Foreign trade operation bus1107e a06e report of group 06

INTRODUCTION Vietnamese Black Tea: Unique Flavor for a New Journey Vietnamese cuisines extended to Syria: With a long history of tea growing and advanced processing capabilities, Vietnam

HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND

FINANCE FACULTY OF ECONOMICS

FOREIGN TRADE OPERATION

BUS1107E - A06E REPORT OF GROUP 06

Lecturer: Nguy ễn Đă ng Khoa

100%

TABLE OF CONTENTS

INTRODUCTION 3

1 ABOUT THE MARKET 4

1.1 Diplomatic and political relations between Cote d'Ivoire and Vietnam 4

1.2 Economic relations between two countries 4

1.3 Market demand for research products 5

2 ABOUT THE PRODUCT: CUTTING SYSTEM OF SHELLING MACHINE 6

2.1 HS code: 6

2.2 State management policy for good: 7

2.2.1 Legal document: 7

2.2.2 Export/import standards for goods: 7

2.2.3 Regulations on origin of goods: 7

2.2.4 Regulations on export/import tax applied to goods: 8

2.3 Types of documents for export/import: 9

2.3.1 Sales Contract: 9

2.3.2 Commercial Invoice: 10

2.3.3 Packing List: 11

2.3.4 Bill of Lading: 12

2.3.5 Customs Declaration: 12

2.3.6 Certificate of Origin: 13

2.3.7 Invoice: 14

3 IMPORT/EXPORT PROCESS .16

3.1 Foreign trade contract illustration: 16

3.1.1 Contracting parties: 16

3.1.2 Contract terms: 16

3.2 Common commercial practices applied to research products, packaging standards, inspection and sterilization 18

3.3 Bill of lading, mode of transport and transport route illustration 19

3.4 Documenting process of a specific shipment: 19

CONCLUSION 25

REFERENCES 26

INTRODUCTION

Vietnamese Black Tea: Unique Flavor for a New Journey

Vietnamese cuisines extended to Syria: With a long history of tea growing and advanced processing capabilities, Vietnam is hoping to develop the black tea export market to Syria Cooperating with DAMACUSHERS CO., LTD This is a strategic step to provide Vietnamese black tea to Syrian customers, while increasing the trade ties between the two countries The taste

of Vietnamese tea is not just a simple drink but also a cultural bridge When consuming Vietnamese black tea, Syrian people will sense the elegance in flavor, the passion in emotions and the hospitality of Vietnamese people The journey of Vietnamese tea flavors to Syria promises to deliver new and distinct experiences to consumers Let's look forward to the explosion of Vietnamese black tea in the Syrian market and significant successes in the future

Vietnamese BlackTea - Journey to rule the world: More than a drink, Vietnamese black tea is

a symbol of luxury and lifestyle Each tea bud is carefully selected and undergoes through processing to keep its rich and distinctive flavor

Journey from Vietnam to the world: Cooperating with DAMACUSHERS CO., LTD opens the way for Vietnamese black tea to join the potential Syrian market This is a crucial turning point, indicating the robust expansion of Vietnam's tea industry in the worldwide arena

Smell Poison Unique, conquering all senses: Enjoying black tea is not just to refresh, but also to connect, share and feel the quintessence of Vietnamese culture Black tea offers elegance and sophistication to Vietnamese culture, demonstrated via the technique of making tea, drinking tea and the stories told over a cup of hot tea

Vietnamese effect on the market school international: With strategic cooperation and ongoing efforts, Vietnamese black tea promises to establish a major imprint in the international market The path of conquering global tastes of Vietnamese black tea officially begins, delivering Vietnamese flavors to international friends

More than a deal, it's a connection: Cooperation in exporting black tea to Syria not only brings economic benefits to both sides, but also serves as a cultural bridge, helping the two countries get closer together, creating strong friendship and cooperation

1 ABOUT THE MARKET

1.1 Diplomatic and political relations between Cote d'Ivoire and Vietnam

Vietnam - Syria relations: Strengthening cooperation but many challenges remain Diplomatic and political relations between Vietnam and Syria are being respected and strengthened, as shown by the affirmation of the Vietnamese Ambassador to Iran who also serves Syria, Mr Luong Quoc Huy, during the meeting with the Minister of Foreign Affairs Syrian Faisal Al-Mikdad Ambassador Luong Quoc Huy also conveyed President Nguyen Xuan Phuc's respectful greetings

to Syrian President Bashar Al-Assad

Vietnam wants to further strengthen cooperation with Syria in many aspects, especially in infrastructure investment and trade However, the current relationship between the two countries still has many limitations and has not made much progress

Syrian Foreign Minister Faisal Al-Mikdad expressed his admiration for an indomitable and resilient Vietnam in the war to protect the Fatherland and achieved many great economic achievements in building and developing the country He also affirmed his continued support for Vietnam at all international forums

However, Vietnam's diplomatic attitude on the Syrian issue is tending to be closer to those of countries seeking to determine a middle position This shows Vietnam's caution in balancing relations with countries involved in the conflict in Syria.In general, Vietnam - Syria relations are making positive developments, but there are still many challenges that need to be resolved to progress further

1.2 Economic relations between two countries

Although the economic relationship between Vietnam and Syria is not really strong, the two countries still value and wish to strengthen cooperation in many fields, especially infrastructure investment and trade

Vietnamese Ambassador to Iran and Syria, Mr Luong Quoc Huy, had a meeting with Mr Median Ali Diab, General Director of the Syrian Investment Agency, to exchange market information, opportunities and promotion measures investment between businesses of the two countries Mr Diab affirmed that Syria is a potential market for Vietnamese businesses, especially in the fields

of agriculture, construction and energy

This is a positive signal showing the potential for developing economic cooperation between Vietnam and Syria in the future The two sides need to continue to promote information exchange, trade and investment promotion, create favorable conditions for businesses of the two countries to cooperate effectively, contributing to the growing bilateral relationship

1.3 Market demand for research products

Drinking tea is a common habit in Syria, especially black tea Syrians often like tea with a rich and strong flavor Demand for Vietnamese black tea in Syria is increasing due to good quality and competitive prices Vietnamese businesses have many opportunities to export black tea to Syria

However, businesses need to pay attention to the flavor of black tea popular in Syria, which is rich and strong Packaging needs to be eye-catching and attract consumers Prices need to be competitive compared to black tea products from other countries Vietnamese businesses need to build effective distribution channels to bring black tea products to Syrian consumers

With the right attention and investment, Vietnamese businesses can effectively exploit the potential black tea market in Syria

2 ABOUT THE PRODUCT: CUTTING SYSTEM OF SHELLING MACHINE

Black tea is a popular beverage in Vietnam, with a rich history and diverse cultivation and processing practices This overview delves into the specifics of Vietnamese black tea, encompassing its characteristics, varieties, production methods, and significance in the local culture and economy

Cultivation: Key regions: Northern mountainous areas like Ha Giang, Lao Cai, Yen Bai, and Phu Tho are renowned for black tea cultivation, benefiting from favorable climates and altitudes Varieties: The most cultivated variety is Shan Tuyet, prized for its large leaves, silvery buds, and distinctive aroma Other notable varieties include Móc Câu, Lài Chi, and Kim Tuyến

Processing: Traditional methods: Vietnamese black tea processing typically follows the orthodox method, involving withering, rolling, oxidation, drying, and sorting Unique aspects: Sun-drying

is a common practice in Vietnam, contributing to the tea's characteristic flavor profile

Characteristics: Appearance: Vietnamese black tea leaves are typically dark brown or black in color, with a wiry texture and varying sizes depending on the variety Aroma: The aroma can range from fruity and floral to earthy and smoky, influenced by the specific cultivar, processing techniques, and terroir Taste: Vietnamese black tea generally offers a robust and full-bodied flavor with a smooth and slightly malty finish

Varieties: Shan Tuyet: Considered the most prized, this high-quality tea boasts large leaves, silvery buds, and a delicate, sweet flavor Móc Câu: This variety features tightly curled leaves, yielding a deep and intense brew with a strong aroma Lài Chi: Known for its sweet and floral aroma, this tea is often blended with jasmine flowers for a fragrant and refreshing cup Kim Tuy n: ếThis variety is characterized by its golden-tipped leaves and delicate flavor profile

Health Benefits: Vietnamese black tea is rich in antioxidants, which may offer various health benefits, including improved cardiovascular health, reduced inflammation, and enhanced cognitive function The caffeine content can provide a boost of energy and alertness

Cultural Significance: Black tea plays a central role in Vietnamese culture, enjoyed as a daily beverage and offered to guests as a gesture of hospitality Tea drinking is often associated with relaxation, mindfulness, and social gatherings

Economic Importance: Vietnam is a significant producer and exporter of black tea, contributing

to the local economy and generating employment opportunities in rural areas The tea industry also plays a role in promoting tourism and cultural exchange

2.1 HS code:

0902.30.10: Black tea in immediate packings of content exceeding 3 kg but not exceeding 10 kg 0902.30.90: Black tea in other immediate packings (could apply to some bagged or flavored teas)

2.2 State management policy for good:

2.2.1 Legal document:

Vietnam: Law on Customs No 54/2014/QH13 (amended in 2021): General regulations on import and export activities, including black tea Decree No 59/2020/ND-CP: Detailed regulations on customs activities, procedures for customs clearance of black tea imports and exports Joint Circular of the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development: Regulations on quality management of tea and tea products This circular specifies standards for food safety, heavy metal content, pesticide residues, etc for black tea

Syria: The legal documents required for import/export in Syria can vary depending on the specific goods, their value, and the countries involved A detailed document that describes the goods being shipped, their quantity, value, and other relevant information An itemized list of the goods being shipped, including their quantity, weight, and dimensions A document issued

by the shipping company that acts as a contract of carriage for the goods A document that certifies the country where the goods were produced A document issued by the Syrian government that authorizes the import or export of specific goods Depending on the specific goods, other documents such as phytosanitary certificates, health certificates, or inspection certificates may be required

2.2.2 Export/import standards for goods:

Vietnam: International standards: Codex Alimentarius (FAO/WHO food standards) may also apply to exported/imported black tea Vietnam National Standard (TCVN): TCVN 4934:2011 - Black tea This is a mandatory national standard for black tea produced or circulated in Vietnam

It specifies requirements for sensory, physical, chemical, microbiological, heavy metal, pesticide residue parameters, etc., similar to the joint circular

Syria: The Syrian government aims to control imported goods to ensure quality, safety, and compliance with international standards They also aim to promote Syrian exports by meeting international standards However, the effectiveness of this control and the specific standards applied may vary depending on the region and the level of government control Syrian Standards (SAS): Syria might have its own set of national standards for various products Regional Standards (Harmonized System - HS Codes): Syria likely uses the Harmonized System (HS) codes for product classification, which helps with customs duties and international trade 2.2.3 Regulations on origin of goods:

If black tea is exported/imported under Free Trade Agreements (FTAs) that Vietnam has joined,

it must comply with the rules of origin specified in each specific FTA Provide full documentation

of origin as required by the importing country (if any)

Vietnam: Non-Preferential Rules of Origin (NPRO): Vietnam applies its own NPRO to determine the origin of black tea for general trade purposes These rules likely focus on substantial transformation This means that for black tea to be considered of Vietnamese origin, it must have undergone significant processing within Vietnam Preferential Rules of Origin (PRO): Vietnam has Free Trade Agreements (FTAs) with several countries, which may have specific PRO for black tea To determine if a preferential tariff applies: Identify the destination country for your Vietnamese black tea export Check the relevant FTA between Vietnam and the destination country Look for sections on "rules of origin" or "product specific rules" to see if there are requirements for black tea to qualify for preferential treatment

Syria: Limited Information: Due to the ongoing conflict, obtaining clear information on Syrian origin regulations can be challenging Possible NPRO: Syria likely has its own NPRO for determining the origin of goods, including black tea However, details on these rules might be difficult to find online Limited Trade Agreements: Syria has a limited number of active trade agreements The specific PRO for black tea within these agreements would need to be reviewed

Import Tax: Types of Vietnam Import Tariff In addition to the above, Vietnam imposes three other types of taxes on imported goods Value-Added Tax (VAT): The importer of the goods has

to pay additional taxes for the added value in the supply chain Vietnam’s VAT rates for imported

goods can be 0%, 5%, or 10% Certain goods, such as daily necessities that cannot be produced in Vietnam, are exempt from VAT Special Consumption Tax (SCT): Consumer goods that are considered luxury items are subject to SCT Products subjected to SCT are also subjected to VAT Environmental Protection Tax (EPT): According to Vietnam Law & Legal Forum, goods that might have a harmful effect on the environment are subject to EPT It is a great way to prevent countries from ignoring the environmental impacts the products might cause when providing goods and services As per the Vietnam Pocket Tax Book 2021, EPT rates vary for each commodity from VND500/kg for restricted chemicals to VND 50,000/kg for plastic bags Vietnam’s import duty rates are calculated by multiplying the value of the imported goods by the

applicable tax rate:

Import tax = tax rate x (value of imported goods + VAT (if any) + SCT (if any) + EPT (if any))

 Value Added Tax (VAT): VAT might be applied to both imported and domestically produced goods

Uncertainties and Challenges:

 Limited Information: Obtaining official Syrian government information on current tax rates and specific exemptions can be difficult

 Regional Variations: Tax enforcement and rates may vary across different regions within Syria

 Sanctions Impact: Several countries have imposed sanctions on Syria, which may affect export/import taxes for certain goods Understanding these sanctions and their impact is crucial

Recommendations: Consult with a trade consultant or lawyer specializing in Syrian trade regulations They can provide the most up- -date information on relevant export/import taxes for toyour specific goods Contact Syrian trade missions abroad (if applicable) Embassies or consulates may have some resources or guidance on current tax rates Research relevant sanctions information Government websites or international trade organizations can provide details on sanctions that might impact specific goods and taxes

2.3 Types of documents for export/import:

2.3.1 Sales Contract:

While not always mandatory, a sales contract between the exporter and importer can be established

to clearly define the terms of the sale, including product specifications (type, quality, quantity), price, payment terms, delivery terms (Incoterms), and dispute resolution procedures Main content: Parties: Clearly identify the exporter (seller) and importer (buyer) with their full legal names, addresses, and contact information

Product Specifications: Type of Black Tea: Specify the type of black tea being sold (e.g., Assam,

Darjeeling, Vietnamese Shan Tuyet) Quality: Define the quality grade of the black tea (e.g., premium, standard) Quantity: Specify the exact quantity of black tea being sold, typically in kilograms (kg) or metric tons (MT) This could be a fixed amount or a range with tolerances Packaging: Describe the packaging specifications, including the type of containers (bags, boxes), weight per container, and any special markings or labeling requirements

Price and Payment Terms: Unit Price: Clearly state the agreed price per unit of black tea (e.g., USD/kg) Total Price: Calculate and specify the total value of the black tea shipment based on the unit price and quantity Payment Terms: Define the payment method (e.g., letter of credit, bank transfer) and payment schedule (e.g., full payment upfront, payment upon delivery)

Delivery Terms (Incoterms): Use Incoterms (International Commercial Terms) to clearly define the responsibilities of each party regarding transportation, costs, and risk transfer Common Incoterms for black tea sales could be FOB (Free On Board), CFR (Cost and Freight), or CIF (Cost, Insurance, and Freight)

Inspection and Testing: If applicable, outline the agreed-upon procedures for inspection and testing of the black tea to ensure it meets the specified quality standards This could involve independent third-party inspection or analysis by a designated laboratory

Shipping and Insurance: Specify the agreed mode of transport (sea freight, air freight) and the estimated delivery time frame Outline the responsibility for arranging and paying for transportation insurance

Force Majeure: Define unforeseen events (e.g., natural disasters, political unrest) considered

"force majeure" that could impact the ability to fulfill the contract Specify the consequences and potential adjustments in such situations

Dispute Resolution: Establish the process for resolving any potential disputes arising from the contract This could be through negotiation, mediation, or arbitration

Governing Law: Specify the legal system that will govern the interpretation and enforcement of the contract (e.g., laws of the seller's or buyer's country)

Signatures and Effective Date: Include space for authorized representatives of both parties to sign the contract, along with the effective date of the agreement

2.3.2 Commercial Invoice:

This is a crucial document that details the product description (including HS code), quantity, unit price, total value of the black tea shipment, and the incoterm used It serves as a basis for customs valuation and duty calculation Main content:

Invoice Header: Exporter Name and Address: Complete legal name and address of the Vietnamese company exporting the black tea Importer Name and Address: Complete legal name and address of the company importing the black tea Invoice Number and Date: Unique invoice number for reference and the date of invoice issuance

Product Description: Product Name: Clearly state "Black Tea" and any specific variety or brand name (if applicable) HS Code: Include the HS code for black tea as specified by Vietnamese customs regulations Quantity: Specify the total quantity of black tea being exported, typically in kilograms (kg) or metric tons (MT) This could be a breakdown by package type (bags, boxes) with quantities for each Unit Price: Indicate the agreed price per unit of black tea (e.g., USD/kg) Total Value: Calculate and display the total value of the black tea shipment based on the unit price and quantity

Additional Information (Optional): Contract Number (if applicable): Reference number for the sales contract between the exporter and importer Payment Terms: Indicate the agreed-upon method and timeframe for payment (e.g., letter of credit, bank transfer) Country of Origin: State Vietnam as the country of origin for the black tea Terms of Sale (Incoterms): Specify the Incoterm (e.g., FOB, CFR, CIF) defining the responsibilities of each party regarding transportation costs and risk transfer Packing Details: Brief description of the packaging used for the black tea (e.g., material, dimensions) Gross Weight and Net Weight: Indicate the gross weight (total weight including packaging) and net weight (weight of the black tea itself) of the shipment

Signatures and Stamp: Include spaces for authorized representatives of the exporter to sign and company stamp the invoice, signifying its validity

2.3.3 Packing List:

This document specifies the number of packages, weight, and dimensions of each package containing the black tea It helps ensure accurate cargo handling and facilitates customs clearance Main content:

Header Information: Exporter Name and Address: Complete legal name and address of the Vietnamese company exporting the black tea Importer Name and Address: Complete legal name and address of the company importing the black tea Invoice Number and Date: Reference the corresponding invoice number and date for easy cross-referencing Vessel Name and Voyage Number (if applicable): Include this information if the black tea is being shipped by sea

Packing Details: Number of Packages: Specify the total number of individual packages (boxes, bags, etc.) containing the black tea Package Type: Describe the type of packaging used (e.g., cardboard boxes, woven bags) Dimensions: Indicate the dimensions (length, width, height) of each individual package Gross Weight: Specify the gross weight of each individual package, including the weight of the packaging material Net Weight: Indicate the net weight of the black tea contained within each package

Additional Information (Optional): Marks and Numbers: If your packages have unique identification markings or numbers, include them in the packing list Container Number (if applicable): For sea freight shipments using containers, specify the container number(s) where the black tea is packed Seal Numbers (if applicable): If the packages are sealed with unique seals, record their numbers for reference

Signature: Include a space for an authorized representative of the exporter to sign the packing list, verifying its accuracy

2.3.4 Bill of Lading:

This document acts as a contract of carriage between the exporter and the shipping company It details the shipment information (origin, destination, consignee, etc.), transportation costs, and serves as a receipt for the cargo Main content:

Issuing Details: B/L Issuer: Name and address of the company issuing the B/L (usually the shipping carrier or their agent) B/L Number: Unique identification number for the specific B/L Date of Issue: Date the B/L is issued

Shipment Details: Shipper: Complete legal name and address of the Vietnamese company exporting the black tea Consignee: Complete legal name and address of the company receiving the black tea (importer) Notify Party (optional): An additional party to be notified upon arrival of the shipment (e.g., importer's agent) Port of Loading: The Vietnamese port where the black tea is loaded onto the vessel Port of Discharge: The overseas port where the black tea will be unloaded Vessel Name and Voyage Number: Identifies the specific vessel carrying the black tea shipment Cargo Details: Description of Goods: Specify "Black Tea" and any specific variety or brand name (if applicable) HS Code: Include the HS code for black tea as specified by Vietnamese customs regulations Number of Packages: Indicate the total number of individual packages (boxes, bags, etc.) containing the black tea Gross Weight: Specify the total gross weight of the entire black tea shipment, including packaging Freight Charges: Details of the ocean freight charges payable by the shipper or consignee (as per the agreed-upon incoterm)

B/L Type (Optional): Negotiable B/L: Allows ownership of the black tea to be transferred by endorsing the B/L This is typically used for credit sales Non-Negotiable B/L: Restricted transfer

of ownership, usually used for cash-on-delivery (COD) transactions

Additional Information (Optional): Marks and Numbers: Reference any unique identification markings or numbers on the packages Container Number (if applicable): Specify the container number(s) if the black tea is shipped in a container Special Requirements: Indicate any special handling instructions for the black tea (e.g., temperature control, fragile)

Signatures: The B/L typically includes spaces for the authorized representatives of the shipper, the ship's master (captain), and sometimes the consignee to sign, acknowledging receipt of the black tea shipment

2.3.5 Customs Declaration:

A Customs Declaration is a crucial document required for exporting black tea from Vietnam It serves as an official notification to Vietnamese customs authorities about the details of your black tea shipment Here's a breakdown of the key information typically included in a Vietnamese Customs Declaration for black tea exports Main content:

Exporter Information: Exporter Name and Address: Complete legal name and address of the Vietnamese company exporting the black tea

Importer Information: Importer Name and Address: Complete legal name and address of the company receiving the black tea (importer)

Shipment Information: Invoice Number and Date: Reference number and date of the corresponding commercial invoice Port of Loading: The Vietnamese port where the black tea is loaded onto the vessel Port of Discharge: The overseas port where the black tea will be unloaded Vessel Name and Voyage Number (if applicable): Identifies the specific vessel carrying the black tea shipment

Goods Description: Description of Goods: Clearly state "Black Tea" and any specific variety or brand name (if applicable) HS Code: Include the HS code for black tea as specified by Vietnamese customs regulations Gross Weight: Specify the total gross weight of the entire black tea shipment, including packaging Net Weight: Indicate the net weight of the black tea itself (excluding packaging) Quantity: Specify the total quantity of black tea being exported, typically in kilograms (kg) or metric tons (MT) This could be a breakdown by package type (bags, boxes) with quantities for each

Additional Information (Optional): Contract Number (if applicable): Reference number for the sales contract between the exporter and importer Country of Origin: State Vietnam as the country

of origin for the black tea Terms of Sale (Incoterms): Specify the Incoterm (e.g., FOB, CFR, CIF) defining the responsibilities of each party regarding transportation costs and risk transfer Export Permit (if applicable): Indicate if any specific export permits are required for the black tea Customs Valuation: Declare the agreed-upon value of the black tea shipment, typically based on the information in the commercial invoice

Declaration: The declaration typically includes a section for an authorized representative of the exporter to sign, verifying the accuracy of the information provided

2.3.6 Certificate of Origin:

A Certificate of Origin (C/O) is a crucial document for some Vietnamese black tea exports, depending on the destination country and any applicable trade agreements It certifies that the black tea originated in Vietnam and meets specific requirements Here's an overview of the key elements and considerations for a C/O for Vietnamese black tea exports Main content:

When is a C/O Required? A C/O might be required by the importer in the destination country to qualify for preferential tariff treatment under a Free Trade Agreement (FTA) between Vietnam and that country Some countries might have general import requirements for specific goods, including a C/O