33 COMPLETING LOGISTICS PROCESS FOR IMPORTING FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY

This study investigated the reality of FCL import logistics process at VNLOGS Import-Export Joint Stock Company from the view point of afourth year student of the faculty customs and tra

I hereby declare that this thesis is my own work and effort It hasnot been submitted anywhere for an award Whatever informationsources have been used, they have been acknowledged

Signature Bui Thi Kieu Trinh

This study investigated the reality of FCL import logistics process

at VNLOGS Import-Export Joint Stock Company from the view point of afourth year student of the faculty customs and trade foreign, theAcademy of Finance The paper aims at finding out the drawbacks in thecompany’s FCL import logistics process and the reasons, and moreimportantly suggesting the main methods to improve FCL import andexport logistics processes in company In achieving these aims, thegraduation paper surveys the current situation of the FCL importlogistics process and assesses whether it is effective or not Fromreceived results, the study argues the most practical implications atVNLOGS Import-Export Joint Stock Company to complete steps in thecompany's FCL import logistics process next year

I would like to express my deep gratituation to all those who havegiven me the possibility to complete this graduation thesis In preparingthis graduation thesis, I have had generous help and invaluable advicesfrom my teachers, my colleagues, my family and my friends I would like

to express my great thanks to all of them

First of all, I would like to express my deepest gratituation to mysupervisor, Vu Duy Nguyen, lecturer of Academy of Finance, who hasgiven immeasurable help, constant guidance with many carefulinstructions, comments and valuable advices to me whenever I need.Without her support, I am not able to have a complete thesis And I reallyappreciate her patience in reading and correcting my thesis

Secondly, I wish to show my sincerely thanks to all of my teachers

at Academy of Finance, who have provide me with worthy lessonsthroughout 4 years of studying

Moreover, I have to thank the staffs of VNLOGS import export jointstock company for their valuable supports during my internship period.Without their helps, it would be impossible for me to finish this work

Last but not least, I would like to send my loving thanks to myfamily whose great love and care in both spirit and health encourage me

to complete the thesis

TABLE OF CONTENTS

DECLARATION i

ABSTRACTS ii

ACKNOWLEDGEMENT iii

TABLE OF CONTENTS iv

LIST OF ABBREVIATIONS vii

LIST OF TABLES viii

LIST OF CHART ix

INTRODUCTION 1

CHAPTER 1:THEORETICAL BACKGROUND OF LOGISTICS PROCESS TO IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY 5

1.1 OVERVIEW OF FCL 5

1.1.1 Definition of FCL 5

1.1.2 Characteristics of FCL 6

1.2 Logistics process to import FCL 15

1.3 Factors affecting the logistics process of importing FCL 18

1.3.1 The subjective factors 19

1.3.2 The objective factors 20

CHAPTER 2: CURRENT SITUATION OF LOGISTICS PROCESS FOR IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY 21

2.1 OVERVIEW OF VNLOGS IMPORT EXPORT JOINT STOCK COMPANY 21

2.1.1 Foundation and development of VNLOGS Import and Export Joint Stock Company 21

2.1.2 Business activities, tasks, functions 26

2.1.3 Overview of production business activities of VNLOGS Import

and Export Joint Stock Company (2016-2018) 28

2.2 Complete the steps in Logistics process to import FCL of VNLOGS Import - Export Joint Stock Company 30

2.2.1 Signing contracts 30

2.2.2 Chartering and insurance services 31

2.2.3 Customs declaration service 34

2.2.4 Check D / O 44

2.2.5 Receiving goods at port for full container cargo (FCL - Full Container Load) 45

2.2.6 Road transport service 47

2.2.7 Loading and unloading goods at warehouses 48

2.2.8 Complete and give document back to customers 49

2.3 Assessment of the status according to SWOT Matrix 50

2.3.1 Strengths 51

2.3.2 WEAKNESSES 53

2.3.3 Opportunity 55

2.3.4 Threats 58

CHAPTER 3: DEVELOPMENT ORIENTATIONS AND SOME SOLUTIONS TO IMPROVE EFFICIENCY OF LOGISTICS PROCESS TO IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY 60

3.1 Orientation and objectives for future development of VLOGS Import Export Joint Stock Company 60

3.1.1 Orientation for future development of VLOGS Import Export Joint Stock Company 60

3.1.2 Objectives for future development of VLOGS Import Export Joint Stock Company 62

3.2 SOME SOLUTIONS TO IMPROVE EFFICIENCY OF LOGISTICS PROCESS TO IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK

COMPANY 63

3.2.1 Promote marketing strategy 63

3.2.2 Market expansion 64

3.2.3 Improve service quality 65

3.2.4 Remuneration policy for employees 66

3.2.5 Increase capital effectively 67

3.3 Requirements to complete each process of implementing FCL import logistics activities of VNLOGS Import-Export Joint Stock Company 69

CONCUSION 78

REFERENCES 79

LIST OF ABBREVIATIONS

Descriptions and Coding Systerm

LIST OF TABLES

Table 2.1: revenues of VNLOGS Import and Export Joint Stock Company

in the period of 2016-2018 29Table 2.2: Report on production and business results of Vnlogs Import-Export Joint Stock Company in the period of 2016-2018 30Table 2.3.: shipping lines that Vnlogs import-export joint stock companyoften contact 32Table 2.4: Statistics table of the number of declarations the company hasdeclared 43

LIST OF CHART

Diagram 2.1: Logistics process to import FCL 15Diagram 2.2: Organization of management of VNLOGS Import and ExportJoint Stock Company 23

1 Necessity of the study

Any country that wants to survive and grow, its business plays animportant role In particular, in the era of economy following the trend ofglobalization as today, accessing to the world market is an essential thing.Foreign trade is a bridge to help exchange goods between domesticenterprises and foreign businesses through trading Import and exportactivities are among the important activities that have a profound effect on thewhole economy and bring significant benefits to each country, especiallydeveloping countries like Vietnam In order for export and import activities totake place smoothly and effectively, the import-export process must becarried out logically, scientifically and professionally

Along with the continuous development of the economy with thedevelopment of technology learning, the process of import and export ofgoods has been simplified and much easier to implement However, there arestill many limitations and barriers in the import and export process Inaddition, the number of goods is increasing, especially the type of fullcontainer loads (FCL), it is necessary to have solutions to improve the importprocess at logistics companies For the above reasons, I decided to choose thetopic: “COMPLETING LOGISTICS PROCESS FOR IMPORTING FCL ATVNLOGS IMPORT EXPORT JOINT STOCK COMPANY”

2 Aims of the study and scope of the study

2.1 General objectives

Finding out the process for importing logistics FCL at VNLOGSimport export joint stock company

2.2 Specific objectives

Firstly, to systematize the basic arguments about sea logistics importprocess in VNLOGS Based on that to evaluate the status of the company.Secondly, proposing some solutions to improve the financial situationand improve the financial capacity of the company

2.3 The scope of the study

- Scope of time: Analyzing data collected about the process forimporting logistics FCL at VNLOGS in 3 years from 2016 to 2018

- Scope of study: Researching topic at VNLOGS import-export jointstock company

3 Methods of study

Based on knowledge at university, books and self-accumulation and

to achieve these above objectives, several methods of studying the thesisare used as follow:

Figure collection:

Based on the data collected during the observational internship,learn at the departments to make a preliminary assessment of thecompany's import and export activities Along with the internal data ofthe company through the financial reports, Income statement, data fromdepartments of VnLogs Import-Export Joint Stock Company in the period2016- 2018

Descriptive statistics method:

As a method of collecting information and data for the purpose ofgeneral preliminary assessment of the situation of the company, it helps

to make preliminary conclusions for the research topic: assessing thecurrent situation of joint stock companies import and export VNLOGS

implements FCL import logistics process through data collected frominternal documents in the period 2016-2018

Analysis method:

The analytical method is the way to use the logical thinking process

to study and compare the statistical data from the internal documents ofthe Company's performance along with the assessments that we identify.Previously, to assess the current situation of FCL import logistics process

at Vnlogs Import-Export Joint Stock Company, assess the reasonableness

or unreasonableness of these data to see if it is wrong

Summarizing:

Summarizing the analyzes and comparisons to make comments andassess the status of FCL import logistics process at Vnlogs Import-ExportJoint Stock Company, thereby making suggestions and measures tocomplete improve FCL import logistics process at VNLOGS Import andExport Joint Stock Company

4 Expected results

During the internship at the company, I found that logistics activitiesfor importation of FCL still had some difficulties Therefore, the urgentissue for VNLOGS Import-Export Joint Stock Company to do in order togradually improve the process of implementing import contracts, therebyimproving the efficiency of international business, bringing thefoundation, economic development of the country

5 Organization of the study

Besides the Contents, Introduction, Conclusion and References, thethesis consists of 3 chapters:

Chapter 1: THEORETICAL BACKGROUND OF LOGISTICS PROCESS

TO IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY.

Chapter 2: CURRENT SITUATION OF LOGISTICS PROCESS FOR IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY

Chapter 3: DEVELOPMENT ORIENTATIONS AND SOME SOLUTIONS TO IMPROVE EFFICIENCY OF LOGISTICS PROCESS TO IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY

CHAPTER 1: THEORETICAL BACKGROUND OF LOGISTICS PROCESS TO IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK COMPANY 1.1 OVERVIEW OF FCL

1.1.1 Definition of FCL

In the past, after the Second World War, to buy and sell goods trucks,people had to pick up the craft between the means of transport and it wasnecessary to have the warehouse to gather goods while waiting forpeople to load and discharge from the means of transport

However, after the World War II, increasing free trade betweencountries results in long-distance transportation needs, despite thechange in many types of transport: train, truck, ship, Since then, a lot ofloading and discharging blocks replaced vehicles; depending on thesunny and rainy weather, they must have warehouses to gather goodsbetween many points which led to increased costs; The appearance ofcontainer compensated for these things So, the model of transportation

by containers to pack the FCL goods has been used up to now

In one side, FCL means "Full Container Load", which is used in theinternational shipping industry for the export and import of sea freight.This term is often used to describe an international sea servicedesigned for ocean freight shipments of goods that an export or importcountry has an exclusive use of a specialized sea shipping container(usually a 20ft or 40ft container) Sea shipping containers are usuallyloaded and sealed at the origin and then transported by a combination ofsea, rail and/or road to the end point

In other side, the shipping lines define the term FCL as follows:

FCL is full container load, The Shipper and The Consignee areresponsible for packing and unloading the container When the shipperhas a homogeneous cargo volume sufficient to fill a container or multiplecontainers, one or more containers are rented.

1.1.2 Characteristics of FCL

Transporting import and export goods by containers is becomingpopular in international transport The technical process of containershipping requires strict requirements from loading, sending todischarging shipment and delivering to the consignee

These following features:

FCL is a commodity for volume large or size large that fit in 1 ormore containers Therefore, the fee will be charged by container, forexample: FOB Qingdao - Hai Phong: 350/480 USD (350 USD / Cont 20”,

480 USD / Cont40’) But not all container charges have the same price.Each container has different characteristics, the price will be different:Cont DC, HC, OT, FR, FV

The attention to the situation of foreign trade activities in the world

is very important Due to the price fluctuation, the peak season of importand export goods has made a sudden increase, or when the fuel fee isincreased, the price of ships also increases

1.1.2.1 Technical FCL packaging

According to international custom, when shipping goods bycontainer, the shipper is responsible for closing FCL goods with thesealing, leading of container and they must bear all related costs exceptfor the case when the consignment goods are not fully packed withcontainers, they are sent by LCL Therefore, when receiving the containerfrom the consigner, the carrier cannot understand specifically the FCL

stacking goods situation, they can only base on the declaration of theconsigner Accordingly, they will not be responsible for the consequences

of unreasonable, untechnical handling of goods, leading to the loss ofgoods and transport tools

a Characteristics of freight

Not all goods are suitable for container shipping, so determining thesource of goods suitable for shipping by container is important inbusiness

From the perspective of container transportation, freight is dividedinto 4 groups:

Group 1: The goods are completely suitable for transport by container: Including: general goods, canned food, medical materials,

plastic or rubber, household tools, yarns, fabrics, metal products, toys,

furniture The goods are transported by general containers or insulated

containers depending on the specific requirements of the cargocharacteristics

Group 2: Types of goods suitable for container transport conditions

Including: Coal, ore, kaolin which are low value products and largequantities of trade These items in terms of natural as well as technicalproperties are completely suitable for container transportation but interms of economic efficiency is not appropriate (the ratio between freightand value of goods.)

Group 3: These goods have special physical and chemical properties

Including: perishable goods, frozen goods, live animals, super heavygoods, dangerous goods These goods must be paid with dedicated

containers such as insulation containers, ventilated containers, flatcontainers, animal containers

Group 4: Types of goods suitable for transporting by containers

Including: waste, super-length and super-weighted goods, duty trucks, radioactive substances

heavy-b Determining and checking container types when using.

When detecting that a container does not meet the technicalstandards, it is required to immediately notify the carrier, absolutely donot accept, or request to complete or change another container If theinspection is not attentive, receiving containers that do not meet thetechnical requirements, during the transport process, there are lossescaused by the defects of the container, the shipper must bear all theconsequences

Including:

Firstly, check the outside of the container: Observe and detect

scratches, damage, cracks, holes, deformed distortions due to impact Check the assembly of the containers because this is often overlooked but

it is critical structure of containers related to transport safety

Secondly, check the inside of the container: Check the tightness by

closing the door from the inside to observe the light rays passing through

to detect holes or cracks Check if the screws are damaged or raised.Check cover sheets or other equipment such as ventilation holes, cold airpipes

Thirdly, check the container’s door: The situation works when

opening and closing door and door locks ensuring that the door isopened and closed securely, sealed to prevent water from entering

Finally, check the status of container hygiene: Containers must be

cleaned well, dry, odorless or dirty; Packing FCL that does not meethygiene standards will result in loss of goods and will be easily rejectedwhen the health authorities of the country of shipment check it

c Technical loading, inserting FCL

When conducting loading and discharging FCL goods, it is necessary

to note the following technical requirements:

-Allocating goods on container floor

-Inserting and padding FCL goods

-Limiting and reducing pressure or vibration

-Against the phenomenon of hot and steamed goods

1.1.2.2 FCL Shipping Method

According to the FCL method, the responsibility for delivery,handling and other costs is divided as follows:

a The responsibility of the shipper:

The shipper has the following responsibilities:

Renting and transporting empty containers to your warehouse orstoring for packing The second responsibility is packing FCL includingstowage, dunnage FCL Next, marking the goods symbol and transportsymbol Moreover, doing customs procedures and lead sealing according

to export regulations ; Transporting and delivering containers to carriers

at CY, and receiving bills of lading issued by carriers Also, they have tobear the costs associated with the above operations

In some situations, the goods package can also be proceeded inpacking station or the carrier's container yard Shippers must transporttheir goods to container yard and ship goods

b.Responsibilities of the carrier:

The carrier has the following responsibilities:

They have to release bills of lading for shippers and manage, care,send and load goods from receiving containers at container yard(container yard) at sending port to the delivery to the consigner at thedestination port’s container yard; Furthermore, unloading containersfrom sending port to ship to transport, including stowing containers ontoships and unloading the container from the ship to the destination port’scontainer yard They also take responsibility for delivering the container

to the consigner with a valid bill of lading at the container yard andbearing the costs associated with the above operations

c Responsibilities of the consignee:

The consignee has the following responsibilities:

Firstly, arranging document and import customs procedures forshipments and exporting a valid bill of lading with the carrier to receivethe goods at the container yard Secondly, transporting containers totheir warehouses, quickly withdrawing and returning empty containers

to carriers (or container leasing companies) Thirdly, bearing all costsrelated to the above operation, (including the cost of transportingcontainers to the container yard)

1.1.2.3 Documents of container transportation

a Bill of lading by way of sending FCL / FCL

Documents of container shipping of goods called Container Bill ofLading, signed by the carrier or their representative to the shipper afterreceiving the lead-sealed container for transport

Normally, the bill of lading is signed before the container is loadedonto the ship, because it is Received for Bill of Lading In general, for thistype of bill of lading (if payment by voucher credit - L / C), the bank

usually does not accept payment unless in the letter of credit it mentions

"Received for Bill Lading Acceptable"

Therefore, when the container has been loaded onto the ship, theshipper should ask the carrier for additional notes on the bill of lading: "Shipped on board, on and signed confirmation At this time, the bill oflading becomes "Shipped on board Bill of Lading" and is accepted by thebank as a payment document

b Cargo manifest is a summary list of goods to be transported

It is used to make a notice to the consignee about the goods loadedonto the ship or make vouchers for customs declaration ; Moreover,cargo manifest can be used as a basis for payment of costs related togoods or for comparing with B / L about goods details

c Delivery order (D/O)

Delivery order is a document issued by the carrier or shipping agent

to the consignee to request the port of delivery to the consigner

d Arrival notice:

Arrival notice has the effect of informing to the goods owners thattheir goods have arrived and requested them to promptly carry out theprocedures and documents to the order delivery agent

1.1.2.4 Limitation of liability for compensation

The maximum compensation limit of the carrier prescribed in theconventions are different:

Hague Rules – 1924: ( following article 4)

- Goods having declared value on bill of lading, compensatedaccording to declared value

- For non-declared goods, the compensation is no more than 100pounds for a unit of goods or a package

- Goods transported by containers are not mentioned.

Visby Rules – 1968: ( following article 4)

- Goods declared with compensation value according to declared

value.

- Goods are not declared value, compensation level is:

+ 10,000 francs per unit of goods or a package

+ 30 francs for a kilo of goods including packing

- Goods transported by container:

+ Packages of FCL or pallets declared on the bill of lading will beconsidered as a unit of goods claiming compensation

+ Without declaring on the bill of lading, a container is considered aunit of goods claiming compensation

SDR protocol – 1979: ( following article 2)

- Goods with declared value of compensation according to thedeclared value

- Aviation declared value, the compensation level is:

+ 666.67 SDR for a unit of goods or a package

+ 2 SDR for 1kg of goods including packaging

Hambuge Rulls 1978: ( following article 6)

- Goods with value declaration and compensation according to thedeclared value

- Aviation declared value, the level of compensation is:

+ 835 SDR for a unit of goods or a package

+ 2,5 SDR for 1kg of goods including packaging

- The liability of the carrier for delay in delivery compensates anamount which is equivalent to two and a half times of the freight payable

for the goods delayed, but not exceeding the total freight payable underthe contract of carriage of goods by sea.

- Goods transported by container:

+ Packages of FCL or pallets declared on the bill of lading will beconsidered as a unit of goods claiming compensation

+ Without declaring on the bill of lading, a container is considered as

a unit of goods claiming compensation

VietNam martime code -1990:

- Limit the specified compensation like Visby Rules

- Goods transported by containers are not mentioned

1.1.2.5 Charges in the transport of goods by container.

In shipping goods by containers, container freight charges are setinto the tariffs of shipping lines Container shipping charges usuallyinclude: domestic transport costs; costs of transporting containers at themain road and expenses for berths as well as container yards at loadingand discharging ports and other costs

Container fee rates depend on the following factors:

The type and the size of container (large or small, dedicated or notspecialized) as well as type of FCL, which is based on the class of goods ;

it is also depended on level used of container tonnage, length andcharacteristics of transport routes

From the conditions of delivery, loading and unloading equipment,

to modes of transportation are changed… To keep with this advancedshipping method, container shipping companies have launched theirtariffs to serve customers, container charges including 2 types:

Type 1: Freight for container transportation calculated by goods

This is the gross amount of freight for transporting a containercontaining a separate item The carrier relies on the average usability ofthe container to calculate the rate (example: 14 tons of 20-footcontainer) With this calculation, if the shipper adds more goods, it will

be beneficial Regularly large shippers like this type of charge and smallshippers don't like it For the carrier, the simple way to charge a roundcontainer is to reduce administrative costs

Type 2: Container charges are calculated for all types of goods

According to this calculation, all items must be paid at the samefreight for the same container without taking into account the value ofFCL The carrier is basically based on the estimated total cost of the tripdivided by the number of containers expected to ship With CBR rates,FAK rates are more reasonable because the loading, unloading andoccupancy units are containers For the carrier to apply, this fee willreduce the calculation But this kind of freight also has shortcomings thatshippers have higher value goods will be more beneficial, while low-valueshippers is in a disadvantage

In short, transporting goods by containers holds an importantposition in the transport system serving the national economy This is anadvanced transport method that has brought high efficiency in specialtransportation by sea transport Therefore, when being compared to thedevelopment history of sea transport, container shipping has just beenborn, but the growth rate is quite fast To create the ability to apply thismodern transport method, many countries around the world have built aspecialized fleet of large tonnage vessels to transport containers To buildcontainer ports with modern and automated loading and unloading

equipment with fully equipped warehouses and yards to fully exploit theadvantages of FCL cargo transported by sea.

1.2 Logistics process to import FCL

Diagram 2.1: Logistics process to import FCL

Source: (export-import dept’s 2019)

Content:

(1) Receiving requests from public customers

- If it is unable to meet customer requirements, decline

- If you agree, proceed to sign the Contract

After signing the Contract, go to step 2

(2) Organization receiving import

Whether the customer is a domestic importer or an internationalforwarding company, the forwarder still has to do one of the following:The first step is asking price: After the two parties agree, FWD willreport the number of containers, goods name, weight, expected date of

contract signing

Organization receiving import goods

Liquidation of contracts

Resolve complaints

Agree

refuse Receive requests from public

customers

shipment, delivery conditions, port of Loading, destination port,warehouse and the name of the trader in foreign countries , numberphone , email

Next, getting your booking, confirm the bill: After having a booking,FWD reports the train schedule and sends draft bill to check Then, checkthe accuracy of information on the bill and confirm the bill correctly:Check sender and consignee; Name of goods, quantity, number of invoice,number of packages, weight; port of Loading and port of Discharge; name

of means of transport, container number, seal number and specificschedule are provided and inspected by FWD After the goods arrive,FWD will send the Arrival Notice (Arrival Notice), the information on A /

N will usually be: Name of the exporter and importer; Date of shipment,name of means of transport, details of goods; Information of thedestination of the tax security destination , place of receipt; Detail thelocal charges at the port

Then, preparing Import Document: Records include: CommercialInvoice ( copy ); packing details (copy); Account information Vinacss,digital signature (online declaration); Notice of arrival (name of ship,destination of tax guarantee, port of discharge, ) (copy); delivery order(orignal) ; Vietnamese goods name, HS code to calculate import tax, VATand other taxes if any

After that, implementing import customs procedures: Transmittingonline declarations and viewing the results of customs flow distribution(green channel: submitting to HS code and customs clearance; yellowchannel: checking HS code; red flow checking HS code and checkingactual goods according to declaration)

Also, importing tax payment: The customs check the tax calculated

in the customs declaration form in accordance with the actual amountthat the enterprise must pay If the business has to pay tax immediately,the forwarder pays tax and the copy of the receipt pays money into theState budget

Next, dragging the item to the warehouse: After checking validdocuments, send the customs clearance form and D/O (original) to thefleet and arrange to return the container to the warehouse

Finally, saving import records: Keep 1 copy of the documents forthe company, and send the original documents to the importingenterprise

(3) Liquidation of contracts

Payment of delivery related expenses such as storage, storage,loading and unloading costs , and pay commissions, unfinished fines ifany When the goods are available to the staff to track the receipt results,settle complaints about goods if any

(4) Resolve complaints about loss of goods

In one side, prepare the original legal documents to protect therights of goods owners such as the internal inspection report, thecertificate of receipt of surplus goods compared to the declaration

In other side, invite reputable inspection organizations, conduct thedetermination of the whole lot of goods, the purpose of determiningclearly the number of goods subjected to specific loss of the whole lot as abasis to claim compensation The content must be accurate and it muststate the status and extent of the loss This document will be issued bythe inspection agency immediately after the assessment is completedwithin no more than 30 days from the date of request for assessment

The responsibilities of the FCL shipper:

Book container and get to the port to pick up the container,transport it to the warehouse for packing and provide detailedinformation for the carrier to the bill of lading , pack FCL and make afixed order to ensure that full loads are not shifted during shipping thencalculate the volume of goods accordingly and assign labels and symbols

to the receiver easily identifiable goods Moreover, they do customsprocedures for customs clearance for shipments and seal the lead forcontainers , implement exchanging delivery order and loweringcontainers at the export port and paying for lifting costs at the port andbear costs such as handling charges, THC, DEM / DET charges if any.The responsibilities of the FCL carriers:

Declare issued bills of lading and cargo manifests list for the shipper.Before sending the bill, they must send the draft bill to the consigner tocheck the information on the bill , load containers on board and safelyarrange container before the ship is anchored the discharge thecontainer from the ship to the container yard at the destination port.When the goods arrive, make the delivery order and delivery of thecontainer to the consigner with a valid bill of lading at the container yard(CY)

The responsibilities of the FCL consignees:

Upon receiving notice that the cargo has arrived at the carrier's port,making arrangement for a reasonable set of documents to exchange D/Owith the shipping line Then do customs clearance for shipment,transporting containers to warehouses and withdrawing goods thenreturn containers to the right places prescribed for shipping lines or

withdraw goods right at the port if the order is taken Completingpayment of local charges, D/O, container betting fees.

1.3 Factors affecting the logistics process of importing FCL.

As the market grows, the freedom to trade is increasinglypopularized by sea freight forwarding activities that are becomingincreasingly popular and important in today's life Therefore, Logisticsservice has since developed and has a certain important position inincreasing competitiveness between businesses and countries around theworld It is considered by managers as a tool, a means of linking differentareas of business strategy Logistics creates the usefulness of time andplace for business activities But there are also many difficulties whenimplementing logistics in our country Here are some of the subjectiveand objective factors affecting the import logistics activities in Vietnam

1.3.1 The subjective factors

1.3.1.1 Laws in Viet Nam

Laws in our country are still very limited, this is considered as one ofthe barriers that logistics services have not developed yet To understand

a process of a certain item, we must use a lot of documents from laws,circulars, new decrees in order to understand that process and gothrough procedures for businesses But the law of Vietnam also protectsbusinesses when goods are exported to other countries

1.3.1.2 Human Resources

Human resources in logistics enterprises are mainly operations-opsworkers, vouchers, logistics salesmen, co-ordinator Today, theapplication of science and technology and machinery into this industry ismore commonly, requiring the staff to have a firm grasp of their

profession, and to forge better skills in both foreign languages andinformatics for themselves Moreover, it can help them perform tasksfaster, reduce the time and cost of implementation, as well as enhance the

handling of situations when unexpected situations occur.

1.3.1.3 The competition between businesses

The number of logistics business in Vietnam are quite big but theservices of these companies are still single, not yet highly integrated.Currently, only a few large logistics companies of Vietnam have a closedchain of services such as Vinatrans, Vinalinks, Sotrans small andmedium enterprise mainly do single supplying services in the territory ofVietnam such as forwarding services, packaging services, warehouseleasing, customs services Meanwhile, integrated and inter-internationalservices are handled by foreign logistics companies Foreign businesseshave branches both in Vietnam and abroad While Vietnam does not haveany Logistics business outside of the country Because there is no linkbetween Logistics enterprises and domestic import-export enterprises,Vietnam's logistics services have not been able to go further, and still face

with many difficulties.

1.3.2 The objective factors

1.3.2.1 Investment capital

With insufficient and incomplete infrastructure and equipment aswell as machinery, it will cause difficulties and obstacles to the process ofimplementing Logistics process However, to be able to buildinfrastructure and own modern equipment, the forwarder needs a hugeamount of investment But the forwarder does not always have thefinancial ability Thwith limited financial resources, the forwarder willhave to calculate carefully to build technical facilities effectively inaddition to hiring or jointly co-owning with other enterprises themachines and specialized equipment

1.3.2.2 The infrastructure

Facilities of Logistics enterprises include offices, warehouses,facilities for loading, storage of goods To participate in import and

export activities, an infrastructure and modern equipment are needed toget closer to customers' demand’s and maintain long-term relationships,

to avoid losing too much freight charges

CHAPTER 2: CURRENT SITUATION OF LOGISTICS PROCESS FOR IMPORT FCL AT VNLOGS IMPORT EXPORT JOINT STOCK

Address: NO 8B PHU MINH , CO NHUE 2 WARD, BAC TU LIEM DISTRICT,

Established and put into operation for more than 3 years, VnlogsImport-Export Joint Stock Company has been growing in the field oflogistics services For more than 3 years with the development of theeconomy, the development of globalization trends and the rapid increase

of international trade Vnlogs Import and Export Joint Stock Company hasgradually asserted its position in the field of logistics service provision.With the motto of always providing the best, fastest, most efficient andlowest cost services together with the spirit of learning always try to

cultivate experience and knowledge, Vnlogs Import and Export JointStock Company has been capturing the trust of domestic and foreigncustomers To have the development and trust of customers like today, it

is important to mention the contribution of professional, enthusiasticstaffs with many experience years of operation in logistics Thecompany's employees not only provide customers with the best services

at the lowest cost but also always give the best solutions to helpcustomers trust and use the company's services more

c, Organization of management of VNLOGS Import and Export Joint Stock Company.

The following is the diagram of the company’s organization which isshown at diagram 2:

Diagram 2.2: Organization of management of VNLOGS Import and Export Joint Stock Company.

Source: (export-import dept’s 2019)

Organization structure of VNLOGS Import and Export Joint StockCompany is operated in complying with the business trades as regulatedlaw Board of VNLOGS Import and Export Joint Stock Company includeschairman, vice chairman, and members of board

Vice director:

He works as an adviser to the director, implement decisions of thedirector and operate the company when the director is absent,simultaneously he is responsible to the director for professional skills,

making business plans, making periodical reports to the director

Business Department:

They have the role as a central part of the company, looking forcustomers; researching market and implementing business strategies,also conducting price negotiations with customers and service providers;Moreover, business department negotiate with shipping lines and

DOCUMENTATION

STAFF

airlines to get the best rates for customers and conduct a review andquotation when both parties agree and signing a delivery contract as well

as buy and sell domestic and international freight

Export – Import Department:

Export executive:

Collecting, preparing and checking all necessary documents toensure the compliance with the requirements of customs authorities;Also, receiving booking from customers, booking goods with shippinglines ; Announcing details of goods for carriers or airlines and issuingbills of lading to customers Furthermore, they work with transportparties to arrange and check delivery schedules, plan and manageshipping operations to ensure timely delivery

Import executive:

Working with transport parties to arrange and check deliveryschedules, plan and manage shipping operations to ensure timelydelivery They also collect, prepare and check all necessary documents toensure the compliance with the requirements of customs authorities.Additionally, receiving incoming notifications and vouchers fromshipping lines or airlines and receiving and transferring documentsrelated to goods to customers as well as resolving customer complaintsabout the goods if they are arise

Operations staff:

Implementing Customs declaration at the port and cooperating withother departments to receive documents and deliver to customers onschedule ; Moreover, making detailed report of work for managerdepartment and weekly board of directors and monitoring the process ofclosing and loading goods at the warehouse

Documentation staff:

Storing documents, official dispatch, decisions, circulars thatministries and branches related to business activities of enterprises; Thisdepartment also receive, check and process documents related to importand export of goods (Orders, invoices, list of goods, etc.) ; Sending notice

of arrival and issuing delivery order as well as bills of lading anddocuments required by customers such as detailed lists, commercialinvoices ;Plus, collecting all fees related to vouchers of customers andpartners ; Coordinating with stakeholders to arrange delivery andcommunicating regularly with shipping lines and shipping agents tounderstand the situation of shipping shipments to notify shipper andconsignees

Accounting department:

This department is indispensable in every business It isresponsible for accounting the entire operations of the company,synthesizing and recording daily transactions of the company.Conducting analysis and handling financial data to help leadersunderstand the operation situation of the company to determine thefinancial situation of the company From that information, companyleaders will be able to come up with company development strategiesand guiding the way to monitor, checking financial activities, balancingcapital sources, account for company Also, they make accountingstatistics, monitor financial implementation to propose effective capitaluse measures and provide fast and accurate economic informationaccording to the director's regulations

2.1.2 Business activities, tasks, functions

2.1.2.1 The company’s main business activities

The main types of business of Vnlogs Import-Export Joint StockCompany are as follows: It is an agent of domestic and foreign freightforwarding and a commercial brokerage Moreover, this company dofreight forwarding import and export services by sea and air as well asCustoms declaration services Also, it provides consulting services related

to international trade activities and domestic freight forwarding service.Furthermore, it supplies warehousing supervision services: storage,loading;, packing and distributing goods

2.1.2.2 The company’s main business functions

Constructing, organizing and implementing the proposed plan, thebusiness in accordance with the registered trades, properly establishedbusiness purposes as prescribed by law Based on the needs of theinternational market and the exploitation and use of appropriate sellingand buying methods, additional plans must be made in addition to thenorms and ordinances of the state in order to increase the sources ofimport and export goods

2.1.2.3 Basic tasks of the company.

To be subject to the examination and inspection by the Stateagencies and competent organizations according to the provisions of law.Implementing the State's regulations on the protection of workers' rightsand hygiene and safety, protecting the ecological environment, ensuringsustainable development, implementing the technical standards applied

by the company as well as related to the company's operations Besides,complying with the policies and legal regulations of the State onmanaging the process of implementing logistics activities and complyingwith the provisions of domestic and foreign business contracts Inaddition, operating under the regime of independent economic