Real situation and recommendation to enhance efficiency of import operation in TSG service and trading limited company

ACKNOWLEDGEMENT This report would not have been possible without sincere guidance and continuous support of several individuals whose direct and indirect assistance helped me finish my report in time[.]

This report would not have been possible without sincere guidance andcontinuous support of several individuals whose direct and indirect assistancehelped me finish my report in time

Firstly, I would like to express my warm and sincere thanks to all lecturers ofthe Faculty of Foreign Languages of National Economics University for theirteaching and encouragement

Secondly, I am heartily thankful to my supervisor, Ms Le Thi Thu Ha, whohas directly guided me during my study Her support, patience, motivation,enthusiasm, and immense knowledge are not only necessary but also helpful to thecompletion of my report From bottom of my heart, I honestly wish her the besthealth and more success in her life as well as career

Thirdly, I also would like to show my deep gratitude to TSG staff in generaland Mr Bui Duc Son, Director of TSG service and trading limited company, inparticular They have shared about their experience and knowledge in importbusiness along with supplied me the helpful documents , data related to myresearch I will never forget their assistance

Finally, I owe my deepest gratefulness to my family and my friends whoalways stand by me and inspire me to complete this report

TABLE OF CONTENTS

TABLE OF CONTENTS ii

TABLE OF FIGURES v

EXECUTIVE SUMMARY vi

RESEARCH PROPOSAL 1

I, Title 1

II, Background 1

III, Rationale 1

IV, Purpose 1

V, Scope 1

VI, Research question 2

VII, Methodology 2

CHAPTER I: INTRODUCTION OF TSG SERVICE AND TRADING LIMITED COMPANY AND ITS IMPORT BUSINESS 3

I.1 Introduction of TSG service and trading limited company 3

I.1.1 The establishment and development 3

I.1.2 The organizational structure 4

I.2 Introduction of TSG’s import business 6

I.2.1 Business area 6

I.2.2 Typical foreign suppliers and customers of the company 7

CHAPTER II: 9

THEORETICAL FRAMEWORK 9

2.1 Terms and definitions 9

2.1.1 Concept and characteristics of import 9

2.1.2 Roles of import 10

2.1.2.1 The role of import for national economy: 10

2.1.2.2 The role of import for enterprises: 11

2.1.3 Types of import 11

2.1.3.1 Direct import 11

2.1.3.2 Commission import 12

2.1.3.3 Reciprocal trade 12

2.2 Factors affecting import operations 12

2.2.1 External factors 13

2.2.1.1 Political and legal environment 13

2.2.1.2 Fluctuations of exchange rates 13

2.2.1.3 Competitors 14

2.2.1.4 Other factors 14

2.2.2 Internal factors 14

2.2.2.1 Financial resource 14

2.2.2.2 Human resource 14

2.2.2.3 Management level 15

2.2.2.4 Target customers 15

2.3 The importation process 15

CHAPTER 3: ANALYSIS AND FINDINGS 17

3.1 The real situation of TSG company from 2012 to 2014 17

3.1.1 The company’s capital 17

3.1.2 Business results in recent years 18

3.1.3 Result of implementation of import contracts 19

3.2 The real situation of the company’s import business during the period of 2012-2014 20

3.2.1 Import turnover 20

3.2.2 Import items 21

3.2.3 Import markets 23

3.2.4 Distribution channels of import products 24

3.3 Overall evaluation 25

3.3.1 Achievements 25

3.2.2 Drawback 26

3 3 Causes 27

3.3.1 Internal causes 27

3.3.2 External causes 27

CHAPTER 4: RECOMMENDATIONS TO ENHANCE EFFICIENCY OF IMPORT OPERATIONS OF TSG SERVICE AND TRADING LIMITED COMPANY 29

4.1 Recommendations for the company 29

4.1.1 Researching and expanding market 29

4.1.2 Improving efficiency of raising and utilizing business capital 30

4.1.3 Improving the quality of human resources 30

4.1.4 Improving the way of import 31

4.2 Recommendations for the government 31

CONCLUSION 33 REFERENCES

APPENDIX

TABLE OF FIGURES

Chart 1: TSG service and trading limited company organizational structure 4

Table 1: Total business capital of the company from 2012 to 2014 17

Chart 1: Total business capital of TSG company between 2012 and 2014 17

Table 2: Results of the company’s import business from 2012 to 2014 18

Table 3: Result of implementation of import contracts of the company from 2012 to 2014 20

Table 4: Import turnover of TSG company (2012-2014) 20

Chart 2: Import turnover of TSG company (2012-2014) 21

Table 5: The main import items of TSG company from 2012 to 2014 22

Table 6: Import markets of TSG company from 2012 to 2014 23

Table 7: The value of import goods of distribution channels of TSG company from 2012 to 2014 24

EXECUTIVE SUMMARY

In recent years, in the context of blooming globalization and deep integration

of countries into the world’s economy, import and export business in Vietnam issignificantly considered as an effective tool to promote growth and economicdevelopment of the country, expand integration into the international trade market

As a young company in the field of import of energy -supported equipment, theTSG service and trading limited company is constantly developing to confirm itsreputation in the domestic market However, during global economic crisis, thebusiness activities of company especially import faced many difficulties andobstacles The import business‘s efficiency of the company influenced by manyinside and outside factors was not maintain stably and not improved significantly.Consequently, assessing its import activities and providing some useful solutions topromote its business’s effect is seemed to be necessary and practical That’s thereason why I chose “Real situation and recommendation to enhance efficiency ofimport operation in TSG service and trading limited company” as the subject of thisreport

Apart from the introduction and conclusion, the final report is divided intofour chapters The first chapter provides readers with the knowledge of thecompany’s establishment and development, organizational structure, and TSG’simport business The second chapter shows theoretical background which mentionsbasic theories about import activities and factors affecting the company’s importefficiency Chapter three copes with analysis and evaluation of import operations ofTSG service and trading limited company The last chapter gives somerecommendations to enhance efficiency of import operations of the company

RESEARCH PROPOSAL

I, Title

Real situation and recommendation to enhance efficiency of import operation

in TSG service and trading limited company

II, Background

TSG service and trading limited company is one company which specializes inproviding copyrighted software Through five years of development and growth,TSG has become a reliable address for many customers across the country topurchase licensed software To achieve the result, TSG had great support fromcustomers around the country, the worldwide software suppliers, and the efforts ofmembers in this company Currently TSG has been the silver partner of Microsoft

in Vietnam market, and has partnerships with over 500 software manufacturers allover the world

III, Rationale

TSG is an importer of more than 1000 copyrighted software providers aroundthe world Its functions are importing devices, checking the quality, and sellingthem to customers In the whole process of supplying products to customers,importing goods is one of the most important steps to decide efficiency of importoperation as well as quality of service and products of TSG After more than fouryears of operation, TSG company gained many achievements but it faced so manydifficulties as well That’s the reason why the author chose “Real situation andrecommendation to enhance efficiency of import operation in TSG service andtrading limited company” as the subject of the report In this report, the realsituation about import activity will be performed and some recommendations will

be given with an aim to enhancing efficiency of import operation of TSG

IV, Purpose

The goal of this paper is to:

-To analyze import operation efficiency of TSG from 2012 to 2014

-To analyze factors which affect import operation of TGS

-To suggest recommendations to enhance import efficiency of the company

V, Scope

- Scope topic: internship based on import activity of TSG

- Object scale: TSG service and trading limited company

VI, Research question

The research paper answers 3 questions:

-How has import activity of TSG operated during the period of 2012-2014?-What problems has import operation of TSG encountered?

-Which recommendation will enhance import operation efficiency of TSG?

VII, Methodology

This research paper uses the method of finding, collecting, aggregating andanalyzing secondary data of importing process of TSG Through results of thereport, the author points out achievements and shortcomings in import operation ofthe company From that, there are some critical recommendation to enhanceefficiency of import operation in TSG service and trading limited company

CHAPTER I: INTRODUCTION OF TSG SERVICE AND TRADING LIMITED COMPANY AND ITS IMPORT

BUSINESS

I.1.1 The establishment and development

 Trading name : TSG service and trading limited company

 Head office : 17E, group 12A, Thuong Dinh ward, Thanh Xuan district,Hanoi

Its vision and mission is to build TSG company become a leading company inproviding products and services relating to copyright and software securitysolutions

Core values are customer-centered, teamwork, professional, working with thehighest responsibility

In term of culture of the company, TSG maintains a working style,communication imbued human identity The company built a business atmospherewhich expresses culture, with clear principles in all activities, communication andentertainment TSG is a group of rich cultural traditions, strong entrepreneurialspirit; members of the company are linked together to preserve and develop thetraditional values TSG's culture expresses through the core principles: Profit-

effectiveness, keeping the word "Faith" with customers, specialization oftechnology and services, growth, management following objectives.

I.1.2 The organizational structure

Chart 1: TSG service and trading limited company organizational structure

As a small-scale enterprise, TSG management structure includes a director, a

manager of business, a manager of technique, and a manager of accounting andadministration The director, the head of the company, is responsible for controllingall activities of the whole company Three managers assist the director in runningthe company with their department

The Director is legally responsible for the whole company as well as managesevery activities of the company In particular, the director’s mission are:

Preparing strategic plans and policies of the company

Controlling and cooperating the activities of all the department

The Manager of Business Department is in charge of all activities involved

in distribution, service and implementation of projects Sale is divided into groupsaccording to product groups such as system software business, application softwarebusiness, security software business, equipment business to meet rapidly and fullyoffers and requirements of customers

Distribution business: Establishing and building product distributionchannels in Hanoi and the provinces, developing support policy, market promotion,and sales through distribution channels; Deploying care service, market research foragents of distribution channels; Supporting agents in implementing marketingactivities, customer conference, the bidding

Business Services: Consulting, providing investment plans for clients;Market research and development of new software products; Coordinating withother departments to expand markets and develop customer network

Project Team: Responsible for managing the construction process and theimplementation of projects for business; Organizing and coordinating with all staffsinvolved in the project

The Manager of Accounting and Administration is in charge of all financialand fiscal management aspects of company operations His key duties consists ofstaff management, cash and risk management, accounting and financial controls andbudgeting

Human Resource Administration: Performing administrative tasks andinternal and external communication Tracking, managing staff and employees;planning recruitment, interviewing personnel as required; building and improvingworkflow and monitoring work process of the departments; developing andimplementing training programs for staff; implementation of collective action, theunion in order to build company culture and strengthen relationship between thecompany staff

Accounting Division: Updating, collecting and preparing periodic statisticalreports, regular reports and special reports on the situation of production andbusiness, business results every week, month, quarter, year to meet the requirements

of the management of business and financial management of the company

Storage: Subscribing to import and export, and managing inventories inaccordance with procedures and regulations of the company.

Fund: Managing the proceeds of expenses, in accordance with the provisions

of the regime of state documents and accounting regulations of the company

Entering goods & Implementation: Researching and finding out the sourcesand building collaborative relationships with manufacturers and distributors in theworld and in the region to meet the diverse requirements about types, ensuring theorigin and quality of goods to conform to the requirements which the companycommitted to deliver products to customers

The Manager of Technique Department is in charge of the issues related totechnology He controls the following divisions:

Solution: Researching, consulting, building and deploying solutions forcomputer network LAN, WAN, advising equipment and software used in thenetwork; Researching and developing security solutions for network, Internet, andcomputers; building and deploying the project about telephones, PBX

Website : Administrating website, managing mail system, updatinginformation about activities, prices, products, promotions

Support Services: Installing software; assembling, delivering andmaintenance of equipment, consulting and solving the problem, performingtechnical support after sale

Maintenance: Implementing the survey, consulting, contracting andmaintenance every month to our customers

I.2 Introduction of TSG’s import business

I.2.1 Business area

According to the business license, the company operates in three fields:

(1) Copyrighted software distribution, (2) distribution of office machines andequipment, and (3) professional IT services

Copyrighted software distribution: Consulting solutions and investment in

buying software; providing copyrighted software products; transferring technologyand services to more than hundreds of world-leading software manufacturers:

• TSG, the first-grade agency, is a partner of many software vendors in theworld: Microsoft, Adobe, Autodesk, Oracle, Kaspersky, Symantec, Lacviet,Vietkey, Rehat, Corel, CA, Bitdefender, etc

• Besides, the company also imports and distributes products directly fromMindjet, Paessler AG, iSpring, IOCOMP Software, Vray, SketchUp, and manyother specialized software.

Distribution of office machines and equipment: TSG is an agency and

product distribution partner of manufacturers of office equipment with guaranteedquality, competitive price and the best after-sale service

• Providing all kinds of desktops, laptops, servers and IBM, HP, Dell, Lenovo,Asus, Acer,

• Providing all kinds of printers, copiers of HP, Canon, Brother, Epson,Orther

Professional IT Services:

• Investment consulting and solutions provider of software asset management;

• Solution for IT asset inventory

• Consulting the overall solution for computer network; Designing,implementation, management and maintenance of the situation of computernetworks

• Security Solutions, security and effective governance computer network;management solution for printing systems; controlling website error

• Consulting, implementation telephone, PBX, Internet system

• Training to use the information

Investment objectives for Information Technology not only increases but alsohelps to reduce investment costs and operating costs for organizations, businessesboth in the short and long term For those organizations that want to build their owndistinct image and culture characterized by professionalism, speed improvements,the role of IT is more particularly important

With its capacity, TSG desires to act as a supporting, reliable and long-termpartner about information technology to contribute to the improvement anddevelopment and create the breakthrough for organizations and businesses

I.2.2 Typical foreign suppliers and customers of the company

a Typical foreign suppliers

TSG serves as agent of, and has strong business relationship with manymanufacturers and companies around the world including: Kaspersky, Microsoft,Mindjet, Oracle, Eset, Acronis, Adobe, Corel, IBM, HP, Dell, Lenovo, Asus, Acer,

HP, Canon, Brother, Epson, Orther

Educational organizations: universities, colleges and high schools in thecountry.

Enterprise organizations: VinaCommodities JSC, Toshiba Asia Pacificlimited company, QSIC Vietnam limited company, Vietnam Vinalines LogisticsJSC, Vietnam Aikawa limited company, etc

Above is a complete introduction of TSG service and trading limitedcompany It consists of information about the establishment, organizationalstructure, business area, suppliers and customers of the company

CHAPTER II:

THEORETICAL FRAMEWORK

In this chapter, the author will present all information related to import,including concept, characteristics, roles and forms of import In addition, someissues of import products and factors affecting import activities of Vietnameseenterprises as well as TSG service and trading limited company will also be shownhere

2.1 Terms and definitions

This part of the report will be helpful to understand more about findings andanalysis part later The definitions of import and matters related to these will beused as foundation for data analysis They are stated as follows:

2.1.1 Concept and characteristics of import

a The definition of import

Import and export are the two crucial components of international trade Theterm” import” is derived from the conceptual meaning as to bring in the goods andservices into the port of a country or to consist of transactions in goods andservices( sales, barter, gifts or grants) from non-residents to residents In otherword, import business is considered as the transactions of goods and services fromoverseas to develop domestic business and social life under the provisions of theinternational market (import quota, tariff and trade agreements) Companies ororganizations import goods and services to supply to the domestic market at acheaper price and better quality than competing goods manufactured in the localmarket They also import unavailable products in the local market The buyer ofsuch goods and services is referred to an “importer” who is based in the country ofimport whereas the overseas based sellers is referred to as an ‘exporter” Besides, import is a process of trading goods between different countries,relying on the principle of equivalences of exchange with monetary as intermediary

It is a system of trade relations in an economy, which has both internal organizationand external ones In general, import business means buying goods, materials fromforeign-based companies, selling them in domestic market or re-exporting with theaim of making profit and connecting production between countries

b Importing activities have basic characteristics based on different countries such as:

- Import operation is controlled by many kinds of law such as Internationalagreement on foreign trade, International trade customs and national law

- Trading methods on international market are diversified: ordinarytransaction, mediated transaction or transaction at fairs

- There are varied methods of payment: barter, cash in advance, letter ofcredit, documentary collection or draft, open account and other paymentmechanisms

- Currency used in transaction : strong currencies ( USD, Sterling, Euro)

- Import activities provide firms that have different nationalities with thechance for long-term cooperation International trade directly affects the politicaleconomy relation and strengthens external economic relation of exporting countries

2.1.2 Roles of import

In the context that economic integration is gradually becoming an inevitableand popular trend all over the world, import activities play an important role instimulating the economy’s expansion Import is generally essential for the country’sdevelopment and for enterprises in particular

2.1.2.1 The role of import for national economy:

Imports are extremely important to the sustainable development of theeconomy as follows:

- Bringing more products to the country’s market, helping enrich the market’scurrent product base and giving consumers more choices in buying goods andservices

- Allowing countries to achieve higher standards of living by obtainingproducts and resources that cannot be obtained domestically

- Satisfying the demand of the market of special goods

- Creating favorable conditions for the transfer of technologies amongcountries, helping to bridge the technological gaps

- Participating in the international distribution of labor and enhancinginternational cooperation

- Creating competition between domestic goods and foreign goods whichforces domestic producers to make innovation

2.1.2.2 The role of import for enterprises:

Nations all over the world, nowadays, are increasingly involved in the globalintegration There are various reasons for the firms to buy goods and services fromoverseas Some firms may import goods to resell in domestic market to gain profits.The others may meet difficulty in controlling the whole production process; theyhave to import goods and services to make up for its production disability

With the firm specializing in trading imported goods, import is the coreactivity of its business

- Helping gain profit by buying and reselling the imported products

- Deciding the firm’s existence, its success or failure

With production firm importing for production purpose, the import directlyparticipate in the firm’s production process

- Helping solve serious problems about the inputs for the production process,therefore, ensuring the production’s continuity

- Helping cut down the company’s overhead cost, from which enhancing thecompany’s profit

As a result, import is crucial to the firm’s development

2.1.3 Types of import

There have been a various forms of import used all over the world Along withthe development of science and technology and the cooperation among countries,forms of import are increasingly professional and achieve great efficiency.Depending on the enterprises’ capacity as well as the requirements of partners, theycan apply one of four forms of import or combine these follows:

2.1.3.1 Direct import

Direct imports are products imported directly into a country and not throughthe manufacturer's authorized agent/distributor Since there is no factory-authorizedmiddleman involved in the import of these products, the added costs are lower andthe customer pays less In addition, many items that are in short supply or are notimported at all by the manufacturer's authorized distributors can be procured asdirect imports There is no difference in the actual products In most cases, they aremanufactured in the same place by the same people and with the same materials.Occasionally, manufacturers will give them a different name In order to signimport contract, domestic firms must carefully research the demand of importingmaterials and equipment in local market, calculate expenses that can ensure the

efficiency of import business, negotiate about the terms of trade with exporters andcomply with legal corridor and global practice

Direct import is simply to carry out The importer has to research market, findpartner, sign and fulfill contract, provide capital, incur risks and costs of transaction,merchandise exchange and other costs related to goods consumption, customs

2.1.3.2 Commission import

Commission import occurs when a local company wants to import productsbut not entitled to do that by its own That company, hence, must entrust anothercompany to finish the import procedure After the consignee completes importprocedure it will gain remuneration called ‘entrusts fee”

In this mode of import, entrusted company has not to do market research orpay any financial contribution The consignee must draw up two contracts One tobuy products from foreign manufactures, another is the written agreement betweenthe consigner and the consignee

2.1.3.3 Reciprocal trade

Reciprocal trade is a transaction method in which import closely combineswith export, the buyer is also the seller and vice versa The amounts of goods andservices exchanged have equivalent value Reciprocal trade depends on fourprinciples of balance: commodity balance, price equilibrium, balance in the sameterms of delivery and balance in the total amount of goods exchanged

The advantage of reciprocal trade is that with only one contract, firms mayimport and export all the same time Goods delivered have equivalent value withgoods received

2.1.3.4 Temporary import or re-export

Temporary import or re-export means a company import products not for localconsumption but for export to the third country for profit The imported goods arenot treated or processed in the re-export country Therefore, there are threecountries participate in this import procedure: the import country, the re-exportcountry and the export country The re-export firms have to perform two contracts:one import contract and one export contract They don’t have to pay import-exporttax

2.2 Factors affecting import operations

In fact, every movement of the company is influenced by business

conducting any import activity, the company must carefully consider all the factors

to minimize the cost and maximize the profit The detail information about externaland internal factors is given as follows:

2.2.1 External factors

External factors are the factors from outside environment and the businessescan not adjust but can only harmonize and adapt to the changes These factorsinclude:

2.2.1.1 Political and legal environment

Business efficiency is strongly affected by the developments in the politicalenvironment The political environment consists of laws, government agencies, andpressure groups that influence and limit various organizations and individuals in agiven society Well-conceived regulation can encourage competition and ensure fairmarkets for goods and services Thus, governments develop public policy to guidecommerce-sets of laws and regulations that limit business for good of society as awhole

Moreover, the biggest difference between doing business locally andinternationally is the impact of foreign laws, and international conventions Importcontracts and import activities must abide by the laws of the exporting country, thelaw of a third country (if specified in the import contracts), international businesspractices and international conventions, treaties that the parties participate The lawsand regulations of the exporting country can make the process of import businesssimpler or more complex, which affects the import operating costs and thus importactivities’ efficiency

Therefore, before conducting import, enterprises must clearly understandinternational laws and the laws of the exporting countries

2.2.1.2 Fluctuations of exchange rates

The exchange rate is an important factor affecting import prices or the cost of

imported products, thus affecting the efficiency of the import business When theexchange rate increases, the cost of one unit of imported goods increasesaccordingly and therefore it reduces the competitiveness of the goods, theirconsumption and business efficiency Conversely, when the exchange rate falls, theprice of one unit of imported goods also declines, and thereby it increases thecompetitiveness of the products, their consumption and business effectiveness

2.2.1.3 Competitors

For a business, competitors include current competitors and potentialcompetitors Enterprises must study the current competitors and potentialcompetitors to find out their strengths and weaknesses in order to look for suitableorientations, especially suitable marketing programs This will make businesses andtheir goods not be confused with other businesses, and increase theircompetitiveness in the market

2.2.1.4 Other factors

Other factors in domestic and international markets include demographicfactors, culture, traditions, and natural conditions These factors will affectproduction practices and consumption habits of each country

Law and business environment are external factors that individual businesscannot change They must comply with them and take steps to adjust theiroperations, organizational structure in accordance with the rules in the markets theyoperate in

2.2.2 Internal factors

In contrast to external factors, internal factors are factors that businessesthemselves can control and adjust In order to raise efficiency of import activities,enterprises should pay attention to these factors:

2.2.2.1 Financial resource

This is also a considerable factor to the success of the company A businessneeds to develop and maintain an adequate level of working capital in order to runsmoothly No business can run successfully without an adequate amount of capital.When there is not enough working capital, the following problems occur: businesscan no longer operate effectively and become disrupted, business may need toliquidate their assets in order to meet their financial obligations, and business maylose ability to obtain credit

2.2.2.2 Human resource

These reflect in the number of employees, their qualifications and workingability and management level Human resources are the determining factor in everybusiness The qualifications and capabilities of human resources must be consistentwith the type of business Therefore, enterprises should evaluate and develop theirhuman resource

2.2.2.3 Management level

Each enterprise is a unified system made up of multiple linkages towards agoal In order to succeed in long run, enterprises need create a level oforganizational management which is correlative to its own financial strength.Organizational management level refers to the perfection of organizationalstructure, the efficiency of management system, etc

2.2.2.4 Target customers

The target customers and the types of goods a company offers can have effect

on the level of price elasticity of demand For example, when there is inflation orprice increases, the demand for commodities aiming at high incomes group willdecrease less than that for low and middle-income groups On the other hand,different target clients will have different requirements for the same productcategory, and therefore, the marketing strategy, and product introduction for eachtype of customer is different

2.3 The importation process

Importation process consists of eleven steps Firstly, seller and buyer conclude

a sales contract, with method of payment usually by letter of credit (documentarycredit) Secondly, buyer applies to his issuing bank, usually in buyer's country, forletter of credit in favor of seller (beneficiary) Thirdly, issuing bank requests anotherbank, usually a correspondent bank in Seller's country, to advise, and usually toconfirm, the credit Fourthly, advising bank, usually in Seller's country, forwardsletter of credit to Seller informing about the terms and conditions of credit Fifthly,

if credit terms and conditions conform to sales contract, seller prepares goods anddocumentation, and arranges delivery of goods to carrier Sixthly, seller presentsdocuments evidencing the shipment and draft (bill of exchange) to paying,accepting or negotiating bank named in the credit (the advising bank usually), orany bank willing to negotiate under the terms of credit Seventhly, bank examinesthe documents and draft for compliance with credit terms If complied with, bankwill pay, accept or negotiate Eighthly, bank, if other than the issuing bank, sendsthe documents and draft to the issuing bank Ninthly, bank examines the documentsand draft for compliance with credit terms If complied with, Seller's draft ishonored Tenthly, documents release to buyer after payment, or on other termsagreed between the bank and buyer Lastly, buyer surrenders bill of lading to carrier(in case of ocean freight) in exchange for the goods or the delivery order

In this chapter, the author provided the theories background about importoperation and company’s import business as well The chapter also mentions causesaffecting import activities The real situation of import operations of the companywill be analyzed and evaluated in detail in the next chapter.