BÀI THI TIẾNG ANH CHUYÊN NGÀNH LOGISTICS THREE DOCUMENTS USED IN IMPORTED TRADE

THREE DOCUMENTS USED IN IMPORTED TRADE BÀI THI TIẾNG ANH CHUYÊN NGÀNH LOGISTICS ĐỀ TÀI THREE DOCUMENTS USED IN IMPORTED TRADE HÀ NỘI 2021 Contents CHAPTER 1 INTRODUCTION 3 1 1 Reason for choosing the topic 3 1 2 Research goals 3 1 3 Research objective 3 1 4 Reasearch scope 3 CHAPTER 2 CONTENT OF THE SUBJECT 4 2 1 Proforma Invoice (PI) 4 2 1 1 Definition 5 2 1 2 Content 5 2 1 3 Function 5 2 1 4 When do you use PI? 6 2 2 Commercial Invoice (CI) 6 2 2 1 Definition 7 2 2 2 Function 7 2 2 3 Terms 8 2.

BÀI THI TIẾNG ANH CHUYÊN NGÀNH

LOGISTICS

ĐỀ TÀI THREE DOCUMENTS USED IN IMPORTED TRADE

HÀ NỘI - 2021

CHAPTER 1 - INTRODUCTION 3

1.1 Reason for choosing the topic 3

1.2 Research goals 3

1.3 Research objective 3

1.4 Reasearch scope 3

CHAPTER 2 - CONTENT OF THE SUBJECT 4

2.1 Proforma Invoice (PI) 4

2.1.1 Definition 5

2.1.2 Content 5

2.1.3 Function 5

2.1.4 When do you use PI? 6

2.2 Commercial Invoice (CI) 6

2.2.1 Definition 7

2.2.2 Function 7

2.2.3 Terms 8

2.2.4 Content 8

2.2.5 When do you issue CI? 8

CHAPTER 3 – CONCLUSION 12

CHAPTER 1 - INTRODUCTION

The world economic context in 2020 is very complicated and not favorable for international trade This is the year the world witnessed rapid, complicated changes and especially the negative impact of the Covid-19 epidemic on all socio-economic fields

The appearance of the Covid-19 epidemic has caused negative effects on economic activities, in which import and export of goods have been seriously affected These fluctuations and difficulties have made countries tend to use domestic products instead of imported products when implementing measures to close borders to prevent epidemics

However, Vietnam's import and export activities have stood firm in the global disruption of international trade, maintaining growth momentum and creating important traction for the whole economy Import is a very familiar term in today's economic era This activity has helped Vietnam open its market and grow its economy rapidly In the process of importing goods, documents are a very important means to perform that task

However, do you know what documents are used in importing commercial goods? To learn more about the documents in the import

process, I chose this topic: “Three documents used in imported

trade”.

1.2 Research goals

To find out clearly the contents, functions, and usage of import documents Study the current use of these documents, and determine when to use these documents

Three documents of import are used commonly in imported activity

Learn information through textbooks, the media, radio and especially the indispensable means of the internet

CHAPTER 2 - CONTENT OF THE TOPIC

International importing opens the Vietnamese economies to new markets and exciting growth possibilities So, you need to make sure you understand some documents when you import goods from foreign

to Vietnam, and crucially, you need to know some documents in importing

When you are importing goods to Vietnam, you may receive a lot

of documents from your suppliers And the suppliers named them Proforma Invoice, Commercial Invoice, and Packing List Those documents are commonly used in the importing business

2.1 Proforma Invoice (PI)

First of all, We will comprehend some information about the Proforma Invoice, which is the important documents in the set of importing documents

Pic.1: Proforma Invoice

2.1.1 Definition

PI is the short term for Proforma Invoice

Proforma Invoice is defined as a quotation form sent to a prospective buyer before the business sends the goods or products It shows the commitment of the seller to sell the goods according to the agreed terms and conditions PI includes more details in the goods' description, prices, payment terms, and delivery details It serves as the base of various invoices you must fulfill later

2.1.2 Content

It also can be thought of as a “draft” invoice, which is the type commonly in export and import documents, but not used to collect money because it is not a document for money However, as well as the form and the contents like as commercial invoice As you are seeing on the screen, The content of PI includes four parts that must behave in the invoice is Goods's description, Prices, Date and contact details, Shipping and Payment terms That's all

2.1.3 Function

What are the functions of proforma quotation?

1 Sign of Good business will

Proforma quotation is generally non-compulsory However many buyers demand this invoice as a form of goodwill Business owners can also use this form as a tool to create more consistency in transactions The form serves as a softly binding document between the business owner and the buyer

2 Streamlining the business process

In a large-scale business, each transaction must go through a lengthy process Changes during the vital sales steps will make the process trouble some By providing a proforma invoice at the beginning, business owners can smooth over the details and streamline the process until the transaction is completed

3 Better negotiation tool

Sending a proforma quotation means you have a serious commitment to providing goods and services Buyers can also get a clearer picture of what you are trying to sell Although this is not a

final form to make and send, this can serve as a great negotiation tool.Proforma invoice as a way to be paid more quickly

4 Proforma invoice as a way to be paid more quickly

Expecting to be paid more quickly? Proforma invoice can help you get it from the customers It gives them information about pricing and payment terms earlier, which leads to quicker payment and smoother transactions

2.1.4 When do you use PI?

When supplying high-value goods or services to a new customer or unknown entity and you don’t want to risk giving them a credit account

Established businesses that insist on a pro forma instead of a regular invoice for pre-payment of an order

In the real case, the supplier will first send a draft quotation at the buyer’s request The quotation you get from the supplier will include

at least the product details, price, and incoterms After a few backs and forth, the supplier and you will reach a deal Then you will send the supplier a Purchasing Order In return, the supplier will issue a proforma invoice The proforma invoice not only serves as a quotation, but also includes information like the title of the buyer and seller product details, price, incoterms, payment terms, transportation mode, delivery time, invoice date and number, and even the bank information

After sign and seal by both the buyer and the seller, it will work as

an official buying contract Before making the down payment, the

best practice for a buyer is to double-check with the customs broker.

If the products are permitted to be imported to your country And when you are going to make the payment, make sure that the beneficiary name of the bank account is the same as the title of the seller in the invoice That's a proforma invoice More information about lowering risk in making payment will be discussed later

2.2 Commercial Invoice (CI)

When used in foreign trade, a commercial invoice is a customs document It is used as a customs declaration provided by the person

or corporation that is exporting an item across international borders And now, we go to comprehend that together

The commercial invoice is a record or evidence of the transactions between the exporters and the importers The commercial invoice is the “actual invoice” which is much more concrete than the proforma invoice

Pic.2: Commercial Invoice

2.2.1 Definition

The commercial invoice is one of the most important documents in international trade CI is the short term for Commercial Invoice

It is a legal document between the supplier and the customer that clearly describes the sold goods and the amount due to the customer

It may also be one of the main documents used by customs in determining customs duties

2.2.2 Function

Commercial Invoice is used to calculate and assess the duties and taxes due for the shipment, international commercial terms (like the Cost in a CIF)

It may also be required for payment purposes while using for the case where a buyer pays via Letter of Credit

And it is commonly used to compare the information with other types of documents such as CO, license,

2.2.3 Terms

Which is Commercial Invoice abide by?

Having three terms is abided by in Commercial Invoice when using

in exporting and importing

Such as INCOTERMS (like FOB, CIF, CFR, and more); Payment terms (like as T/T, L/C, and D/P), and the end of the Shipping terms (specifically by sea)

2.2.4 Content

So, what information may have in CI?

There are plenty of Commercial Invoice templates and samples to choose from, however, the content of CI must have five information like Invoice Information, Shipper Information, Consignee Information, Shipping Information, and Shipment Information All information must be clear that show exactly and truly

2.2.5 When do you issue CI?

When you issue CI, you should note a few things:

- CI is issued after loading goods into containers and lining up onboard

- CI is issued on or after the date of issue of LC, and before the expiration date of LC

- And the last one, CI is issued when customs pay in advance or ship many times

2.2 Packing list (PL)

Why do you need a packing list in foreign trade? A packing list provides you with information about your shipment and required your signature upon the receipt of your goods It is only required when shipped goods are packed into larger units (eg a container or an aircraft console) So, in the last step, we will go to comprehend the Packing list to know more about it

Pic.3: Packing List

2.2.1 Definition

PI is the short term for Packing list

Packing list is a set of documents in the import and export of goods It provides information about the shipment, including how it’s packed, the dimension and weight of each package, and the marks and numbers that are noted on the outside of the boxes

2.2.2 Content

A packing list shows how the goods were packed for inspection and shipping purposes It includes four information about:

1 Packing List Information

2 Shipper and Consignee

3 Packing details

4 Port of Loading and Port of Discharge

The form is completed by the exporter, although your freight forwarder will complete it if the goods are re-packaged at their warehouse

2.3.4 Function

Packing list tells us the net weight, weight including packaging, packing method of the goods, type of goods, quantity, packing specifications From this we can calculate the following parts:

1 Organize warehouse.

2 Arrange means of transport

3 Loading and unloading goods using specialized equipment such as machines or hiring workers

4 Is the item inspected or not…

Immediately after packing is complete, the Seller will immediately send the buyer a packing list for the buyer to check the goods before receiving the goods

2.4 CI and PL

The commercial invoice can be used as a shipping invoice along with the packing list for customs clearance in the port destination For both commercial invoice and packing list no specific format is required but general information, for example, the title For both the buyer and the seller, the product details, the price, the invoice date, and number, and the packing details are supposed to be included But

in some countries like Brazil, the HS code of products is also required

to be included in the CI or PI for customs clearance

A set of documents are supposed to be consistent with each other The given information in the PL must match the commercial invoice and should reflect the same transaction parties And there are cases that the exporter mixes all the data of CI and PL into one document and makes it work as a shipping invoice The documents must be

submitted in original along with at least one copy In the practice, both the original and the copy of CI and PL are signed and sealed

CHAPTER 3 – CONCLUSION