MINISTRY OF INDUSTRY AND TRADECOLLEGE OF FOREIGN ECONOMIC RELATIONS FACULTY OF FOREIGN LANGUAGES INTERNSHIP REPORT THE ANALYSIS OF THE IMPORT PROCESS IN THE TAN PHU CUONG CHEMICALS LIMIT
Brief history of Tan Phu Cuong Chemicals Limited Liability Corporation .1 1 General information
Foundation and development
Founded in 1978, Tan Phu Cuong Chemical Store began as a subsidiary of Tan Phu Cuong Garment Company with just 10 employees As the textile and dyeing industries evolved, the store adapted to meet the growing demand for chemicals, leading to significant expansion and a dominant market presence.
2002, TPCC was officially established On December 19 , 2002, business license th
Chief missions and business areas
Vision and mission
TPCC is dedicated to a clear and consistent vision, emphasizing strong execution that prioritizes customer satisfaction, as acknowledged by customers, partners, and employees alike The company delivers tangible results in finance, time, and performance, effectively meeting the production and business needs of its customers and partners while also benefiting shareholders.
TPCC's mission focuses on collaborative development, offering comprehensive solutions that encompass customer needs research, product system creation, technical consulting, logistics, financial support, and training The company is dedicated to ensuring a rewarding income and fostering personal growth for all its officers and employees.
Business areas
TPCC primarily operates in the chemicals sector, encompassing both basic and hazardous chemicals, as well as auxiliaries utilized in the dyeing process In addition to its core focus on chemicals, the Tan Phu Cuong Group also engages in real estate and textile dyeing industries.
Organizational structure
Organizational structure
Functions of each department
The department encompasses human resources and administrative staff, with human resources responsible for managing salaries, insurance, and HR policies They oversee staff recruitment and ensure a positive working environment for employees The administration department includes various roles such as legal advisors, security personnel, office drivers, housekeepers, and cooks.
The sales team is essential for identifying international customers and promoting the company's products and services to partners Their role involves effective communication and negotiation with potential clients, securing orders, and overseeing the order process Meanwhile, the support staff plays a crucial role by inputting order details into the system and documenting them for the warehouse department, ensuring timely stock management, accurate forecasting, and organized cargo arrangements to prevent overloading.
Accounting staff play a crucial role in managing orders, inputting data into computer systems, and calculating incurred costs Their responsibilities include collecting and processing invoices to support accurate financial declarations The Finance Department's mission focuses on delivering timely and precise financial reports while overseeing expenditures and revenue collections, essential for the town's operations They also manage cash flow, credit payments, and bank transactions efficiently.
The Purchasing Procurement department comprises document staff, purchasing staff, and customs declaration officers Document staff support the Sales department by managing essential documentation, including Sales Contracts, Proforma Invoices (PI), and Letters of Credit (L/C) Purchasing staff engage with suppliers to negotiate favorable prices, process Sales Contracts from document staff, and finalize orders Customs declaration officers represent the company in interactions with customs officials, handle tax refund applications, and oversee the transportation and storage of imported goods.
The main task of the Warehouse department is to manage the warehouse,supervise the import/export of goods, ensuring that the inventory is always at a "safe" level
CHAPTER TWO: THE ANALYSIS OF THE IMPORT PROCESS IN THE TANPHU CUONG CHEMICALS LIMITED LIABILITY CORPORATION
Flowchart of the import process Tan Phu Cuong chemicals limited liability corporation
Phase of ordering, negotiating transactions, signing contracts
2.2.1.1 Searching for markets and sources of goods to import products TPCC is a partner for many of the world’s leading manufacturers specializing in exporting chemicals such as Longsheng (China), Samwon (Korea), Nicca (Japan), Hansol (Korea), and Kamin (USA) In the future, TPCC will continue to search for other corporations, especially in the UK and US markets You need basic information to implement negotiation such as Product (accuracy according to requests), competitive price, time of delivery, and payment terms and conditions.
2.2.1.2 The calculation of the shipment’s cost
The formula to calculate the final purchase price for imported goods (including incidental costs):
- INV (Invoice): Value of estimated cargo in documentation (is the seller's price shown in the quotation)
- f1: incurred costs at domestic in export country (fl=0 if buying according to EXW)
- X: export tax (X=0 if buying according to EXW term)
- F: international freight forwarder (if buyer hiring transportation)
- I: Insurance cost (If buyer buying insurance)
- N: Import tax (N=0 if buying according to DDP)
- VAT: Value-added tax (VAT=0 if buying according to DDP, VAT= 10% if buying according to DPP and it depends on the product).
- f2: incurred cost at domestic in import country (f2=0 if buying according to DAP/DDP)
- DDP: the amount of cargo imported when it reaches to TPCC warehouse 2.2.1.3 Contract negotiation and signing
Calculating shipment costs enables sales and purchasing teams to negotiate favorable terms in foreign trade contracts For effective negotiations, it is crucial for both parties to have a clear understanding of their competitive advantages and disadvantages.
A contract at TPCC is shown in full of information including the sales contract (SC no), the seller (SAMSUNG), the buyer (TAN PHU CUONG CHEMICALS CO., LTD), commodity:
Table 2.2.1.3.2 Other Terms and Conditions
Pre-delivery period
An import license is a crucial legal requirement for the import and export process of goods The government mandates that certain items obtain a permit from the Ministry of Industry and Trade in accordance with commodity policy before they can be imported or exported.
There are various payment methods for orders, including T/T in advance (TTA), T/T 100% against B/L Copy (TTBL), T/T x days from B/L date, Document against Payment (D/P), and Letter of Credit (L/C) For TTA and TTBL payments, the procurement department initiates a payment proposal after receiving the sales contract, which is then sent to the bank's accountant In the case of TTBL after x days, the debt accountant compiles a debt list for approval by the general director before processing the payment For D/P and L/C payments, the bank accountant opens the L/C, disburses the payment, and receives the original bill and documents for release booking at Sunrise Co., Ltd.
The responsibility for hiring freight for an order depends on the incoterms agreed upon by the seller and buyer, which can vary based on the weight, volume, and characteristics of the goods being transported by sea or air Typically, the seller's transportation is used to deliver the cargo to the port of Vietnam, with TPCC's contracts consistently utilizing CIF (Cost, Insurance, Freight) terms to either Hai Phong or Ho Chi Minh port Consequently, TPCC is not required to purchase insurance for the cargo.
Receipt stage
A set of basic import documentation includes INV (commercial invoice), P/L (Packing list), B/L & AWB (Bill of lading & Airway bill), C/O (Certificate of origin), C/Q (Certificate of quality), the Insurance policy certificate.
2.2.3.2 Implementation of the customs clearance procedure
Customs declarations can be submitted either on paper or electronically, with the electronic method gaining popularity due to its convenience, speed, and streamlined administrative processes To make a customs declaration using the ECUS5VNACCS software, the first step is to log in and access the ECUS software.
Step 2: Setting up the system The selection process is in the following order:
“system”, setting up VNACCS declaration parameters, entering information, recording, and checking internal results.
Step 3: Initializing the import declaration First, you need to register a new import declaration by selecting “Customs declaration” and then “Register new export declaration (EDA)” The initial information in the import customs declaration includes the model code, customs authority (Tan Phu Cuong Chemical Co., Ltd), processing department code, and shipping method code (2: imports full container goods by sea). For fill of lading information of customs declaration, you enter all information about the freight In the bill of lading box, you need to fill in the following information: Bill of lading number, number of bales, expected customs clearance warehouse location code (02CI201, TONG TAN CANG SG), last delivery location (VNCLI, CANG CA LAI HCM), queuing location, means of transportation.
Step 4: Filling in the information for the list item.
Step 5: The import customs declaration transformation After checking the accuracy of the information on the electronic declaration, proceed to declare the declaration information in advance (EDA), by logging in to the company's digital signature and receiving the declaration number and declaration information.
Step 6: Getting the results of the channeling, and printing out the import customs declaration When the declaration is successful, the declaration will be put into the process of customs clearance procedures Businesses continue to click on “4 Get the results of channeling and clearing" this function is similar to "Get feedback from
HQ to receive the results of the flow, customs fees, tax notices, and customs clearance of the declaration.
The TPCC declaration processes vary between Hai Phong and Ho Chi Minh City In Hai Phong, customs clearance staff send documents to VP, a freight forwarding company, which handles the customs declaration by scanning the documents and using their company account The procurement purchasing team leader, Ms Phan Thi My Tu, requests an Electronic Delivery Order (EDO) from shipping lines, forwards it to VP, and ensures it reaches the Hung Yen branch Conversely, in Ho Chi Minh City, customs clearance staff prepare the necessary declaration, while Sunrise, another freight forwarder, manages the procedural aspects The accounting bank staff then pays the required taxes and LCC fees, after which the team leader applies for the EDO and sends it to the shipping unit for transport to the TPCC warehouse.
After completing the import customs formalities, the shipment is officially transported to the destination specified in the sales contract The supplier or shipping line issues the delivery order (EDO) to TPCC, which then wagers the goods The shipping line returns the wager to TPCC upon the return of the undamaged empty container In certain situations, TPCC may not pay the wager if it is not mandated by the supplier TPCC collaborates with forwarder partners, including Hong Thanh Forwarder Co., Ltd, Sunrise, and VP, to facilitate the transportation of cargo from Vietnam’s ports to the TPCC warehouse.
Business performance in recent years
Business results of TPCC from 2020 to 2022
Table 2.3.1 TPCC Revenue – Cost – Profit in 2020 – 2022
The company's business performance has been successful, with continuous revenue growth over the years In 2022, TPCC reported a revenue of 1,296 billion VND, reflecting a 5.6% increase from 1,219 billion VND in 2021, and a notable 10.2% rise compared to 2020 However, this increase in sales has also led to a significant rise in costs for TPCC.
The reality of TPCC’s import
The Ministry of Industry and Trade report shows that in the first seven months of
2022, chemical import turnover increased by 30.2% up to the same period last year. There is a big difficulty to import chemicals and dyestuff at high prices for businesses, including TPCC
Chart 2.3.2 Total import shipments from 2018 – middle 2022
The import quantity of TPCC has declined due to several factors, including the impacts of Covid-19, inflation, and the ongoing war between Ukraine and Russia These circumstances have led to rising material prices, prompting consumers to prioritize savings over clothing purchases Consequently, there has been a noticeable decrease in the import of chemicals used for dyeing.
Discussions of the process
Strengths
TPCC is a prominent and reputable company specializing in textile dyeing, offering a diverse array of chemical products tailored for various industries Their extensive product range caters to sectors including textile dyeing, fabric printing, printing inks, paints, paper, wood, rubber, plastic, and packaging, ensuring high-quality solutions for all coloring and auxiliary needs.
TPCC collaborates directly with foreign partners, eliminating intermediaries to lower costs, mitigate risks, and enhance its proactive approach to business This strategy enables TPCC to penetrate markets effectively and identify new business opportunities With a growing demand for chemicals in recent years, TPCC has built a strong brand reputation, solidifying its prestige both domestically and internationally.
Each department within the company plays a vital role in a cohesive workflow, particularly supported by a modern information technology system When an imported shipment arrives, information swiftly circulates between departments to ensure timely order processing and planning For instance, upon confirming a contract with a supplier, the purchasing staff submits a payment proposal and forwards the contract to the accounting department, which calculates incurred costs, total values, and debits Subsequently, the support department communicates relevant updates to both the warehouse and sales teams.
Weakness
TPCC struggles with cost optimization, particularly due to CIF Incoterms that incur additional fees There is a lack of uniformity in goods information between the warehouse and bookkeeping staff, resulting in discrepancies in quantities and order names across three data sources: rosy, manual, and warehouse Additionally, the warehouse management process is neither synchronized nor standardized, causing significant coordination issues between departments Most critically, there is an absence of environmental protection measures in the event of chemical leakage, posing serious risks.
Solutions to complete the process of imported goods of TPC chemicals
To enhance the import process, TPCC should consider switching to FOB terms to reduce costs and gain autonomy in carrier selection while also securing insurance for their goods It is crucial for TPCC to implement strict regulations on bookkeeping and inventory management within the warehouse, improving communication between departments through electronic means or appointing a liaison for better coordination Additionally, preventive measures against chemical leaks, especially for hazardous materials, must be prioritized Warehouse staff should conduct thorough inspections of incoming goods to identify any damages, and in the event of a chemical leak, immediate safety protocols must be followed, including transferring the substance to a secure container and properly treating any leaked material to minimize environmental exposure Finally, TPCC should equip their team with specialized protective gear and essential training to effectively handle chemical incidents.
Lessons and experiences
During my three-month internship at TPCC, I acquired valuable practical experience in the import and export sector, learning essential skills such as supplier communication, bookkeeping, and customs declaration Additionally, I developed important soft skills, including document management and proficiency in software like Excel and Word This experience allowed me to identify my strengths, such as my quick understanding and application of new knowledge, effective listening, and self-research capabilities However, I also recognized my limitations, particularly a lack of initiative at work, which I am committed to improving.
I am taking an MC course to enhance my confidence and comfort in communicating and collaborating with my colleagues Currently, my lack of professional skills affects my efficiency and responsiveness to tasks I am committed to continuous improvement and acquiring the necessary knowledge to excel in my current role and future opportunities.
Suggestion
Company
The internship training program at TPCC offers significant advantages, as it is a leading company in textile and dyeing chemicals with a diverse organizational structure This environment allows me to learn from experienced professionals in import and export The friendly staff in the purchasing department have been supportive from my first day, and the training room has established a small group to facilitate my inquiries about the job I hope that TPCC will continue to provide opportunities for students to engage in specific tasks related to their field of study in the future.
School
During my internship, I observed that while the school's training program provides relevant theoretical knowledge, it is essential to complement this with practical experience to enhance students' confidence and industry understanding I believe future courses should include more workshops and contact sessions with businesses, as well as increased practical time in companies, allowing students to adapt to the working environment and apply their learning effectively Additionally, the current soft skills courses are too general and need to be more tailored to specific situations to better prepare students for graduation Furthermore, students often struggle to find suitable internship opportunities aligned with their majors; although the school has provided a document to assist with this, access issues have hindered its effectiveness.
Therefore, I hope that the school can give its best support to students in this regard such as making a list of companies that accept interns.
-Anh Pham (2019) Tu hoc xuat nhap khau thuc te Phong phat hanh sach thu vien xuat nhap khau
-Lan Anh (2022) Làm sao thoát lệ thuộc hóa chất nhập khẩu Retrived on January 01, 2023, from https://congthuong.vn/lam-sao-thoat-le-thuoc-hoa-chat- nhap-khau-217600.html
-Huong Tran (2016) Báo cáo thực tập giữa khóa Retrived on January 01,
2023, from https://www.academia.edu/28679567/B%C3%A1o_c
The electronic customs declaration process for imported goods, known as VNACCS, streamlines the clearance of shipments in Vietnam This system enhances efficiency by allowing businesses to submit their customs declarations online, reducing paperwork and processing time Implementing VNACCS not only simplifies compliance with regulations but also promotes transparency and accountability in the importation process For more detailed information, visit the source at Vinalink Logistics.
2 Samples of documents for order at TPCC