Law Import and export freight forwarding must be based on legal basis, such as national law and international law.. A contract for the carriage of goods by sea is an agreementbetween a c
LAW AND THEORY
Law
Import and export freight forwarding must be based on legal basis, such as national law and international law.
Pursuant to Vietnam Maritime Code 2015
Article 145 Contracts for carriage of goods by sea
1 A contract for the carriage of goods by sea is an agreement between a carrier and a shipping charterer in which the carrier collects the charterer’s shipping service charge and transports the items by ship Products from the point of origin to the point of destination.
2 Machines, equipment, raw materials, fuel, consumables, and other moveable property, including live animals, containers, or similar items provided by the shipper for the purpose of packaging commodities transported under a contract of carriage of goods by sea, are referred to as cargo.
1 Bills of lading, waybills, sea waybills, and other shipping documents are examples of shipping paperwork The enterprise issues a bill of lading in the form of a bill of lading for use at sea, which must be transmitted to and preserved at a specialized maritime state management agency.
2 A bill of lading is a transport document that proves the carrier received the goods in the quantity, type, and condition stated on the bill of lading for transportation to the destination; proof of ownership of the goods used for disposition and receipt; and evidence of a contract for the carriage of goods by sea.
3 A bill of lading by sea is one that specifies that the commodities are transported by at least two maritime carriers.
4 The sea waybill is proof that the items were received in the condition described on the sea waybill; it is evidence of the contract of maritime freight carriage A sea waybill cannot be transferred.
5 Other transport documents are documents whose content and value have been agreed upon by the carrier and the charterer.
Obligations of the delivery person (Article 154).
1 The delivery person must make certain that the goods are properly packed and labeled with signs and codes The carrier has the power to refuse to load products that do not match the specified packing requirements on board the ship.
2 The shipper shall supply the carrier with the relevant paperwork and instructions for explosive, flammable, and other dangerous items, or the type of cargo required, within a reasonable period Whenever loading, transporting, storing, and unloading, use extra precautions.
The shipper is responsible for any losses incurred as a result of the provision of relevant documentation and instructions being delayed, erroneous, or invalid.
Pursuant to the Commercial Law 2005
Article 34: Goods delivery and related papers
1 The seller is responsible for delivering the items and documentation in accordance with the contract’s amount, quality, packing and preservation techniques, and other stipulations.
2 In the absence of a written agreement, the seller must provide the products and related papers in conformity with this Law.
1 The seller is responsible for delivering the products to the agreed-upon location.
2 If there is no agreement on the delivery location, the following will be used to decide the delivery location: a) If the goods are land-based objects, the seller must deliver them to the location where they are located; b) If the contract includes provisions for goods transportation, the seller must deliver the goods to the first carrier. c) If the contract does not provide for the transportation of goods, and the parties know the location of the warehouse, the place of loading, or the place of production or manufacture of goods at the time of entering into the contract, the seller must deliver the goods there; d) In all other cases, the seller must deliver the goods at the seller’s place of business, or if there is no business location, the goods must be delivered at the seller’s residence Purchase.
1 The customer is responsible for paying for the products and receiving them as agreed.
2 The buyer must adhere to the payment methods and make payments in accordance with the agreed-upon sequence and processes, as well as the legislation.
3 If the items are lost or damaged after the risk has been transferred from the seller to the buyer, the buyer must still pay the purchase price, unless the loss or damage is caused by the seller’s negligence.
The buyer is obligated to get the goods as promised and to assist the seller in delivering the goods to the buyer’s satisfaction.
In accordance with the International Convention on Bills of Lading, which was signed on August 25, 1924 in Brussels.
In accordance with the United Nations Convention on the International Carriage of Goods of 1978.
In accordance with the International Multimodal TransportConvention of 1980,
In accordance with the Protocol to Amend the International Bill of Lading Convention (Visby Protocol 1968).
Multimodal transport documents, governed by the Norms for Multimodal Transport Documents No 48, have been effective since January 1, 1992, in accordance with UNCTAD and ICC regulations As the Code operates as discretionary law, it is essential for the involved parties to refer to their contract when utilizing these documents.
Theory
The International Freight Forwarders Association (FIATA) defines "forwarding services" as encompassing a variety of activities related to the storage, consolidation, handling, packaging, transportation, and distribution of goods, along with consulting services linked to these operations.
The forwarder plays a crucial role in managing the transportation of products, ensuring compliance with the commission contract while prioritizing the shipper's interests This includes overseeing various aspects such as storage, warehousing, customs clearance, and product inspection.
A shipper is defined as any individual who chooses to transport products using their own means of transportation Additionally, a contractor delivery refers to any person who is obligated to the shipper, either through explicit instructions or implicit commitments, to fulfill this delivery responsibility.
- According to the 1978 Hamburg Rules:
Any person who enters into a contract for the carrying of goods by sea on behalf of the shipper is referred to as a
The term "actual shipper" encompasses any individual who has engaged with the shipper regarding the transportation of goods, or any part of it, along with any other person who has permitted that engagement.
A "shipper" is defined as the individual who engages a carrier for the transportation of goods by sea, or the person on whose behalf the goods are delivered to the carrier under a maritime contract.
The individual who has the right to receive the goods is referred to as the "consignee."
- According to the 2015 Maritime Code:
A shipper, or consignor, is an individual who engages in a contract for the maritime shipment of goods In the context of a Bill of Lading (B/L) contract, the consignor is the party that either directly enters into the agreement or authorizes another to do so on their behalf for the delivery of goods by sea.
A physical shipper is someone who has been authorized by the shipper to deliver goods by sea in whole or in part.
A shipper (also known as a shipper) is a person who delivers the goods personally or is contracted by someone else to deliver the goods under a contract of sea freight carriage.
Transitions come in a variety of shapes and sizes. Domestic forwarding - International forwarding is the basis for classification.
Pure forwarding vs general forwarding are two types of business activity.
Sea delivery - Air freight - Waterway - Road - Railway - Post office - General transport - Multimodal transport are examples of modes of transportation.
Private forwarding vs professional forwarding is the type of forwarding.
The importance of forwarders in international trade growth
Forwarding allows for the quick, safe, and cost-effective movement of products without the need for the sender or receiver to be present.
Forwarding plays a crucial role in enhancing the efficiency of carriers by increasing the rotation speed of transport vehicles, thereby maximizing their capacity and tonnage, along with optimizing the use of transport tools and supporting equipment.
Import and export costs are reduced when items are forwarded.
The forwarder plays a crucial role in helping importers and exporters reduce unnecessary expenses, including the costs associated with building a warehouse or hiring a forwarder, as well as the expenses related to labor training.
Import and export freight forwarding activities primarily involve the transportation of commercial and non-commercial goods, both domestically and internationally, through consignment services.
Acting as a multimodal transportation hub, delivering goods to any location at the shipper's desire.
Signing contracts with carriers, storing goods, chartering ships, and using domestic modes of transportation are all examples of operations associated to freight forwarding.
Performing operations relating to sending and receiving goods, purchasing import and export goods, insurance, recycling, collecting, goods division, bet cont, and delivery as needed.
Import and export traders receive advice on transportation and insurance, as well as loss, claims, and compensation.
GOODS AND TRANSPORTATION WAYS
Goods
T-shirt is the name of the product (t-shirt)
250 foam boxes are used in each container.
Size of styrofoam box: 40 * 50 * 60 cm
Avoid direct sunshine and humidity with this commodity.
Products are loaded on pallets that are at least 10cm away from the pedestal, with a gap of 15-20cm between pallets.
The item is divided into boxes, with each box containing a shirt in a plastic bag.
Individual packing: Pack 1 shirt in a plastic bag Each shirt is folded in half lengthwise The plastic bag keeps the shirt from creasing while still keeping it tidy and appealing.
The product will be individually packaged and placed in a foam box, with each box containing 50 shirts This packaging ensures neat organization and protects the shirts from moisture.
When the packaging is finished, the foam box is thoroughly labeled The following information must be included on the packaging label:
The consignee's name, address, and phone number are provided.
Information regarding the items is necessary, such as the goods' date of manufacture and origin.
Signs that the carrier has to precisely locate the suitable cargo in a dry, moisture-free location (keep dry, prevent fire, avoid heat).
Ensure that commodities are properly maintained and preserved from the point of manufacture to the point of consumption: not broken, wet, or termite-infested.
Image 2: Necessary signs when transporting goods
You stick the tape in the shape of a H after putting it in the box, making the product inside safer and easy to transport.
Image 3: H-shaped tape method 2.1.3 Containerization of goods
A 20-foot (20ft) container is the most fundamental type of storage unit, commonly utilized for securely storing heavy dry goods such as rice, wheat, steel, and cement.
Maximum weight for shell 30.480 kg
The shipment weighs 750kg and is packed into 250 foam boxes (1 carton
Each pack measures 40*50*60 cm in size.
To maximize storage capacity, goods are packed inside the container in three directions: conventional, upward, and upside down.
Selecting large-sized boxes for clothing packaging is essential to fulfill garment packaging requirements This is particularly important due to the typically high volume of items involved in the transportation of clothing products, especially during import and export processes.
Image 7: Confirming the container size
Image 8: Packing and arranging the box
Image 9: The carton for packing garment products needs to be large in size
- As a result, only large-scale crates can fully meet the requirements of businesses Furthermore, the container is less in weight and easy to inspect, reducing errors.
Image 10: 3D model after the goods are loaded into the container
Forklift is used to load containers.
The mode of transport
Dinh Vu Port in Hai Phong, Vietnam is the loading port.
Dinh Vu Port, also referred to as Dinh Vu New Port, serves as the main general and container port within the Hai Phong port cluster Located on the Dinh Vu peninsula in Hai An district, Hai Phong city, it sits at the mouth of the Bach Dang river The port features a channel that is over 100 meters wide and maintains a depth of -8.7 meters Continuous improvements to the port's infrastructure, along with ongoing investments in loading and unloading equipment and advancements in technology, significantly enhance its bulk cargo handling capacity.
Port of discharge: Kobe port, Japan
Kobe Port, located in Kobe, Hygo, within the Keihanshin area, serves as a vital maritime hub that accommodates large vessels, including container ships exceeding 900 TEU The Hanshin Industrial Park's Container Terminal boasts 34 berths, spans an area of 3.89 km², and supports a maximum draft of 18 meters, facilitating efficient shipping operations.
From a business park to a cargo dock
From the industrial zone of Nam & Co Distance from London to Dinh
Vu Hai Phong port in Vietnam: 14 kilometers
Method of transport: by road
Determine the mode of transportation: trucks
Image 12: Route from Suoi Dau Industrial Park to Cam Ranh port
From the loading port to the discharge port
From Vietnam's Dinh Vu port to Japan's Kobe port
1838 mn is the distance between two points.
Method of transport: by sea
Determine the mode of transportation: ocean liner
Image 13: Picture of the distance from Dinh Vu port to Japan Kobe port
IMPLEMENTATION OF THE PROCESSING PROCESS20
Organizational chart
Diagram of forwarding export process
Describe each step of the process
Freight forwarding is a commercial service that involves receiving goods from the sender and managing their transportation, storage, and necessary documentation to ensure delivery to the consignee.
Buy insurance for the goods
Issue Draft Bill of Lading
Check all documents and real goods
The buyer is required to accept the goods as per the agreement and must actively assist the seller in the delivery process This includes taking reasonable steps such as organizing logistics, coordinating with recipients, and providing necessary information to the seller prior to delivery.
Step 1: The seller and the forwarding company sign the contract
The process of entering into a contract involves two parties reaching a mutually beneficial agreement Following this, the seller and buyer formalize their agreement through discussions and negotiations The seller then engages a forwarding company to manage the logistics of transporting goods to the buyer, which occurs after the sales contract is signed The forwarder acts on behalf of the seller to handle customs declarations, arrange transportation, purchase insurance, and manage necessary documentation The importance of the forwarding company in the transportation of goods cannot be overstated.
The forwarder will receive a number of goods documents from the seller, including:
- Contract of sale of goods between the seller and the buyer
After the forwarder receives some documents from the seller, it is their responsibility to check the documents and to notify the seller if the documents are inconsistent.
Step 2: The forwarder hires the mode of transport.
In foreign trade contracts, the responsibility for arrangements with the shipping company and international shipping costs is determined by the commercial terms agreed upon, which can fall to either the buyer or the seller.
The forwarding company's staff will contact shipping lines via email or phone to inquire about their schedules Additionally, shipping schedules can be conveniently checked on websites such as https://shippingschedule.com.vn.
Documentation must be completed on this booking request and sent to the shipping company by email or in person.
The shipping lines will send the forwarding company a booking form which contains some information such as:
Cargo insurance protects against external risks that may lead to loss or physical damage of goods during transit or temporary storage This insurance applies to transportation by any means within Vietnam or globally When goods are sold under a CIF contract to Kobe port, Japan, according to Incoterms 2010, the seller is required to purchase insurance covering 110% of the CIF price Additionally, the forwarding company must provide insurance for the seller based on Basis A of ICC 1982.
Choosing the right containers for packing is crucial, especially for those new to logistics services It's essential to consider the necessary parameters and characteristics of each container type to ensure they match the goods being shipped The selection process can be challenging and significantly impacts both the documentation and shipping costs Once the forwarder receives the booking form or order adjustments from the shipping line, the forwarding company must submit specific documents to the shipping line to collect the container.
- Identity papers of the forwarder.
A dry container, also known as a warehouse container, is a transport tool with a steel frame structure, durable steel walls, suitable for repeated use.
Designed with international standard sizes to suit many modes of transport, convenient in transit between modes of transport, and easy to import and export goods from containers.
This saves on warehouse space as well as construction time and costs, making it suitable for many weather conditions and all types of terrain.
The company's customs declaration opening department, after receiving Booking from the shipping company, opens the export customs declaration, the necessary important documents include:
The above information will be updated and transmitted on ECUSS5VN software.
The customs authority, after checking the information about the shipment declared by the customs declaration department of the Logistic company, will return the results of the channeling:
2- Gold Stream: Check your profile (additional fee)
3- Red channel: Checked (Check the file and cut the lead to check the goods in the container and there will be an additional fee)
Once the customs declaration is approved, the company's field staff will deliver it to the shipping company or port yard They will then wait for the ship to be released, which typically takes about two weeks, before finalizing the declaration.
To pick up an empty container, utilize the carrier's reservation confirmation Transport the container from the empty supply yard to the warehouse for packing Prior to packing and sealing the lead clip, ensure to meticulously verify the product for accuracy in quantity and appearance to prevent any confusion.
The seller is responsible for organizing workers and forklifts to efficiently pack goods into empty containers Additionally, they must create a packing list that includes the container number and sealing number, which should then be sent to the forwarding company for shipping instructions.
Step 7: Follow the shipping instructions.
After completing the customs declaration, the forwarder sends the ShippingInstructions to the carriers
Upon receiving the draft Bill of Lading (B/L) from the shipping line, enterprises must meticulously verify its accuracy, as any errors will result in the enterprise assuming full responsibility Once all details are confirmed, the shipping line will proceed to issue the Master Bill of Lading (MBL) in three original copies and three duplicates.
The forwarding company is responsible for paying all fees related to the shipping prior to receipt of the B/L.
The forwarding company will send all documents and invoices related to the exported goods and require the seller to pay all fees, including:
Set up delivery contract
- According to the Civil Code and Commercial Law passed by the 9th National Assembly of Vietnam (the 7th session) on June 14, 2006 and took effect from January 1, 2006.
- At the request of both parties.
This contract is signed on April 14, 2022, between:
PARTY A: NAM&CO LONDON CO., LTD
Address: RP62+5GC, Nam&Co Building London, Street, Pham Van Dong, Anh Dung, Duong Kinh, Hai Phong
Representative: PHAM MINH NAM as Director.
PARTY B: GREEN PACIFIC LOGISTICS CO., LTD
Add: 618 Ngo Gia Tu Ward, Hai An District, Hai Phong
Office: Son Hai Building, 9th floor, 252 Le Thanh Tong.
Representative: Mrs Nguyen Thi Phuong Thao as a Director
Clause 1: Scope of the service.
Part B assigns Part A to clear customs procedures, contract with shipping lines, yards, stores and related parties, transport and deliver goods to Part B's buyers.
The instructions related to the goods, methods and routes of transportation will be confirmed by email or fax, which will be considered as proof of confirmation by both parties.
1 Arrange appropriate vehicles for each shipment to ensure security and on-time delivery as required by Part B.
2 Delivery to Part B according to the principle: “closed container” for FCL shipments and “truck sealed” for LCL shipments.
3 Inform the delivery plan to department B, the vehicle number, the driver's phone number so that department B can arrange to receive the goods well
4 Coordinate with B and other related parties to carry out the delivery and receipt of goods according to the plan.
5 Take the original customs declaration, bill of lading, FCR (goods delivered and received) of the entire export shipment and transfer to part B Part
A will advance part B to pay all arising fees (if any) ) and will collect from Part
B of the monthly debit note.
6 Send the Debit Note and all invoices (including part A issued and/or other invoices pursuant to clauses 4.2 and 4.3 of this contract) by the end of the 5th day of the following month.
Clause 3: Responsibilities of the DISCLOSURE
1 Provide Part A with a complete set of documents related to the processed shipment and take responsibility for the legality of the shipment.
2 Notify Part A (at least 24 hours before delivery) of the delivery plan by:
- For imported goods: Send Incoming Notice, Bill of Lading and related documents by email Notify the plan to receive goods at the warehouse specified in Part B.
- For export goods: Send booking slip or empty container delivery order Notice of delivery plan at the warehouse specified in part B
In an unexpected situation, the two sides cooperate to carry out the incident.
3 Well arrange labor and equipment to receive goods when the trucks of Part A arrive at the locations specified in Part B Cooperate with Part A and related parties to handle goods according to the plan.
4 Paying fees, charges, fees and expenses incurred on time (if any) to department A
Clause 4: Cost and payment method
1 Goods handling fees and/or charges shall be arranged and agreed upon by the two parties in accordance with the appendix of this contract.
2 On behalf of Part B, Part A will pay handling fees, doc fees, THC, CFS fees, container cleaning fees and other fees to other parties.
Overtime cost: Twice as much as usual
If Part B retains a Part A vehicle for more than 6 hours or until the next day after its scheduled arrival, they are required to pay the pre-paid fee as indicated in the notice price.
- Part B will pay Part A in cash or by bank transfer, as shown on receipts issued by Part A or legal documents of transaction banks.
+) Part A will send a monthly Debit note (Statement of Account: SOA) during the period from 04 to 05 of the following month.
Part B will verify and confirm the Statement of Account (SOA) for Part A between the 5th and 10th of each month If no confirmation is received from Part B by the 10th, the SOA will be considered final for Part A.
+) Part B must pay all costs, fees, charges and expenses under SOA by at least the 15th of each month.
Especially for Sea Freight and Air Freight:
If Part B requires Part A to cover fees on its behalf, Part B must reimburse Part A in full within two days of Part A's payment to the shipping lines or airlines, regardless of whether Part B has received the original invoices Any delay in payment by Part B is considered a breach of contract, resulting in an additional charge of 0.1% of the overdue amount for late payment, without the need for further investigation.
In the event that Part B fails to pay on time as specified above, Part A has the right to take one/all of the following actions:
- Keep the original documents or goods of Part B until all debts including collection fees are paid.
- Take the necessary measures to hold Part B stock or discontinue Part B service
Part B pays Part A by wire transfer according to the following information:Trustee : GREEN PACIFIC LOGISTICS CO., LTD
Bank name: Techcombank (Hai Phong Branch)
The delivery and receipt of goods is carried out according to the principle:
"closed container" for FCL shipments and "truck sealed" for LCL shipments.
Both parties undertake to perform all the terms of this contract This contract is governed by the laws of Vietnam.
In the event of difficulties, problems, or disputes during the handling process, both parties will seek to resolve these issues collaboratively before escalating them to the People's Economic Court of Hai Phong city, whose decision will serve as the binding legal basis for both parties This contract is derived from four origins, with each party retaining two copies that hold equal legal value The contract will remain effective from the signing date until one or both parties decide to terminate it.
REPRESENTATIVE OF THE REPRESENTATIVE OF
Mr Dao Trong Nghia Mrs Nguyen Thi Phuong Thao
Cost
Table 3: Local costs of the forwarder.
Table 4: Table of local fees 3.4.2 Cargo transportation
Unit price (USD) Numbers Total (USD)
Table 5: Tariff table 3.4.3 Other fees
Numerical order Other fees Unit price
1 Lift up - Lift up 30 USD / cont
Service fee for export customs clearance
Table 6: Other Fee Schedule 3.4.4 Overheads
Numerical order Remuneration price (USD)
Table 7: Table of total fees
International freight distribution has become a vital activity that significantly contributes to our economy, paralleling global trends The growth of international freight forwarding has bolstered domestic service industries, attracted foreign investment, and enhanced the import-export process, positioning our country as a stable economic hub Vietnam's active participation in international freight forwarding has not only showcased its economic progress but also fostered strong international ties, making it an appealing market for global investors We extend our gratitude to Mr Tran Hai Viet for his invaluable support and insights during our research, and we look forward to his feedback on our work to enhance our future endeavors.
1 FIATA International federation of freight forwarder, FIATA.com
2 Pier2pier.com for calculate container
Assignment start date: 23/05/2022 Assignment due date: 23/05/2022
Phạm Ngọc Phương – 84481 Đỗ Thị Hà My – 84058