Subject foreign trade operation topic exporting black tea to syria

Vietnamese black tea, with its distinctive quality and flavor, has won the affection of Syrian consumers, opening up significant export opportunities for Vietnam.. This essay will not on

No Name of members Student ID Tasks Contribution

1 | Nguyen Thanh Trung 215085616 | Part 3 (3.1; 3.4) 16.66%

2 | Nguyen Hoang Bich Tram} 215085599 | Part 3 (8.1; 3.4) 16.66%

5 | Tran Quoc Thao 215081058 Part 2 (2.3) 16.66%

Ho Chỉ Minh City, April 2024

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3 IMPORT/EXPORT PROCESS 15

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INTRODUCTION

In the context of the increasingly developing global economy, the export of Vietnamese

black tea to Syria has become a topic of interest Vietnamese black tea, with its distinctive quality and flavor, has won the affection of Syrian consumers, opening up significant export opportunities for Vietnam

However, the export process is not simply about delivering goods from one point to another It involves a series of complex activities, including the preparation and use of various types of documents to ensure that goods are transported legally and efficiently This essay will not only focus on the export of Vietnamese black tea to Syria, but also explore the types of documents related to the export/import process By delving deeper into this topic, we can better understand the mechanisms of international trade, as well as the challenges and opportunities that Vietnam is facing in exporting black tea to Syria

1 ABOUT THE MARKET

1.1 Syria Market Overview:

Syria's economic story is one of stark contrasts Prior to the war, the nation thrived as a middle-income economy with immense development potential Its Gross Domestic Product (GDP) stood at a robust 60 billion USD in 2010 However, the conflict that erupted

in 2011 inflicted severe damage, causing a staggering 60% decline in GDP by 2020, leaving it at a mere 24 billion USD While currently on a path to recovery, the Syrian

economy still faces numerous challenges Despite a 2.6% GDP growth in 2021, significant

hurdles remain

The composition of Syria's main economic sectors has also shifted due to the war Before the conflict, agriculture contributed 17%, industry 23%, and services 60% to the GDP Today, agriculture plays a more prominent role, accounting for 25% Conversely, the industrial sector has shrunk to 15% Notably, the services sector continues to hold the largest share at 60%, although undoubtedly impacted by the war Trading partners have also undergone a change While China, Irag, Lebanon, and Turkey were previously key partners, China, Iraq, Iran, and Russia now dominate Syria's trade landscape

1.2 Diplomatic and political relations with Vietnam:

Vietnam and Syria boast a long-standing relationship established through diplomatic relations

in 1966 This foundation is built on a tradition of friendly relations and cooperation Leaders from both nations demonstrate their commitment to this bond by maintaining regular visits and fostering bilateral cooperation across various sectors These areas of collaboration encompass the economy, trade, cultural exchange, education, and healthcare initiatives

1.3 Economic relations with Vietnam:

Despite the challenges, Vietnam and Syria have witnessed a promising trend in bilateral trade Trade turnover has steadily grown, reaching an estimated 60 million USD in 2022, compared to 26.7 million USD in 2020 Vietnam primarily exports rice, coffee, rubber, and textiles to Syria, while importing cotton, oil, and minerals This trade relationship presents exciting opportunities for further collaboration Vietnam can leverage its expertise to

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support Syria's agricultural development Additionally, cooperation in oil and gas exploration and processing, along with participation in Syria's reconstruction projects, hold immense potential However, navigating this potential requires careful consideration Political instability, security concerns, and challenges arising from international sanctions

on Syria pose significant hurdles The extensive damage to Syria's infrastructure creates another layer of complexity for any economic endeavors

1.4, Market demand for research items:

The type of tea that people use here is black tea Syria has had a steady increase in tea consumption growth in recent years From 2010 onwards, growth has increased steadily

by 5%/year The 2015-2018 civil war caused black tea consumption to decrease sharply Since 2019, this level has recovered and increased According to estimates, Syrians consume an average of 2 kg of black tea per person per year Demand for Syrian black tea can be affected by a number of factors: Price, Economic situation, Appearance of other drinks However, itis expected that demand for Syrian black tea will continue to increase

in the coming years due to: Population growth: Syria's population is expected to increase inthe coming years, leading to higher demand for black tea Change in consumption habits: Syrians increasingly prefer convenient and healthy drinks, and black tea meets both of these factors

2 ABOUT THE PRODUCT

2.1 HS Code:

Fermentation status:

e Black tea (fermented):

© Pre-packaged with package weight not exceeding 3kg:

Flavored or not:

e Flavored: 09024090

e Unflavored:

o Pre-packaged with package weight not exceeding 3kg: 09023090

o Pre-packaged with package weight of more than 3kg: 09023030

2.2, State management policies for commodities:

Quality:

" Quality standards: Black tea must meet quality standards issued by the state, including criteria for nutritional content, pesticide residues, heavy metals, microorganisms, etc

" Quality control: The state checks the quality of black tea before it goes on the market to ensure consumer safety

Food safety:

« Business license: Black tea production and business establishments must have a business license issued by a competent state agency

" Food safety management: Black tea production and business establishments

must ensure food safety according to state regulations

Label:

» Product labels: Black tea product labels must contain complete information about the product, including product name, ingredients, additives, instructions for use, expiration date, manufacturer information, etc

« Health warning: Black tea product labels may require a health warning if the product contains substances that may be harmful to health

Tax:

« Import tax: Black tea imported into Vietnam is subject to import tax according

to state regulations

« Value added tax: Black tea sold in the Vietnamese market is subject to value

added tax according to state regulations

In addition, the state also has policies to encourage the development of black tea production

« Capital support: The State can provide capital support to black tea production facilities to improve product quality and competitiveness

" Support for science and technology: The State can support black tea production facilities in science and technology to apply technical advances to production

« Trade promotion: The State can support black tea producers in promoting trade and promoting products to domestic and foreign markets

2.2.1 Regulatory documents:

2.2.1.1 Food Safety Law:

Food Safety Law No 55/2010/QH13, dated June 10, 2010, regulates food safety, including black tea

Decree No 15/2018/ND-CP, dated February 2, 2018, detailing the implementation of

the Food Safety Law

2.2.1.2 Black tea quality standards:

National standard TCVN 4424-2018: Black tea

National technical regulation QCVN 6-3:2010/BYT on limits of heavy metal

contamination in food

National technical regulation QCVN 8-2:2011/BYT on limits of pesticide residues in food

2.2.1.3 Regulations on black tea business:

Decree No 109/2017/ND-CP, dated November 21, 2017, regulating food service business conditions

Circular No 22/2014/TT-BNNPTNT, dated May 12, 2014, of the Ministry of Agriculture and Rural Development guiding tea quality management

2.2.1.4 Tax regulations:

Law on Import and Export Tax No 10/2016/QH14, dated November 8, 2016

Decree No 122/2016/ND-CP, dated October 19, 2016, detailing the implementation

of the Law on Import and Export Tax

Value Added Tax Law No 28/2019/QH14, dated November 13, 2019

In addition, there are a number of other legal documents related to black tea, such as:

« Enterprise Law No 59/2020/QH14, dated November 18, 2020

« Intellectual Property Law No 50/2005/QH11, June 29, 2005

2.2.2 Import/export standards for items:

Export standard of Vietnam: Black tea is a major export product of Vietnam, and the country has a set of standards in place to ensure the quality of its exports These standards

cover a range of factors, including the appearance, taste, and aroma of the tea, as well as

its chemical composition In order to meet the export standards, Vietnamese black tea must

be free of foreign matter, have a good color and aroma, and be free of any defects in taste

It must also meet the microbiological and chemical requirements set by the importing

country

Import standard of Syria: Black tea imports into Syria must meet certain quality and safety standards These standards are designed to ensure the quality and safety of the tea

and to protect the health of Syrian consumers, including:

e The appearance of the tea: The tea must be free from foreign matter, have a good color and aroma, and be free of any defects in taste

e The chemical composition of the tea: The tea must meet the microbiological and chemical requirements set by the Syrian government

e The packaging of the tea: The tea must be packed in a way that protects it from contamination and damage

2.2.3 Regulations on origin of goods:

According to data from the General Department of Customs, Vietnam's black tea exports

in the first 10 months of 2022 reached 121.4 thousand tons, an increase of 11.4% in volume and 17.5% in value compared to the same period in 2021 The export turnover reached 246.4 million USD, an increase of 5.8% compared to the same period in 2021 Vietnam's black tea exports in the first 10 months of 2022 increased in both volume and value compared to the same period in 2021 Pakistan is the largest export market for Vietnamese black tea with 33.9 thousand tons, an increase of 16.8% in volume and 23.5%

in value compared to the same period in 2021 The second is China market, accounting for 12.7%, followed by Taiwan, Indonesia and USA The average export price of black tea increased slightly compared to the same period in 2021

Vietnam and Syria signed a trade agreement on May 12, 1994, helping to reduce export costs, increase export efficiency, and promote Vietnamese businesses to improve their competitiveness, so the Black tea of Vietnam Black Tea CO.LTD is exported from HaiPhong, Vietnam to Damasus, Syria and is granted an export certificate origin of goods C/O) form B - one of the common types of C/O applied to goods exported to all countries,

issued under non-preferential rules of origin

C/O form B (Certificate of Origin Form B) is one of the important documents in the process of exporting goods from Vietnam to Syria This is a document certifying the origin

of goods and is issued by the Vietnam Chamber of Commerce and Industry VCCI and its authorized branch

The specific requirements for goods to be granted C/O form B may vary depending on the regulations of each country However, usually, the general requirements for goods to

be granted C/O form B include:

e Goods are fully manufactured or qualified in the exporting country

e Raw materials, auxiliary materials and other materials used in the production of

goods are legally imported and have undergone manufacturing, processing and

assembly in the exporting country to become the finished product

e Goods are produced and processed according to the production process in accordance with the law and meet the requirements related to safety, hygiene environmental protection and other technical regulations

e The goods do not violate any provisions of the law related to the export of goods

A set of black tea export customs documents includes the following papers:

e Commercial Invoice

e Packing List

e Bill of Lading

e C/O - Certificate of origin and origin of goods

e Other titles (depending on the type of goods)

2.2.4, Regulations on import and export tax applied to goods:

- Export duties of Vietnam: 30 days from the date of registration of the customs declaration

- Permanent customs duty and taxes of Syria:

Customs Duty:

e Goods imported into Syria are subject to a customs duty These rates are progressive and vary based on the government’s view of the necessity for the products

e Rates range from 1% to 250% Essential items like food and industrial raw materials typically carry lower rates, while luxury goods such as automobiles face higher rates

Unified Tax:

e Syria imposes a unified tax on imported goods

e The tax rates are also progressive, aligning with the necessity and type of products

e While food and raw materials have lower rates, luxury items fall within the

150% to 250% range

Value-Added Tax (VAT):

e The VAT rate in Syria is 20%

2.3 Types of documents for import/export:

2.3.1 Introduction:

Black tea is one of Vietnam's main exports, with a wide market in the world Syria is a potential market for Vietnamese black tea exports with increasing demand for black tea However, in order to successfully export black tea to Syria, Vietnamese enterprises need

to understand the requirements of documents and product specifications

2.3.2 Document requirements:

2.3.2.1 Commercial contracts:

« Asales contract is concluded between the two parties, including full information

about the product, price, quantity, payment method, delivery terms, etc

- Thecontract needs to be made in two versions in Vietnamese and English or Arabic

- tis recommended to pay attention to the following terms:

o Names and addresses of sellers and buyers:

" Seller: VIETNAM BLACK TEA CO LTD - THUONG HAMLET, DUY PHIEN COMMUNE, TAM DUONG DISTRICT, VINH PHUC PROVINCE, VIETNAM

HAITHAM STREET, RUMANEH, DAMASCUS, SYRIA

o Quantity: 35,600.00 KGS

- The invoice needs to be made in two copies in Vietnamese and English or Arabic

« The following information should be paid attention to:

o Names and addresses of sellers and buyers:

Seller: VIETNAM BLACK TEA CO LTD - THUONG HAMLET, DUY PHIEN COMMUNE, TAM DUONG DISTRICT, VINH PHUC PROVINCE, VIETNAM

Buyer: DAMACUSHERS CO.,LTD - SHARKASSIYEH, IBN, AL HAITHAM STREET, RUMANEH, DAMASCUS, SYRIA

o Invoice number: 01FG-KAB/1 1

o Invoice day: JUL 14, 2021

Port of Discharge: TARTOUS, SYRIA

Delivery terms: CIF TARTOUS

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2.3.2.3 Packing list:

« A packing list is a detailed list document of items that have been packed in a

shipment or container Typically, a packing list includes information about the

number of items, weight, dimensions, and a detailed description of the contents of

each package Packing lists provide important information for checking and validating shipments when received and are also an important part of the process of carrying out import and export procedures

- There are two main types of packing lists:

© Standard Packing List: This is a common type of packing list used in commercial transactions It includes specific information about the items in the shipment, including the quantity, weight, dimensions, and detailed description of each item

o Premium Packing List: This type is often used in larger and more complex shipments or orders In addition to basic information about the items, it may include additional information such as origin, value, provenance, special conditions of transportation or storage, and other special requests from

customers

« The following information should be paid attention to:

o Invoice number: 01FG-KAB/1 1

o Invoice day: JUL 14, 2021

o Quantity: 35,600.00 KGS

o Container / Seal No.: INKU6515772/9436022 and TGHU7502610/9436021

o Port of loading: HAIPHONG, VIETNAM

o Port of Discharge: TARTOUS, SYRIA

o Delivery terms: CIF TARTOUS

2.3.2.4 Certificate of Origin (C/O):

- C/O is a document issued by the Vietnam Chamber of Commerce and Industry,

confirming the origin of the product

- C/O needs to be made in two versions in Vietnamese and English

« The following information should be paid attention to:

o Name and address of exporter and importer:

« Seller: VIETNAM BLACK TEA CO LTD - THUONG HAMLET, DUY PHIEN COMMUNE, TAM DUONG DISTRICT, VINH PHUC PROVINCE, VIETNAM

HAITHAM STREET, RUMANEH, DAMASCUS, SYRIA

3 IMPORT/EXPORT PROCESS

3.1 Illustrated foreign trade contracts:

A Sales Contract is a legally binding document that clarifies the terms of a transaction Also known as a sales agreement or an agreement to sell, this type of document generally involves two parties: Buyer who can be an individual or an organization making a purchase and Seller who can also be an individual or an organization, selling the item in question

The sales contract specifies the conditions of the transaction, including description of the product or service - the contract provides detailed information about the product or service being transacted; purchase price - determines the value of the transaction; payment method - includes whether it’s alump-Sum payment or installment; delivery conditions - specifies delivery terms and timing; warranties - terms related to product or service warranties; dispute resolution mechanisms

- Defines how conflicts will be resolved

The following international trade contract describes the business transaction between a Vietnamese company exporting goods to a business in Syria

Looking at the Sales Contract, it can be easily seen that this contract was drafted on 14th of July, 2021 The number of this contract is 01FG-KAB/11

This contract provides some basic information about exporting company and importing company

About the export company: Vietnam Black Tea Co Ltd The address is in Thuong Hamlet,

Duy Phien Commune, Tam Duong District, Vinh Phuc Province, Vietnam

About the import company: Damacushers Co Ltd The address is in Sharkassiyeh, IBN, Al Haitham Street, Rumaneh, Damascus, Syria

Besides that, this contract also has the bank name and the bank’s address that Damacushers Co

Ltd uses The bank is Commercial Bank of Syria Branch International Department, which the swift address is ABOCCNBJO90

The main part of the sale contract is about the goods that are purchased from Vietnam to Syria The first article is Commodity - Quantity - Price:

e The name of the good is VIETNAM BLACK TEA STD 3983

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