Improving the process of forwarding and receiving imported fcl cargoes by the sea of khai minh global co , ltd – danang branch

DUY TAN UNIVERSITY FACULTY OF ECONOMICS & FINANCE MAJOR: LOGISTICS AND SUPPLY CHAIN MANAGEMENT ------GRADUATION PROJECT IMPROVING THE PROCESS OF FORWARDING AND RECEIVING IMPORTED FCL

DUY TAN UNIVERSITY FACULTY OF ECONOMICS & FINANCE MAJOR: LOGISTICS AND SUPPLY CHAIN MANAGEMENT

- -GRADUATION PROJECT IMPROVING THE PROCESS OF FORWARDING AND

RECEIVING IMPORTED FCL CARGOES BY THE SEA OF KHAI

MINH GLOBAL CO., LTD – DANANG BRANCH

Supervisor : Dr Joan Serafica Gorospe

Da Nang, Apirl, 2023

First, I would like to express my sincere thanks to the teachers of Duy TanUniversity, especially the teachers of the school's Faculty of Economics - Finance.And I would also like to express my sincere gratitude to Dr Joan SeraficaGorospe – who directly guided and supported me throughout the process for me tocomplete this graduation thesis

For this graduation project, I would like to express my sincere gratitude to Mrs

Le Thi Lan Huong Director of Khai Minh Global Co., Ltd., Mrs Le Thi Ngoc Lan Sales Logistics Team Leader, and other staff in Khai Minh Global Co., Ltd hasdirectly guided, mentored and helped me with instructions during the process ofinternship, implementation, research, and completion of the graduation thesis

-During the internship process and the process of making the report, it is certainlydifficult for me to avoid worthy or unnecessary mistakes, because my theoretical leveland practical experience are limited, I hope the teachers can ignore them I would like

to express my sincere thanks to my teachers and my dear Khai Minh Global Co., Ltd.!

Danang, April, 1 st , 2023

Truong Thi Hop

STATUTORY DECLARATION With the topic "Improving the process of importing FCL cargoes by the sea

at Khai Minh Global Co., Ltd – Da Nang Branch", I hereby declare that I have

written the submitted this report I did not use any outside support except for thequoted literature and other sources mentioned in this report The data in the tables foranalysis, comments, and evaluation are clearly stated in the reference section Allreferences used in the topic are clearly and honestly cited with the author's name, worktitle, time, and place of publication

I am aware that the violation of the plagiarism will lead to failure of the report

Danang, April, 1 st , 2023

Student

(Signature and full name)

Truong Thi Hop

TABLE OF CONTENT

ACKNOWLEDGEMENT i

STATUTORY DECLARATION ii

TABLE OF CONTENT iii

ABBREVIATIONS v

LIST OF FIGURES vi

LIST OF TABLES vii

THE PREAMBLE 1

1 Reasons for choosing the topic 1

2 Related previous literature 2

3 Research objectives 3

4 Object and scope of research 3

5 Research Methods 3

CHAPTER 1: LITERATURE REVIEW AND THEORETICAL BACKGROUND 5

1.1 Forwarding service 5

1.1.1 Concept of forwarding service 5

1.1.2 Characteristics of forwarding service 5

1.1.3 Roles of the forwarding service 6

1.1.4 Classification of forwarding service 6

1.2 Forwarders 7

1.2.1 Concept of Forwarders 7

1.2.2 Roles of the forwarders 8

1.2.3 Forwarders organizations 8

1.3 Importing FCL cargoes by sea 9

1.3.1 Legal basis of importing FCL cargoes by sea 9

1.3.2 Principles of importing FCL cargoes by sea 11

1.3.3 Characteristics of importing FCL cargoes by sea 11

1.3.4 Roles of importing FCL cargoes by sea 12

1.3.5 Classification of importing FCL cargoes by sea 12

1.4 Process of importing FCL cargoes by sea 13

1.4.1 Players of importing FCL cargoes by sea 13

1.4.2 Detailed steps of importing FCL cargoes by sea 14

1.5 Relevant documents in importing FCL cargoes by sea 18

CHAPTER 2: COMPANY’S BUSINESS SITUATION AND COMPANY’S FCL

IMPORT PROCESS BY SEA 20

2.1 Brief introduction of Khai Minh Global Co., Ltd 20

2.1.1 Company’s vision and mission 21

2.1.2 Company’s services 21

2.1.3 SWOT analysis 22

2.1.4 Company’s organizational structure 24

2.1.5 Company's business results 25

2.1.6 Business results in terms of services 28

2.2 Company’s process of importing FCL cargoes by sea 29

2.3 Evaluation of company’s process of importing FCL cargoes by sea 39

2.3.1 Advantages 39

2.3.2 Problems 39

CHAPTER 3: SOLUTIONS TO COMPLETE FCL IMPORT PROCESS BY SEA AT KHAI MINH GLOBAL COMPANY 41

3.1 Development orientation 41

3.2 Proposed solutions to complete company's FCL import process by sea 42

CONCLUSION 51

REFERENCES 52

D/O: Delivery of Order

B/L: Bill of lading

AN: Arrival Notice

C/O: Certificate of Origin

EIO: Equipment Interchange Order

PL: Packing list

ICD: Inland clearance deport

FCL: Full container Load

LCL: Less than a container Load

EIR: Equipment Interchange Receipt

CFS: Container Freight Station

N/A: Notice of Arrival

CONT: Container

P/O: Purchase Order

COC: Certificate of Origin

COA: Certificate of Analys

L/C: Letter of Credit

WTO: World Trade Organization

CY: Container Yard

LIST OF FIGURES

Figure 1.1: An application for foreign vessels to arrive at the port 9

Figure1.2: Minutes of delivery according to the Commercial Law of Vietnam 2005

10

Figure 1.3: Diagram of the detailed steps of importing FCL cargoes by sea 14

Figure 2.1: Logo of Khai Minh Global Co., Ltd - Da Nang 20

Figure 2.2: Diagram of the organization chart of Khai Minh Global Co., Ltd - Da Nang 24

Figure 2.3: Diagram of the company’s business results in the period of 2020 – 2022

26

Figure 2.4: Chart of the percentage of KMG Services in 2022 28

Figure 2.5: Diagram of the process of forwarding FCL goods imported by Khai Minh Global Co., Ltd 29

Figure 2.6: Registration from on Eport 35

Figure 2.7: Login from on Eport 36

Figure 2.8: Interface after selecting forwarding method 36

Figure 2.9: Fill in and save the information on the Eport to export the EIR 37

Figure 2.10: Payment on Eport 37

LIST OF TABLES Table 2.1: SWOT of Khai Minh Global Co., Ltd – Da Nang branch 22 Table 2.2: The company’s business result of Khai Minh Global Co., Ltd – Da Nang

branch (2020-2022) 26

THE PREAMBLE

1 Reasons for choosing the topic

For many years, countries with the sea have always had great advantages in thecompetition for economic development and international integration Vietnam is one

of those countries

Currently, Vietnam is in a period of transformation to rising strongly in manydifferent fields, especially the economic field, one of the important milestones markingthe rise is the event Vietnam officially became the 150th member of the World TradeOrganization (WTO) With participation in WTO, Vietnam will have the opportunity

to participate more deeply and strongly in international trade and integration The factthat Vietnam's economy has continuously grown at a high and stable rate in recentyears and export turnover has also increased sharply, is a very good signal for thealready developed transportation industry, which will develop further Since Vietnamcarried out the renovation and transformation from a subsidized economy to a marketeconomy, the freight forwarding industry in general, and the shipping industry, inparticular, have played an increasingly important role in the economic developmentprocess of the country Vietnam is also a country with much potential for a marineeconomy, one of which is sea freight forwarding by the container Today, this method

of delivery has become frequent and popular because it brings very positive economiceffects, fast, safe, economical, and convenient

Recognizing the importance of Logistics services being increasingly developedand popular today, Khai Minh Global Co., Ltd has constantly strived, to develop andbuilt a company with Global logistics services such as trucking, freight by sea, road,and air at home and abroad with two shipping methods are LCL and FCL Especiallythe strength in handling and transporting FCL goods in import However, the impact of

a number of factors such as: internal and external whether it affects the import process

of FCL goods of logistics service companies

To solve this problem, I studied the topic: "Improving the process of importing FCL cargoes by sea at Khai Minh Global Co., Ltd", in order to detect and improve

the FCL import process of Khai Minh Global Co., Ltd bridge in particular andLogistics service companies in general

2 Related previous literature

The research of " Solutions to improve logistics activities at TBC-Ball Vietnam Co., Ltd" by a research students group of the Ho Chi Minh City University of Technology This is a study on the importance and status of the Logistics services of

TBC - Ball Vietnam Co., Ltd in the role of coordinating the export-import anddistribution of raw materials and finished products Although the company has been inoperation for a long time, it still mainly uses Logistics services from external partners,but the company does not build its own strong logistics team, moreover, themanagement of supply service level is still not very strict From those problems, theteam has researched, researched, and given solutions to complete the logisticsactivities for the company The solutions that the student group researched and came

up with include (1) Developing a team of professional logistics staff, (2) Reorganizinglogistics activities to improve operational capabilities and become more professional inoperations, (3) Strengthening logistics training activities for employees, (4) Unifyingthe logistics management mechanism, (5) Solving logistics service needs in the shortterm to meet the logistics activities of the company

The Master's thesis on " Improving the efficiency of international freight forwarding process at Jet delivery Logistics Vietnam Co., Ltd" by students of Hai Phong Private University. This is a topic to study the development and business situation of the company's business activities, professionalism, and quality of freight forwarding services of Jet delivery Logistics Vietnam Co., Ltd After analyzing the current situation at the company, the author has proposed solutions including (1) Solutions for organization and management, (2) Solutions for Marketing, (3) Solutions for human resources, (4) Solutions for technical facilities.

The research on" Development of logistics system in the southern key economic region" by students of Ho Chi Minh University of Economics This is a research topic

to establish a layout map of superior Logistics centers to ensure the reduction oftransportation costs for businesses in the region Simultaneously, forming reasonabletransport routes, linking within and outside the region to ensure increased throughput

of goods and reduce social costs, in line with the planning of the transportation system,

improving the quality of goods and services socio-economic efficiency in thecirculation of goods, bringing into full play the strengths of the southern key economicregion at the national and regional levels.

3 Research objectives

General objectives

To research and evaluate factors affecting the import process of FCL goods bysea of Khai Minh Global Co., Ltd From there, as a basis to propose solutions for thecompany to complete the import process to improve service quality in the near future

Specific objectives

- To find and analyze the causes and factors affecting the FCL import process

- To determine the level of influence of the causes and factors leading to theproblematic import process of FCL cargoes

- To propose a number of solutions to overcome and limit the influence of thosefactors

- To complete the FCL import process of Khai Minh Global Co., Ltd in particular andLogistics service companies in Vietnam in general

4 Object and scope of research

- Research object: The topic focuses on researching the process of importing FCL

goods by sea

- Research scope: Khai Minh Global Co., Ltd - Da Nang Office

5 Research Methods

The project uses the following methods:

- Methods of collecting secondary and primary data

- Using traditional research methods: analyzing, comparing, observing, synthesizing,and collecting documents through books, websites, and journals

- In addition to the introduction, the conclusion, references, and appendices, the maincontent of the topic consists of 3 chapters:

Chapter 1: Literature review and theoretical background

Chapter 2: An analysis of the company's business situation and the current

status of the company's FCL import process by sea of Khai Minh Global Co., Ltd

Chapter 3: Proposing solutions and completing the process of importing

FCL cargoes by sea for Khai Minh Global Co., Ltd.

CHAPTER 1: LITERATURE REVIEW AND THEORETICAL

BACKGROUND 1.1 Forwarding service

1.1.1 Concept of forwarding service

International freight transport is an important component of international tradeand is an indispensable stage in the circulation process to bring goods from the place

of production to the place of consumption So what is the forwarding service?

According to the Commercial Law of Vietnam as citied by thuvienphapluat.vn

1997, “Goods forwarding service is a commercial act whereby the person providingthe freight forwarding service receives the goods from the sender, organizes thetransportation, storage, storage, and carrying out procedures for the delivery of goodsdocuments and other related services to deliver the goods to the consignee under theentrustment of the shipper, the carrier, or another forwarder (collectively, thecustomer).”

According to the International Federation of Freight Forwarding Associations(FIATA) model rules on forwarding services, “Forwarding services are defined as anytype of service relating to the transportation, consolidation, or storage of goodsloading, unloading, packing or distributing goods as well as consulting services or inconnection with such services, including customs, financial, insurance, payment,goods-related words.”

1.1.2 Characteristics of forwarding service

The forwarding services are characterized as intangible there is no uniform quality standard and does not create a physical product, it only changes the spatial position Second, it is passive because it depends on the customer's needs, regulations, legal constraints, and government decrees Third, seasonality due

to dependence on the volume of imported and exported goods, often import and exportactivities are seasonal, so the forwarding and delivery activities are also affected.Moreover, service quality depends on the size and experience of the forwarder

Sea freight forwarding activities with large transport capacity; means of

transport are ships with large capacity, which can run many trains on the same route, at

the same time Sea freight forwarding can transport most goods in international trade Especially suitable and effective with high-volume and low-value goods All sea

routes are natural traffic routes except for seaports and artificial canals Therefore, itdoes not require much capital as well as labor to build and maintain these roads

leading to low transportation costs The speed of sea transport is relatively low, the

lowest compared to the speed of other means such as air, road, railway

1.1.3 Roles of the forwarding service

Freight forwarding by sea plays an important role in international trade as shown:First, forwarding facilitates the circulation of goods quickly, safely, and cost-effectively without the participation of the sender as well as the consignee

Second, forwarding helps the carrier to accelerate the rotation speed of the means

of transport, to make the most and effectively use the capacity and load of the means

of transport, transport tools, as well as other means of support

Third, forwarding reduces the cost of importing and exporting goods

And final, freight forwarding not only acts as a bridge for international trade totake place but also stimulates international trade to develop The development ofscience and technology in freight forwarding has created many favorable internationaltrade directions, that is, the transportation distance as well as the cost no longer hindersthe circulation of goods Furthermore, forwarding also helps importers and exportersreduce unnecessary costs such as the cost of building warehouses and yards of theforwarder or the forwarder, reducing the cost of training workers

1.1.4 Classification of forwarding service

(1) Based on the scope of operation

Inland forwarding The forwarder organizes the transportation of goods from one

place to another, from the place of production to the place of consumption, from theplace of material supply to the factory, and vice versa Organize loading and unloading

of goods from vehicles Prepare documents related to the process of forwarding goods

International forwarding The forwarder can directly perform the transaction

through the agent, on behalf of the consignee of the goods, or the owner of the goods

to perform some stages or perform all stages of transportation

(2) Based on the basic content of the forwarding service

Traditional forwarding operations The forwarder only performs a number of

tasks entrusted by the owners of the goods such as loading and unloading, storinggoods, doing customs procedures, inland transportation, and paying for goods

Modern forwarding service Forwarding Goods by intermodal transport such as

Forwarding of goods by sea, Forwarding of goods by air, inland waterway, rail, road,and by pipeline

(3) Based on the nature of forwarding

Private forwarding It is a forwarding activity organized by an import-export

business person, without using the services of a Freight Forwarder (Forwardingservice)

Professional forwarding It is the forwarding activity of organizations and

companies specializing in the business of forwarding services under the entrustment ofcustomers

1.2 Forwarders

1.2.1 Concept of Forwarders

According to the concept of the International Federation of ShippingAssociations FIATA: “A forwarder (Forwarder, Freight forwarder or Forwardingagent) is a person who arranges for the carriage of all goods under a contract ofentrustment and acts for the benefit of the customer trusts that are not themselvescarriers The forwarder also undertakes to perform all work related to the forwardingcontract such as preservation, storage, transshipment, customs clearance, andinspection."

According to Vietnam's commercial law passed by the IXth National Assembly

at its 11th session on 10/5/1997: "A forwarder is a person providing forwardingservices, are traders with business registration certificates Freight forwarding services.The forwarder can be the owner of the goods, the ship owner, the forwardingcompany, or any other trader

1.2.2 Roles of the forwarders

The forwarder is considered the "Architect of Transport" because the forwarderhas the ability to organize the transportation process in the best, safest, and mosteconomical way In the process of economic integration and development of Vietnam,along with the development and economic growth of the country, the role of theforwarder is also growing stronger This manifests itself in a number of factors such asHelps save time and costs for production and business activities, Contribute to marketexpansion, it bring many economic and social benefits Furthermore the freightforwarding industry has brought countless jobs for workers

Thanks to the advent and development of forwarders and the services theyprovide, the documentation procedures related to the freight forwarding process aresimplified, and transportation time is shortened, and the volume of goods exchanged ininternational trade and transport has increased

1.2.3 Forwarders organizations

The freight forwarding organization has a very important influence on thedevelopment of the world transport industry is the International Federation of FreightForwarders Associations (FIATA) established in 1926 This is a non-governmentalorganization representing Freight forwarders in approximately 150 countries Themembership of FIATA three includes 108 Association members and more than 5,800individual members, representing more than 40,000 forwarding and logisticscompanies worldwide

ASEAN Federation of Forwarders Associations (AFFA) since its establishment

in 1991, has quickly been recognized by ASEAN as a non-governmental organizationdirectly under ASEAN in order to fulfill its goals The objectives includes theunificational freight forwarders in the ASEAN region through national freightforwarding organizations, promote, develop, and maintain close cooperation amongfreight forwarders in the ASEAN region, and represent the interests of membersrelated to freight forwarding specific to the ASEAN region

The International Air Transport Association (IATA) was established on April 19,

1945 in Havana, Cuba The main purpose of this organization is to assist airlinecompanies in achieving legal competition and uniform pricing

Vietnam Logistics Service Enterprise Association (VLA) was formerly known asVietnam Logistics Association (VIFFAS) This organization was established under theofficial government office on November 18, 1993 With the vision of linking andcooperating with domestic and foreign logistics and logistics service providers tocreate the role of a spearhead economic sector of Vietnam.

1.3 Importing FCL cargoes by sea

1.3.1 Legal basis of importing FCL cargoes by sea

(1) Vietnamese laws

Documents regulating foreign ships entering and leaving Vietnam's internationalports For example, the image below is an application to allow foreign ships to enter aVietnamese port, which customs must accept before the vessel can enter the port

Figure 1.1: An application for a foreign vessel to arrive at the port

(Source: Web of Information AZ (thongtinaz.net))

Documents stipulating the responsibility of goods delivery and receipt of units andenterprises The example below is a record of the delivery and receipt of goods,

showing the responsibility and agreement between the parties on the responsibility offorwarding and forwarding according to the 2005 Commercial Law of Vietnam.

Figure 1.2: Minutes of delivery according to the Commercial Law of Vietnam

2005

(Source: Website of Vietnam Law (thuvienphapluat.vn))

National law governing relationships arising from contracts of sale, transport,insurance, forwarding, and handling

(2) International Laws

Including: Convention, Treaty, Agreement, Protocol, Status, and Act

In terms of trade, transportation, insurance, etc., the delivery and receipt must beappropriate to protect the interests of the owner of the goods

Types of contracts: these are the legal bases for forwarding work.

Commercial, maritime, and customary laws of each country

1.3.2 Principles of importing FCL cargoes by sea

Current documents stipulate the principles of delivery and receipt of importedgoods at Vietnamese seaports such as: The delivery and receipt of imported goods atseaports are carried out by the port on the basis of a contract between the goods ownerand the person entrusted by the owner of the goods with the port For goods that do notpass through the port, they can be delivered directly by the owner of the goods or bythe person entrusted by the owner of the goods to the carrier In this case, the owner ofthe goods or the person entrusted by the owner of the goods must make a paymentdirectly with the carrier and only agree with the port on the location of loading andunloading, and pay the relevant costs The loading and unloading of goods within theport are organized by the port Where the owner of the goods wants to put the vehicle

in for loading and unloading, he must make an agreement with the port and pay therelevant fees and expenses to the port When being entrusted with the delivery ofimported goods with a ship or receiving port by any method, the goods must bedelivered by that method The port is not responsible for the goods when the goodshave left the warehouse or port When receiving goods at the port, the goods owner orthe trustee must present valid documents determining the right to receive the goodsand must receive continuously for a certain period of time the goods stated in thedocuments For example original B/L, agency's recommendation letter

The delivery can be done by the port as entrusted or by the owner of the goodsdirectly

1.3.3 Characteristics of importing FCL cargoes by sea

Goods delivery by the container is usually transported by market ship carrying avariety of goods for many businesses or units or by ship carrying only 1 shipment of aunit or business The schedule of ships transporting goods by container is usuallyflexible, calling at most seaports in the world such as Singapore, Hamburg, HongKong, Tokyo, and New York Another characteristic is the volume of goods delivered

is flexible when the volume of goods is large enough, enough to pack one or morecontainers (FCL); If the volume of goods is small, it is not enough to close thecontainer, and the forwarder can send LCL cargoes In addition, Freight rates by

container are more reasonable than other modes of transportation such as air, road, andrailway

1.3.4 Roles of importing FCL cargoes by sea

Freight forwarding by sea is an inseparable activity and promotes the development

of international trade Sea freight plays an important role in the transportation offoreign trade goods Freight forwarding by sea helps transport people to accelerate theturnaround speed of shipping means, make the most of the capacity, and use theefficiency of ships as well as other supporting means

1.3.5 Classification of importing FCL cargoes by sea

Based on the method of freight forwarding, sea freight forwarding by the container

is divided into 4 modes:

(1) FCL/FCL

Full container cargo is a shipment of a consignor with a relatively large volume,requiring only one or more containers to be loaded The carrier receives the wholecontainer from the shipper at the place of departure and delivers the container to theconsignee at the destination if it is the case of FCL/FCL

(2) LCL/LCL

Retail cargo is a consignment of a consignor with a small volume, not enough to

be packed in a container The carrier receives retail goods from the consignor at theplace of departure, packs them into a container, and delivers the odd goods to theconsignee at the destination if it is the case of LCL/LCL

1.4 Process of importing FCL cargoes by sea

1.4.1 Responsibilities of the parties involved

(1) Consignor's responsibilities

FCL consignor will be responsible for:

- Rent and transport empty containers to their warehouse or storage place for packing

- Loading goods into containers, including arranging, and lining goods in containers

- Codes the cargo symbol and the carry symbol

- Do customs procedures and seal with security seal according to export regulations

- Transport and deliver the container to the carrier at the container yard (CY), and atthe same time receive the B/L issued by the carrier

- Bear the costs related to the above operations

The packing of goods into the container can also be carried out at the loadingstation or at the carrier's container yard The shipper must transport goods to thecontainer yard and pack the goods into the container

(2) Carrier’s responsibilities

The carrier has the following responsibilities:

- Issuing B/L to the consignor

- Manage the goods loaded in the container from receiving the container at thecontainer yard (CY) of the port of dispatch to the delivery of the goods to theconsignee at the container yard of the destination port

- Loading containers from port container yards and sending stubs to transport,including loading and unloading containers onto ships

- Unload the container from the ship to the destination port container yard

- Deliver the container to the recipient with a valid B/L at the container yard

- Bear all costs for the above operation

(3) Consignee’s responsibilities

The consignee at the port of destination is responsible for:

- Arrange import documents and do customs clearance for shipments.

- Present a valid B/L to the carrier to receive the goods at the container yard

Transport the container to your warehouse, quickly, and withdraw and return the empty container to the carrier (or the container leasing company)

Bear all costs related to the operation, including the cost of transporting the container

to the container yard

1.4.2 Detailed steps of importing FCL cargoes by sea

Figure 1.3: Diagram of the detailed steps of importing FCL cargoes by sea

(Source: According to the document "Forwarding major and insurance in foreign trade"

by Pham Manh Hien, excellent teacher Phan Huu Hanh, Social Labor Publishing

House.)

Necessary requirements in the process of FCL freight forwarding by sea:

- Organize fast unloading to free ships, and reduce fines for slow unloading

- Receive goods, settle with ships fully and accurately

- Timely detecting of the loss of goods and making full and valid documents in time tocomplain to related parties

Receive and

check import

documents

Make a customs declaration

Receive delivery order D/O

Prepare vehicles

to receive goods

Customs clearance for imported goods

Receiving goods

at the port

Bringing goods

to the warehouse

Prepare damage

certificate

Save records

(1) Receive and check import documents

At the step of receiving and checking customer documents, the document staff willperform the following tasks:

First, receive a set of import documents from the customer including the followingdocuments: Sale Contract, Commercial Invoice, Packing list, Bill of Lading (B/L),Certificate of Origin (C/O), Certificate of Analysis, and Health Certificate

Second, check the accuracy of the above set of import documents based on theinformation on the sale contract and L/C Next, buy insurance for the goodsimmediately after receiving the shipper's delivery notice (if there is an agreement withthe consignee, insurance must be purchased) Then, make a plan for delivery, andprepare means of transport, warehouse, and labor

Finally, notify by delivery order (D/O) for domestic goods owners to carry out

The content of the customs declaration must clearly show information about theimporter, exporter, name of goods, quantity, HS code, date of bill of lading, invoicenumber, dutiable value, and tax amount The characteristics of the electronic customsdeclaration are that depending on the quantity, type, and origin of goods, the content ofthe declaration also has an appendix to the declaration and a declaration to determinethe location of the taxable price if the goods information is clear goods to provideinformation on determining the dutiable value to the border-gate customs

Customs declaration

Transmit the electronic customs declaration through the electronic customsdeclaration software ECUS5 VNACCS to get the declaration number and the result ofthe channeling Each import-export enterprise must register an electronic customsdeclaration account The customs declaration will be transmitted to the computer ofthe customs officer's declaration-receiving department by the enterprise's own account.The customs system will receive and send a response, giving the declaration number,the receipt number, and the channeling result

(3) Receive delivery order (D/O)

At least 1 day before the ship's arrival date, the shipper will receive an ArrivalNotice (AN - Arrival Notice) from the shipping company or agent

An arrival notice is a detailed notice of the shipping line; The forwarding agentnotifies the shipper of the expected time of arrival of the shipment The information onthe arrival notice is somewhat similar to the information on the Bill (Exporter's name,importer's name, container number, seal, ship's name, trip number, description ofgoods) There are also local charges clearly stated on them

After checking the information on the notice of arrival, the forwarder proceeds toget a delivery order (D/O) at the shipping line or agent The following documents arenecessary to get a delivery order from a shipping line or agent

- Referral

- Original Bill (If it is Surrendered B/L, B/L is not required)

- Power of attorney (If any)

- For the contract of payment by letter of credit (L/C), when arriving at the shippingline to receive the delivery order, the original bill of lading must be brought with thebank's endorsement

(4) Prepare vehicles to receive goods

Depending on the quantity and weight of the imported goods, the forwarder or theshipper will arrange the means of transport such as trucks for goods not packed incontainers or tractors for goods packed in one or more containers

(5) Customs clearance for imported goods

The goods owner or the entrusted forwarder presents the set of import documents

to the customs sub-department for customs clearance:

- Carrying out customs procedures for imported goods

- Pay import tax (if any)

- Conduct inspection (if any)

- Withdrawal of declarations and liquidation of declarations

(6) Receiving goods at the port

- Make "A Registration table of goods returned by sea" and deliver it to the port

- Receive and sign the NOR (if it's a train)

- Inform the domestic goods owner of the delivery time (in case of third-partydelivery), and re-check the goods warehouse (if taken to a separate warehouse)

- Present the original bill of lading (B/L) to the shipping company to get the deliveryorder (D/O), do customs procedures, and pay import tax

- Preliminary inspection of the ship's jaws, transport tools, and condition of goodsloaded inside before unloading (if receiving the whole ship or full container)

- Organize unloading, receiving goods, and finalizing with the ship according to eachbill of lading or the whole ship

FCL Cargoes When receiving the notice of arrival (Notice of Arrival - AN), the

forwarder brings the bill of lading and the introduction to the shipping company to getthe delivery order (Delivery Oder - D/O) Then the forwarder brings a set ofdocuments including import customs declaration, commercial invoice (CommercialInvoice), bill of lading (Bill of lading), and certificate of origin (C/O) (if any) to thecustoms office to carry out procedures and register for physical inspection of goods (ifany) And after completing the customs procedures, the forwarder brings the D/O tothe port trade to print the EIR (Equipment Interchange Receipt) container deliverynote Finally, get the import container delivery note (EIR) and receive the goods

(7) Bring goods to the warehouse

The forwarder, after taking the goods out of the port, will arrange suitable means

of transport to transport the goods to the warehouse of the shipper

(8) Prepare damage certificate

After transporting the goods to the warehouse or right after the goods are deliveredand received, the goods owner or the forwarder inspects the goods for damage or loss,and needs to prepare the following documents including preliminary inspection record,Letter of protest, Minutes of breakdown, Minutes of finalization of goods receipt withthe ship, Certificate of surplus goods compared to the manifest, Minutes ofassessment After receiving the goods, invite an inspection agency or unit (Vinacontrol

or an insurance company) to assess the loss in order to determine the loss and serve asthe basis for the complaint

(9) Save records

The forwarder pays the costs related to the delivery Gather the necessarydocuments to file a complaint against the related units about the loss of goods (if any)and monitor the results of their complaint

1.5 Relevant documents in importing FCL cargoes by sea

(1) Sale contract

Also known as an international sales contract, it is essentially an agreementbetween buyers and sellers in different countries, which stipulates that the seller isobliged to deliver goods and deliver documents related to the goods goods andownership of goods to the buyer and the buyer is obliged to pay for the goods andreceive the goods

(2) Commerical Invoice

Is a basic document of payment and is issued by the seller to ask the buyer to paythe number of goods written on the invoice This commercial invoice specifies thecharacteristics of the goods, the unit price, the total value of the goods, the terms of thedelivery basis (as prescribed by Incoterms), the method of payment, or the delivery ofthe goods

(3) Bill of Lading

A document for the carriage of goods by sea made signed, and issued by thecarrier to the consignor in which the carrier confirms certain goods for carriage by seaand commits to deliver such goods to the consignor has the right to receive the goods

at the port of destination with the same good quality and full quantity as the consignee

CHAPTER 2: COMPANY’S BUSINESS SITUATION AND COMPANY’S FCL

IMPORT PROCESS BY SEA 2.1 Brief introduction of Khai Minh Global Co., Ltd

- Company name: Khai Minh Global Co., Ltd – Da Nang branch

- Address: Lot 6 B2.2 Truong Thi 1, Hai Chau District, Da Nang City, Vietna

- The company's head office is No 99 Le Duan, Cua Nam Ward, Hoan Kiem District, Hanoi City, Vietnam

- Business lines: global logistics services, transportation, freight forwarding at home and abroad by sea, air, road, and railway

- Tax code: 0103076466-002

- Representative: Le Thi Lan Huong

- Operating date: 24/7/2012

- Managed by: Tax Department Thanh Khe - Lien Chieu

- Type of business: Limited liability company

- Phone: 02363575336

Figure 2.1 Logo of Khai Minh Global Co., Ltd

Khai Minh Global Co., Ltd (KMG) was established in 2008, headquartered inHanoi At present, KMG has more than 400 well-trained staffs working from North toSouth of Vietnam with 4 offices located in Ha Noi (2008) – Headquarters, Hai Phong(2009) - The first branch, Ho Chi Minh (2010) – The the first branch, Da Nang (2012)-the 3rd branch KMG is a member of worldwide network

KMG is total logistics company with main activities: Master consolidation, Seafreight, Air freight, Overland service, AOG service, Logistics, Warehousing-Depot

With an in-depth understanding of local market combined with advancedmanagement system, KMG has affirmed its position in domestic as well asinternational market.

KMG is constantly striving to become a professional and reliable partner offoreign co-operator: USA, Japan, Korea, Hongkong, Singapore, Germany, Australia

2.1.1 Company’s vision and mission

Vision: “Narrowing the world, connecting regions, linking people”

Mission: “Meet all requirements of customers, along with customers on the way to

the success Develop a well-trained, technologically advanced staffs and highlyspecialized managerial system Develop long-term, sustainable partnerships.Contribute to the development of the society in general and the logistics industry inparticular.”

2.1.2 Company’s services

KMG is currently providing transportation, customs clearance and warehousingservices such as:

Master consolidator KMG is the largest brand in Vietnam LCL Consolidation

market Our leading position is affirmed by the organization, scale and scope that wehave provided

Ocean freight KMG is contracted with domestic and international carriers as

Maersk, MSC, CMA, MOL, NYK, KLINE, Evergreen, APL, Yangming, SITC,Hamburg Sud, Biendong, Vinaline to offer frequent departures at competitive rates forfull container load (FCL) shipments from any ports over the world

AOG services The ground plane is a service provided to airlines and other

aircraft operators to ensure the timely and reliable delivery of critical components to anaircraft trust It can be any part of the aircraft such as a jet engine, landing gear orwing In KMG, AOG Freight 247 is a specialized group for handling aircraft parts thatonly member have tested and met the industry’s most rigorous standards can join

Air freight KMG has built long-term relationships with almost airlines such as:

Vietnam Airlines, Hong Kong Airlines, Singapore Airlines, Japan Airlines, China