b Export/import standards for goods in Hong Kong Any individual must possess a valid import/export license issued by the Director-General of the Department of Commerce and Industry to im
Diplomatic and political relations between Hong Kong and Vietnam
Hong Kong, a coastal city in Southern China, features a significant port and is bordered by Guangdong Province to the north through Shenzhen, while the South China Sea lies to the east, south, and west The Hong Kong Special Administrative Region (HKSAR) is divided into three main geographic areas: Hong Kong Island, Kowloon, and the New Territories.
Hong Kong's political landscape is governed by the Basic Law, which acts as its constitution, establishing a distinct political system and legislature The Chief Executive functions as the head of government for the Special Administrative Region, overseeing its operations Although Hong Kong features a multi-party political system, it faces significant political constraints.
In 2023, the Consulate General of Vietnam in Hong Kong, Pham Binh Dam, announced the successful lifting of visa restrictions for Vietnamese nationals, a result of extensive diplomatic efforts over the past two years This significant development enhances Vietnam's market access and opportunities, positioning Hong Kong as a vital financial, commercial, logistics, and legal hub, as well as an international gateway to China.
In 2023, significant advancements were made in the Vietnam-Hong Kong relationship, highlighted by five high-ranking delegations from Hong Kong visiting Vietnam Notably, Minister of Planning and Investment Nguyen Chi Dung's visit to Hong Kong played a crucial role in strengthening bilateral ties and promoting dynamic exchanges between the two regions.
Despite limited resources, the Consulate General effectively promoted cultural cooperation between Vietnam's Ministry of Culture, Sports, and Tourism and the Hong Kong Academy for Performing Arts This partnership facilitated exchanges among teachers, students, and musicians, along with performance courses that enriched cultural interaction During the 2023 National Day celebrations, the Consulate General organized art performances and exhibitions that drew nearly 600 attendees, showcasing Vietnam's traditional culture and art to the people of Hong Kong and leaving a lasting impression.
AN Figure 1.1.1: Consul General Pham Binh Dam (left) in a meeting with the Director of Hong Kong
Security Bureau, Dang Binh Cuong
Source: Consulate General of Vietnam in Hong Kong
Figure 1.1.2: Deputy Minister Luong Tam Quang and Director Dang Binh Cuong witnessed the signing of a cooperation memorandum between immigration authorities from Vietnam and
Source: Consulate General of Vietnam in Hong Kong
‘ Department of Training of The Ministry of Culture, Sports and 7
The Socialist Repubiic of Vietnam
The Hong Kong Academy for Performing Arts 4
Figure 1.1.3: Mr Le Anh Tuan (left) and Professor Gillian Choa - Director of the Hong Kong
Academy for Performing Arts signing a Memorandum of Understanding on Training Cooperation
Economic relations between two COUIẽFè@S + HH HH HH TH TH tr 7
Vietnam and Hong Kong possess substantial opportunities for collaboration in finance, technology, food, and consumer goods The Consulate General facilitates business delegations from Hong Kong to Vietnam, fostering greater interest in investment and business partnerships Ongoing initiatives aim to connect with businesses, corporations, financial sectors, CEOs, and top-tier companies to enhance cooperation.
Vietnam has long been one of Hong Kong's top 10 trading partners, highlighting the strong and reliable business relationship between the two regions Senior officials emphasize the effectiveness of their trade and investment ties, showcasing Vietnam's importance as a dependable partner for Hong Kong.
From 2017 to 2021, the trade relationship between Hong Kong and Vietnam experienced an impressive average annual growth rate of 11.8% Bilateral trade surged from USD 7.281 billion in 2015 to USD 11.928 billion in 2021, as reported by the Vietnam Customs Department In 2021, Vietnam's exports of agricultural and aquatic products totaled USD 309.98 million, with notable increases in rice (0.53%), fruits (32.94%), and cashew nuts (7.32%), while seafood exports saw a decline of 7.71% Consequently, Vietnam has emerged as Hong Kong's second-largest trading partner within the ASEAN region.
Figure 1.2.1: Trade Volume between Vietnam and Hong Kong from 2014 to 2023
Source: Data from the General Department of Customs
In terms of imports, it's worth noting that the import turnover from Hong Kong is increasing significantly, with some items increasing by tens or hundreds of millions of USD
Vietnam's exports to Hong Kong have significantly expanded, driven by various factors Despite its relatively small population of around 7.5 million in 2021, Hong Kong possesses a substantial GDP, which reached $381.544 billion in 2018.
Figure 1.2.2: GDP in Hong Kong, 2018
Source: Smartcity.gov.hk e Hong Kong's import value is significant, reaching its peak at HKD 5,307 billion HKD and exceedingHKD 4,927 billion in 2022 Consequently, Vietnam's exports to Hong Kong only account
8 for about 2% of this Moreover, Hong Kong can conveniently connect with Vietnam via sealand routes
Value of goods imported to Hong Kong from 2013 to 2023
(in billion Hong Kong dollars)
4,060.72 4,046.42 4,008.38 cllars Kơng d Import value in billion Hone
Figure 1.2.3: Value of goods imported to Hong Kong from 2013 to 2023
According to Statista, Hong Kong ranks among the top territories for foreign direct investment (FDI) in Vietnam, with total registered capital from ongoing projects amounting to $21 billion by the end of 2022.
CO CAU BAU TU THEO QUOC GIA/VUNG LANH THO sa Singapore 6,46 ty USD
Nguồn: Bộ Kế hoạch và Đầu tư (:õ liệu tính đến 20/12/2022) © TTXYN =
Figure 1.2.4: FDI investment capital in Vietnam, 2022
Source: Ministry of Planning and Investment of Vietnam
President Nguyen Xuan Phuc and Chief Executive of the Hong Kong Special Administrative Region, Mr Ly Gia Sieu, have set an ambitious goal to increase bilateral trade between Vietnam and Hong Kong to $50 billion over the next five years, with the aim of positioning Vietnam as Hong Kong's largest trading partner.
Figure 1.2.5: President Nguyen Xuan Phuc meets with Mr Ly Gia Sieu, during APEC 2022 19th, in Bangkok, Thailand
1.3 Market demand for research products
Over the past 40 years, rice consumption in Hong Kong has noticeably decreased, peaking at over 400 metric tons in 2012 Recent years have seen a significant drop in total rice consumption, reflecting a change in the dietary habits of Hong Kong residents concerning their staple food grain.
Hong Kong Milled Rice Domestic Consumption by Year
A>2WN AM Nasi ayuu Mi
Figure 1.3.1: Consumption of Rice in Hong Kong from 1960 to 2023
As of now, Vietnam ranks as the second largest rice exporter to Hong Kong, supplying approximately 24% of the region's rice imports In 2022, Hong Kong's rice imports totaled $240 million, positioning it as the 46th largest rice importer globally The primary sources of rice imports for Hong Kong include Thailand ($146 million), Vietnam ($39.8 million), Japan ($18 million), China ($16 million), and Cambodia ($6.17 million) By the end of March 2023, Vietnam's rice exports to Hong Kong continued to grow.
10 than 16,000 tons to Hong Kong, approximately the same period last year
Import Value (million USD), Source: www.indexbox.io
Figure 1.3.2: Import value of Rice in Hong Kong
Kenneth Chan highlighted Vietnam's robust agricultural sector as a key supplier of agricultural imports to Hong Kong, especially rice The global rice crisis in 2008 significantly boosted Vietnamese rice exports, resulting in a substantial rise in imports from Vietnam during that period.
2008 to 2013, Hong Kong's imports of Vietnamese rice surged from 0.5% to 42% In the first nine months of 2019 alone, Hong Kong imported over 80,000 tons of rice from Vietnam
Nguyén Minh Toai, the director of the department, expressed optimism that businesses on both sides will fully leverage the ASEAN-China Free Trade Agreement, effective since June 11, 2019, to enhance bilateral trade and establish sustainable trade partnerships.
Vietnam Jasmine Rice is a premium variety of fragrant rice known for its long, white kernels and delicate aroma Grown in the fertile Mekong Delta, this rice is celebrated for its soft texture and unique fragrance Its popularity extends globally, with significant imports to regions such as the USA, the Middle East, and Africa.
# ThaiSticky # ThaiHomMali © Viet Sticky g- Viet fragrant rice @ Viet Jasmine rice rice Figure 2.1: Comparison of prices of some types of rice exported in Vietnam and Thailand
Source: Authors group complied from the Thai Ministry of Commerce with Thai data and Vietnamese data
In October 2022, Vietnam's rice exports totaled 713,546 tons, valued at $341.064 million, according to the General Department of Customs By the end of October, the country's total rice exports reached nearly 6.1 million tons, amounting to approximately $3 billion This represents a significant increase of 17.4% in volume and 7.6% in value compared to the same period in 2021.
Rice export volume of Vietnam (M1/2022 — M10/2022)
Rice export volume January 2022 - October 2022 Figure 2.2: Rice export volume of Vietnam by month, 2022
Mr Nguyen Trung Kien, Vice Chairman and General Secretary of the Vietnam Food Association (VFA), highlighted the necessity for Vietnamese rice exporters to prioritize processing, quality management, food safety, and pesticide residue control in order to comply with rigorous international standards.
Market demand for research DrOdUCfS - - + ng TH HH kg 10 Nà oi ch ae
Legal dOCUmRII - ó2 5 3n vn HH KH KH KH 1K 13
a) Export/import standards for goods in Vietnam
To export rice in accordance with decree 109/2010/NB-CP, traders must meet specific requirements: they must be legally established and registered, possess at least one warehouse capable of storing a minimum of 5,000 tons of paddy rice, and comply with regulations set by the Ministry of Agriculture and Rural Development Additionally, traders must have at least one rice mill with a minimum hourly capacity of 10 tons of paddy rice, also adhering to the Ministry's general regulations.
Any individual must possess a valid import/export license issued by the Director-General of the Department of Commerce and Industry to import or export rice
Distributors and vendors selling rice in Hong Kong must guarantee that the product is safe, unadulterated, and suitable for human consumption Additionally, they are required to ensure that all rice is properly labeled in accordance with the Public Health and Municipal Services Ordinance and its subsidiary legislation.
The Centre for Food Safety, part of the Food and Environmental Hygiene Department, includes rice in its food surveillance program, where samples are tested for pesticides, heavy metals, mineral oil, coloring agents, and toxic substances to ensure food safety.
Violating the Reserved Commodities (Control of Imports, Exports, and Reserve Stocks) Regulations can lead to severe penalties, including fines of up to HK$100,000 and a potential prison sentence of up to two years upon conviction.
Regulations On Origin OÍ QOOdS cà HH HH HH KH kg 13
Hong Kong lacks specific regulations regarding the origin of rice, allowing importers to source rice from any location Nonetheless, the region adheres to general food safety regulations similar to those found in many other countries.
13 and import standards are set by its relevant authorities
Rice imported into Hong Kong is subject to inspection and regulation by the Food and Environmental Hygiene Department (FEHD) to ensure it meets safety and quality standards
Hong Kong’s labeling regulation does not require the marking of country of origin on the label
Since the signing of the Free Trade Agreement (FTA) between Vietnam and Hong Kong, Vietnamese exporters can utilize the Certificate of Origin (C/O) Form E This form is essential for ensuring that goods exported from Vietnam, an ASEAN member country, receive tax benefits when imported into Hong Kong, a partner country under the FTA.
A set of rice export customs documents includes the following papers: ô Commercial Invoice e Packing List e Bill of Lading e Export Customs Declaration
Additional documents may be required based on the importer's requests, such as a Certificate of Origin, Certificate of Quality, Certificate of Health, Phytosanitary Certificate, Fumigation Certificate, and others.
Regulations on export/import tax applied to goods .- cà seeereeerre 14
Vietnam requires exporters to submit export duties after goods are consolidated and no later than four hours before the transport vehicle departs Additionally, the Hong Kong government has issued Decree No 07/2020/ND-CP, establishing special preferential import tax rates for Vietnam to comply with the ASEAN-Hong Kong, China Free Trade Agreement.
2019 - 2022 (AHKFTA) e This decree stipulates the special preferential import tax rates of Vietnam to implement the ASEAN
- Hong Kong, China Free Trade Agreement for the period 2019 - 2022 and the conditions for enjoying these special preferential import tax rates under the agreement
2.3 Types of documents for export/import
An international sales contract is a formal agreement between a buyer and a seller that outlines the involved parties, details the goods or services being exchanged, specifies the terms and conditions of the sale, and states the agreed-upon price.
Main Contents: ô Type/name of contract e Contract Number e Time and place e Contract parties
An international trade contract typically includes essential terms such as a detailed description of the commodity, the quality of the product, and the specified quantity or weight of goods It outlines the packing and marking requirements, along with the unit price and commercial terms like FOB at the port of loading The contract also specifies shipment terms and delivery locations, payment methods and terms, and any applicable insurance Additionally, it addresses inspection processes, warranty provisions, force majeure clauses, penalties for non-compliance, dispute resolution mechanisms, and any other relevant terms and conditions.
The commercial invoice is a type of export documentation signed between the seller (exporter) and the customer (importer)
The commercial invoice for international shipping clarifies the product being shipped, the country of origin, the product’s description and intended use, and commercial value
A commercial invoice contains essential details, including buyer/importer information such as the company name, address, contact details, and potentially bank account information based on payment terms It also includes seller/exporter information, an invoice number designated by the exporter, and the invoice date marking the agreement between parties Payment terms may specify methods like T/T (Telegraphic Transfer), L/C (Letter of Credit), D/A (Documents Against Acceptance), or D/P (Documents Against Payment) Additionally, the invoice outlines product information, including the product name, total weight, volume, quantity, and unit price for calculating the total amount due The total value is presented in both numbers and words, and Incoterms conditions are noted alongside a specific location.
Key shipping terms include POL (Port of Loading), POD (Port of Discharge), and details about the Vessel/Voyage, which refers to the name of the ship and its voyage number The Destination typically aligns with the POD, indicating the final stop for the cargo.
A packing list is a document used in international trade It provides the exporter, international freight
The forwarder and ultimate consignee must be provided with detailed shipment information, including the packing method, dimensions, and weight of each package, as well as the marks and numbers displayed on the exterior of the boxes.
Main contents of packing list:
Shipper and exporter contact information
Total number of packages within this shipment
A detailed description of each package
The volume and weight of each package
The volume and weight of the entire shipment
Commercial invoice number for this shipment
A Bill of Lading (B/L), often referred to as a sea waybill, is a crucial transport document issued by the carrier, ship captain, or shipping line agent to the shipper once the vessel departs from the port This document serves three primary functions: it acts as a title to the goods, provides a receipt for the shipped items, and outlines the agreed terms and conditions for the transportation and release of the goods.
Name & logo of the carrier
Bill of Lading Number (B/L No.)
Port of Loading, Port of Discharge
Description of Packages and Goods
Place and Date of Issue
The back of the Bill of Lading includes essential information such as definitions, general terms and conditions, the responsibilities of the carrier, procedures for loading and unloading, delivery details, freight charges, surcharges, limitations of liability, and exemptions applicable to the carrier This information is pre-printed by the shipping line, and the shipper has limited ability to modify it.
16 accept it without being able to change it
Customs Declaration is a document required for declaring goods or vehicles when entering or exiting a territory Before Decree 08/2015/ND-CP, paper declarations were mandatory
According to Decree 59/2018/ND-CP, customs declarations can be pre-filled using electronic customs declaration software, allowing for submission prior to arrival at the border gate or within 30 days post-arrival to the VNACCS system.
Once the customs declaration is submitted, the system automatically categorizes it into different lines A Green Line classification means the importer is exempt from document checks and goods inspections Conversely, a Yellow Line classification requires the importer to provide additional documentation, including the bill of lading, for Customs verification.
Import License (for goods subject to import license)
Notice of exemption from inspection or Notice of inspection results from a specialized inspection agency (for goods subject to specialized inspection);
Certificate of Origin (to enjoy EVFTA tariff preferences)
Import License (for goods subject to import license)
Notice of exemption from inspection or Notice of inspection results from a specialized inspection agency (for goods subject to specialized inspection) © Certificate of Origin (to enjoy EVFTA tariff preferences)
Oo 0 0 0 0 Oo 0 0 0 eô Red Line: If the classification is Red Line, the importer must submit the same documents as in the case of the Yellow Line and the Customs will conduct physical inspection for the goods
A Certificate of Origin (C/O) is an essential document issued by manufacturers or authorized agencies, such as the Vietnam Chamber of Commerce and Industry (VCCI), to verify the origin of goods being exported The specific type of C/O required and the applicability of preferential rules of origin depend on the characteristics of the goods and their country of origin.
When shipping products, it is essential to include the producer's name, contact information, and country of origin Additionally, provide the name and contact details of the exporting agent and the receiver or importing agent A comprehensive description of the goods, including the relevant HS codes, should be included, along with information on quantity, size, and weight Lastly, ensure to mention the waybill or bill of lading number for tracking purposes.
17 e Information of means of transportation and route information ô Adated commercial invoice of payment s Any additional notes or remarks
The Health Certificate, issued by the Food Safety Department of the Ministry of Health, is essential for various products including food, food additives, processing aids, utensils, packaging materials, and food containers, and can be obtained upon request by organizations or individuals.
The Health Certificate is a mandatory license required for food product exports to ensure international customs clearance and meet the legal document requirements of the importing country
The Health Certificate serves as proof of the safety and quality of exported food products, enabling regulatory authorities to verify the eligibility of these products for distribution in the importing country.
Types of documents for @XDOFẨ/ẽTTIDOF -.- - LH HH ng khen 14
CUStOMS DeClaration cố Ắ
Customs Declaration is a document required for declaring goods or vehicles when entering or exiting a territory Before Decree 08/2015/ND-CP, paper declarations were mandatory
Under Decree 59/2018/ND-CP, customs declarations can be prepared in advance using electronic customs declaration software These declarations may be submitted prior to the arrival date at the border gate or within 30 days following arrival through the VNACCS system.
After the customs declaration is submitted, the system automatically classifies it into categories A Green Line classification exempts the importer from document checks and goods inspections, while a Yellow Line classification requires the importer to provide additional documents, such as the bill of lading, for customs verification.
Import License (for goods subject to import license)
Notice of exemption from inspection or Notice of inspection results from a specialized inspection agency (for goods subject to specialized inspection);
Certificate of Origin (to enjoy EVFTA tariff preferences)
Import License (for goods subject to import license)
Notice of exemption from inspection or Notice of inspection results from a specialized inspection agency (for goods subject to specialized inspection) © Certificate of Origin (to enjoy EVFTA tariff preferences)
Oo 0 0 0 0 Oo 0 0 0 eô Red Line: If the classification is Red Line, the importer must submit the same documents as in the case of the Yellow Line and the Customs will conduct physical inspection for the goods.
Certificate Of OrigiT - HH HH HH KH HH HH HH 17 F96 e
A Certificate of Origin (C/O) is an essential document issued by manufacturers or authorized agencies, such as the Vietnam Chamber of Commerce and Industry (VCCI), to verify the origin of exported goods The specific type of C/O required depends on the nature of the goods and their country of origin, as well as the applicable preferential rules of origin.
To ensure compliance with shipping regulations, it is essential to include the producer's name and contact details, along with the country of origin Additionally, provide the exporting agent's name and contact information, as well as the receiver or importing agent's details A comprehensive description of the goods must be included, featuring the relevant HS codes, along with specific information regarding the quantity, size, and weight of the shipment Lastly, include the awaybill or bill of lading number for tracking purposes.
17 e Information of means of transportation and route information ô Adated commercial invoice of payment s Any additional notes or remarks
The Health Certificate, provided by the Food Safety Department of the Ministry of Health, is essential for various products, including food, food additives, processing aids, utensils, packaging materials, and food containers This certificate is issued upon request from organizations or individuals to ensure compliance with health and safety standards.
The Health Certificate is a mandatory license required for food product exports to ensure international customs clearance and meet the legal document requirements of the importing country
A Health Certificate is essential for demonstrating the safety and quality of exported food products, providing regulatory authorities with the necessary documentation to verify the eligibility of these products for distribution in the importing country.
To obtain a Health Certificate in Vietnam, compliance with the country's food safety and hygiene regulations is essential, along with adherence to the food safety standards of the importing country and relevant international agreements The certification process for exported products and food items is initiated upon request from the importing nation, and the issuance is overseen by the competent state authority in Vietnam The Minister of Health outlines the necessary documentation and procedures for securing the Health Certificate.
A phytosanitary certificate is an official document that confirms agricultural products have been inspected and are free from pests and diseases The term "phyto" refers to plants, while "sanitary" indicates cleanliness This certificate is issued by the plant protection and quarantine authority to the consignor, ensuring compliance with health regulations for safe trade.
When exporting goods, it is essential to include the name and address of both the exporter and the consignee, as well as the quantity of packaging The document must feature the signature and identification code of the phytosanitary certification authority, the place of production of the goods, and the means of transportation Additionally, it should specify the import port of entry, the name and weight of the product, and the scientific name of the plant.
Fumigation certificate is an approval document issued by the licensing authority to indicate that shipment and shipping materials have been properly fumigated
Main contents: e Seller's name and address
18 e _ Consignee's name and address e Information of goods: name of the goods, quantity, dimensions e Place of fumigation e Date of fumigation
2.3.10Certificate of Quality and Quantity
Certificate of Quantity - Quality - Weight (CQ) is a document issued by a third party, often a reputable independent inspection company, agreed upon by the buyer and seller in the sales contract
The Certificate of Quantity - Quality - Weight (CQ) is essential for verifying that a batch of goods meets the export criteria and adheres to the quality, quantity, and weight specifications outlined in the contract after production.
When drafting a purchase order, it is essential to include key buyer information, such as the name and address of the purchasing company Additionally, provide detailed descriptions of the goods, including product codes, quantities, and total weight Specify the time and location of shipment, clearly indicating the loading and unloading ports Lastly, ensure that the manufacturer’s confirmation is included, featuring the manufacturer's stamp, logo, and the signature and seal of the responsible unit head.
The following international trade contract describes the business transaction between a Vietnamese company exporting goods to a business in Hong Kong - a country in Southeast Asia
Looking at the Sales Contract, it can be easily seen that this contract was drafted on March 07th, 2016 The number of this contract is WR/20160308/012
This contract provides some basic information about exporting company and importing company
No: WR/20160308/012 SELLER: ALLIED DEVELOPMENT COMPANY
101 PHAN DINH PHUNG ST., NINH KIEU DIST CAN THO CITY VIETNAM
2-1, SHIBAURA, 1-CHOME, MINATO-KU, TOKYO 105-8005 JAPAN
CON SIGNEE: CHINA RESOURCES NG FUNG INTERNATIONAL DISTRIBUTION
4/F YUEN FAT BUILDING, 89 YEN CHOW STREET WEST, WEST KOWLOON,
The Seller and Buyer have mutually agreed on the sales and purchase of rice, with the Notify Party being the same as the Consignee The terms and conditions of this agreement outline the responsibilities and expectations of both parties involved in the transaction.
1 DESCRIPTION AND QUANTITY, PRICE AND AMOUNT:
Say in USD: Twenty four thousand seven hundred fifty Dollar only
CIF - Hong Kong, Hong Kong, Incoterms 2010
2 PORT OF LOADING: Any Ho Chi Minh Port, Vietnam
2 PORT OF DESTINATION: Hong Kong Hong Kong
Figure 3.1.1: Illustration of an International Sales Contract
4 PACKING: The shipment is packed in new PP bags with PE inner liners All bags have been property packed to ensure dryness and integrity during transportation
5 MARKINGS: Jasmine Rice § SHIPMENT: Merch 2016
8 INSPECTION: ® Inspection Company: Vinacontrol © The inspection fees are for the Seller's account © The Certificate of quality quantity, weight and packing issued by independent inspection compsny is final st losding port
$ FUMIGATION: Fumigation to be effected after completion of stuffing rice into containers
* 100% contract value must be transferred after received ® ADVISING BANK : JOINT STOCK COMMERCIAL BANK FOR FOREIGN
THO) :NO.7 HOA BINH AVENUE, NINH KIEU DIST : CAN THO CITY, VIETNAM ô BANK ADDRESS
BENEFICIARY NAME : ALLIED DEVELOPMENT COMPANY BENEFICIARY ADDRESS : 101 PHAN DINH PHUNG ST., TAN AN WARD
NINH KIEU DIST., CAN THO CITY, VIETNAM BENEFICIARY ACCOUNT NO : 011 1 37.002042.4
* All bank fee of intermediary bank and receiving bsnk will be at the beneficiary
Bill of lading: 03 Original ‘end 03 copies
Commercial Invoice: 01 original and 02 copies
Packing List: 01 original snd 02 copies
Phytossnitery Certificate issued Ministry of Agriculture & Rural Development, Fumigation Certificate: 01 original and 02 copies
Certificate of Origin - issued by Vietnam Chamber of Commerce and Industry Branch in Ho Chi Minh city: 01 original and 02 copies
Certificste of Weight Quality Packing issued by independent inspection company: 01 origin and 01 copy
12 TAXES AND LICENCES: eee eee
The seller is responsible for any export licenses and associated taxes, duties, or levies in the country of origin, while the buyer must cover import licenses and related costs in the destination country Any delays or failures by the buyer to secure the necessary export licenses will result in additional expenses, damages to cargo, and other costs, which will be the sole responsibility and risk of the buyer.
Force Majeure events, including wars, embargoes, natural disasters like floods and earthquakes, civil unrest, strikes, and government restrictions, are defined under the ICC Force Majeure Clause 2003 These events are conditions beyond the Seller's control that may impact contractual obligations.
In the event of a dispute or claim arising from this contract, if the parties cannot reach an amicable resolution within 30 days, the matter will be referred to the Vietnam International Arbitration Center (V.I.A.C) for final resolution The rules of V.I.A.C will govern the arbitration process, and the resulting award will be binding on both the seller and buyer, with the losing party responsible for all related expenses.
This contract becomes effective upon the signing by all parties involved and will remain in force until all obligations outlined in the agreement are fulfilled.
IN WITNESS WHEREOF, the parties have here into set their hands and seals the day and year first written above
[FUR AND ON BEHALF UF THE SELLER”
Figure 3.1.2: Illustration of an International Sales Contract
Certificate of Quality and QUaTIfV - nh HH HH như 19 “du 9/52 ch
Certificate of Quantity - Quality - Weight (CQ) is a document issued by a third party, often a reputable independent inspection company, agreed upon by the buyer and seller in the sales contract
The Certificate of Quantity - Quality - Weight (CQ) is a crucial document that verifies whether a batch of goods meets the agreed-upon criteria for export, including quality, quantity, and weight specifications outlined in the contract.
When creating a purchase order, it's essential to include key buyer information such as the name and address of the purchasing company Additionally, provide detailed descriptions of the goods, including product codes, quantities, and total weight Specify the time and location for shipment, including the addresses of both loading and unloading ports Finally, ensure the document includes manufacturer confirmation, which should feature the manufacturer's stamp and logo, along with the signature and seal of the responsible unit head.
The following international trade contract describes the business transaction between a Vietnamese company exporting goods to a business in Hong Kong - a country in Southeast Asia
Looking at the Sales Contract, it can be easily seen that this contract was drafted on March 07th, 2016 The number of this contract is WR/20160308/012
This contract provides some basic information about exporting company and importing company
No: WR/20160308/012 SELLER: ALLIED DEVELOPMENT COMPANY
101 PHAN DINH PHUNG ST., NINH KIEU DIST CAN THO CITY VIETNAM
2-1, SHIBAURA, 1-CHOME, MINATO-KU, TOKYO 105-8005 JAPAN
CON SIGNEE: CHINA RESOURCES NG FUNG INTERNATIONAL DISTRIBUTION
4/F YUEN FAT BUILDING, 89 YEN CHOW STREET WEST, WEST KOWLOON,
The Seller and Buyer have mutually agreed on the sales and purchase of rice, with the Notify Party being the same as the Consignee, under the specified terms and conditions.
1 DESCRIPTION AND QUANTITY, PRICE AND AMOUNT:
Say in USD: Twenty four thousand seven hundred fifty Dollar only
CIF - Hong Kong, Hong Kong, Incoterms 2010
2 PORT OF LOADING: Any Ho Chi Minh Port, Vietnam
2 PORT OF DESTINATION: Hong Kong Hong Kong
Figure 3.1.1: Illustration of an International Sales Contract
4 PACKING: The shipment is packed in new PP bags with PE inner liners All bags have been property packed to ensure dryness and integrity during transportation
5 MARKINGS: Jasmine Rice § SHIPMENT: Merch 2016
8 INSPECTION: ® Inspection Company: Vinacontrol © The inspection fees are for the Seller's account © The Certificate of quality quantity, weight and packing issued by independent inspection compsny is final st losding port
$ FUMIGATION: Fumigation to be effected after completion of stuffing rice into containers
* 100% contract value must be transferred after received ® ADVISING BANK : JOINT STOCK COMMERCIAL BANK FOR FOREIGN
THO) :NO.7 HOA BINH AVENUE, NINH KIEU DIST : CAN THO CITY, VIETNAM ô BANK ADDRESS
BENEFICIARY NAME : ALLIED DEVELOPMENT COMPANY BENEFICIARY ADDRESS : 101 PHAN DINH PHUNG ST., TAN AN WARD
NINH KIEU DIST., CAN THO CITY, VIETNAM BENEFICIARY ACCOUNT NO : 011 1 37.002042.4
* All bank fee of intermediary bank and receiving bsnk will be at the beneficiary
Bill of lading: 03 Original ‘end 03 copies
Commercial Invoice: 01 original and 02 copies
Packing List: 01 original snd 02 copies
Phytossnitery Certificate issued Ministry of Agriculture & Rural Development, Fumigation Certificate: 01 original and 02 copies
Certificate of Origin - issued by Vietnam Chamber of Commerce and Industry Branch in Ho Chi Minh city: 01 original and 02 copies
Certificste of Weight Quality Packing issued by independent inspection company: 01 origin and 01 copy
12 TAXES AND LICENCES: eee eee
The seller is responsible for any export licenses and associated taxes, duties, or levies in the country of origin, while the buyer must cover import licenses and related costs in the country of import Any delays or failures by the buyer to secure the necessary export licenses will result in costs, damages, or price differences being the buyer's responsibility, including expenses related to cargo, container demurrage, detention, or storage.
Force Majeure events, including wars, embargoes, natural disasters like floods and earthquakes, civil unrest, and government restrictions, are beyond the Seller's control and are governed by the ICC Force Majeure Clause 2003.
In the event of a dispute or claim arising from this contract, if the parties involved are unable to reach an amicable resolution within 30 days, the matter will be referred to the Vietnam International Arbitration Center (V.I.A.C) for final resolution The rules established by V.I.A.C will govern the arbitration process, and the resulting award will be binding on both the seller and the buyer, with the losing party responsible for all associated expenses.
This contract becomes effective upon the signing by all parties involved and will remain in force until all obligations outlined in the agreement are fulfilled.
IN WITNESS WHEREOF, the parties have here into set their hands and seals the day and year first written above
[FUR AND ON BEHALF UF THE SELLER”
Figure 3.1.2: Illustration of an International Sales Contract
Allied Development Company is located at 101 Phan Dinh Phung St., Ninh Kieu Dist., Can Tho City, Vietnam The company conducts its banking with Joint Stock Commercial Bank, situated at NO.7 Hoa Binh Avenue, Ninh Kieu Dist., Can Tho City, Vietnam, with the swift code BFTVVNVX011.
About the Buyer: Kanematsu Corporation The address is 2-1, Shibaura, 1-Chome, Minato-ku Tokyo 105-
About the Consignee: China Resources Ng Fung International Distribution Company Limited The address is 4/F, Yuen Fat Building, 89 Yen Chow Street West, West Kowloon, Hong Kong
Here, Kanematsu acts as the buyer but is not directly the recipient of the goods Instead, China Resources
Ng Fung International Distribution Company is considered the forwarder, responsible for handling the import procedures for the shipment
The sale contract focuses on the purchase of 50MTs of Vietnam Jasmine Rice 5% Broken from Vietnam to Hong Kong, adhering to the quality standards specified in the attached Specifications sheet The net weight will be confirmed by Vina Control at the loading port, with the Certificate of Quality (C/Q) being final and binding for both parties The unit price is set at USD 495 per metric ton (CIF), totaling USD 24,750 The rice will be packed according to standard export practices and marked as "Jasmine Rice" before being loaded into 20-foot containers The loading port is any port in Ho Chi Minh City, while the discharge port is any port in Hong Kong, with shipment scheduled for March 2016 The seller must notify the buyer of the commodity's status at least seven days before the estimated time of departure (ETD) and provide shipping instructions two days prior The buyer is required to report any issues regarding quantity or quality within seven working days after the arrival notice Payment will be made via Telegraphic Transfer (T/T) of 100% of the agreed amount after shipment.
After the shipment is completed, the buyer is required to transfer the total amount of $24,750.00 This transfer occurs once the shipping documents, including the Bill of Lading, are provided as proof of shipment Payments should be directed to the Advising Bank: Joint Stock Commercial Bank For Foreign Trade of Vietnam, Can Tho Branch (Vietcombank Can Tho).
Address: NO.7 Hoa Binh Avenue, Ninh Kieu Dist., Can Tho City, Vietnam
Beneficiary name: Allied Development Company
Beneficiary address: 101 Phan Dinh Phung St., Tan An Ward, Ninh Kieu Dist., Can Tho City, Vietnam o Beneficiary account no.: 011 1 37.002042.4
Oo 0 0 0 e Taxes and Licenses: Any delay or failure by Buyer to obtain an export license arising from any consequence, cost, expense, damages to cargo, container demurrage/detention or storage and price difference shall be for Buyer's account and risks e The Force Majeure: © If any strike, or sabotage occurs in the origin country, such cases must be certificated by the chamber of commerce of the country in which it happened, which means that if any strike or sabotage occurs in Vietnam, this case must be certificated by the Vietnam Chamber of Commerce and Industry (VCCI) © Force Majeure circumstances must be notified by each party to the other within 07 days and confirmed by writing within 10 days together Beyond this time, Force Majeure circumstances shall not be taken into consideration e =©Arbitration: If disputes arise from this contract and cannot be resolved amicably within 30 days, they shall be referred to the Vietnam International Arbitration Center (V.I.A.C) for resolution V.I.A.C rules apply, and the arbitration award is binding for both parties The losing party bears all expenses
3.2 Bill of lading, mode of transport, and transport route illustration
The main transportation of these goods is by sea And there is no partial shipment or transshipment on this route Goods are delivered directly from Vietnam to Hong Kong
Figure 3.2.1: Illustration of Bill of Lading
The document features a Straight Bill of Lading, indicating that Allied Development Company has delivered rice to China Resources Ng Fung International Distribution Co., Ltd Importantly, this type of Bill of Lading prohibits the consignee from transferring the cargo to another beneficiary through endorsement.
To obtain a Surrendered Bill, shippers must pay an additional Telex Release Fee, which facilitates the delivery process This Surrendered Bill, along with the Telex Release, allows China Resources Ng Fung International Distribution Co., Ltd to verify ownership without the Original Bill of Lading Consequently, it enables consignees to collect their goods from the shipper even when the Original Bill of Lading is unavailable.
The Bill of Lading features essential details including the Shipper's information, listed as Allied Development Company, located at 101 Phan Dinh Phung St., Ninh Kieu Dist., Can Tho City, Vietnam The Consignee is identified as China Resources Ng Fung International Distribution Company Limited, with an address at 4/F, Yuen Fat Building, 89 Yen Chow Street West, West Kowloon, Hong Kong Additionally, the document includes the Bill of Lading number 0396A05247 in the upper corner and prominently displays the WAN HAI logo along with the carrier's address, confirming the document's authenticity.