the procedure of importing FCL cargoes nguyen THi THuy duong GMA0303

Significant changes in economic and socio-economic mechanisms of theeconomic paradigm shifted to Asian Dragon Logistics new opportunities andopportunities but also posed difficulties and

Logistics is a tool to link the activities in Global Value Chain and is seen as atool, a means to link many different areas of business strategy Logistics is veryimportant for economic development in Vietnam Logistics services contribute toimproving management efficiency and reduce costs in the production process,enhance the competitiveness of enterprises Logistics services contributed toincrease the business value of the transport companies

Acknowledging the importance of logistics in economics development inVietnam, I decide to take my internship in Asian Dragon Logistics company, adeveloping logistics company in Haiphong I hope this internship will provide mepractical knowledge, enhances my understanding of theories studied at the VietnamMaritime University

In this report, I discuss about the procedure of importing the full containerloaded cargoes By observation and practice, I expect to present clearly andaccurately this procedure at Asian Dragon Logistics company

My report presents in detail the procedure of importing full container loadedcargoes at Asian Dragon Logistics company before analyzing and comparing it withthe procedure in fact By unbiased evaluation, I give some comments about thestrengthes, weaknesses, as well as proposing suggestions to improve this proceduremore efficiently and advanced

I confirm that this dissertation is my own work, is not copied from any other person's work (published or unpublished), and has not previously submitted for assessment either at Vietnam Maritime University or elsewhere

If violated, I am solely responsible for and bear the punishments of theuniversity

Signature of student

[ Nguyen Thi Thuy Duong ]

During the internship and completion of this internship report, I received thehelp and support of the Asian Dragon Logistics company and the enthusiasm of thestaffs I would like to express his sincere gratitude to everyone who has beeninterested in helping in the past

Besides, I would like to thank my instructor Tran Hai Viet who has alwaysfollowed the guide carefully so that I can complete the internship as well ascomplete this internship report

Finally, because of the limited time and money in the implementation process,the subject inevitably certain limitations, I am looking forward to receiving valuablecomments from teachers and businesses to complete my internship report

Necessity of research topic

The economy of our country has shifted to market mechanism with manyeconomic sectors involved in the fields of the national economy including theimport and export service In that situation, Asian Dragon Logistics companyentered into a fierce competition with other economic organizations operating in thefield of import forwarding

Significant changes in economic and socio-economic mechanisms of theeconomic paradigm shifted to Asian Dragon Logistics new opportunities andopportunities but also posed difficulties and a big challenge for each step ofdevelopment of shipping service of marine Asian Dragon Logistics

Recognizing the importance of forwarding activities and through theinternship time at Asian Dragon Logistics Company, I chose the topic "Research onthe procedure of importing full container loaded cargoes at Asian Dragon Logisticscompany " to write a graduation thesis The purpose of this thesis is learning moreabout the importing full container loaded cargoes process at Asian Dragon Logisticscompany as well as finding strengths and weaknesses through which to proposemeasures to improve the efficiency of the procedure of importing full containerloaded cargoes

Statistical methods, synthesis, comparison, control of chapter 2

Group discussion method, system thinking and based on the viewpoint of theauthor propose solutions Chapter 3

Research findings

The procedure of importing full container loaded cargoes at Asian Dragon Logistics company

Situation and solutions to complete the procedure of importing full container loaded cargoes at Asian Dragon Logistics company

CHAPTER 1 LITERATURE REVIEW

1.1 Freight Forwarding activities.

1.1.1 The definition of Freight Forwarding

1.1.1.1 Freight Forwarding service

According to the unified rules of service delivery personnel of internationalfederations of International Federation of Freight Forwarders Associations(FIATA): “Freight Forwarding is any service related to the transportation,consolidation, storage, loading, unloading, packaging or distribution of goods aswell as ancillary services and consultancy relating to the provision of services Thisincludes, but is not limited to, customs or financial matters, the declaration of goodsfor official purposes, the purchase of insurance for goods and the collection ofmoney or the making of documents relating to the goods.”

Therefore, basically, freight forwarding is a collection of jobs related to thetransport process that involves moving goods from the shipping place (the shipper)

to the place of receipt (the consignee)

The concept of logistics services is broader, and it has an impact from thepre-production stage until the goods arrive at the hands of the end consumer.According to this concept, logistics services involve both the importation of rawmaterials and fuels as inputs to the production process, the production of goods andthe distribution and distribution channels to reach the end-users This definition oflogistics services contributes to a clear distinction between individual serviceproviders such as transportation, delivery, customs, distribution, manufacturingsupport, With a professional logistics service provider, we take on the wholeprocess of forming and delivering to the end consumer Freight forwarding is part oflogistics Professional logistics service providers require a solid professionalexpertise to provide a "package" service to manufacturers This is a highlyspecialized job

1.1.1.2 Forwarder

A person who businesses freight forwarding service is called Forwarder orFreight Forwarding Agent The forwarder may be the owner, ship owner, loadingand unloading company or warehouse, professional forwarder or any other personwho has registered for the forwarding business

Chau (2008) argues that "a forwarder is a worrier for the goods to betransported under a fiduciary contract and acting in the interest of the fiduciary buthimself is not the ferryman The forwarder also undertakes all work related toforwarding contracts such as: storage, warehousing, transshipment, customsclearance, inspection "(Chau, 2010, p 03)

In the beginning, the freight forwarder usually only acts as an agentperforming some tasks entrusted by importers such as loading and unloading,

warehousing, consolidation, paperwork, transportation Domestic, procedures forpayment of goods

Currently, not only does the forwarder perform customs procedures, buthe/she also provides a full service package on the whole process of transportationand distribution of goods

1.1.2 Classification

1.1.2.1 Classification according to delivery criteria

First-party logistics: The owner of the goods himself organizes and carriesout the delivery and delivery activities to meet his own needs In this form, theowner must invest in means of transport, warehousing, labor First-party deliveryincreases the size of the business and often reduces business efficiency because thebusiness is not sufficient The necessary tissue, experience and technical skillscomplete all steps to achieve the absolute quality in forwarding operations

Second-party logistics: The second-party logistics provider is a serviceprovider for a single activity in the chain of forwarding operations (transportation,warehousing, customs clearance, etc.) to meet Needs of the owner This categoryincludes: shipping, road, air, shipping companies, customs document…

Third-party logistics: is the person on behalf of the owner of the goods thatmanages and carries out delivery activities for each functional department, forexample, on behalf of the consignor carrying out the export and transit procedures

On or on behalf of the importer clearing and shipping goods to the destination to theregulation Therefore, the third party delivery includes a variety of services,incorporating the rotation, storage of goods Transport, and integrated into thesupply chain of customers

Fourth-party logistics: the integrator or the integrator, associating theirresources, potentials, and technical and scientific facilities with other organizations

to carry out, build and operate the solutions Delivery activities Fourth-partyforwarding is aimed at forwarding management, merchandising management fromthe place of production, entry and exit formalities, delivery to the final destination

1.1.2.2 Classification according to commodity criteria

Fast consumer goods delivery is the delivery process of short-term consumergoods such as clothing, footwear, food…

Automotive industry logistics is the delivery process for the automotiveindustry

Chemical delivery is a forwarding activity serving the chemical industry,including hazardous and dangerous goods

Electronic freight forwarding

Petroleum Freight Forwarding.

1.1.2.3 Classification according to transportation criteria

1.1.2.3.2 Road transport

Roads are a popular mode of transport, providing reliable, fast and reliabletransportation This method is particularly popular for the transportation of goodssuch as children's toys, watches, candy, agricultural products, dairy products

The salient advantage of this approach is high flexibility, which can providedoor-to-door services quite effectively, especially in the United States, wheremodern roads and facilities are thriving

According to Info TV statistics, by the end of 2012, the volume of goodstransported by road has increased steadily over the years This mode oftransportation is an important part of being able to meet the needs of customers atrelatively cheap prices (Customs, 2013)

1.1.2.3.4 Air transport

In stark contrast to waterway transport, air transport is only suitable forgoods with small volume but high value, especially goods that need to be

transported in short time such as rare goods, vegetables Fruits, fresh food, fashionitems, special goods.

Often, customers will choose this method when there is no other way,because of the following reasons: the freight is too high, the procedure iscomplicated, it requires a lot of paperwork and certification, and it cannot providedoor-to-door service, but only from port to port Despite the weaknesses mentionedabove, airfreight in the necessary cases is still used because of two majoradvantages: the speed of transportation is very fast and the safety is very high

1.1.2.3.5 Pipelines transport

This is a specialized mode of transportation, just to transport items such asgas, dry oil, clean water, chemicals or peat Pipeline transportation providescustomers with very high levels of service at an acceptable cost In this method theproduct is delivered on time because the product flow through the pipe is controlledand controlled by the computer, so that labor costs are cut It rarely loses ordamages and is unaffected by the weather when the goods are transported in thetube

1.1.2.3.6 Multimodal transport

Multimodal Transport, or Combined Transport, is a method of transport thatcombines two or more modes of transport to transport goods between two or morecountries on the basis of one Multi-modal transportation contract

1.1.3 The role of freight forwarding

Freight forwarding contributes a part of added value to products andservices First of all, the delivery meets the requirements of the customer in terms oflocation: the product is only valid when it reaches the consumer, if it is transported

to the right place; it means the value of the goods increased At the same time, italso meets the need for time, the choice of transport means of delivery and deliverywill decide whether the goods arrive in time or not Value added is the fact thatcustomers get services or products in the right place at the right time

In addition, forwarding plays a particularly important role, as the cost offorwarding accounts for a growing proportion Therefore, delivery and delivery willdirectly affect the business performance and competitiveness of enterprises in themarket

Because of forwarding is so important, administrators are not only concernedwith the cost of delivery of their organization, but also about the cost of delivery ofthe competitor as this cost has a major impact to the competitiveness of the twoorganizations

Freight forwarding is an indispensable activity in every organization In eachindustry the cost of high or low delivery varies But whether high or low cost ofdelivery is an indispensable cost Even without considering cost, delivery still plays

a very important role If materials cannot be provided in the right place at the righttime, production will be interrupted, cannot be carried out continuously, resulting inserious consequences.

1.2 Freight forwarding of importing full container loaded cargoes in Vietnam

1.2.1 History

At the beginning, the forwarding was only domestic The task of forwardingnow is to clear customs clearance for imported goods as a Customs Broker Then,the forwarding operation expands to either export or import goods depending on thepurchase activity On the basis of state authorization, forwarding may be on behalf

of the exporter or importer to declare and carry out customs procedures as acustoms broker

Previously, forwarder did not take on the responsibility of the carrier.Forwarding is just a bridge between the shipper and the carrier The forwarderreceives another commission from the shippers or from the carrier to carry outvarious tasks such as receiving goods, delivering goods, making documentation,customs procedures on the basis of the trust contract In Europe, forwarders haveprovided consolidation services for ocean freight Particularly in containerizedfreight, consolidation services are indispensable to turn less than container load(LCLs) into full container load (FCLs) to take advantage of container carryingcapacity, capacity and reduce shipping costs

1.2.2 Nowadays

Until today, imports of FCL in our country today are increasing Particularly

in 2013, FCL imports increased sharply; due to the governments reform policy onpreferential import duty as follows:

Reducing the import tax rate of 214 tariff lines, with an average tax cut of 2.85percent, such as:

Thanks to the reduction of import tax, domestic enterprises are stepping upimporting more, while the importing of FCL cargoes has a large proportioncompared to LCL The highlight of this policy is the reduction of import tariffs ontechnology goods such as laptops, telephones which help expand the Vietnamesecustomer base, enabling more people to have access to information technology andavoid the backward situation compared to the age

FCL imported makes the goods easier to manage The goods will be in thesame product, the same product characteristics, quality, and convenience forforwarders in all aspects: arranging, shipping, customs clearance Based on thecurrent situation it will grow not only in 2013, but also in the next years

1.2.3 The role of importing FCL cargoes

Freight forwarding of importing FCL cargoes has a great impact on thedelivery and delivery, it helps the delivery and delivery of goods fulfilled their task:providing full, accurate, timely materials For domestic production

Importing and exporting of FCL cargoes are a part of logistics, which is part

of logistics Therefore, it also plays a very important role

It builds a strategy for delivering, receiving goods in a scientific andreasonable way, identifying the specific shipping route, and the appropriateshipping carrier In addition, the delivery of goods to the container area to promote,urge and control the goods during the process of delivery more tightly, avoiding theloss of goods loss, withdrawal of transportation time

1.2.4 Factors affects to the forwarding of imported FCL cargoes

1.2.4.1 Policies, laws in domestic and international

This is very important directly affect the delivery of imported FCL cargoes,which obliges the parties to comply unconditionally Because it demonstrates theParty's will to lead in a country, the universal unity of the world, protects theinterests of countries around the world

The development of freight forwarding services is directly influenced by thedevelopment of international trade Meanwhile, international trade depends a lot onthe political and legal elements of each country These factors can facilitate ordifficult for import forwarding services When a country has a stable politicalenvironment, it will create trust for foreign and domestic investors and foreigners,and a clear and transparent legal system in line with international law will increasethe exchange rate between countries From there, it increases the amount of freightforwarder and vice versa

With regard to customs policy, previously, the customs will help the customsowner clear the customs declaration, but now the responsibility for the declaration iswith the goods owner This helps the customs tax evolve so well, that the expert in

this field is none other than the forwarder Therefore, the position of forwarding hasbeen improved

1.2.4.2 Exchange rate

The factor of exchange rate is important in determining the item, partner,business plan, and business relationship of not only one business but also the wholeindustry The change of this factor will cause a strong fluctuation between importand export ratios

1.2.4.3 Banking and financial system

The financial and banking system intervenes deeply to the import and export

of raw materials, which play an important role in the management and provision ofcapital, in charge of efficient payment

1.2.4.5 Fluctuations between domestic and foreign markets

Imagining the importation as a bridge between foreign markets and ourcountry All fluctuations in domestic or foreign markets have a strong impact oneach other This is an international freight forwarding operation by sea so any of theworld's smallest fluctuations are likely to be affected by rising oil prices, epidemics,and conflicts in the Middle East… has led to increased services and the volume ofocean freight has also changed significantly

In addition to the policies of the countries as well as the world for this type

of shipping and forwarding services Most importantly, sea transport in the WorldTrade Organization (WTO), particularly Vietnam, has officially joined theorganization

1.2.4.6 The production base as well as the development of domestic and international trade enterprises

They decide on the circulation of goods If the development of foreignproduction increases the ability to import, create new products convenient, modern,attractive import demand and vice versa

Stability or economic instability has a direct impact on the delivery service.Economic stability is first of all financial stability, monetary stability, control ofinflation

The activities of import and export of goods are closely related to the freightforwarding FCL cargoes The volume of imports and exports is plentiful, newforwarders have goods to deliver and receive imported goods; vice versa freightforwarding of imported FCL cargoes are not developed

1.2.4.7 Infrastructure communications system

Implementation of import activities is inseparable from transport andcommunication Thanks to the communication, the delivery is carried out in atimely and speedy manner In recent years, science and technology has boomed,

creating countless opportunities and challenges for businesses Technologicaladvances can have profound impact on products, services, markets, suppliers itcan create new markets, new competitive positions

1.2.4.8 Natural conditions

Freight forwarding is the activity of shipping and related services so thatgoods move from the sender to the consignee so it is subjected to a great deal ofweather conditions In the process of rowing on the sea, if living quietly is goodweather, the goods will be much safer On the contrary, if meeting the sea, tsunamiearthquakes, even the heavy rain and wind, the risk of loss or damage is very great

It is not just natural calamities; it is only the temperature change between twodifferent geographical areas that can affect, such as making the goods steamed, topreserve the need for preferring measures Incorporate a special container such asFully Ventilated Contender That increases transportation costs a lot

1.2.5 The necessity to complete the procedure of importing full container loaded cargoes

Our economy is gradually becoming a market economy In addition, with theopening policy of the economy, more and more foreign enterprises are engaged inimport and export activities, which lead to the need to modernize and standardizethe procedure of importing full container loaded cargoes becomes more drastic

The procedure of importing FCL cargoes of Vietnamese enterprises isweaker than foreign enterprises because our country has just transformed theeconomy The situation of freight forwarding FCL cargoes of Vietnameseenterprises is fierce and pinched by importers More than half of procedure ofimporting FCL cargoes of Vietnamese enterprises is characterized by snatching,scrambling, unhealthy

Transport services play an important role in economic growth According to

a study by the World Bank (2004), freight forwarding has marginal productivityhigher than others (Oanh, 2004) In the current trend of international economicintegration, the role of forwarding FCL cargoes is increasingly important Itcontributes to increasing national turnover, increasing foreign exchange earningsand employment The contribution of this service to the increasing proportion ofGDP

Completing the procedure of importing FCL cargoes for container shipping is verynecessary and important, contributing to speed up the exchange of goods with othercountries in the world, facilitating the simplification of documents and commercialprocedures Customs, and other legal procedures, appealing to foreigners havingbusiness relationships with local businesses Work is more efficient, more logical

To create order in work, improve the productivity of employees, improve thequality of work, and promote the rotation of the entire procedure of importing FCLcargoes Maximize your profits, giving you the minimum cost for your business

Facilitate the country to have more foreign exchange earnings, improving part of thecountry's fiscal balance It can be said that finishing the procedure of importing FCLcargoes is associated with the economic development of the country

CHAPTER 2 CURRENT STATE OF THE PROCEDURE OF IMPORTING FLC CARGOES AT ASIAN DRAGON

 Legal form: Joint stock company

 Address: No 1Cat Linh, Dong Da, Ha Noi

 Certificate of business registration number: 0103002086, issued by Hanoi Authority for Planning and Investment

Transportation Business Department

Sale Import and Export Costs Customs e Transport ation Domestic

Secretary of General Manager

Human Resource Department

Accounting Department

Other Business Department

*General Manager

Managing and running day-to-day business operations of the company, in

cooperation with the deputy director, discussing the direction, objectives and implementation of the company's operations over the long and short term

*Assistant of General Manager

Managing 2 main areas of business activities: Transportation Business and

Commercial Business

Commercial Business Department

+ 1 staff of supply

- Find supplies of all types of goods that can be imported or exported

(Agricultural / food / industrial / luxury products )

- Make a cargo profile (Name / quality specifications of goods / origin /

interpretation of the problem)

- Make a bid price list (general price list)

- Make segment analysis and market demand

- Make a commercial contract

- Make a price list (General Price list)

- Make segment analysis and commodity market demand

- Make a commercial contract

Transportation Business Department : divide into 2 main parts: Sales and

fulfillment of orders

+ Business: divided into 3 main groups: each group of 8 or 10 sales

- Group 1: Import and export freight: includes import and export goods by sea, with FCL and LCL cargoes

- Group 2: customs clearance: goods include conventional goods, difficult goods, goods confiscated at warehouses, banned goods, received as required documents forexport and import

- Group 3: domestic transport sales: including: barges, trains, trucks, container trucks, inland water from south to north, FCL and LCL cargoes

After the sales person has customer information, complete the following:

- Make a list of customer information

- Contact the carrier to check the price

- Make a quote of the company and send it to the customer

- Negotiation completes the transaction

- Transfer the records to the order settlement department

- Make a list of customers

- Planning customer care

+ Settlement of orders: including 3 employees: Documents + Customs + Delivery: sales records to the department, the department is responsible for order processing

*Secretary of General Manager: Managing 3 main areas: Human Resources +

Financial Accounting + Separate Income

Human Resource Department

- Up the job description (Vacancies / requirements / salary / location)

- Create accounts on all recruitment forums / exchanges / exchanges

- Post the recruitment

- Form interview + form interview + interview appointment

- General exchange with personnel

- Sign the probation agreement

- Submit the labor contract

- Manage and supervise human resources

- End of the labor contract

Accounting Department

- Associate with chief accountant, clearly set accounting books and payables

- Monthly business results report

- Financial transparency

- Sales orientation (combined with assistant)

- Set monthly salary costs.

- Planning total marketing expenses monthly

- Define the cost of Tet bonus; reward the achievement of the year

- The business equipment includes 15 computers, landline phones: 02 main

computers in the reception room, 05 mobile cameras, mobile scan machines, 02 printers, 02 fax machines

- Due to limited capital, the company does not invest in warehouses, container trucks, etc., but mainly outsourced when needed

2.1.4 Business activities

- Road passenger transport in urban and suburban areas (excluding bus transport);

- Other road passenger transportation

- Cargo transportation by road

- Coastal and ocean passenger transport

- Coastal and ocean freight

- Inland waterway passenger transportation

- Inland waterway transportation

- Warehousing and storage

- Support services directly for rail and road transport

- Direct support services for water transport

- Loading cargo

- Other supporting services related to transport (Main)

- Motorized car rental

- Other business support activities remaining

2.1.5 Business results

2.1.6 Orientation and future plans

2.2 Current state of the procedure of importing FCL cargoes at Asian Dragon Logistics Company.

2.2.1 The procedure of importing FCL cargoes at Asian Dragon Logistics Company

1 The owner delivers the receipts to the forwarder of the forwarding company(original bill of lading, original invoice, original packing list, original contract,original C/O)

2 The forwarding office checks the documents

3 Forwarders take D/O

4 The freight forwarder collects the necessary documents to compile the customsclearance dossier for the imported goods.

5 The forwarding agent shall submit the set of customs formalities to theregistration office at the border or customs office of the city (province)

6 Receipt of receipt from the customs officer who received the packet

7 Go to customs to monitor the yard to compare the order

8 Containerized cargoes to find containers, request to lower containers (if needed)

9 Involve the inspector in inspecting the imported goods

10 Receive the inquiry ballot from the inspector (if any)

11 Submit the assessment solicitation (if any) and the dossiers requesting theexpertise of the goods owner (if any) to the assessor

12 To receive the slip of request for assessment (if any) from the assessor

13 Submit the request for assessment and the application for goods clearance whilewaiting for inspection results for the inspector

14 The tax team re-calculates taxes (if any)

15 The tax team will issue a tax notice (if any)

16 District leaders review files

17 The forwarder shall take the customs clearance declaration

18 Go to the shipping agent to get the full container or intestines at the yard, chargecontainer storage (if any)

19 Go to the commercial affair, pay and get the bill

20 In the moderator's room, submit a receipt for employee mobility slip If takingfull container, go to the container forwarding and receive the container delivery

21 Contact forklift truck

22 Guide the forklift to the loading dock

23 Car loading

24 Carrying a bill (trucking bill)

25 Receipt of payment of clean containers after bowel withdrawal (if any)

26 Liquidation of goods at customs gate

27 Delivery to the recipient