THEORETICAL BACKGROUND
Definition
Customs clearance is the act of taking goods through the customs authority to facilitate the movement of cargo into a country (import) and outside the country (export).
Also, the customs clearance means a document issued by the customs authority to a shipper indicating that all duties have been paid and the shipper’s goods is cleared for export.
The understanding about FCL goods
A Full Container Load (FCL) refers to a shipping container designated for the exclusive use of a single consignee, ensuring that the entire container is booked by the shipper solely for transporting their cargo.
The shipper doesn’t have to share the container with cargo booked by other shippers This enhances security and simplifies logistics.
When shipping FCL (Full Container Load) cargo, the shipper must reserve an entire container, ensuring that the goods belong solely to one company In contrast, LCL (Less than Container Load) shipments allow for the booking of only a portion of a container, accommodating goods from multiple companies that are consolidated together.
Booking a Full Container Load (FCL) container tends to be more expensive overall due to its larger volume However, when evaluating costs based on dimensions, FCL is often the more cost-effective choice In contrast, Less than Container Load (LCL) bookings have a higher cost per freight, making them the more economical option when considering total expenses.
FCL delivery is significantly faster than LCL due to the entire container being booked, eliminating the need for sorting and unpacking at multiple delivery ports This reduces the likelihood of delays caused by port operations and customs authorities In contrast, LCL shipments require additional time for sorting goods, consolidating documents, and processing, leading to longer loading and unloading times.
When shipping LCL cargo, it's essential to clarify handling and documentation charges, as these can be less transparent compared to FCL shipments While the freight cost for LCL is generally lower, terminal handling and documentation fees may be higher Therefore, it's advisable to discuss all terms with the shipper in advance to avoid unexpected expenses.
Figure 1.2: FCL and LCL cargo comparison
The concept of import procedure in logistics
Import trade involves the purchase of goods and services from one nation to another, with the term "import" deriving from "port" due to the common shipping method Like exports, imports play a crucial role in international trade, allowing countries to acquire products they cannot efficiently or cost-effectively produce domestically Additionally, some nations import essential commodities and raw materials that are unavailable within their borders; for example, many countries import oil when local production is insufficient to meet demand.
- To speed up industrialization: developing countries import scarce raw materials, capital goods and advanced technology required for rapid industrial development.
- To meet domestic demand: the goods which are in demand but are not available in the country are imported.
- To overcome natural disasters: during drought, flood, earthquake and other natural calamities country import food grains and other essential commodities to prevent starvation.
Imports play a crucial role in enhancing the standard of living by providing consumers with access to a diverse range of high-quality products This variety not only enriches consumer choices but also contributes significantly to the overall improvement of living standards for the population.
- To ensure national defiance: The importer must get the receipt of credit from his concerned bank and send it to the foreign supplier.
1.4 Direct and indirect import customs clearance
Direct import customs: the logistics company acts in the name and on account of a third party.
Indirect import customs: the logistics company acts in their own name but on account of a third party.
In indirect customs, a company submits customs applications on its own behalf but on behalf of the applicant Unlike direct customs, the rights and obligations related to customs procedures are transferred to the representative.
Indirect representation is infrequently utilized, primarily in situations where importers lack residency in the EU customs territory This limited use is largely attributed to the unpredictable risks and potential fees or duties that may be levied on the indirect representative for up to three years following the clearance process Consequently, in the event of a customs inspection, the representative must have access to the importer’s financial records.
In direct representation, the representative acts on behalf of a third party, meaning they are neither the applicant nor the owner in the customs process Consequently, the representative does not bear personal liability in customs matters and is only accountable under civil law.
1.5 12 steps in the process of importing goods by sea
In the process of importing goods by sea, the first step is to book a ship.
However, before doing this step, you need to proceed with signing a foreign trade contract (the sale contract).
During peak seasons, shipping lines often experience a shortage of space well in advance, making it crucial to book early To secure a shipping reservation for importing goods, simply provide the necessary information to the freight forwarding service in Vietnam, which will then liaise with your partner to ensure that packing aligns with the established plan.
To get a train booking, you need to provide the following information to the shipping company:
Port of loading: where your goods are loaded.
Port of transfer: there are two forms: transshipment (transit) and direct (direct) Depending on the rules, the agreement between the two sides that will choose the appropriate form.
Port of discharge: where the container is dropped.
Name of goods, weight: based on information on the document to provide.
Travel time (ETD): the estimated date of departure.
Packing time: as agreed upon by both parties.
Other requirements: container type, size, temperature, ventilation,
Step 2: Check and confirm the booking
The next step in the process of importing goods by sea is to check the information on the booking Please check the information about:
Port of departure, the port of destination: check if the request is correct, this is a factor affecting the whole process of the shipment.
Temperature, ventilation: check that the temperature and ventilation are correct For frozen items (negative temperatures) there will be no ventilation.
Container type, size: dry or reefer container, high or regular type, 20 'or 40' type.
After checking all the information on the train booking, if there is any mistake Please ask the booking provider to correct, then continue to check until it is satisfactory.
Step 3: Follow up on the packing process and updated information from the exporter
In the sea import process, the responsibility for overseeing and monitoring the packing of goods, as well as updating partners, lies with the exporter, agent, or FDW translation branch in Vietnam.
The information needs to be updated as:
Empty container snapshot: to ensure that no damage has occurred.
Because in case of damage, the container will pay for shipping lines.
For frozen goods, pictures of temperature tables must be taken.
Step 4: Checking to certify documents and records related to the shipment
Before proceeding to enter a shipment You need to find out what documents that shipment needs Then ask the partner to prepare the documents for you.
Always verify that the information on your voucher is accurate, as even minor errors can lead to significant issues with customs and state agencies regarding your shipment.
Step 5: The importer receives a notification when the goods arrive
At least one day prior to the date of arrival, you will receive a notice of arrival from the shipping line or agent.
An arrival notice is a crucial document provided by the carrier or forwarding agent, detailing the estimated time of shipment arrival It typically includes essential information such as the names of the exporter and importer, container number, seal, ship name, shipment number, and a description of the goods Additionally, the notice outlines any applicable local charges associated with the shipment.
Then you proceed to take D/O including the following documents:
Power of attorney (if required).
Step 6: Register the certification related to the shipment
The regulations for obtaining the necessary certification for your shipment vary based on the type of goods and their HS code Failure to register for the required certification can lead to complications in clearing your shipment and hinder interactions with authorities.
Step 7: Customs declaration of imported goods
This is an important step in the process of importing goods by sea In the process of customs clearance, document preparation is the most important step.
To be able to carry out a customs declaration, you need to fully prepare the following documents:
Freight Bill (if any) and other relevant documents.
In addition to the above documents, you need to pay attention to the digital signature to log in and transmit the declaration form on the electronic customs declaration software.
Step 8: Open and clear customs declarations
The next step in importing goods by sea is to complete the customs declaration and clearance at the port.
Declaration of the green channel: pay taxes, the tax can print the bar code, then proceed with liquidation and receipt of goods.
Gold flow declaration: pay taxes before or after the procedure to open the declaration, open the declaration, liquidate and receive the goods.
Red channel declaration: similar to yellow channel but in the opening step of the actual declaration, there is one more step to carry out the physical inspection of goods.
Next, you can proceed to open the declaration To do this step, you need to prepare the following documents:
Other necessary documents (C / O, freight bill, import license, ).
When presenting documents to customs, if the documents are valid.
Customs will conduct customs clearance on the system.
Once you have finalized the tax payment and customs clearance, you can print the barcode It is essential to submit at least two sets of the barcode along with the customs declaration for customs supervision Customs will then stamp one set of the barcode and return it to your enterprise, while retaining the other set for their records.
Step 10: Article warehouse transport of goods to the warehouse
After clearing the declaration, please go to the port's trade office and bring D / O to pay the fee Next, give the driver documents such as EIR,
The driver must submit the necessary documentation to the customs office to ensure proper supervision at the port, allowing the vehicle to depart and await the arrival of goods at the warehouse.
Step 11: Withdraw goods and return the empty car
Upon the arrival of the delivery truck at the warehouse, it is essential to verify documents including the seal, container status, and delivery vehicle Once the withdrawal process is finalized, the driver will return the container to the port or Inland Container Depot (ICD).
Step 12: Keep records and vouchers
All documents relating to the process of importing goods by sea need to be carefully stored For comparison in case of arising, complaining,
Documents to be kept include:
Customs dossier, additional declaration dossier, a dossier of registration of list of duty-free goods, and report on the use of duty-free goods.
Documents for consideration of tax exemption, reduction, refund, and non-collection.
Dossier requesting for the handling of tax, late payment interest, fines for overpayment,
Transport documents, packing slips, technical documents, etc.
INTRODUCTION OF DRAGON LOGISTICS CO., LTD – HAI
History of establishment and development of DRACO
Dragon Logistics Co., Ltd was established based on the Investment license No.
179/GP issued by Ministry of Planning and Investment dated 19th October
In 1996, a joint venture was established between Japanese companies Sumitomo Corporation and Suzuyo & Co., Ltd, along with Vietnamese partners VINAFCO and Hanel, featuring a total investment of USD 9,290,000, which includes a legal capital of USD 4,000,000.
The company offers extensive and up-to-date insights into the international market, essential for successful import-export operations Their commitment to excellence is reflected in their service slogan: “Service Quality - Customer Satisfaction - Company Growth.”
The North Thang Long Customs office, located in the Dragon’s area, spans over 2,000m² and facilitates customs procedures outside the border gate, ensuring efficient customs clearance for cargo entering and exiting Thang Long Industrial Park.
DRACO is an esteemed member of renowned international and domestic freight forwarding organizations, including IATA, FIATA, and VIFFAS Additionally, the company received the ISO 9001:2000 Certificate of Approval from QMS in August 2001, highlighting its commitment to quality management standards.
Over 20 years of operation, the company has expanded the scope of providing logistics services across the country The company currently has: 1 head office in Hanoi, 1 representative office in Hanoi and 5 branches located in cities and provinces such as Ho Chi Minh City, Hai Phong City, Da Nang City, Dong Nai provinces and Quang Ninh provinces.
DRACO Logistics, located in key seaport cities of Vietnam including Hai Phong, Da Nang, and Ho Chi Minh City, is establishing itself as a reliable and professional maritime logistics service provider for both domestic and international businesses.
DRACO mission and vision
DRACO is committed to continuous service improvement, striving to enhance transportation efficiency and equipment performance By optimizing human resources and reducing labor costs, the company aims to perfect its supply chain management and establish itself as a leading professional logistics service provider.
- Customer oriented: DRACO Logistics always aims to meet the needs of customers This is the company's service standard.
DRACO Logistics fosters a proactive and creative working style to thrive in today's competitive business landscape By cultivating a professional and dynamic environment, the company empowers its employees to fully develop their skills and capabilities.
DRACO’s profile
Vietnamese Name: CÔNG TY TNHH TIẾP VẬN THĂNG LONG
English Name: DRAGON LOGISTICS COMPANY LIMITED.
Motto: Challenge - Commitment - Communication – Cooperation - Compliance.
Head Office: Plot E4A Thang Long Industrial Park, Dong Anh District, Hanoi.
Hai Phong Branch: No 5 Nguyen Binh Khiem Street, Hai Phong City.
Email: dragonlogistics@draco.com.vn
Website: www.draco.com.vn
DRACO’s organizational structure
2.4.1 Organizational structure of DRACO’s Head Office
Figure 2.4: Organizational structure of DRACO‘s Head Office
Source: DRACO 2.4.2 Organizational structure of DRACO – Hai Phong Branch
Total employees: 147 employees (Source: DRACO)
General Director Mr Phan Văn Quân
DGD Mr Vũ Đức Tuấn
Mrg Mrs Nguyễn Thị Kim Oanh
Depot Mr Nguyễn Hoàng Lân
Mrs Nguyễn Thị Hương Giang
Receivable Acctount Ms Vũ Thị Bích Ngoan
Payable Acctount Ms Phùng Thị Hòa
Ms Vũ Thị Thùy Linh
Ms Đặng Thị Mai Anh
AMD Mr Phạm Tuấn Anh
Mrg Mr Trịnh Thanh Sơn
DGM Mr Nguyễn Khánh Hòa
Ass Mr Phạm Bảo Khánh
TL Group 1 Mr Phạm Văn Thịnh
TL Group 2 Mr Phạm Văn Thước
TL Group 3 Mr Trần Tuấn Hùng
TL Group 4 Mr Nguyễn Mạnh Chung
TL Group 5 Mr Lương Quang Mạnh
TL Group 6 Mr Vũ Tiến Dũng
Mrg Mr Đỗ Hưng Hải
Ass Mr Nguyễn Anh Tuấn
TL Group Agent & BWH Mrs Phạm Thị Thiệp
TL Group 1 Mr Nguyễn Tiến Việt
TL Group 2 Mr Vũ Cao Anh
TL Group 3 Mr Trần Anh Nghĩa
TL Group 4 Mr Nguyễn Quang Hưng
TL Group 5 Mr Nguyễn Xuân Dũng
DRACO’s human resources
DRACO boasts a highly qualified team of university graduates who receive practical training through real-world experience The company is equipped with professionals proficient in English, particularly in areas such as import-export, international marketing, and relevant legal policies that influence these operations.
Over 20 years of operation, Hai Phong Branch has trained a team of young, professional, dynamic, creative and responsible staffs Up to now, DRACO - Hai Phong Branch has 47 employees who always try to work to bring the highest work efficiency Each department always has specific goals to help them achieve the most achievements, fulfill the goals and strategies of Hai Phong Branch, as well as help the branch increasingly improve quality, business efficiency and competitiveness in today's fiercely competitive environment.
Hai Phong Branch is actively seeking experienced professionals in the Logistics field while also providing internship opportunities for students to cultivate a skilled workforce This dual approach has significantly enhanced the quality of human resources at Hai Phong Branch.
Number of employeses Rate Number of employees Rate Number of employees Rate
With university or higher degrees 28 90,3 38 95 47 100 with under- university degrees
Table 2.5 illustrates the fluctuations in both the number and quality of employees at the Hai Phong Branch over the years To enhance business operations and expand its scope, the branch has prioritized employee development and recruitment.
(2017) to 100% (in 2019), the proportion of employees with under-university degrees decreased from 9.68% (2017) 0% (in 2019).
DRACO’s infrastructures
Dragon Logistics Co., Ltd boasts a comprehensive warehouse and yard system spanning 52,200 m², complemented by an additional rented space of 16,150 m² The company also features a container depot measuring 3,200 m², enhancing its logistics capabilities.
Our company's operational warehouse areas are equipped with fixed structures that feature comprehensive security systems monitored by cameras The lighting and ventilation systems comply with regulations, while our fire prevention and explosion safety measures adhere to the high standards set by the Preventing Fire and Fighting Fire Authority.
Main types of warehouses, yards:
Dragon Logistics Co., Ltd operates a licensed Bonded Warehouse (BWH) since 2002, authorized by the General Department of Customs of Vietnam Strategically situated in Thang Long Industrial Park, this facility is ideal for customers looking to gradually distribute their cargo to the market.
- Normal Warehouse (General Warehouse): It is suitable for commodities such as household electrical appliances, paper, electronic equipment etc.
- Yard: To maintain the bulky commodities, which have big volume such as iron, steel, transportation equipment, container and flammable-explosive dangerous cargo
Figure 2.6.1: DRACO warehouse Source: DRACO official website
DRACO’s services
2.7.1 Customs clearance, consulting, and export-import mandate services
Our team of experienced professionals specializes in Customs procedures, ensuring that your cargo is cleared promptly and accurately to minimize costs We provide expert consultation on essential licensing and tax requirements to facilitate a smooth Customs process for our customers.
Providing customers Customs clearance service promptly, conveniently and economically
- Imported goods Customs clearance to establish fix asset
- Imported goods Customs clearance to do business, trade
- Temporarily imported goods and re-exported goods Customs clearance
- Processing goods and production of export goods Customs clearance
- Doing procedures for non-business goods, present and gift goods, moving foreign individual’s/organization’s from and to Vietnam.
- To assist customers in implementing procedures, export-import documents professionally
- To import all kinds of general goods on behalf of customers
- Mandated export service for Agricultural product, handicraft- fine art product…
2.7.2 International and Domestic cargo transportation
We specialize in transporting oversized and overweight cargo, offering comprehensive forwarding services for both international and domestic shipments Our expertise includes less than container load (LCL) and full container load (FCL) cargo transportation, as well as waterways transportation services throughout Northern Vietnam.
All warehouse and yard systems are strategically located in the Company's branches near major economic hubs and convenient transportation centers, facilitating efficient delivery and distribution of customer cargo.
Working time 24/24 whenever having request.
According to customers’ requirements, Dragon Logistics operate storage services to store cargo as follows:
For leasing warehouse by M2/month:
+ Minimum 20m2 + Minimum storage charge 01 month
For storing cargoes which un-stuffed from container:
Manually loading/unloading: According to quality and types of cargo
Loading/Unloading by forklift: According to quality, type and volume of cargo
Our delivery service specializes in the export and import of cargo and equipment, ensuring efficient collection and payment on behalf of cargo owners We utilize standard warehouse and yard systems, along with advanced management software, to meet the stringent requirements of multinational companies.
SUMITOMO CORPORATION SUZUYO & CO.,LTD
HB GROUP HANEL JOINT STOCK COMPANY
Figure 2.8: Investors of DRACO Source: DRACO
Sumitomo Corporation, established in 1919, operates globally across diverse industries with the aim of achieving prosperity and fulfilling dreams through sound business practices Under the leadership of Masayuki Hyodo, the company emphasizes steady growth by enhancing value creation in collaboration with stakeholders, including business partners and clients The foundation of Sumitomo's management and operations is deeply rooted in its business philosophy, which supports sustainable development and long-term success.
For over 400 years, Sumitomo has embraced a philosophy that emphasizes the interconnectedness of private and public interests This principle asserts that the success of Sumitomo's business endeavors should not only serve the company's goals but also contribute positively to society By aligning their activities with the welfare of the community, Sumitomo aims to achieve sustainable growth for both itself and the society it operates within.
Suzuyo & Co., Ltd, with a 31% stake valued at 19,840,000,000, boasts over 200 years of history rooted in the principle of symbiosis known as “TOMOIKI.” Since its establishment, the company has focused on logistics services and has successfully expanded its network both domestically and internationally Suzuyo is committed to continuously evaluating current demands and is proactively exploring and developing new business ventures.
HB Group, holding a 25% stake valued at 16 trillion VND, has consistently broadened its reach across various sectors since its inception The company focuses on continuous investment, effective management, restructuring, and mergers and acquisitions Leveraging strong human and financial resources, HB Group is primarily dedicated to advancing its operations in the construction materials trading and logistics sectors.
HANEL JOINT STOCK COMPANY (10% - 6.400.000.000): Founded on
Founded on December 17, 1984, Hanel aims to be a leader in Hanoi's electronics and information technology sector With a dedicated and skilled workforce, Hanel has successfully navigated economic challenges over the past 30 years, achieving sustainable growth Today, the company operates through 32 member companies, partnerships, and joint ventures, employing nearly 8,000 people.
DRACO’s customers
DRACO potential customers mostly are international enterprises, such as
Sumitomo Corporation, with a rich history spanning 400 years, leverages its extensive global network and the trust it has built with customers and partners across diverse industries The corporation actively engages in a wide range of business activities, utilizing its integrated products and services, as well as its expertise in import and export, trilateral trade, and both domestic and international business investments.
The Schlemmer Group is a global leader in technology, specializing in the development and production of advanced plastic and metal solutions With over 60 years of expertise in cable protection, the company has established itself as a top value-added provider, offering intelligent consulting and services to clients As part of the DELFINGEN Group, Schlemmer stands out as the technical leader in wiring harness protection worldwide.
Hino Motors Vietnam, established in June 1996, is the leading truck manufacturer in the country Committed to societal development and enhancing living standards in Vietnam, the company focuses on delivering high-quality products that contribute to a modern future Hino Motors prioritizes customer satisfaction by ensuring top-notch manufacturing, exceptional service, and a robust quality management system throughout all operational processes.
For more than 50 years, Yamaha Motor Group has focused on delivering diverse value through its products and services, guided by its Corporate Philosophy, which encompasses a corporate mission, management principles, and action guidelines.
DRACO’s Partners
Draco’s partners are mostly famous international shipping lines:
Ocean Network Express (ONE) is a prominent global container shipping company established in 2018, providing an extensive liner network that spans over 100 countries With a strong emphasis on enhanced service and innovation, ONE is backed by a highly skilled and experienced workforce, alongside a robust financial foundation The company prides itself on being "large enough to survive, but still small enough to care," ensuring personalized service while maintaining global reach.
Evergreen Marine Corporation (EMC), founded by Dr Yung-Fa Chang on September 1, 1968, has evolved from operating a single secondhand cargo vessel to becoming a prominent player in the international shipping industry With a focus on fleet operations, service excellence, and innovative shipbuilding, Evergreen is dedicated to enhancing global trade through efficient transportation services.
Evergreen has established transshipment hubs in strategic locations within its service network to enhance operational efficiency Notable projects include container terminals in Kaohsiung, Taipei Harbor in Taiwan, and Colon in Panama These investments significantly boost cargo handling efficiency at the terminals while lowering operational costs.
Wan Hai Lines, established in 1965 as a log transportation company in Taiwan, Japan, and Southeast Asia, evolved into a full-container vessel shipping company in 1976 to meet the growing demands of international trade in the Asia Pacific With over 30 years of shipping experience, Wan Hai boasts a robust service network and advanced equipment, making it a leader in intensive voyages across Asia Since the early 2000s, the company has undergone significant corporate reengineering, focusing on employee training, organizational restructuring, and cost reduction, which has enhanced its operational capabilities and fostered continuous growth.
Actual situation of production of DRACO in the last 3-5 years
In recent years, Vietnam's logistics market has experienced significant growth, with a rapid increase in the number of businesses operating within the industry To maintain its competitive edge, DRACO has focused on diversifying its product offerings while enhancing service quality to maximize customer benefits.
Here is DRACO - Hai Phong Branch's business result based on two main criteria: revenue and profit.
Increase/Decrease compared to the previous year (%)
Increase/Decrease compared to the previous year (%)
As we can see in Table 6, the business situation of Hai Phong Branch in general has develop over the past few years, but the growth is not stable.
Especially, 2017 can be considered as a brilliant year for DRACO Hai Phong branch had outstanding growth in both revenue and profit (revenue 31.88% higher than 2018 and 17.14% higher than 2019; profit 23.59% higher than
In 2018, the Hai Phong Branch experienced a significant increase in performance, achieving an 11.40% growth compared to 2019 This success can be attributed to major projects in oil and gas, as well as the transportation of machinery and electronic equipment in 2017 Additionally, the branch faced less intense market competition and benefited from a skilled marketing team that excelled in customer development during that period.
In general, Hai Phong Branch's profit also fluctuated in relatively stable level.
The Hai Phong Branch has demonstrated significant dedication in achieving its objectives, supported by strong management and leadership focused on strategic business development By actively reducing operational costs while simultaneously broadening its scope of activities, the branch has successfully maintained profit growth and mitigated the risk of substantial declines.
PRACTICAL INDIRECT CUSTOMS CLEARANCE PROCESS
Practical customs clearance process for imported FCL at DRACO
Figure 3.1: Process of indirect customs clearance for imported goods 3.1.1 Prepare necessary documents for import customs declaration
The ECUS VNACCS 2018 is an advanced electronic program utilized for filling out customs declaration forms during the customs clearance process Specifically developed to meet the requirements of VNACCS/VCIS with funding from Japan, it retains the core features of the existing ECUS system used by businesses This program aims to enhance the registration process for both traded and non-traded goods, while also streamlining the customs procedures for low-value items.
These documents are needed to complete a customs declaration form:
In the process of making declaration, information are checked and updated
Declaration Release of the goods
- In a Packing List, these information are covered:
Port of shipment and destination with name of the vessel
Number of package with descriptipn, quantity, weight
- Invoice holds the information about
Port of shipment and destination with date of shipment, vessel, term of delivery
Container’s marks, nos, description and total price.
After finishing register for import declaration form, the company send it to Customs Office If no error occurs, the company will receive the EORI Number.
Before accepting a declaration registration, the system verifies if the company is on the list of ineligible enterprises, which includes those with tax debts exceeding 90 days, those that are suspended, or bankrupt If the company is found on this list, the registration will be denied, and the system will notify the customs officer.
When the declaration form is accepted, the top of the form shows that which channel the cargoes belong to Cargoes can be devided into one of these three channels :
When cargo is categorized under the green channel, it signifies that the cargo has met all necessary qualifications, allowing the buyer to retrieve it from the port warehouse and transport it directly to their own warehouse.
The yellow channel in customs procedures involves third-party participation for the inspection of chemical or dangerous goods Customs officers will review customs records and may request additional documentation from the third party to verify the legality of the cargo, along with a formal request for customs inspection.
The customs brokerage dept need to prepare the same set of paperwork as in the yellow channel case, after that the records will be transferred to the customs office
Customs officers verify the accuracy of declarations by inspecting the goods at the destination port They seal the container with a customs seal and document that the goods have been declared and are ready for release.
Depend on the customs office, the consignee will need to pay tax of 5-10% to take the cargo to their warehouse.
However, if the condition of the goods is not the same as listed in the declaration, the customs office with confirm a violation and will charge consignee for this.
A practical case to illustrate the customs clearance process of imported FCL at DRACO
3.2.1 Parities involves in this case
Shipper (Seller): LCY Performance Materials Corp., ZhenJiang, China
No.226, Erzhong Road, Gaozi Street, Dantu District, ZhenJiang, Jiangsu Province, China
Consignee (Buyer): GK Finechem Vietnam Co., Ltd
Unit 702, 7th floor, MD Complex Tower, 68 Nguyen Co Thach, Cau Dien Commune, Nam Tu Liem District, Ha Noi City, Viet Nam
Port of Shipment / Loading: Shanghai, China
Port of Destination / Discharge: Hai Phong, Vietnam
Date of Shipment: Oct 16 , 2020 th
Terms of Delivery: CIF Hai Phong Port, Vietnam
Item Name: Diisobutyl Ketone Liquid; HS Code: 291419
Quantity: 160kgs per drum, total 80 drums with pallets in 1X20’Container
Here is the process of indirect customs clearance for imported FCL at DRACO
1 Commercial Invoice and Packing List Commercial Invoice and Packing List are almost the same Some of these information needs to be accurate:
Seller: LCY Performance Materials Corp., Zhenjiang, China No.226, Erzhong Road, Gaozi Street, Dantu District, Zhenjiang, Jiangsu Province, China
Buyer: Gk Finechem Viet Nam Co., Ltd Unit 702, 7th floor, MD Complex Tower, 68 Nguyen Co Thach, Cau Dien Commune, Nam Tu Liem District, Ha Noi City, Viet Nam
Tel: +84-24-6265-2550 Fax: +84-24-39 590 215 Email: thanh_tung@gkfvn.com
Term of delivery: CIF Hai Phong Port, Viet Nam
- Item name: Diisobutyl Ketone / Origin: China
Port of loading: Shanghai, China / Port of Discharge: Hai Phong, Viet Nam
Container No.: SEGU3329010 / Seal No.: CC814830
Total number of containers: One (1) Container only
Health and Techinicl Certificate is a document used to check the conformity of the product with the requirements and standards public by
GK Finechem According to this, if the decision is positive, the goods can be imported.
This certificate is mandatory for customs clearance of goods.
3.2.4 Registration for import customs declaration form
- Choose “ Tờ khai xuất nhập khẩu / Đăng ký mới tờ khai nhập khẩu (IDA) ”
- Choose: “Lấy thông tin của tờ khai (EDB) ” EDB code can be used to receive the information of declared goods to fill in the declaration form.
- By using ECUS VNACCS 2018, the company can create a new declaration
- Click “ Lấy thông tin ” to receive the data, then click OK on the right side of the list
- So that the information will automatically fill in the blanks in the form.
Then the customs broker will fill the rest.
* If the information is not declared, select IDB then declare new information Enter “ Thông tin chung ”, fill in these following data:
Name: Gk Finechem Viet Nam Co., Ltd
Address: Unit 702, 7th floor, MD Complex Tower, 68 Nguyen Co Thach, Cau Dien Commune, Nam Tu Liem District, Ha Noi City, Viet Nam
Name: LCY Performance Materials Corp., ZhenJiang, China
Address: No.226, Erzhong Road, Gaozi Street, Dantu District, Zhenjiang, Jiangsu Province, China
- Discharge port: Tan Vu Port – HP
- Means of transport: Sky Hope/2021S
* A customs declaration form can have maximum 50 product lines in ECUS VNACCS 2018, if the number exceed 50 then the system will seperate them into new declaration.
- Select “ Thông tin chung 2 ” to do the value declaration, enter the total charge and total taxable then the system will calculate the taxation then return it to the business.
- The tax return is allowes to print, not edit.
- To make the declaration into an Excel file, press F6, click “ Ghi ” to complete.
- Click “ Khai trước thông tin tờ khai (IDA) ” in the list of operation codes, then the form will appeared on the Customs system.
- Then, the company is expected to receive the Declaration Number
- The tax returns in the system can be declare and edit many times, each time it will save to draft for 7 days in the system.
3.2.5 Receive the customs clearance result
- The Customs Office will sent to the company the clearance status and the flow report.
When a cargo receives a yellow flow from the Customs Office, it indicates that the customs file will undergo a thorough review, excluding the packing list Once this process is complete, the cargo is marked as "Declared," allowing the company to proceed with the payment of the customs fee.
- All the documents including the declaration are ready to print.
As I have mentioned earlier, import and export goods is indeed very important, it plays a big role in the Viet Nam economy.
In today's rapidly evolving world, on-spot import has emerged as a vital tool for businesses, enabling them to save significant time and reduce various costs throughout their operations.
Although I only have one month of internship to study at DRACO, but during this one month I have learned so much practical knowledge, and along with theorical knowledge on class, I have understood the indirect customs clearance for imported FCL DRACO is a logistics company focusing mainly on import and export activities, so their Customs Brokerage is very active and professional when it comes to import and export procedures, therefore I feel very honored to be able to learn from them.
I would like to express my heartfelt gratitude to my supervisor, Mr Vu Le Huy, for his invaluable advice and guidance throughout my report completion This internship has significantly enhanced my knowledge and skills, benefiting my university studies and future career I also extend my thanks to the International School of Education (ISE) for providing such a meaningful internship program.
1 http://draco.com.vn/Web/ContentDetail.aspx?distid3
2 DRACO’s Organizational Structure, Human Resource, Capital Investment: DRACO accounting department employees
3 https://www.evergreen-marine.com/#
4 https://www.wanhai.com/views/Main.xhtml
5 https://www.one-line.com/en
6 https://yamaha-motor.com.vn/gioi-thieu/
7 https://www.hino-global.com/
8 https://www.schlemmer.com/global/en
9 https://www.sumitomocorp.com/en/jp
10 https://www.suzuyo.co.jp/en/
12 Practical process: Program ECUS VNACCS 2018 and CustomsBrokerage Dept.