A practical case to illustrate the process import- 123docz.net

CHAPTER 3: PRACTICAL IMPORT AND DISTRIBUTION PROCESS OF FCL JAPANESE CARGO

3.2 A practical case to illustrate the process import and distribution process of FCL

Step 1: Planning to order and sending goods list

Hong Dao from marketing department planned a goods list of 54 Japanese goods included 35 types of packaged foods, 15 chemicals and household appliances, 4 types of cosmetics. This is the how the list look:

Table 3.1: Example list of planning to oder list

No | Code Products information Numbers of

catons 1 4902727011832 Giấy vệ sinh Hoa h ng Pink 2} 40

lớp (18 cuộn x 30m/cuộn, 6 túl/carton), Nsx: Marutomi Seishi Co., Ltd.

2 4516491056830 Rong biển đậu hũ khô | 50

Nagatanien (rong biển, đậu

The process of importing and distributing Japanese products at SALA import export service trading company

phụ. hành lá ), 100g(túi, 20 tú/thùng, Nhà SX: linno Co.,Ltd, mới 100%

3 4906156500684 Viên rửa bát Finish dùng cho | 2

máy rửa bát dạng viên nén, 150

viên(tú 288 tui/pallet, NSX:

Earth Pharmaceutical, mới 100%.

4 4902105016084 My Nissin Mug Noodle, | 40

94g/gói, 12 gdi/thing, NSX:

Cty Cp Nissin, 100 thting, hs 19023040

5 4902105016091 My Nissin Mug Udon Noodle, | 10 TP:bột mỳ, dẦi thực vật, tính

bột, muối, chất béo, trứng) 94g/gói, 12 gói/thùng, mới 100% NSX: Cty Cp Nissin (UNK=gói) 100 thùng, hs 19023040

Source: SALA Import Export Service Trading Company Documents Step 2: Finding suppliers, negotiating and notify the availability schedule and payment schedule.

a) Exporter:

Y.S, JAPAN COMPANY LIMITED

3-8-26, MINAMIKAGAYA, SUMINOE, OSAKA CITY, 559-0015, JAPAN b) Importer:

AN VIET LOTUS COMPANY LIMITED

1017 NGUYEN BINH KHIEM, DONG HAI 1 WARD, HAI PHONG CITY, VIETNAM

c) Shipment information:

The two parties signed a contract to purchase goods that are listed above.

This shipment is packed of 2559 packages Shipment date: March 6, 2023

Estimated delivery date: March 16, 2023

Delivery terms: CY HAI PHONG PORT, VIET NAM Payment term: Telegraphic Transfer

Le Thi Ha Phuong IBL61DH Page 27

The process of importing and distributing Japanese products at SALA import export service trading company

Port of loading: OSAKA, JAPAN Port of discharge: Haiphong, Vietnam Place of delivery: Haiphong, Vietnam Full payment before shipment information:

The two parties signed a contract to purchase goods that are listed above.

This shipment is packed of 2559 packages Estimated delivery date: March 16, 2023

Delivery terms: CY HAI PHONG PORT, VIET NAM Payment term: Telegraphic Transfer

Port of loading: OSAKA, JAPAN Port of discharge: Haiphong, Vietnam Place of delivery: Haiphong, Vietnam Full payment before shipment.

d) Responsibility for costs of the parties in the sales contract according to CIF conditions:

Responsibilities of seller - Paying export taxes

- Reserve a ship, cover maritime freight, and get cargo insurance. Pay local fees such as THC, Bill fees, and seal fees at the loading port.

- Cover transportation charges (pulling containers from the port yard to a private warehouse for packing and unloading at the shipping yard) as well as loading and unloading fees at the port. Pay the charges for weighing - Offer the relevant export documentation, including the packing list, sales

contract, and C/O. (Termite fumigation paper, any applicable quarantine) - Cover the cost of opening the customs declaration for exported goods,

including any associated inspection fees.

- Assume the expense of dunnage, lashing, and containerization of the products.

Responsibilities of buyer

The process of importing and distributing Japanese products at SALA import export service trading company

- Pay import duties

- Pay any applicable local taxes (THC, D/O, container cleaning, CIC, and DEM, DET) at the port of entry.

- Cover the cost of opening the customs declaration for imported goods, including any associated inspection fees.

- Shell bet when picking up containers; payment of loading and unloading costs

- Pay for the costs of transporting containers from the port to a business warehouse and producing goods.

- Pay for any necessary repairs and cleaning of the container.

Step 3: Book ship schedule

Hong Dao from the marketing department completed the payment ¥4,626,568 and reports closing the order to Y.S Japan Company

Y.S Japan Company reports available goods at the warehouse

Kim Anh from the documentation department received order information and go through T.S Container Lines Hanoi Company Limited to book a ship to import products

After that, T.S. Container Lines Hanoi Company contacted Y.S. Japan Company to arrange to package

Kim Anh provided the shipping company with the details to book a train:

Port of loading: OSAKA, JAPAN Port of discharge: Haiphong, Vietnam CY Place of delivery: Haiphong, Vietnam ETA: 16-MAR-2023

List 54 names of goods Gross Weight: 16823.80000KGS Measurement M?/Cft: 69.52200CBM Number of packages: 2559 packages Equipment Type/Q’ty: 40’ DRY HC.-10 Step 4: Check and confirm the booking Le Thi Ha Phuong IBL61DH Page 29

company

Kim Anh checked the information on the booking and reviewed the above details.

T.S. Container Lines Hanoi Company was in charge of overseeing and monitoring the whole process of packaging products for updating to An Viet Lotus Company.

The information needs to be updated as:

Empty container snapshot to ensure that no damage has occurred Photos of each layer of the container

Import and export licenses Step 5: Preparing import documents

a) Preparing documents for product's self-declaration of 20 kinds of goods before March 6, 2023 (Product's self-declaration just need for the first time importing that kinds of product. Bcause company already have 34 products self-declaration so this time company just needed to prepare for 20 product's self-declaration)

Product self-declaration records include:

- product self-declaration

- Product food safety testing results within 12 months include safety criteria issued by the Ministry of Health.

- Product label translation

The company received actual product samples, Kim Anh sent them to the health department for quarantine and issued test results. At the same time, bring the sample through translation into Vietnamese

After completing all the paperwork for the self-declaration, submit the hard copy to the Department of Industry and Trade and save the soft copy

After being posted on the website of the Department of Industry and Trade, the company has completed the product self-declaration

Figure 3.1: Website of the Department of Industry and Trade

The process of importing and distributing Japanese products at SALA import export service trading company

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b) Preparing import documents

Kim Anh preapared Packing list, Invoice, Po, Co TPP, Product's self-declaration She checked to certify documents and records related to the shipment. Earlier than entering a cargo, document staff confirm whether the information on the documents matches or not.

It needed to be sure that the prices (¥4,629,568) in Invoice and in the PO was the same

Step 6: Customs declaration of imported goods

As soon as T.S. Company receives news that the goods have arrived, the customs declaration opening section opens the declaration. The field personnel of the firm prepares the paperwork needed to complete the customs declaration processes using the ECUSS/VNACCS software.

The declaration will be sent to the VNACCS automatic customs clearance system after it has been received in its whole. Receive a back message alerting you of the outcomes of the products categorization after providing the appropriate information on the electronic customs declaration system.

- Log in to Ecus5/Vnaccs software: Use the company's account and digital signature.

- Select system

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company

- Select number 2 (Select import-export enterprise).

Figure 3.2: Example for software of electronic customs declaration

ECUSS-YNACCS 2018 (Electronic Customs Service) Version: 6.0 Lastupdate: 18/06/2020 (EK Basic Version) - [To khai nhập khau - Import declaration]

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Source: Google image

T.S. Container Lines Hai Noi Company registered a new import declaration (IDA) and filled it out.

They sent the required data to the VNACC/VCIS ECUSS electronic customs declaration system.

Following that, Kim Anh was informed of the logistics of the products’ route.

Print the import customs declaration after awaiting the results of channeling. If inaccurate: Customs must receive a new declaration of receiving information.

Include the Declaration number and categorize the Declaration if it is legitimate.

Yellow stream is the classification for products. The VAT information in the declaration appendix applies to the shipment.

After the customs side returns the customs declaration with the goods classification, the transportation company will prepare the necessary documents to go to Greenport to exchange the EIR slip and send the EIR slip to the transportation department.

Step 7: Receiving goods from the transportation company

Container shipping fee is: 4,500,000 VND/container 1 container = 4,500,000 VND Following delivery of the products to the private warehouse at 1017 Nguyen Binh Khiem Street, warehouse staff member Tien verified the container number and seal number before giving the go-ahead for the removal of the contents from the container. Mr. Nguyen Van Son, the import company's representative, will sign a delivery record after accepting the goods that certify that the entire container has been received, the correct number of seals and quantity of goods that both parties

Le Thi Ha Phuong IBL61DH Page 32

The process of importing and distributing Japanese products at SALA import export service trading company

agreed to in the contract, and the condition of the container throughout transportation.

Step 8: Payment

- The accounting department of SALA pays for T.S Container Lines Ha Noi Company according to a list of service fees.

Customer's transportation service fee from Hai Phong, Viet Nam CY to a private warehouse in đường Nguyễn Bỉnh Khiêm, Hải Phòng: 4,787,000 VND/container * lcont= 4,787,000 VND.

Table 3.2: Fee table

Nẹ | Services/ Products Fee Providing parties

1 | 2559 packages of goods | ¥4,629,568 Y.S, Japan Company Limited

T.S Container Lines Hanoi

2 | Freight price 17.042.400 VND_ | Company Limited

Terminal Handling T.S Container Lines Hanoi

3 | Charge 2.840.400 VND | Company Limited

T.S Container Lines Hanoi

4 | Bill/ B/L 1.065.150 Company Limited

T.S Container Lines Hanoi

5 | SEAL 213.030 VND Company Limited

T.S Container Lines Hanoi 6 | Handling/ B/L 473.400 VND Company Limited

T.S Container Lines Hanoi

Total 21.634.380 VND_ | Company Limited

¥4,629 568 Y.S, JAPAN COMPANY LIMITED

Step 9: Keeping documents

Kim Anh from the documentation department carefully keeps all relevant documents in both soft and hard copy formats. At the same time, arrange records into common sections in the company system for easy search and control

- Documents that need to be kept include:

- Invoice, Packing list, Booking note, C/O, P/O, customs declarations, arrival notice, B/L

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- Customs dossiers, additional declaration dossiers, registration dossiers for the list of tax-free goods, and reports on the use of tax-free goods.

- Dossier for consideration of tax exemption, reduction, tax refund, or tax non-collection.

- Accounting books and documents Step 10: Arranging goods into warehouse

Warehouse staff arrange goods into the warehouse according to food, cosmetic and chemical section. Then check and report the inventory quantity

The warehouse manager reports the quantity of goods to the deputy director and sends a list of available goods that customers have ordered to the sales department.

Step 11: Distribution

Ms. Hue of the sales department informed customers that Kmart, Sakuko, Aichi shop had arrived and issued invoices to customers, setting a delivery date.

On the delivery date, Mr. Vinh from the road transportation team will transport the goods to the customer's facility.

The process of importing and distributing Japanese products at SALA import export service trading company

CONCLUSION

Through my internship, I was able to contrast theory and practice in order to validate the knowledge I had learned in the classroom. The information gained during the internship at the firm benefits from the experience gained during the program, despite the fact that there are many discrepancies between theory and reality. In this study, I've made an effort to outline the key issues surrounding the seabome import and distribution of Japanese goods. The research, however, was limited to one distributor/importer, therefore it is difficult to fully capture the particulars of Vietnamese customs clearance for import and export items.

I would like to convey my appreciation to the management team of the organization for accepting me as an intern and for giving me strong guidance throughout my stay there. I want to express my gratitude to instructor Tran Hai Viet in particular for his diligent coaching in getting this report done.

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Reference / Bibliography (if any)

1,Vinalogs (2009) Nhập khẩu là gì - và những vấn đ`êcơ bản? Retrieved September 10, 2023 from https://www.container-transportation.com/nhap-khau-la-gi.html 2, The Economic Times (2023) What is ‘Distribution’ Retrieved September 10, 2023 from https://economictimes.indiatimes.com/definition/distribution

3, LEC Group (2023) 12 steps in the process of importing goods by sea Retrieved September 10, 2023 from https://lecvietnam.com/en/operations/news/12-steps-in- the-process-of-importing-goods-by-sea-127.html