LOGISTICS JOINT STOCK COMPANY
CHAPTER 3: CHAPTER 3: FREIGHT FORWARDING PROCESS OF FCL SHIPMENT EXPORTED BY SEA AT VOSCO AGENCY AND LOGISTICS JSC
3.1.1 Shipment:
Corrugated Paper / 100 GSM / Size 2350 - 2500mm / Rolls Amount: 125.126 KGM / 90 Rolls
Bill invoice: 47.547,88
Figure 3.1. Corrugated Paper Illustration
(Soucre: https://www.indiamart.com/proddetail/100gsm-corrugated-sheet-roll- 21425742897.html)
3.1.2 Related Partners O Exporter:
Company name: Thanh Dung Co., Ltd
Address: Long Xuyen Industrial Park, Long Xuyen Ward, Kinh Mon Town, Hai Duong Province, Vietnam
Phone number: 02203535287 Tax code: 0800288901
O Importer:
Company name: Dongguan Fusen Paper Co., Ltd
Pham Dinh Kien — IBL1002 Page 14
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
Address: The 2nd industrial area Changping Disctrict, Daojao town, Dongguan city, Guangdong, China
Country code: CN
3.2. The process of exporting FCL shipment 3.2.1. Summary of the process in practice
Figure 3.2 Flowchart of exporting FCL
(Source: Author's own synthesis) 3.2.2. Explain the process in detail
Vosco Logistics and Transport Agent (Vosal) as a representative office of a logistics company in Hai Phong. Customer is Thanh Dung Co., Ltd. - Vosal Company is a loyal customer, regular import and export through the company, delivery in many shipments, safe and effective. On the basis of trust and mutual trust, the two sides have agreed to sign the next export shipment. In particular, Vosal undertakes transportation services and ensures goods from the export (Vietnam) to the import (China).
This transportation service is performed on the basis of a sales contract between two companies: Thanh Dung Co., Ltd in Vietnam and Dongguan Fusen Paper Co., Ltd in China. And this time Vosal buys freight from Fowader, which is Sao Bien Supplying and Trading Joint Stock Company. After completing the delivery of goods on board, Thanh Dung Co., Ltd. will send the necessary documents related to the transportation process to the ship. Vosal Company to transfer to Dongguan Fusen Paper Co., Ltd. and check the dossier. from the export of Thanh Dung Co., Ltd.
After checking the documents of the exporting company, if there are no problems, the seller begins the export process. The set of export documents includes: commercial invoice, packing list, certificate of origin, delivery document, bill of lading, customs declaration, calculation of the number of containers to be placed based on the shipment.
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
Process 1: The exporter hires FWD to carry out the procedures for exporting the shipment
After signing a successful sale and purchase contract between the seller and the buyer, Thanh Dung Co., Ltd. will conduct a search for a Logistic company, Sao Bien company, to conduct FCL export procedures for the shipment. Sao Bien company will take charge of contacting shipping lines to check ship schedules, ask for sea freight rates, usually contact a few shipping lines, then choose a shipping line with low quotation, then send the quotation to its customer (exporter).
Process 2: Booking Request
- Bill of lading number: 1220000122000293 - Quantity: 30 RO
- Gross weight: 125.126 KGM - Storage location: O3EESO1 - Queuing place: VNDVU
- Port of loading: Hai Phong, Vietnam - Port of Discharge: Ninhbo, China
Regarding the obligations of the seller (exporter) and buyer (importer) under the terms EXW specified in Incoterms 2010.
LH For the seller (exporter):
- Prepare the goods in accordance with the contract of sale, provide the necessary documents if possible to the buyer, inform the buyer of the time and place of delivery
- Bear all risks, costs and expenses incurred until the shipment is loaded onto the buyer's means of transport.
- Under this condition, the seller must place the goods under the control of the buyer within the time and place specified by the contract. The seller is not responsible for loading the goods onto the means of transport, or clearing them for export if the contract does not provide for it.
- Support the buyer if required by the buyer or in the contract specified.
O For the buyer (importer):
- Pick-up at the location agreed with the seller in the contract (receive when the goods are ready to be picked up at the specified place or facility)
- Pay for goods and bear all costs incurred in receiving goods (costs of goods inspection, costs of paperwork, procedures to receive goods and export clearance, costs of insurance, costs that the seller has spent to support me...)
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
- Carry out the organization of transportation and bear all costs of loss, risk and do all the work to bring the goods out of the country of export and to their destination.
Process 3: Change shell command
The Logistic company holds the Booking Note sent by the shipping company, accompanied by a referral to change the container, the lead fee on the shipping line's address. Put in the export document counter to change the order to issue an empty shell.
On the command to grant the empty shell, there are the following main
contents:
O Owner's name: Thanh Dung Co., Ltd
O Container number: CRBHU8958 131, DRYU9823553, CSLU6048 133, CSNU6887802, DFSU7046938.
O Quantity and type of container: 5x40'HI - Cube Container
After checking the shipment information, if it matches the information and data provided by the parties about the actual goods, the order exchange staff will ask you for some information such as full name, phone number, item code,... tax amount of the goods owner. Ideally, before handing over the file to the changing staff, you should write the above information in the blank of the D/OO order sheet.
The yard staff will then go to the yard's transaction counter to pay the lifting fee (if required they also pay the unloading fee as some places require paying both fees, some only ask to pay for the front cover lifting and lowering the rear cover).
The port authority will print an empty container release slip and give it to the field staff. As for the invoice to pay the lifting fee for the customer and the consignee, this invoice will be carried.
After completion, the transport department or the driver will bring this empty container export slip to the port to pick up the container, pull the container to the customer's own warehouse (exporter) to pack the goods.
Process 4: Packing goods at private warehouses, lowering goods
Drivers entering the loading yards of industrial parks need to register information half a day or a day in advance, including: identity card number, phone number, license plate number, container number.
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
Drivers entering the loading yards of industrial parks need to register information half a day or a day in advance, including: identity card number, phone number, license plate number, container number. Driving empty shells to the customer's own warehouse to pack, the warehouse department will arrange workers and arrange forklifts to load the goods into the container. Based on the container size, the warehouse will calculate the packages to put in the container. The warehouse department arranges workers and forklifts to pack goods into containers.
Staff warehouse tally goods name, quantity, container number, specific lead number compared with PackingList to later send to Sao Bien company or shipping company to do SI. Workers at the factory will increase lashing and dunnage of goods to avoid being pushed or broken, etc. warehouse staff will directly clamp lead into the container. The driver of the company will pull this container to the port yard (landing yard) to prepare for shipment.
Before entering the port, the container containing the shipment will be weighed (VGM). This weighing can be done at the port or can be done at an outside service company. The purpose of weighing the goods is to ensure that the load loaded in the container is in accordance with the regulations of the shipping line.
Containers will have to change the order to unload before entering the port.
If you have not paid the delivery fee, you must pay at this step.
Process 5: Electronic customs declaration, tax payment
After receiving the Booking from the shipping line, the customs declaration opening department of Vosal company opens the export customs declaration, the necessary important documents include:
O Export customs declarations O_ Barcode
O Commercial Invoice
Contents of Commercial Invoice include:
Invoice No: 09/INV-TD.20 Invoive date: 04/11/2020 Contract No: 05.2020/TD-DF Dated : 23/9/2020
Customer: DONGGUAN FUSEN PAPER CO.,LTD
Address: The 2nd industrial area Changping Disctrict, Daojao town, Dongguan city, Guangdong, China.
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
Table 3.1 Shipment information on Commercial Invoice
No. | Commodity | Subtance Gross Unit price Amount
( gms ) weight (USD/ (USD)
CMTS ) MTS)
1 Corrugated 100 125.126 380 47 547.88
Paper
Total 125.126 47,547.88
Trade term: CIF TO NINGBO PORT, CHINA ( Incoterm 2010)
(Source: Marterial from company) Booking Notes
Contract Referral Packing List
OHooad
Contents of Packing list include:
Paking list No: 09/PKL — TD.20 Paking list date: 04/11/2020
Customer: Dongguan Fusen paper CO.,LTD
Address: The 2nd industrial area Changping Disctrict, Daojao town, Dongguan city, Guangdong, China.
Table 3.2 Container information of the shipment
N | Container No | Seal No | Comodity | Substance | Quantity Net Gross
oO. (gsm) (rolls) weight weight
(MTS) (MTS) 1 | CBHU89581 | 156823 | Corrugated 100 19 24.645 24.645
31 88 Paper
2 | DRYU98235 | 156823 | Corrugated 100 18 23.679 23.679
53 87 Paper
3 | CSLU60481 | 156823 | Corrugated 100 18 25.091 25.091
33 85 Paper
4 | CSNU68878 | 156821 | Corrugated 100 18 25.506 25.506
02 03 Paper
5 | DFSU70469 | 156824 | Corrugated 100 17 26.205 26.205
38 71 Paper
90 125.126 | 125.126
(Source: Marterial from company)
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
When there are enough death certificates, at the Customs Sub-department of the border of exportation, submit the dossier to the declaration distribution tray, wait for the declaration Sub-Department to return the dossier to the previously submitted tray. The company door is assigned to the Customs Sub-Department to register and submit the documents there (in fact, the documents are delivered directly to the Customs officer to do the company's goods).
At this step, go to the allocated stream:
O Green channel: Be cleared.
O Yellow channel: Customs officers check paper documents. In case it is necessary to amend or supplement the dossier, it shall be done at the request of the customs authority. Then, if the visa is approved, move on to the next step.
If the customs authority requires physical inspection of goods (redirecting to the red channel), the following steps shall be followed - physical inspection of goods.
O Red Channel: The customs officer who registers (where the declaration is opened) presents the leader who will physically inspect the goods
(inspection). Depending on the inspection rate of the branch leader, the goods owner presents 5%, 10% or 100% of the goods for inspection.
If the goods match the declaration, the inspection officer will seal the container and write the owner on the declaration to confirm the correct goods. Then go back to the procedure area to open the initial declaration, wait for the Customs to make the customs clearance declaration.
The customs authority, after checking the shipment information provided by Vosal's customs declaration department, will return the channeling results. For this shipment, the result of channeling received is a green channel, so the detailed inspection of documents and goods is exempted. The customs declaration will be cleared automatically on the system, but it should be noted that after customs clearance, the customs documents must be attached to the V5 system. After the customs declaration is cleared, the field staff of Vosal company will bring this declaration to the shipping line or to the port yard to submit and wait for unloading, then liquidate the declaration before disembarking.
Process 7: Go to the shipping company to submit the customs declaration After the customs declaration and goods have been unloaded at the port, Vosal's field staff need to carry out procedures to liquidate the declaration, ie sign
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
for customs supervision, then bring the declaration, barcode and dry it. When the shipping line receives the declaration and enters the ship's book, it means that the goods are ready to dock at the port and complete all procedures for waiting for the ship.
Process 8: FWD do Shipping Instruction (SI)
The clerical staff at SaoBien company sends a Shipping Request to the shipping line to initiate a Shipping Instruction (SI). Normally, Sao Bien staff will call and ask Shipper to send SI to ensure the shipment is shipped on schedule. If sending SI at closing time, Shipper may be fined or abandoned because Vosal cannot issue the bill of lading.
The contents of the SI include:
Bill of lading: COAU7227642330
L/D Ports: HAI PHONG, VN/ NINGBO, ZHEJIANG, CN O Shipper: THANH DUNG COMPANY LIMITED
Add: Long Xuyen industriad cluster, Long Xuyen Ward, Kinh Mon Town , Hai Duong Province, Vietnam.
Email: thanhdungpaper2013 @ gmail.com
O Consignee: DONGGUAN FUSEN PAPER CO.,LTD
Add: The 2nd industrial area Changping Disctrict, Daojao town, Dongguan city, Guangdong, China.
Email: ravy_fusenpaper@ 126.com - Goods: Corrugated Paper - Gross weight: 125.126 kgs - Net weight: 125.126 kgs - Country of origin: Viet Nam - Total: 5 containers - No of packing: 90 rolls
Process 9: Shipping lines issue Master Bill
Sao Bien company will send information or SI to shipping lines then new shipping lines will issue official Bill (Master Bill) or Surrender/Seaway Bill. The Master Bill will depend on who is the recipient, one side is the Forwarder (if there is an agent abroad), the other is the master bill will belong to the exporter (if there is
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.
no foreign agent). Invoicing issue, this step should be subject to customer requirements as well as contractual payment.
Process 10: FWD pays shipping lines
Vosal company will have to pay the shipping company fees such as Local Charge, sea freight, other surcharges (depending on the cost between Vosal and the shipping line before taking the booking).
Payments include the following surcharges:
oO OHOoaaagaaa ga
Bill Fee Trucking Fee Seal Fee
Terminal Handling Cost Telex Release Ocean Freight AFR.AMS....
Verified Gross Mass Handling Fee
Process 11: Customer pays for FWD
Forwarder makes a list to ask his customers (importers, also known as Agents) to pay the following fees:
Port infrastructure fee.
Fee for road transport to pull the empty shell to a separate warehouse for packing and unloading at the proposed port of the ship.
Fee for opening customs declaration of export goods.
Freight forwarding process of FCL shipment exported by sea at Vosco Agency And Logistics Jsc.