.
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65 For new goods, it is necessary to carefully study the information of the goods: Name of goods, uses, properties, materials, types of goods, ... to look up the most accurate HS code.
For goods that have been made, do you still need to look up the current HS code for that item.
2.4.2.3. Make a customs declaration
❖ Make the customs declaration by electronic customs declaration software, based on the information on the documents sent by the customer.
❖ Check the declaration again, pay special attention to the information that cannot be corrected on the declaration: Exporter's name, address, customs office code, type code; Weight, number of packages, bill of lading number, name of goods; Port of loading, port of discharge, HS code of goods, ...
❖ Send the proof-of-print declaration to the customer to check the information again to see if there is any information that needs to be corrected or supplemented, if so, add it to the declaration.
❖ Transmit declaration and receive stream result.
2.4.2.4. Tax notice
After the clearance declaration is available, the company notifies the customer of the tax so that the customer can actively pay or transfer the money to the field department for the field department to submit to the customs and then proceed with the customs clearance procedures . For shipments of companies that have a long-term relationship and cooperation, in some cases, accountants will advance tax money for the field department to clear goods. For new customers, the tax will be paid immediately to the company or the customs for customs clearance. The document officer sends the tax notice to the business and also sends the official classification declaration to the importing company.
2.4.2.5. Clearance procedures
Ops department of the company prepares documents for customs clearance:
Customs declaration, commercial invoice, bill of lading, commercial contract, notice of arrival of goods, registration for specialized inspection, C/ O, the classification of medical equipment, declaration of eligibility to trade in class B, C, D medical equipment (if any),...
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66 The dossier of medical equipment goods will be sent to the receiving customs to assign officers to check the dossier. Customs receive and check documents: Airseaports imported by Airseaglobal company are usually classified in yellow and red, so:
+ For the declarations of gold channeling, complete and accurate dossiers, the goods will be cleared; for missing information or documents, the field department should contact the documentation department at the office to add to the dossier; at the same time pay the fees for the goods to be cleared.
+ For red channel declarations, besides checking the documents, the goods will be transferred to the customs inspection to check the quality of the goods, check whether the parameters related to the goods name and model are correct. With the goods information on the declaration, it is necessary to know the information about the medical products that the company imports so that they can be handled with the customs.
The field department at the supervising customs counter will divide the documents into 3 sets with:
Version 1: Ex-warehousing note +1 list of cleared goods (add MAWB number) Version 2: 1 list of cleared goods
Version 3: 1 list of cleared goods + 1 ex-warehousing note + 1 original bill of lading + 1 supplementary bill of lading
Figure 2. 7: The process of electronic clearance of medical equipment 2.4.2.6. Do procedures to pick up goods
After the goods are cleared, the field department holds the customs clearance documents and lists to the warehouse, monitors and prepares to pick up the goods. At the
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67 warehouse, after completing the procedures, the goods information will be displayed on the electronic board system, the field department will monitor the goods information to see which door the goods are coming out and prepare the car to pick up the goods. The field department proactively gave the delivery note to the forklift operator and guided them to take the goods to the truck. After the goods are shipped out, the field department will sign for confirmation with the warehouse staff, the release note is stamped and returned to pick up the goods. At the same time, the field department must check the goods and take pictures of the goods.
After the goods are loaded into the car by the boss, the field department gives a list of stamped goods, storage VAT and some other arising documents (if any) so that the goods can pass through the security gate.
2.4.2.7. Pay and return original documents to customers
After the goods are safely delivered to the warehouse, the accounting department calculates the total cost of the entire shipment and sends an invoice to the customer. The main information on the invoice usually includes: International shipping costs, additional information, customs clearance costs, domestic shipping costs,...; Send invoices and send scanned original documents to customers with payment notification.
After the customer has paid, the accountant sends the original document to the customer via courier and completes the process of delivery and receipt of medical equipment by air.
2.4.3. Evaluation of the process and implementation of the process of receiving imported medical equipment of Airseaglobal Joint Stock Company
2.4.3.1. Achievements
After 9 years of construction and operation, up to now, Airseaglobal Joint Stock Company has gradually affirmed its position in import and export goods forwarding activities in general and the No. 1 position in aviation customs declaration in Hanoi.
Specifically:
Regarding the assets of the enterprise: By 2020, the assets of the enterprise will reach VND 157,033 billion, a very large number that speaks to the company's position,
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68 good debt payment ability, and debt recovery ability good; Especially, the company's assets in the delivery and receipt of medical equipment by air account for nearly 60% of the total capital of the enterprise. And now the company has more conditions to expand its business activities and develop its services.
Quality of service: Affirming the quality of the No. 1 position in its Noi Bai customs declaration, Airseaglobal Company always gives customers satisfaction in price and service. The company has established a good relationship with the customs to help the customs clearance process be faster and the delivery time is shortened, thereby receiving positive feedback from customers about the shipping time as well as the quality of the goods is guaranteed.
Human Resources: Company has built a team of experienced and qualified staff. All staff members are well-trained, have professional knowledge, and have a sense of responsibility at work. The staff is always enthusiastic, attentive and interested in customers, bringing absolute satisfaction from customers.
The ability to capture information: Company in the process of operation is always rich in information sources to be able to approach and expand more customer sets. With Airseaglobal mainly focusing on medical customers, the customer base on the Dmec page includes information about companies, goods, and email addresses, from which the Sales department will find ways to reach customers and expand the focus. new customers for the company. The system of information collection and use of information resources is quite effective.
Expanding business markets: The company is increasingly developing its market system in many countries such as the US, Germany, Korea, Thailand, China,... Operating in most of the Southeast countries Asia with the provision of services related to the delivery of medical equipment by air such as customs declaration, international transportation, import of medical equipment, chemicals and industrial machinery.
2.4.3.2. Limitations
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69 In addition to the successes that Airseaglobal Joint Stock Company has achieved during its 9 years of delivery and delivery of medical equipment by air, the company still has limitations, affecting its competitiveness. their competition with other businesses, specifically:
The company's distribution channel system has many overlaps and has not yet shown its dynamism in response to market requirements. Besides, the company's agent system in some countries such as Bulgaria, Switzerland, Sweden,... the price is still quite high, not enough to compete with other businesses and the cause of this problem This comes from the fact that the amount of goods transported by air is still relatively small from these routes, so they have not received preferential prices.
The system of equipment for the transportation of goods has been invested, but up to now, the company still does not have a department for transporting goods and means of transport. It is this situation that leads to inadequate customer satisfaction, especially for medical equipment, transportation requirements are very high when goods need to be transported carefully, safely and securely. Some items require refrigerated vehicles for shipping. Currently, the company's transportation process has to hire external carriers, so its dependence on those carriers is large and if it falls at peak times, its transportation will not be prioritized. Outsourcing the service also increases costs, is not proactive in the goods control process, and this leads to the problem of not meeting customers' wishes.
The management apparatus has not brought into full play the capacity of the staff.
The interaction and processing between departments in some shipments is still slow. Some cases occur such as: after the shipment is loaded on the plane and shipped, the customer asks the document department to send Debit, but because the staff is absent, the customer evaluates the company's service as slow. .
Service costs are still high: The delivery and receipt of medical equipment by Airseaglobal Joint Stock Company with delivery costs compared to the common ground is still quite high. Outsourcing transportation, warehousing, loading and unloading of goods, etc. has greatly increased the cost and therefore it is difficult to provide customers with the most competitive prices in the market.
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70 As a freight forwarder of medical equipment by air, however, this role has not been fully promoted, but mainly focuses on the role of an agent. Forwarding branches with full roles of forwarders, however, are not equal among services. The market of medical equipment delivery by air is no longer limited in size when it focuses mainly on goods in Noi Bai, while at the customs area in Ho Chi Minh City, shipments by air Although this area is known for its large volume of goods, the delivery and delivery activities are active.
In the area of two big agents, Hai Phong and Ho Chi Minh, the volume of goods by sea accounts for a much higher proportion than by air. This situation shows that the coverage of the company's name in the field of freight forwarding is not wide, the company has not focused on expanding the medical equipment delivery market.
Revenue and profit in air freight forwarding and delivery of medical equipment have always increased over the years, but compared to competitors, the increase is insignificant.
The disproportionate increase in revenue and freight costs is the direct cause of the low profit. This poses the problem that in the near future, the company needs to develop effective strategies to expand the delivery of medical equipment by air, come up with new strategies to increase revenue, profits, improve your business performance. h
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