PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY

i MINISTRY OF INDUSTRY AND TRADE COLLEGE OF FOREIGN ECONOMIC RELATIONS FACULTY OF FOREIGN LANGUAGE INTERNSHIP REPORT Topic PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY IN UNIVERSAL GLOBAL LOG.

PROCEDURES AND SETTLEMENT OF

EXPORTED GOODS BY AIRWAY IN

UNIVERSAL GLOBAL LOGISTICS JOINT

STOCK COMPANY

Instructor: M.A LE TUYET VAN

Student’s name: NGUYEN THI MINH NGUYET Student’s code: 1310020535

Course: 17 (Business English 17K)

Ho Chi Minh City, May 2016

PROCEDURES AND SETTLEMENT OF

EXPORTED GOODS BY AIRWAY IN

UNIVERSAL GLOBAL LOGISTICS JOINT

STOCK COMPANY

Instructor: M.A LE TUYET VAN

Student’s name: NGUYEN THI MINH NGUYET Student’s code: 1310020535

Course: 17 (Business English 17K)

Ho Chi Minh City, May 2016

To complete for this report, I would like to appreciate to the Board of Directors of Universal Global Logistics Joint Stock Company, I also appreciate all members of Import and Export Department who have created good conditions and good environment for me, gave me opportunities to work as a member of company with the realistic works, supported me to collect data and information

I also would like to express sincere thanks to the School Administrators who created the studying environment friendly and healthy with very practical course and close with reality I would like to thanks all teachers, professor of College of Foreign Economic Relations in general and Faculty of Foreign Language in particular who have taught me for the past three years Specially, I appreciate Ms Le Tuyet Van and all teachers in College Of Foreign Economic Relations who have mentored me

to complete this internship report

Finally I would like to wish our College will continue the successful development and continue training more and more students I also wish the Universal Global Logistics Joint Stock Company to achieve all business targets which have been set

up so far

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INSTRUCTOR’S COMMENTS

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a necessary demand, they contribute to the country's rich, connect and bring the countries of the world snuggled together To meet the increasingly demand of the exchange of goods the freight forwarding company was born, grown up increasingly and powerfully

In recent year, International Freight Trading has become more important and it has become one critical element of developed countries Not only did it create the initiative

in foreign economic relations but also accelerate the process of the importation and exportation, it is the motivation to boost the production development Although the International Freight Trading activities do not need much capital, they can create the stable profit

In Vietnam, the freight forwarding activities are very young and they do not shown all

of their potential However, in recent years the number of registered business enterprises in this field has increased significantly and has create a competition environment among the forwarding companies Many Universal global logistics company has not been there as the competing trends

Realizing that trend, with the unique advantages in the exporting goods and forwarding

by airway, the Universal Global Logistics Joint Stock Company has been gradually asserted its brand with good quality of service, reasonable prices to meet growing demand of customers

Therefore, I chose the topic: “Procedures and settlement of exported good by

airway in Universal Global Logistics Joint Stock Company” Those operations take

the main source of profits for the company They also show me how the theory I have learned is applied in actual fact They also help me to consolidated knowledge and

experience for the job after graduation

CHAPTER 2:PROCEDURES AND SETTLEMENT OF EXPORTED GOODS

BY AIRWAY (FRESH FLOWER CHRYSANTHEMUM INDICUM FOR CO.,LTD FRESH STRAWBERRY KHANH BICH ON 11 MARCH 2016) IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY…… ……9

2.1 Receiving information from customers………10 2.2 Booking Airline……….10 2.3 Preparation of Documents……… 11

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2.4 Request for Phytosanitary Certificate from plant protection sub department region II (28 Mac Dinh Chi, Da Kao Ward, District 1, Ho Chi Minh

City)……….……….11

2.5 Customs Procedure……… 12

2.6 Taking over goods at TCS warehouse, scaling and paying labor fee……….16

2.7 Customs clearance………16

2.8 Sending documents and taking bill from China Airline………17

2.9 Mailing the documents to the Japan Plant CO., LTD……… 17

2.10 Evaluation procedures and settlement of exported goods by airway in universal global logistics joint stock company………17

2.10.1 The strengths………17

2.10.2 The weakness……… 18

CHAPTER 3: CONCLUSIONS, RECOMMENDATIONS AND EXPERIENCES……… 18

3.1 Summarizing the content……….18

3.2 Recommendations for company……….20

3.3 Experiences on this internship………21

3.3.1 Benefits……… 21

3.3.2 Shortages……… 21

3.4 Conclusion……….22

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ABBREVIATIONS

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TCS Tan Son Nhat Cargo Services Company Limited

CO., LTD Company Limited

MAWB Master Air Way Bill

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LISTS OF TABLES

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Table 1.1: Table 1.1: Demonstrate literacy of employees in the company

Table 1.2: The situation of the company's operations period 2013- 2015

LISTS OF CHARTS, PICTURES

Chart 1.1: Showing the percentage of degree-educated employees of the company:

(in 2016)

Chart 1.2: The results of service business activities of Universal global logistics

joint stock company period 2011-2013

Picture 2.1: General procedure

Picture 2.2: The interface of Vnaccs

Picture 2.3: Declare general information and information of exporter

Picture 2.4: Declared in the general information about the bill of lading

Picture 2.5, 2.6, 2.7: Goods declaration list

Picture 2.8: Declaration processing results

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CHAPTER 1: OVERVIEW OF UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY

1.1 History and development of Universal global logistics joint stock company

Founded 8 July 2010, the company has taken business opportunities and meets the development needs of the country in Vietnam to the foreign trade services also increased so that the company has made business strategies is quite new and reasonable

The UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY permitted direct import-export business and the implementation of import and export services, freight and abroad under a business license issued on 8 July 2010 of the Department

of HCM City planning and Investment

 Director: Nguyen Minh Tu

 Capital: 6,000,000,000 VND (Six Billion VND)

 Company Name: The Universal global logistics joint stock company

 Abbreviation: UNI-GLOBAL LOGISTICS JS

 Headquarters: Floor 2F, Dinh Le Tower, 1-Dinh Le Street, Ward 12, District 4,

Ho Chi Minh City

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1.2 Missions of Universal global logistics joint stock company

Associating with other organizations inside and outside the country to organize transportation, freight forwarding import-export, exhibition goods, private goods and documents related

Taking forwarding service, logistics, warehousing, purchasing the freight of vehicles (cars, ships, plane, containers,…), implement other services that is related

to the mentioned goods such as: the purchasing, exportation-importation procedures, and customs procedures, insurance and delivery of that goods to the carrier to delivery to designated place

1.3 Organizational structure of Universal global logistics joint stock company 1.3.1 The structural chart of the company

Director

Accounting department

department

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situations Activity of each member is instructed and supervised by the director with such a lean, simple structure but effectively

Table 1.1: Demonstrate literacy of employees in the company

University College High School

(Source: Accounting department in 2016)

Chart 1.1: Showing the percentage of degree-educated employees of the company:

(in 2016)

Comment:

- The college graduated staff: is 21.43% and there is tending to be reduced because employees are actively improving their education by University level to improve their knowledge

- The staff who are at intermediate level: the college levels are 7.14% and there is tending to be reduced because they are also upgrading their level by night time courses

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- The staffs who are graduated university: in general these staffs are the highest proportion of companies which is 71.4% in 2014 and is expected to be increasing in the coming years

- Based on above data, we found that the company's employees have a relatively high level

- The Organization of company is decided by directors based on the principle: simple but efficient, suitable to specific activities of the company in the recent period

- The total number of company employees is 30 people, most of them are graduated college and university In addition all employees are qualified in language and conversation

-The company carries out policy on the management, labor - wage, social insurance as Vietnam regulation

1.4 Situations and results of current business activities of Universal global logistics joint stock company

1.4.1 Situations:

The company was founded and has participated in the market since 2010, so the main objective of the company in recent years is the market penetration, looking for new customers and increasing market share Not only has the company market share

in the city, but also expand to the neighborhood such as the Mekong Delta provinces, Binh Duong, Binh Phuoc, Dong Nai, create significant revenues for the company With 4 years of establishment and development the company gradually has significant development, forwarding company reliable and gradually asserted its position

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1.4.2 The results:

Table 1.2: The situation of the company's operations period 2013- 2015

Unit: million VND (Source: Accounting Department in 2016)

 The revenue and profit situations will give is an overview of Universal global logistics joint stock company period 2013-2015

Criteria

Business results

In 2013 In 2014 In 2015 Revenue from service providers 83.458,00 140.320,00 179.245,00

Cost of goods sold 76.850,00 125.139,00 137.370,00

Profit before tax 2.681,00 8.860,00 12.628,00 The before tax Profit 670,25 2.215,00 3.407,00 Profit after tax 2.010,75 6.645,00 12.221,00

in 2014 Management cost from 2013 to 2014 was kept at the rate 4.5% of sales amount However there is the remarkable profit which increased from 6.3% of sales

in 2013 to 7% of sales in 2014 It was mean that the company used its capital effectively to increase the profit In order to do that, the Company must do better business operations, better control in financial Those reasons showed that company has been stable growing

Regarding operation cost of company:

- Operation Expenses in 2013 was ~ 2.4 billion

- In2014, it was 1.9 billion

 Overall, the company is on track in the business process based on suitable method Besides, the support from the state's policy of raising the efficiency of the production process, so export business operations of the company in 2013-2015, achieving extremely good achievements

1.5 Current strengths and weakness of Universal global logistics joint stock company

1.5.1 The strengths:

- The company has trained professional employees who are always worked with high responsibility to complete the assigned works In addition, Sale and Marketing team are always dynamic, market research, and brought the company special price contracts Specially, import-export department always properly implement the contract, keep credibility with customers and create a stable income for the company

- With efficiency organization of Human Resources, everyone has a clear assignment, so there is such a good coordination to process logical tasks or any addition problems Employees are always support and help each other when there are difficulties and problems

- There are many key employees who were experience in the field of Import-Export

1.5.2 The weakness:

- The company has recently established for 6 years, so it does not have much experiences, the relationship has not been widely

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- Company size is not large, logistics workforce is not enough for more contractual performance, especially at a specific time when there are increase of orders, increase of import and export demand

- Because the company has not had its own truck for transportation so the transportation cost may become out of control Transportation cost is now depended

on other vehicle services supplier This is causing cost and profit of import-export affected

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Receiving information from customers

Preparation of documents Booking Airline

Request for Phytonsanltary Certificate from plant protection sub department

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2.1 Receiving information from customers:

When customers demand to export the goods, the customers will send the necessary information related to export shipments, detail as:

Exporter: Fresh Strawberry Khanh Bich CO., LTD

Address: Da Tro village, Da Nhim commune, Lac Duong town, Lam Dong province

Importer: Japan Plant CO., LTD

Address: 4-168 Kuronominam Gifu- Gifu City

Made in: Tan Son Nhat Airport, Ho Chi Minh City

Port discharge: Nagoya Airport

Depending on the time of getting information about shipments, employees will reserve to the airline It is usually to reserve one day before the flight depart

This shipment was booked CHINA AIRLINES

After receiving the booking confirmation was sent by airline, forwarder will inform Khanh Bich company the date of shipment: 11th March 2016,

Accordingly, the Khanh Bich company prepares for delivery to the Universal global logistics joint stock company

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2.3 Preparation of Documents:

- The documents which the department staff prepared include:

+ Commercial invoice: 1 origin

+ Packing list: 2 copies

+ Airway bill: 1 copy

+ Electronic customs declarations: 2 origins

- Besides, there are also some other papers such as:

+ The referral of the company for forwarder

+ Poll receiving customs dossiers

+ Business license import and export operations

+ Reception cards electronic customs declaration

+ Quarantine certificate (for goods subject to quarantine)

2.4 Request for Phytosanitary Certificate from plant protection sub department region II (28 Mac Dinh Chi, Da Kao Ward, District 1, Ho Chi Minh City):

+Step 1: Phytosanitary Registration: before exporting, employees who are authorized by customers must process the Phytosanitary registration at least 24 hours prior with the quarantine authorities region II

+Step 1: Phytosanitary Registration: employees are authorized by customers going Phytosanitary registration at least 24 hours before with the quarantine authorities region II before exporting

+ Step 2: Submitting document to Customs Receiver and return it to Results department

+Step 3: Quarantine agency is responsible for taking and checking the completeness and validity of documents as prescribed regulation

+Step 4: Phytosanitary agency will issue certification for company based on physical examination results