Solutions to improve the sea freight forwarding process of imported goods by container in TNG logistics service and solution company limited

ACADEMY OF POLICY AND DEVELOPMENTINTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE GRADUATION THESIS TOPIC “SOLUTIONS TO IMPROVE THE SEA FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTA

ACADEMY OF POLICY AND DEVELOPMENT

INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE

GRADUATION THESIS TOPIC “SOLUTIONS TO IMPROVE THE SEA

FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTAINER IN TNG LOGISTICS SERVICE

AND SOLUTION COMPANY LIMITED”

Instructors: PhD Hoang Kim Thu Student: Dao Thi Huong

Student number: 5083106542 Class : CLC8.2

Major: International Business Economics School year: 2017-2021

Ha Noi, June 2021

To complete the research paper on the topic " Solutions to improve the sea freight forwarding process of imported goods by container in TNG Logistics Service and Solution Company Limited ", I would like to express

my deep gratitude to all managers and staffs in TNG Logistics hasenthusiastically helped and trusted to provide me with enough information to

be able to complete my thesis

Although there are many efforts to implement the thesis in the mostcomplete way, but due to the limitations of knowledge and experience, it isinevitable that there are shortcomings that I have not seen myself I lookforward to receiving suggestions from teachers and interested people to helpthe topic be more complete

To complete this thesis, I have researched the actual competitiveness ofsea freight forwarding services by container at TNG Logistics based on theknowledge I have learned at the Academy of Policy and Development Onceagain, I would like to sincerely thank the teachers at the Academy of Policyand Development and managers and staffs in TNG Logistics for helping me inthe past time I would like to wish your company always develop and besustainable, wish all members in the company and teachers always healthyand successful

Best regards!

StudentDao Thi Huong

TABLE OF CONTENTS

ACKNOWLEDGMENT i

TABLE OF CONTENTS 3

LIST OF TABLES 6

LIST OF FIGURES 7

CHAPTER 1: LITERATURE REVIEW 1

1.1 Definition and Role of Import 1

1.1.1 Definition of Import 1

1.1.2 The role of Import 2

1.2.Freight forwarding service 3

1.2.1: Concept of Freight forwarding service 3

1.2.2 Characteristics of Freight forwarding service 3

1.2.3: Classification of Freight Forwarding activities 4

1.2.4 Role of Freight forwarding services 5

1.3 Forwarder 6

1.3.1 Definition 6

1.3.2 The role of forwarder 7

1.3.3 Rights and obligations of forwarders 8

1.4 Sea freight forwarding service 8

1.4.1 Definition and characteristics of the Sea freight forwarding service 8

1.4.2 Types of the Sea freight forwarding service 10

1.4.3 Factors affect the Sea freight forwarding service 13

1.4.4 Criteria for evaluating the sea freight forwarding service 15

1.5 Main documents for the sea freight forwarding by container 16

1.5.1 Packing List 16

1.5.3 Commercial Invoice (C/I) 17

1.5.4 Insurance documents 18

1.5.5 Certificate of Origin (C/O) 18

1.5.6 Customs declaration 18

1.5.7 Arrival Notice 19

1.5.8 Delivery Order (D/O) 19

1.6 International Sea freight forwarding process by container 19

1.6.1 Preparations to receive imported goods: 19

1.6.2 Receiving organization 22

CHAPTER 2: SITUATION OF SEA FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTAINER AT TNG LOGISTICS SERVICE AND SOLUTIONS COMPANY LIMITED 23

2.1 Overview TNG LOGISTICS SERVICE AND SOLUTIONS CO., LTD 23

2.1.1 General information and historical development 23

2.1.2 Field of business 25

2.1.3 Organizational structure 27

2.1.4 Partners 31

2.2 Business situation of TNG LOGISTICS SOLUTION COMPANY 33

2.2.1 Business performance of TNG 33

2.2.2 The company’s performance in 2020 42

2.3 Current process of the sea freight forwarding process of imported goods by container at TNG Logistics 46

2.3.1 The process of importing goods by LCL method of TNG 46

2.4 Evaluation of sea freight forwarding activities by container at TNG company 51

2.4.1 Achievements 51

2.4.2 Limitations 52

2.4.3 Causes of limitations 53

CHAPTER 3: SOME SOLUTIONS AND RECOMMENDATIONS TO IMPROVE THE SEA FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTAINER AT TNG LOGISTICS SERVICE SOLUTIONS CO., LTD 56

3.1 Solutions to improve the sea freight forwarding process of imported goods by container 56

3.1.1 Solutions in checking and applying HS codes of goods 56

3.1.2 Solutions in preparing and checking documents 57

3.1.3 Solutions to investing vehicles 58

3.1.4 Solutions to take care of customers effectively 60

3.2 Recommendations 62

REFERENCES 65

LIST OF TABLES Table 2.1: Results of business activities 2019-2020

Table 2.2: Revenue by market structure (from 2019 to 2020) Table 2.3 : Revenue by commodity structure in 2019-2020

LIST OF FIGURES

Figure 2.1: Organirational of TNG Logistics Service Solution Company Firgure 2.2: Results of Business activities 2019-2020

Figure 2.3: Revenue by market structure (from 2019 to 2020)

Firgure 2.4: Revenue by commodity structure in 2019-2020

Figure 2.5: Revenue by business method in 2019 and 2020

Firgure 2.6: Revenue of FCL goods by commodity structure in 2019-2020 Firgure 2.7: Revenue of LCL goods by commodity structure 2019-2020 Firgure 2.8: The process of importing goods by LCL method of TNG Firgure 2.9: The process of importing goods by FCL method of TNG

CHAPTER 1: LITERATURE REVIEW 1.1 Definition and Role of Import

1.1.1 Definition of Import

Imports of each country also depend on the income of the resident in thecountry and the exchange rate here If the average income of the people of thatcountry is higher, the demand for imported goods will also increase accordingly.Conversely, if the exchange rate rises, the price of imports in local currencybecomes higher, which can impact imports and cause import demand to decrease.Imports play an important role in a country's economy, ensuring the stabledevelopment of each country's key economic sectors and at the same time fullyexploiting the country's comparative advantages, contributing to the realization

of the national economy highly specialized in labor and improved theinternational balance of payments

Commercial Law 2005 Article 28, Clause 1 defines as follows:

“Import of goods means that goods are brought into the Vietnameseterritory from abroad or from a special area located in the territory of Vietnamwhich is considered a separate customs area according to the provisions of law”Forms of importing goods

Direct Import

In this form, the buyer and seller of goods directly transact with each other,the buying and selling process is not binding on each other Buyers can buywithout selling and vice versa

Direct import is made quite simple In particular, the importing party wants

to sign an import business contract, it must research the market, find a suitablepartner, sign and perform the contract, finance itself, bear all risks and costs indeal…

Entrusted imports

Entrusted import is understood as a commercial service activity wherebythe goods owner hires an intermediary unit to import goods on behalf of and inhis name under an entrustment contract

In a more understandable way, domestic enterprises have their own foreigncurrency capital and have the need to import a certain type of goods, but are notallowed to import directly, or have difficulty in earning When dealing withforeign partners, they will hire enterprises with international trade functions toimport for them.

It is the responsibility of the trustee to provide information on the market,prices, customers, conditions related to the entrusted order, to sign the contractand carry out the procedures related to importing goods

1.1.2 The role of Import

Import is an important activity of international trade, import directly anddecisively affects production and life Importing is to enhance the material andtechnical basis of advanced and modern technology for production and goods forconsumption that cannot be produced domestically or cannot meet demand.Importing is also a substitute, importing things that domestic production will not

be as beneficial as exporting, doing so will positively affect the balanceddevelopment and exploit the potential and strengths of the country, the nationaleconomy in terms of labor, capital, material foundations, resources and scienceand technology

Therefore, imports have the following roles:

First, Importing accelerates the process of using material and technicalfoundations, transforming the economic structure in the direction of acceleratingindustrialization and modernization of the country

Second, Supplementing the imbalanced aspects of the economy, ensuring abalanced and stable development Exploiting to the maximum the potential andcapacity of the economy into the economic cycle

Third, Importing ensures inputs for production, creating stable jobs forworkers, contributing to improving and raising people's living standards

Forth, Import plays an important role in promoting exports, contributing toimproving the quality of export products, creating a favorable environment forexporting goods to the international market, especially to the importing country

It can be seen that the role of imports is very important, especially fordeveloping countries (including Vietnam) in improving economic life, changing

a number of areas, thanks to imports Exporters can acquire managementexperience, modern technology, etc to promote rapid economic development.However, imports must be both consistent with the interests of society andgenerate profits for businesses, both public and private To achieve that, theimporters must meet the following requirements:

As a result, all import contracts must be based on the problem of benefitsand efficiency, which is a fundamental issue for the country, because eachbusiness requires regulatory agencies as well as each firm to identify importedcommodities in line with the socio-economic development plan

1.2.Freight forwarding service

1.2.1: Concept of Freight forwarding service

Freight forwarding is a service that transports products from the point ofshipment to the point of receipt, in which Freight Forwarder forms a carriagecontract with the products' owner, as well as a contract with the shipper and thecarrier to perform the service

The Model Rules of the International Federation of ForwardingAssociations (FIATA),(2010) describe forwarding as follows: “Any form ofservice pertaining to the transportation, consolidation, storage, or transportation

of commodities is referred to as freight forwarding warehousing, handling,packing, or distribution of products and services, or in conjunction with theaforementioned, including customs, financial, insurance, and legal services.Article 163 of the Vietnamese Commercial Law,2005 defines forwarding asfollows: “Freight forwarding is a commercial act in which a person providingfreight forwarding services receives goods from the sender, organizestransportation, storage, warehousing, paperwork, and other related services, andthen delivers the goods to the consignee on behalf of the goods owner, thecarrier, or the consignee”

1.2.2 Characteristics of Freight forwarding service

Because it is a type of service, it shares many of the same characteristics asother types of services: it is an intangible commodity, so there is no uniformquality assessment standard; it cannot be stored in a warehouse; production andconsumption occur simultaneously; and the quality of the service is determined

by the customer's perception.But because this is a specific activity, this servicealso has its own characteristics:

The freight forwarding service does not create physical items

It merely changes the spatial position of goods, but does not change themtechnically Freight forwarding, on the other hand, has a beneficial impact on thegrowth of output and the improvement of people's living conditions

Passive nature

This is due to the fact that this service is highly dependent on the needs ofthe consumer, the carrier's restrictions, and the government's legal andinstitutional limits (exporting country, importing country and third country)

Seasonality

Because forwarding is an import and export service, it is highly dependent

on the volume of commodities imported and exported However, because importand export activities are frequently seasonal, seasonality affects forwardingactivities as well

1.2.3: Classification of Freight Forwarding activities

There are 4 types of freight forwarding: road, rail, air and sea Each sort offreight has the following distinct characteristics, which are unique to that form offreight

Road transport

This is the most common mode of cargo transportation It's the ability to beflexible in the transportation process, regardless of time, and without any timeconstraints The shipping time is set by the two parties individually, and it can bemodified at any moment during the shipping procedure

Rather than transferring items to other modes of transportation, goodsmight be transported by road to the desired location However, there are

significant limitations to this mode of transportation, such as the ability toconvey a huge amount of cargo On the road, difficulties are also commonbecause there are so many automobiles on the road that crashes are common.

Rail transport

The freight time is determined by the time the train runs, and it cannot beadjusted Transporting a big volume of commodities at a low cost and with highspeed and stability Rail transit simply transports things along a predeterminedroute and cannot deliver items to their final destination

When the quantity of items is huge, the cost of transportation will besignificant as well Because of the costs of road maintenance, depreciation,station equipment depreciation, and management, among other things

It has the ability to carry goods over large distances and to other countries.The cost of shipment is higher than for other types of shipping

1.2.4 Role of Freight forwarding services

International trade and transportation have more favorable conditions toexpand thanks to the forwarding service Previously, the owner of the items had

to handle the entire delivery process, which included a variety of documentationand procedures, as well as working with a large number of individuals, whichwas both time consuming and ineffective Furthermore, because profit is theprimary goal of business, they are constantly looking for methods to cut costs.Furthermore, because the market's unavoidable tendency is increasingly strongrivalry to identify sources of supply and output for items, shippers must commit

a significant amount of time

The forwarding operation simplifies the document procedures associatedwith commodities, reducing transportation time and boosting the number ofitems traded in international trade and transportation

The growth of freight forwarding, in particular, promotes theimplementation of modern technology advances in production, circulation, anddistribution, enhancing the benefits of transportation while saving money.Transportation expenses, insurance, and lower product costs and competitivenessall help to generate new industries, jobs, and a better quality of life

1.3 Forwarder

1.3.1 Definition

A forwarder, in reality, has no commonly accepted definition The forwardercan be the owner of the goods, the owner of the ship, the loading and unloadingfirm or warehouse, a professional forwarder, or anybody else who has registered

a freight forwarding business The forwarder is known by several titles indifferent nations, including Customs House Agent, Customs Broker, ClearingAgent, or Shipping and Forwarding Agent, and in many circumstances, theforwarder is the Principal Carrier But, whatever their names, all of these people'sactivities have one thing in common: they exclusively sell their services, use thesame name in international transactions, International Freight Forwarder, andcollaborate

Initially, the forwarder was merely a commission agent that performed routine chores on behalf of the exporter or importer, such as loading and

unloading goods, coordinating domestic transportation, and completing paymentprocedures However, as international trade and ways of transportation evolve,the forwarder's scope of services expands Forwarders now play a critical role ininternational trade and transportation A forwarder's services might range frombasic and routine activities like chartering and customs clearance to providing aturnkey solution for the complete transportation and distribution process Fullservice for all aspects of commodities transportation and distribution.

1.3.2 The role of forwarder

Because of the growth of container transportation and multimodaltransportation, the forwarder now serves as both an agent and a trustee, as well

as providing transportation services as a main party The role of the forwarderhas been established in activities such as

Customs Broker

When the forwarder initially appeared, it only operated within the country.The forwarder's job is to handle customs processes for imported products Then,based on the sales contract, expand service activities to include both exportinggoods and reserving cargo space in international trade, or storing freight withshipping lines under the entrustment of exporters or importers.On the basis ofstate permission, the forwarder acts on behalf of the exporter or importer todeclare and carry out customs procedures as a customs broker

Agent

Prior to this, the forwarder did not act as a carrier As a consignor's orcarrier's agent, he solely serves as a link between the consignor and the carrier.The forwarder is entrusted by the products owner or the carrier to execute avariety of activities, including receiving goods, transporting goods, preparingpaperwork, dealing with customs, and warehousing goods

Consolidator

Cargo Consolidator Forwarders have traditionally supplied railtransportation consolidation services in Europe Consolidation services are veryimportant in the container shipping business, where they are used to less

container load (LCL) into full container load (FCL) in order to maximize thecontainer's carrying capacity and save freight costs.

In some circumstances, the forwarder now operates as a carrier, i.e., theforwarder contracts directly with the items' owner and is responsible forconveying the products from point A to point B He acts as a contracting carrier

if he contracts but does not actually carry; if he directly carries, he is the actualcarrier

Multimodal transport operator (MTO)

If the carrier offers a round-trip service, commonly known as "Door toDoor" package delivery, the forwarder has taken on the job of "Door to Door"package delivery As the MTO, it is also the carrier and is liable for the itemswhile they are being transported

1.3.3 Rights and obligations of forwarders

Forwarders have the following rights and obligations under Article 167 ofthe Commercial Law (2005) :

First, forwarders have full execution of contractual duties

Second, if there is a legitimate reason for the customer's benefit duringcontract performance, it can be done differently from the customer's instructions,but the client must be notified immediately

Third, If it is discovered that it is difficult to complete the contract withoutfirst agreeing on a time to complete the obligations with the customer aftersigning the contract, it shall notify the client for further instructions

If the contract does not specify a time for performing responsibilities withthe client, they must do it within a reasonable time

Remuneration and other acceptable incomes are due to the forwarder

1.4 Sea freight forwarding service

1.4.1 Definition and characteristics of the Sea freight forwarding service1.4.1.1 Definition

According to the model rules of the Federation of International FreightForwarders Associations (FIATA), (2010): “Freight Forwarding Services means

services of any kind relating to the carriage, consolidation, storage, handling,packing or distribution of the Goods as well as ancillary and advisory services inconnection therewith, including but not limited to customs and fiscal matters,declaring the Goods for official purposes, procuring insurance of the Goods andcollecting or procuring payment or documents relating to the Goods”

According to the Commercial Law of Vietnam, (2005) : “The person whoprovides freight forwarding service receives the items from the sender andorganizes the transportation, storage, warehousing, and paper procedures.Forwarding and other related services to transport products to the consigneeunder the shipper's, carrier's, or other forwarder's consignment

Essentially, freight forwarding is a group of jobs relating to the movement

of commodities from the point of shipment (the shipper) to the point of receipt(the consignee)

1.4.1.2: Characteristics:

In addition to the characteristics of international freight forwardingactivities in general, international freight forwarding activities by sea have theirunique characteristics:

Firstly, sea transport has a large transport capacity, which entails ships with

a large carrying capacity that can run multiple ships on the same route at thesame time; the time that ships must wait at ports is reduced thanks to the use ofcontainers and modern loading and unloading facilities, resulting in a largeclearance capacity of a seaport

Secondly, in international trade, sea freight is excellent for shipping mosttypes of goods Especially well-suited and efficient for bulk and low-value bulkcargoes

Thirdly, the cost of constructing maritime lines is minimal Those arelargely natural traffic routes that don't require a lot of money, materials, or effort

to construct, maintain, and preserve

Finally, natural and marine conditions have a significant impact on seatransportation Ships are frequently exposed to numerous dangers, including

agrounding, sinking, burning, and colliding with rocks The Evergreen ship, forexample, runs aground in the Suez Canal, causing $14 to $15 million in damageevery day and disrupting international commerce lines.

1.4.2 Types of the Sea freight forwarding service

1.4.2.1 Full Container Loaded (FCL)

When a customer (or the owner) hires an entire container to transport theirgoods, it is referred to as a full container loaded The shipper is in charge ofpacking the items, while the consignee is in charge of unloading them from thecontainer This is the most cost-effective option when the products are similarand sufficient to fill one container

Responsibilities of the shipper

Going to the port to pick up empty containers and transporting them to thewarehouse for packing; often, the shipper will use trucking services for this.Besides, they will load and unload the items into the container to verify that theyare fully packed and do not move during shipment They are responsible forfollowing export restrictions when it comes to customs processes and sealing thecontainer At the container yard (CY), transport and deliver the container to thecarrier, as well as receive the carrier's bill of lading.They have to pay for thecosts of the foregoing activities (customs fees and relevant customs formalities,loading and unloading fees, THC fees, and any Dem/Det fees that may apply)

Responsibilities of the carrier

First, Issuing bill of lading and manifesting to the shipper is required.Before sending the bill, the draft bill must be sent to the shipper to check theinformation on the bill

Second, Managing, caring for, and transporting chemical items incontainers from the time the container is received at the dispatch port's containeryard until it is delivered to the recipient at the destination port's container yard.Third, Loading containers from the port's container yards and transportingthem to the ship for safe transit and placement prior to the ship's departure

Forth, Unloading the container from the ship and transport it to thecontainer yard at the destination port.

Fifth, When the items arrive, do a D/O and deliver the container to therecipient at the container yard with a legitimate bill of lading

Responsibilities of the consignee

First, Double-checking that the set of vouchers has all relevant papers.Also, clear customs to get the cargo

Second, Receiving the cargo at the container yard, present a valid bill oflading (B/L) to the carrier

Third, Delivering the container to your warehouse, unpack it, and return it

to the carrier empty (or the container leasing company)

Forth, Paying for all expenditures associated with the actions listed above,including transportation to the container yard, D/O fees, and container bet fees.1.4.2.2 Less than Container Loaded (LCL)

Consignments packed together in a container are known as LCLs, and theconsolidator (carrier or forwarder) is in charge of packing and unloading theproducts into and out of the container If there aren't enough goods to fill a fullcontainer, the commodities owner can ship the products using an unusual means.The consolidator will collect the odd shipments of multiple owners,organize, classify, and combine the odd shipments to pack into containers, sealwith lead clamps in accordance with export regulations, complete customsprocedures, unload containers from the port yard and send them to the outgoingvessel, unload containers from the destination port yard, and deliver to theconsignee The consolidator collects goods mainly through forwarders

Responsibilities of the shipper

Packing, shipping, and bearing the expense of products from their storagelocation to the consolidator's container station (CFS - Container Freight Station).Handing over all relevant documentation pertaining to the products,transportation, and customs procedures to the consignor in order to complete the

bill of lading and customs clearance for the cargo Other requirements, such asfumigation and shipping mark, must be observed.

Confirming the draft bill and receive the bill of lading from theconsolidator, pay the freight

Responsibilities of the carrier

The retail carrier can be the actual carrier – that is, the shipping lines andcan also be the person who organizes the transportation (consolidator) but doesnot have the ship

The consolidator in retail transportation, on the other hand, is the individualwho collects and carries tiny goods to a separate warehouse where they arepacked into a complete container Because the consolidators must still collect theshipping lines' containers and the shipping contracts with the shipping lines, theactual carriers are still shipping lines There is no ship to transfer the cargobecause of the nature of the consolidator The forwarders are usually theconsignors

Carrier :

Signing the consignor's actual bill of lading

Loading the container onto the ship, transport to the destination port

Unloading the container from the ship, transport it to the container yard,return the goods, and deliver the odd goods to the consignee according to the bill

of lading issued at the port of departure

Consolidators:

Being directly responsible to the client throughout the transportation ofgoods, from the time the retail products are received at the port of dispatch untilthe products are delivered to the final destination port

Providing customers with bill of ladings and enter manifest informationinto the system

Notifying the customer when the items arrive and contact the receivingagent to get the products released to the client

Responsibilities of the consignee

Preparing an import license and clear the shipment through customs

Receiving the goods at the discharge yard at the port of destination, submit

a valid bill of lading to the consolidator or the consolidator's

representative Receiving products quickly at the container freight

station fee (CFS)

Not having to pay the container deposit charge because the consignee doesnot borrow the container in the natural world Otherwise, you will be chargedhandling fees

1.4.2.3 Mix FCL/LCL or LCL/FCL

This shipping method combines FCL and LCL shipping methods.Depending on the circumstances, the goods owner and the carrier may agree touse the combined mode of consignment The following are examples ofcombined shipping methods: Ship in bulk (FCL/LCL) for retail distribution andfull-service retail (LCL/FCL)

When items are delivered through a mixed method, the shipper's andcarrier's responsibilities shift proportionately

For example, when shipping a full shipment, retail delivery (FCL/LCL), theshipper and carrier are responsible for the initial mode of shipment, but uponreceipt, the consignee and carrier are responsible for the method of shipment.1.4.3 Factors affect the Sea freight forwarding service

Many subjective elements, including as infrastructure, equipment,machinery, investment money, and the qualifications of the organizers' position,play a role in the process of freight forwarding by sea

Infrastructure, equipment and machinery

Offices, warehouses, loading and unloading equipment, transportation,preservation, and storage equipment are all part of the forwarder's infrastructureand equipment The forwarder must have an infrastructure with contemporaryequipment and machinery to serve the delivery, preparation, and inspection ofproducts in order to participate in export delivery activities by sea, especially inthe current container conditions The forwarder was able to manage all of hisactivities, as well as information on customers and items, using a computer

system and an electronic data transmission system, thanks to the rapidadvancement of information technology.

Qualification of the operator

The degree of the operator, as well as the person directly involved, has aconsiderable impact on the professional process of import and export goodsdelivery by sea procedure Sea freight forwarding takes longer than air freightforwarding in most cases As a result, the process plays a big role in getting thegoods to the customer's requested location at the agreed-upon time, the number

of people that are directly or indirectly involved in the process If the participants

in the process have prior knowledge and experience in this field, they willprocess the information in the shortest time possible Not only that, but owing tothe experience working with a variety of items, the quality of the goods will beensured

Natural and marine conditions

First, it causes a delay in shipping schedule Weather is one of the firstfactors that have a great impact on the process of transporting goods by sea.Every year, more than 35% of ships are delayed due to inclement weather,according to statistics When large storms, tsunamis, or floods strike, transportunits will postpone their journey to guarantee the safety of persons and goods.The weather begins to rain, tropical depressions form, and cold air makes theweather at sea more problematic, especially around winter, which falls inSeptember and October on the solar calendar As a result, freight forwardershave had several issues with departing trains, causing products to arrive late.When the weather isn't cooperating, ships that are ready to depart or aredeparting must increasingly return to port

Second, It causes an accident to a transport ship Weather is one of the keyinfluencing variables in the shipping industry, much as roads and traffic densityare factors that frequently cause accidents in the road transport industry andengines and machines cause catastrophic accidents in railway transport Shipswill be notified to anchor to the sea whenever there is a low pressure, storm, or

stormy sea to guarantee their safety However, in many situations, transportvessels were unable to dock at the appropriate time due to a lack ofcommunication, a remote location at sea, or subjective factors, resulting in a shipaccident Shipwrecks are the most heinous and have the worst repercussions forboth people and goods Boats are safe in some circumstances because of skilledcommanders More significantly, the shipping unit could lose both personnel andcommodities, hurting the shipper as well as at least three other businessesinvolved in the shipment.

1.4.4 Criteria for evaluating the sea freight forwarding service

There is no precise standard for evaluating international sea freightforwarding services by container due to the nature of the service industry.However, there are several important criteria to consider throughout the process,such as:

Reliable document process

In freight forwarding by sea, document accuracy is critical since each step

of the flow of goods from the exporting to the importing country necessitatesdistinct paperwork, bills of lading, and invoices, all of which must match theinformation to assure the accuracy of the goods If an error in data or spelling isidentified in the document at each step of the separate circulation, changing thedocument to ensure that the items are cleared quickly will be exceedingly time-consuming and even costly

Safety and security of goods

This is a critical issue for a company that provides freight forwardingservices In the process of delivering products, simply losing or injuring apackage can harm the forwarder's and organization's reputations, and even forcethem to compensate for the damage, therefore inspecting goods at each step iscritical to ensure the quantity and quality of goods Furthermore, the quality ofthe goods is a concern; if new goods are delivered and delivered, they will not be

as good as the original quality; therefore, when receiving goods from an

exporter or a forwarding company, the agent on behalf of the importer must beresponsible for thoroughly inspecting the goods to minimize risks.

Transit time

This metric is calculated by counting the number of days since a shipmentleaves the seller's premises and arrives at the customer's location For a givendistance, transit times might vary significantly depending on the vehicle andtransportation system As a result, for the forwarder who needs to preciselycalculate a shipment's transit time, foresee delays due to objective reasons tonotify and have an appropriate plan in place, deliver the products to receiver

1.5 Main documents for the sea freight forwarding by container

1.5.1 Packing List

Documents prepared by the owner of the products declaring the quantity,number of blocks, and categories of commodities packaged in bags, crates, etc.The shipping business creates a manifest of the Cargo Plan based on theshipper's P/L

P/L includes information such as: numder adn date of sale contract,exporter and importer, port of loading and discharge, goods name, description ofgood, package and measurement

1.5.2 Bill of Lading (B/L)

A bill of lading is a document that a Carrier or Forwarder issues to aShipper when the goods have been loaded on board or are ready to be loaded.This is the dossier's most crucial set of documents The connection between theshipper and the carrier, or the forwarder and the consignee, is governed by it.The bill of lading has three major roles, according to international practice:evidence of the carriage contract, a receipt verifying delivery of the goods to thecarrier by the consignor, a document of title that allows items to be transferredfrom the consignor to the consignee or another person who is authorized toreceive them

We have two bills of lading based on the issuer of the bill of lading fromthe standpoint of forwarding

House Bill of Lading (HB/L)

The bill of lading issued to the genuine consignor by the forwardingbusiness HB/L is only valid for presentation to the forwarding agent and not forpresentation to the shipping line unless in the B/L and Manifest of the shippingline it is clearly stated in the Consignee box “TO ORDER OF THE HOLDER

OF ORIGINAL HB/L NO…” (According to the order of the holder of theoriginal HB/L No )

A house bill of lading is a document issued by a freight forwarder to ashipper to acknowledge receipt of their items for shipment

The shipper is the exporting company, and the freight forwarder (which canalso be referred to as a forwarding agent) is the company they’ve hired in order

to arrange transportation of their goods to a foreign destination The freightforwarder then books cargo space with carriers

Carriers are the transportation providers—the trucking companies, shippinglines, and airlines that physically move the shipment Some freight forwardershave in-house carrier services, while others contract with third-party carriers

Master Bill of Lading (MB/L)

A bill of lading issued by a shipping line to a shipper that the goods havebeen loaded or received for loading on board MB/L shows information ofshipper and consignee, port of loading and discharge, vessel name, cargo’sinformation, the date and place of issue of the bill of lading

1.5.3 Commercial Invoice (C/I)

The invoice is the most fundamental document in the payment stage; it isthe seller's request that the buyer pay the quantity of products listed on theinvoice The characteristics of the commodities, the unit price, the total value ofthe items, the port of departure, the seller's and buyer's names must all beincluded on the invoice

Invoices are often made in many copies, to be used for many differentthings such as: presenting to the bank to claim the goods, presenting to theinsurance company

1.5.4 Insurance documents

A document delivered by the insurer to the insured to legitimize theinsurance contract and to control the insurer-insured relationship In thisarrangement, the insurance company is compensated for losses incurred as aresult of risks that the two parties agreed to in the insurance contract, and theinsured must pay a maximum sum to the insurer is the cost of insurance

The insurance policy and the certificate of insurance are the two mostregularly used insurance documents

Insurance Policy: An insurance policy is a document provided by aninsurance company that contains the essential provisions of an insurance contractand serves to validate it

An insurance certificate is a document supplied by an insurance company tothe insured that certifies that a specific shipment has been certified for insuranceunder the terms of the policy The phrases that state the subject matter insured,the details necessary for the insurance calculation, and the insurance conditionsare all included in the contents of the insurance certificate

1.5.5 Certificate of Origin (C/O)

As a document provided by a manufacturer or a government agency, such

as the Vietnam Chamber of Commerce and Industry (VCCI), to confirm thelocation of products production or exploitation

The name and address of the buyer/seller, the name of the products, theamount, the code, the owner's declaration concerning the site of production orexploitation of the goods, and the certification of the competent authority are allincluded in the content of this paper

amount, types of licenses attached, as well as information about order codes andtax codes are all written.

We can have a tight hold on the information of items entering or leaving theborder gate thanks to customs declarations, allowing us to strictly manage andfulfill people's tax duties faster and more up to date

If, on the other hand, we are in the midst of customs clearance and goodsinspection, or if there are problems or disputes over customs goods within thenext five years

1.5.7 Arrival Notice

This is a document that informs the consignee about the status of goodsarriving at the port of entry, and is issued by a shipping line, shipping agent, orlogistics company precise information on commodities such as number, type,and packing specifications, as well as information about the port of departure,departure time ETD- and expected date of arrival ETA

1.5.8 Delivery Order (D/O)

The products owner must bring the original bill of lading (if any), the notice

of arrival, and the introduction with the customer's stamp and signature whenreceiving notice of arrival of goods To get the delivery order, send the company

to the shipping line or shipping agency The shipping company or agencypreserves the original bill of lading and delivers the consignee three or fourcopies of the D/O

1.6 International Sea freight forwarding process by container

1.6.1 Preparations to receive imported goods:

1.6.1.1 For goods that do not have to be stored in warehouses or yards atports

In this case, the goods owner or the person entrusted by the goods owner todeliver and receive directly with the ship

To be able to proceed with unloading, 24 hours before the ship arrives atthe pilot position, the goods owner must give the port a number of documents:

manifest of goods (2 copies), queue diagram (2 copies), details of cargo hold (2copies)

Oversized, too heavy goods (if any) The goods owner presents the originalbill of lading to the representative of the shipping line Directly receives thegoods from the ship and prepares the necessary documents in the process ofreceiving the goods such as: Cargo outturn report (COR) for obvious loss, Letter

of Resistance (LOR) for unspecified loss, Missing goods certificate (issued by ashipping agent):

1.6.1.2 For goods that must be stored or stored at the port

Port of receiving goods from ship

Unloading and receiving goods from the ship (by the port)

Preparing necessary documents in the process of delivery and receipt(delivery staff must prepare together)

Bringing goods to the port warehouse

Port of delivery to shippers

To obtain D/O, shippers must bring the original bill of lading, thecompany's introduction letter, and the original bill of lading to the shipping line

or shipping agent on receiving notification of arrival of goods The shipping line

or agency keeps the notice of arrival and gives the consignee three copies of theD/O

Present and submit the following documents: Company introduction paper,Import declaration, Import license (for enterprises opening declarations for thefirst time), Paper of payment to the state budget, Sale contract, P/L 1 original, C/

I 1 original, B/L 1 copy, C/O (if required), Certificate of quality or quarantine (ifthe item is required)

Distribution of goods inspection

Depending on the results of the channeling, the customs will decidewhether to immediately clear the goods or force them to check the documentsand check the actual goods into three channels: green, yellow, red

After the customs confirms that the goods have been cleared, the goodsowner can take them out of the port and take them to their own warehouse.

Depending on the results of the channeling, the customs will decidewhether to immediately clear the goods or force them to check the documentsand check the actual goods

Include:

Green channel (exemption from inspection): The duty to declare on the

customs declaration is self-responsible; customs will apply the form ofexemption from inspection and allow it to clear customs promptly Aftercompleting the declaration registration process and receiving the customs leader'sapproval Enterprises are permitted to pay for oil that is exempt fromexamination, receive a declaration with confirmation of customs charge payment,and clear customs quickly

Yellow stream (checking documents): After completing the declaration

registration procedure, the dossier will be sent to the tax price inspectiondepartment, where it will be checked for the authenticity of import prices and taxrates.At the tax rate declared by the enterprise, the customs officer in charge ofthe tax price shall issue a notice confirming the tax amount that the enterprisemust pay on the back of the declaration The tax customs officer will sign andcertify the declaration in box (36) of the declaration and write comments if theprocedure of checking the tax valuation is consistent with the real data held bythe customs authority input it, submit it for approval to the inspection teamleader, and then transfer it to the border gate customs office leader forclearance.The representative of the enterprise shall pay customs fees, import taxand VAT if any and receive the declaration back for customs clearance

Red stream (Checking documents and actual goods): After registration, the

dossier will be transferred to the red stream to continue the tax inspection,similar to the yellow channel, before being submitted to the border gate leaderfor approval of the inspection rate items (Example: 5 percent , 10 percent or fullinspection) If the commodities are among those with a high rate of commercial

fraud, the customs leader has the authority to recommend a joint inspection ofthe commodities by the two firms For inspection, the inspection organizationcollaborates with the border control team.

After the customs confirms that the goods have been cleared, the goodsowner can take them out of the port and take them to their own warehouse

1.6.2 Receiving organization

1.6.2.1 FCL/FCL

When the goods owner receives the notice of arrival (NOA), he or she goes

to the shipping business with the original bill of lading and the agency'sintroduction to obtain the D/O

The goods owner takes the D/O to the customs office for processes andregistration of goods inspection (the goods owner might request that the entirecontainer be transported to a separate warehouse or ICD for customs inspection,but this is not required)

The goods owner must bring the set of receipts with the D/O to the shipmanagement office at the port to certify the D/O after completing the customsprocedures Receive the goods after receiving the delivery notice

1.6.2.2 LCL/LCL

The service business will then aggregate a large number of LCL shipments,organize, categorize, and pack them into containers, and arrange transportationfrom the loading port to the destination port Consolidation, or consolidation, isthe term used to describe this type of consolidation

The goods owner takes the MB/L or HB/L (if he is a consolidator) to theshipping line or shipping agent to obtain the D/O, then receives the goods at theCFS indicated and follows the steps outlined above

CHAPTER 2: SITUATION OF SEA FREIGHT FORWARDING PROCESS OF IMPORTED GOODS BY CONTAINER AT TNG LOGISTICS SERVICE AND SOLUTIONS COMPANY LIMITED

2.1 Overview TNG LOGISTICS SERVICE AND SOLUTIONS CO., LTD

2.1.1 General information and historical development

2.1.1.1 Summary of formation and historical development

Name: TNG LOGISTICS SERVICE SOLUTION CO ,LTD

As known as: TNG LOGISTICS

Head office: No 22, Alley 178/2, Dinh Thôn, My Dinh 1 Ward, Nam TuLiem District, Hanoi City

TNG Logistics Solution Company Limited was established on July 29,

2019 as a member of TNC Transportation Joint Stock Company (TNC Group)was established and licensed on December 30, 2008 - a company reputation,specializing in domestic freight transportation With many years of experience

in the transport business, TNG has affirmed its position and become the choice

of many customers

TNC Group was officially established on December 30, 2010 with the core

of people who have worked and have long experience in the transport profession.After gaining certain experience, along with being aware of the potential forinternational goods import and export, TNG Group has since opened a subsidiarynamed TNG Logistics specializing in international goods After that, TNGLogistics was established in 2019

When it was first established, TNG mainly operated in the business oftransporting goods by road It can be said that up to now, road transport is stillTNG's strength along with other modes of transport The company ensures toserve the freight forwarding needs of customers in all provinces across thecountry from the North to the South With 3 parking lots in Hanoi area: parkinglot at Thang Long Avenue, parking in Tam Trinh, parking in Ha Dong

Therefore, during 3 years of operation, TNG Logistics has become a modal and multi-service company with many options to meet all the wishes ofcustomers

multi-2.1.1.2 Business philosophy and objectives

TNG Logistics Solutions Co., Ltd was established with the desire to be themost effective Logistics solutions with the most appropriate cost to domestic andinternational customers

The company operates under the principle of "Prestige Professionalism Efficiency" and with experienced human resources, Company always put theirselves in the position of customers to constantly improve and build the bestservices, bring the best business benefits to customers

-2.1.1.3 Vision, mission, core values

• Vision: With a sustainable development perspective to bring more value to

customers TNG Logistics focuses on providing transportation services by road,rail, ocean, air, warehouse, lifting, loading and unloading With continuous efforts,TNG Logistics has been developing, promising to be a company

providing leading transportation service solutions in the country and in other countries.

• Mission : TNG Logistics is constantly striving and innovating to become a

large transportation enterprise of national and international stature Thedevelopment goal is to bring the best benefits to both customers and society

• Core Values: TNG Logistics takes the harmonious combination between

the interests of customers, shareholders, and employees with the motto: "Thebenefit of customers is the development of the company" Along with theinnovation, the latest technology and administration, customers can completelytrust and feel secure about the services of TNG Logistics

2.1.2 Field of business

The company's field of activity is to provide international and domestictransport services Transport services by road, sea, air, railway, customsdeclaration In which, there are 3 main transportation service industries such as:

Road transportation services

As a member of TNC Transportation Joint Stock Company (TNC Group),TNG Logistics owns and co-operates a fleet of multi-category vehicles, meetingall customers' needs for road transportation with a range of services such as:Transporting goods by truck from 1.5 tons to 20 tons to all provinces across thecountry and neighboring countries such as China, Lao, Cambodia from 2.5tons to 15 tons Besides, TNG can transport goods to provinces and cities in thecountry, super-long and super-weight goods by specialized vehicles (tractors,trailers ) and support for legal procedures for consignments across Vietnameseborders

Sea transport service

Cargo transportation by sea is always the choice for customers who havelarge orders that need to be transported to reduce transport costs, TNG Logistics

is a reliable agent of most major shipping lines in the country and abroad .Therefore, company always has the advantage of the most favorable prices andshipping schedules of shipping lines for customers' shipments TNG Logistics is

confident that it will bring the enterprise's goods across the ocean to safely dockwith the fastest progress with services such as: shipping aboard in packages,issuing transport documents, implementing customs clearance

Air transportation service

Air freight transportation is one of TNG Logistics' strengths Because TNGLogistics is an agent of domestic and international airlines Company providesthe most completed transportation service to customers because TNG Logisticsknows that when customers choose to transport goods by air, it is alwaysrequired time and progress of delivery Therefore, TNG logistics is always ready

to meet this special request of customers, with the following services: Packingand preserving goods door to door, Legal procedures for shipments, Customsdeclaration, Storage and distribution

Railway transportation service

Nowadays, rail freight transport is considered to be quite good, due to itslow cost and high safety Therefore, TNG Logistics has proactively signed andacted as an agent for most railway companies to serve and satisfy a variety ofcustomers' wishes, with the following services:Customs procedures, Storage anddistribution of goods, Lifting, loading and unloading goods and wagons,Services in the form of LCL, FCL, Inter-railway transport to China andOECD ,Transportation by railway in the form of Door to door, Transportation inspecialized cars which are suitable for bulk cargoes, super long and super weightgoods

International house-moving and delivery services

Nowadays, with the trend of global integration, it is very common to moveaccommodation from one country to another With the advantage of a fullpackage service supply chain, TNG Logistics has developed and provided homedelivery services and international home appliances If you want to move toanywhere in the world and want to bring your familiar items, TNG Logisticswith all its spirit and responsibility will transport all your property to yourdestination through the following services:Surveying , checking, Consulting and

proposing transportation solutions, Setting plan and schedule transportation,Packaging goods, Implementing Customs procedures for import and export ofthe shipment, Shipping door to door (insurance)

Customs services:

With the logistics service supply chain for international freight, the customsdeclaration process is one of the extremely important and complex stages.Therefore, TNG Logistics established a customs declaration office with a focus

on human resources knowledgeable in circulars, decrees, customs proceduresand practices of countries around the world, in order to bring customers theconvenient and fastest clearance of goods

TNG Logistics provides customs services including;

- Consulting on customs procedures

- Implementing customs tax declaration

- Importing and exporting entrustment services

- Applying for import and export license

- Applying for a certificate of origin

Warehouse rental service:

Recognizing that warehousing is an integral part of the logistics servicesupply chain and in order to optimize costs in that service chain, TNG Logisticshas cooperated and self-developed warehouse systems in all areas to serve andmeet the needs of customers

TNG provides warehouse rental services including:Insurrance, managed warehouse for rent, Warehouse for rent according to Pallet,Lifting andunloading services at the warehouse

Self-2.1.3 Organizational structure

2.1.3.1 Operation apparatus diagram of the company

Figure 2.1: Organirational of TNG Logistics Service Solution Company

Source: General Department of TNG Solution Logistics

Organizational structure, management, supervision and administration ofsubsidiary TNG Logistics Service and Solution with more than 100 members,including: Board of Director, Director, ViceDirectors, Executive Board,Business & Marketing, Financial Accountinh, Human Resource, CustomsDepartment In addition, with a staff of experienced masters, bachelors, andprofessional drivers The company staff has done a great job in their role

The company's executive board structure includes:

- Executive Board: 03 people (01 Director and 02 Deputy Directors);

- Professional staff: 30 university majors and 82 highly skilled drivers are currently the main human resource of the company

2.1.3.2 Functions and duties of each department

Executive Department

Receiving demand, customer service from sales department and advisingthe company's leaders in operating and production After that, set up plan tomaneuver vehicles, equipment and resources to complete the delivery mission

In addition, the operating department is responsible for contacting air,ocean or railway partners to ensure that goods arrive or go on schedule so thatthere is a plan to coordinate pickup trucks, or transport to the right location foreach order.

The operating room is also the head office of the company that works andmanages directly with a team of more than 80 vehicles, related to maintenanceand registry of trucks and cranes

The operating room is divided into 4 main parts for vehicle management:Management board of small vehicles from 0.5 tons to 5 tons, 6 tons to 13 tonsThe Board of Management liaises with shipping lines, airlines, and railways

Bussiness & Marketing Department

Bussiness department:

A part that plays an important role in the company's brain, management ofthe domestic and international transportation process, then contact to theoperating department during the transportation of goods

Domestic business: find potential customers who need to transport goodsfrom short distances in the city of Hanoi to long distances such as North-Southtransportation From there, contact the operating department to transport goods

to locations according to customer needs Update the goods situation tocustomers to create trust, close relationships with businesses

nternational business: the mandate of the domestic sales department isincluded and is more complex

The International Sales Department is also responsible for finding potentialcustomers, but is a group of businesses with international transport needs Findout the right customers' needs in order to advise customers on suitableprocedures After searching for sources of customers, sales staff is responsiblefor contacting domestic or foreign agents depending on the needs of exported orimported goods to understand service costs and then report to customers Finallyconnect with customs and coordination for the final stages of the shipping Afterfinishing the order, the employee is responsible for taking care