CHAPTER 2: INTRODUCTION OF TRUNG QUAN IMPORT EXPORT
2.4.2 Main business functions of the company
Devise, structure, and execute the proposed strategy, ensuring business operations align with the registered lines of commerce, and establish legitimate business objectives in accordance with legal regulations. By assessing the demands of the global market and employing suitable trading approaches, it is essential to create a plan to complement governmental regulations and statutes, thereby expanding the pool of import and export commodities.
2.5 - Overview of production and business activities of Trung Quan Import Export Trading Development Investment Company Limited
Trung Quan Import Export Trading Development Investment Company Limited is engaged in various production and business activities in Vietnam. Here is an overview of their key operations:
1. Freight Forwarding Services: Trung Quan serves as both a domestic and international freight forwarding agent. This involves coordinating and facilitating the transportation of goods by sea and air. They work with shipping companies and airlines to ensure the efficient movement of cargo.
2. Commercial Brokerage: The company acts as a commercial intermediary, likely assisting clients in finding suitable business partners, negotiating deals, and facilitating transactions.
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3. Customs Declaration Services: Trung Quan provides customs declaration services, ensuring that import and export processes comply with the necessary regulatory requirements. This is essential for smooth international trade operations.
4. Consulting Services: The company offers consulting services related to international trade activities. This likely includes providing guidance on trade regulations, tariffs, and strategies for expanding import and export operations.
5. Domestic Freight Forwarding: Trung Quan is involved in domestic freight forwarding services. This includes managing the transportation of goods within Vietnam, including storage, loading, unloading, and distribution.
6. Warehouse Management: They offer warehouse monitoring services, which involve the storage, loading, unloading, packaging, and distribution of goods.
This ensures that clients' inventory is handled efficiently and securely.
Overall, Trung Quan Import Export Trading Development Investment Company Limited plays a crucial role in facilitating international and domestic trade by offering a range of services related to logistics, customs compliance, and business consulting in Vietnam.
2.6- Main partners & customers of the company OD Main partners:
Being a logistics company with the primary source of profit derived from the sale of ocean freight and a firm commitment to maintaining the quality of goods storage and transportation, Trung Quan Import Export Trading Development Investment Company Limited places a high emphasis on establishing robust partnerships with carriers, seaports, airports, and select CFS (Container Freight Station) warehouses.
Specifically, the company has established favorable contracts and strong affiliations with renowned shipping lines, including ZIM, Wanhai Line, Maersk, MSC, ONE, Evergreen, Sinokors, among others. Furthermore, within the Hai Phong region, Trung Quan Import Export Trading Development Investment Company Limited has
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forged solid relationships with key entities such as Tan Vu Container Terminal, Dinh Vu port, Viconship, and Vidify CFS warehouse. These partnerships enable the company to receive substantial support from these ports and CFS warehouses, ensuring the quality of goods storage and expeditious cargo handling.
vocvanchuyen.vn
Tra cước dễ, chuyển hàng nhanh
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Figure 2.3: Main partners of Trung Quan Import Export Trading Development Investment Company Limited
( Source: cuocvanchuyen.vn ) O Main customers:
While Trung Quan Import-Export Trade Development Investment Company Limited is actively seeking new customers to expand its market and boost company profits, it's worth noting that since its inception, the company has also cultivated valuable partnerships with existing clients who consistently provide a steady flow of goods each month. These established clients include Hoa Luc Vietnam Auto Parts Co., Ltd., Phuc Khanh Elevator Technical Ltd., An Phuc Packaging Company Limited, Solis Lab Company Limited, among others.
Figure 2.4: Main customers of Trung Quan Import Export Trading Development Investment Company Limited
( Source: LinhkedIn )
2.7- The company's role and standing within the supply chain in Hai Phong
In recent years, Vietnam has made significant strides in harnessing the potential of the logistics industry due to the substantial economic advantages it offers.
Specifically, in the realm of maritime logistics, Hai Phong city takes pride in its status as a bustling port city, boasting a substantial influx and efflux of ships. This robust
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maritime activity significantly contributes to the economic growth of the city itself and, by extension, the entire nation.
As a prominent logistics services provider, Trung Quan Import Export Trading Development Investment Company Limited has leveraged the city's favorable conditions and continuously enhanced its infrastructure and service quality while maintaining competitive pricing. Consequently, the company has successfully garnered a loyal customer base, including several renowned global enterprises and shipping lines.
Despite being a relatively small-scale enterprise, the company has effectively capitalized on various deficiencies within the supply chain. It has formulated suitable strategies and assembled a capable workforce to address these shortcomings. This proactive approach encompasses areas such as road transport, streamlined administrative procedures, and active involvement in projects, which has enabled the company to establish a solid presence in the supply chain development landscape.
2.8 - Future development goals of Trung Quan Import Export Trading Development Investment Company Limited
Vision:
In the future, Trung Quan Import Export Trading Development Investment Company Limited is actively working towards becoming the foremost logistics services provider, expanding its reach not only in Hai Phong but throughout all of Vietnam.
Mission:
- Dedicate ourselves to ensuring customer satisfaction by offering value-added solutions.
- Create and maintain a purposeful and evolving work environment.
- Ensure a robust and prosperous investment.
- Embrace a spirit of community responsibility.
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CHAPTER3: PRACTICAL FREIGHT FORWARDING PROCESS OF EXPORT FCL SHIPMENT AT TRUNG QUAN IMPORT EXPORT TRADING DEVELOPMENT
INVESTMENT COMPANY LIMITED
3.1 - General information about the shipment and_ its stakeholders
3.1.1 - General information about the shipment and its stakeholders
a. Seller: BAOHU IMPORT EXPORT TRADING SERVICES COMPANY LIMITED
ADDRESS: CAN THUONG VILLAGE, CAN HUU COMMUNE, QUOC OAI DISTRICT, HA NOI CITY, VIET NAM.
TAX CODE: 0109915460 TELL: 0353384122
MAIL: phuonghoa597@ gmail.com
b. Buyer: ANHUI JIUSHENGTANG BIOTECHNOLOGY CO.,LTD
ADDRESS: ROOM 502, UNIT 1, BUILDING 4, WEST OF THE MIDDLE SECTION OF XINXING ROAD, HUAYUAN LOU, QIAOCHENG DISTRICT, BOZHOU CITY, ANHUI PROVINCE, CHINA
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TAX CODE: 91341602MA2UEPP79X TELL: 18675767485;
MAIL: 1079112049@QQ.COM
c. Description of goods: ARECAE SEMEN - Total Gross Weight: 22,900 KGS - Total Net Weight: 22,800 KGS - Volum of bags: 456 BAGS d. Total Price (USD): 22,800 USD e. Payment: 100% TT
f. Shipping:
- Shipment is shipped on board MILD JAZZ 2333N - MBL number: JJCHPSHBNC261618
3.1.2 - The process of exporting Areacae Semen shipment by seaway of Trung Quan Import Export Trading Development Investment Company Limited.
1. Receive export ) 2. Check and notify
request from customers.
customer
⁄
. “ . =
4. Freight forwarder 3. Book with shipping
arranges truck and lines, send the
picks up empty XX booking to customers
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5. procedures of export Carry out the 6. lading declaration - Issue the - Bill of
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7
8. Send Debit note to 7. Send Documents
shipper for importer
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Figure 3.1 : Flow chart of delivery and receipt of FCL goods
exported by sea at Trung Quan Import Export Trading Development Investment Company Limited.
Step 1: Receive export request from customer
The Sales Department of the Freight Forwarder company will perform its main task by finding customers in different ways, such
as:
- Search from catalogs or through websites, and social networks...
- Based on existing relationships to find customers
- Call directly to the import-export department of the company - Send quotes to new customers
When finding a potential customer, the customer will provide the freight forwarder with information about the shipment such as the name of the goods, destination, delivery time, volume, weight, etc. The freight forwarder receives export requests from customers
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to facilitate consultation.
Step 2: Check and notify customers of ship information from shipping lines
After receiving full shipment information, the freight forwarder is responsible for consulting the appropriate container type and schedule. Freight Forwarder conducts checking the price and schedule of ships in the available data or contacting the shipping company to find the best price to quote for customers. When the two parties agree on the price, the freight forwarder and the customer will sign a service contract to carry out export procedures.
The information will include:
- Route
- Number of containers/type of containers - Product name in English/Vietnamese/HS code - GW (estimated gross weight)
- Free time at destination applies
- ETD: (based on customer's packaging plan)
Step 3: Book with shipping lines, send the booking to customers If the customer agrees with the ship schedule and the given price, the forwarder will make a reservation with the shipping company, receive the booking and forward it to the customer. The Booking confirmation contains important information, such as:
- Booking numbers - Vessel’s name
- Port of loading, port of discharge, port of transshipment (if any), stuffing place,...
- EFA,ETD,...
- Cut off SI, VGM: is the time it takes to submit information to the shipping company to make a B/L
- Cut off CDS: is the deadline for liquidating the declaration XXXil
- Cut off CY: is the final time that the exporter must deliver the goods to the place where the container is unloaded and carried out customs procedures for the shipment.
- Cut off amend BL: deadline to edit B/L.
Therefore, the parties need to pay attention and double-check the information for accuracy. Based on the closing time on the booking, remind customers to pack and unload containers before closing time.
Step 4: Freight forwarder arranges truck and picks up empty container Shipping line sends Booking Note to export company
Booking content includes: Vessel’s name, container number, loading/unloading port, Cont type, Booking person's name, ETD/ETA, Shipping company's address
Ops takes this Booking + Introduction + Lead fee to the shipping company's address, goes to the export documents counter to change the order for empty shells
Ops/driver will bring the empty container order to the shipping line's dispatch room (usually at the port) to exchange the order for container shells. In this step, the dispatch room at the port will give the Ops/driver a set of documents including: list of containers, shipping company seal, container delivery location, container delivery order signed by the port dispatcher allowing to pick up empty containers.
Ops of the direct export company (Doha Logistics) goes to the yard to carry out container selection procedures:
- Case 1: The warehouse staff will give the customer a list of containers, then the staff will go to the yard to choose containers (Do not take torn, punctured containers, bent, distorted, flattened container door shafts, dirty floors, etc.) )
- Case 2: The port side designates the Container
After selecting, check the container list (or receive the designated container) and go to the counter in the yard to complete the procedure to pay the shell lifting fee
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(Or pay the lower shell fee as well, in some cases only pay the shell lifting fee, the lower shell is paid later). ...). The port yard will print an empty container delivery note and give it to the shipping company's OPS. The bill for lifting the shell / lower part will be invoiced to the customer and the staff will take the order to bring this bill back.
Then transport the containers out of the yard (receive an EIR note for delivery and receipt of the containers), drag the containers back to the warehouse for the export company to pack.
After packing, the container will be transported to the port to wait for shipment (according to information on the booking) and pay the container unloading fee to the port authority.
Step 5: Carry out the procedures of export declaration Prepare customs declaration documents
In the process of exporting goods by seaway, if the freight forwarder is responsible for customs procedures, it is necessary to carefully check the documents before making the declaration.
Normally, a basic set of documents will include the following documents:
- Sales Contract - Bill of Lading
- Commercial Invoice (Commercial Invoice) - Packing List (Packing List)
- Certificate of Origin (C/O) - Other required documents
Declare and transmit the customs declaration
After completing the inspection of the set of documents, the customs declaration department will transmit the electronic declaration using the customs declaration software. The customs authority will receive and process data such as_ inspection,
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numbering, and clearance through the system. Once the declaration has been successfully declared and transmitted, the electronic customs receiving system will respond to the enterprise with the electronic receipt number. Next, shipping company will get the results of the declaration processing from the system returned by the customs authority, including the following information:
- Official declaration number.
- The results of the declarations are classified into 3 streams (green, yellow, red)
Carry out export customs procedures at the port
At the Customs Sub-department of the export border gate, submit a set of documents including export customs declaration, invoice, Packing list, contract, introduction paper, other papers if any, ect at the corresponding gate to register the declaration. Pay taxes and necessary documents with incurred costs at the customs branch as declared. In addition, depending on the results of the stream, it is necessary to check the actual goods or not.
- Green channel: Exemption from detailed inspection of documents, exemption from detailed physical inspection of goods.
Customs officers transfer documents to department leaders for approval and stamp customs clearance (customs procedures completed) on the export declaration.
- Yellow channel: Exemption from physical inspection of goods, documents are transferred to the tax calculation department to check the details of the documents. If the application is valid, it will be transferred to the department leader for approval and customs clearance stamped on the export declaration.
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- Red channel: Documents are transferred to the physical goods inspection department. Depending on the inspection rate of the department's leaders, the goods owner presents 5%, 10%, or 100%
of the goods for customs inspection. After checking if the goods are in accordance with the declaration in the declaration and related documents, the customs officer will press the customs seal on the container and will make notes on the declaration and pass it on to the department for approval. stamp customs clearance.
Liquidation of export customs declarations
Ops prepares cleared customs declarations
- Barcode taken from the website of the General Department of Customs
- Equipment Interchange Receipt (EIR) unloads and waits for export
- Infrastructure receipts
Ops submitted to the person in charge of the shipping line Note: Must liquidate the declaration before Closing time, otherwise the goods will be returned and cannot be exported even though customs clearance has been completed.
Step 6: Issue the Bill of lading
Based on the customer's request, the forwarder or shipping line will issue the bill of lading to the exporter.
Step 7: Send documents to import partner
Freight Forwarder contacts shipping lines to monitor the shipping status of the shipment in order to continuously update and notify customers, and send the necessary documents to the import partner so that the goods can be picked up in a timely manner.
Step 8: Freight forwarder sends Debit note to shipper XXXVI
After completing the delivery and liquidation of the export declaration, the export documents are transferred to the accounting department for accounting monitoring and later comparison with the tax authorities. In addition, the staff will make copies of documents to serve in archiving.
3.2 - Practical process freight forwarding process of export FCL shipment at Trung Quan Import Export Trading Development Investment Company Limited
3.2.1 - Receive export request from customer
The Sales Department of the Trung Quan Import Export Trading Development Investment Company Limited will perform its main task by finding customers in different ways, such as:
- Search from catalogs or through websites, and social networks...
- Based on existing relationships to find customers
- Call directly to the import-export department of the company - Send quotes to new customers
When finding a customer (Bao Hu Import Export Trading Services Company Limited) , the customer will provide the freight forwarder ( Trung Quan Company ) with information about the shipment such as the name of the goods, destination, delivery time, volume, weight, etc. Trung Quan Company receives export requests from Bao Hu Company to facilitate consultation.
3.2.2 - Check and notify customers of ship information from shipping lines
After receiving full shipment information, Trung Quan Company is responsible for consulting the appropriate container type and schedule. Trung Quan Company conducts checking the price and
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schedule of ships in the available data or contacting the shipping company to find the best price to quote for Bao Hu Company. When the two parties agree on the price, Trung Quan Company and Bao Hu Company will sign a service contract to carry out export procedures.
3.23 - Book with shipping lines, send the booking to customers
If Bao Hu Company agrees with the ship schedule and the given price, Trung Quan Company will make a reservation with the shipping company, receive the booking and forward it to the customer. The Booking confirmation (Booking Note) contains important information, such as booking number, vessel name, port of loading, port of discharge, port of transshipment (if any), stuffing place, date of departure, VGM cut-off, CY cut-off,... Therefore, the parties need to pay attention and double-check the information for
accuracy.
The booking request sent by Trung Quan Import Export Trading Development Investment Company Limited to the shipping line includes:
- Quantity (KGS): 22,800
- Seal number: SEKU9220083 / SJJC950112 / 40RF - ‘Total weight: 22,900 kg
- Load port: HAI PHONG port, Viet Nam - Port of discharge: SHANGHAI port, China - Country of origin: VIET NAM
CFR Shipping | Incoterms Obligations Seller’s Obligations
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Goods, commercial invoice and documentation
Export packaging and marking Export licenses and customs formalities Pre-carriage and delivery
Loading charges
Delivery at named port of destination Proof of delivery
Cost of pre-shipment inspection Buyer’s Obligations
Payment for goods as specified in sales contract Risk starting with onboard delivery
Discharge and onward carriage Import formalities and duties
Cost of pre-shipment inspection (for import clearance) Booking Note
After the shipping line receives the Booking Request from Trung Quan company and the two sides finalize the appropriate sea freight price, Trung Quan Company will send the sea freight price back to the customer (Exporter).
The shipping line's job is to prepare the Booking Note to send the Booking Note back to Trung Quan company. Freight forwarding companies can contact shipping lines to request a Booking Note in two ways:
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- Contact the Sales department directly via email.
- Contact via Website.
3.2.4 - Freight forwarder arranges truck and picks up empty container
The freight forwarding company takes the Booking Note sent by the shipping company, along with a referral letter to exchange the container cover and lead fee to the shipping company's address.
Arrange at the export documents counter to change orders for empty shells.
- Operations (OPS) of Trung Quan Import Export ‘Trading Development Investment Company Limited go to Nam Dinh Vu Port to carry out procedures to select empty containers. Warehouse staff at the yard will issue to customers containers as shown on Booking issued by the shipping line, they will check the container. . Things to note that Operations need to rely on to choose good quality container shells are: there is no phenomenon of the shell being torn or punctured, the shaft is not distorted or flattened, and the floor is clean.
OPS will then go to the counter in the yard to complete the procedure to pay the loading fee (if requested, the loading fee will be paid first, the unloading fee will be calculated later).
The port yard will print out an empty container delivery note and give it to OPS. The invoice for loading and unloading fees will be placed on the customer's invoice and OPS will bring this invoice back.
After completion, the transport department or driver will bring this empty container delivery note to the port to pick up the
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