PROCEDURES AND SETTLEMENT OF EXPORTED GOODS BY AIRWAY IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY

MINISTRY OF INDUSTRY AND TRADE

COLLEGE OF FOREIGN ECONOMIC RELATIONS
FACULTY OF FOREIGN LANGUAGE

INTERNSHIP REPORT

Topic:

PROCEDURES AND SETTLEMENT OF
EXPORTED GOODS BY AIRWAY IN
UNIVERSAL GLOBAL LOGISTICS JOINT
STOCK COMPANY
Instructor: M.A LE TUYET VAN
Student’s name: NGUYEN THI MINH NGUYET
Student’s code: 1310020535
Course: 17 (Business English 17K)
Ho Chi Minh City, May 2016
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MINISTRY OF INDUSTRY AND TRADE

COLLEGE OF FOREIGN ECONOMIC RELATIONS
FACULTY OF FOREIGN LANGUAGE

INTERNSHIP REPORT

Topic:

PROCEDURES AND SETTLEMENT OF

EXPORTED GOODS BY AIRWAY IN
UNIVERSAL GLOBAL LOGISTICS JOINT
STOCK COMPANY
Instructor: M.A LE TUYET VAN
Student’s name: NGUYEN THI MINH NGUYET
Student’s code: 1310020535
Course: 17 (Business English 17K)
Ho Chi Minh City, May 2016
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ACKNOWLEDGEMENT

Firstly I would like to appreciate the period that I have studied at the College of
Foreign Economic Relations, I have been taught, received and accumulated
invaluable and useful knowledge by teachers and professors. I also appreciate the
practicing at Universal Global Logistics Joint Stock Company who helped me to
reinforce the knowledge that I have learned, helped me to test the theory that I was
taught. Beside that I got new knowledge and much experience which will be helpful
for me in the future.
To complete for this report, I would like to appreciate to the Board of Directors of
Universal Global Logistics Joint Stock Company, I also appreciate all members of
Import and Export Department who have created good conditions and good
environment for me, gave me opportunities to work as a member of company with
the realistic works, supported me to collect data and information.
I also would like to express sincere thanks to the School Administrators who created
the studying environment friendly and healthy with very practical course and close
with reality. I would like to thanks all teachers, professor of College of Foreign
Economic Relations in general and Faculty of Foreign Language in particular who
have taught me for the past three years. Specially, I appreciate Ms. Le Tuyet Van

and all teachers in College Of Foreign Economic Relations who have mentored me
to complete this internship report.
Finally I would like to wish our College will continue the successful development
and continue training more and more students. I also wish the Universal Global
Logistics Joint Stock Company to achieve all business targets which have been set
up so far.

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INSTRUCTOR’S COMMENTS

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PREFACE

Viet Nam has been a member of the WTO since 2007, Vietnam's economy has been
going to approach the world’s economy and the opening of the market has made
Vietnam's economy enormous transforming. So, the exchange and purchasing goods is
a necessary demand, they contribute to the country's rich, connect and bring the
countries of the world snuggled together. To meet the increasingly demand of the
exchange of goods the freight forwarding company was born, grown up increasingly
and powerfully.
In recent year, International Freight Trading has become more important and it has
become one critical element of developed countries. Not only did it create the initiative
in foreign economic relations but also accelerate the process of the importation and
exportation, it is the motivation to boost the production development ... Although the
International Freight Trading activities do not need much capital, they can create the
stable profit.
In Vietnam, the freight forwarding activities are very young and they do not shown all
of their potential.

However, in recent years the number of registered business

enterprises in this field has increased significantly and has create a competition

environment among the forwarding companies.

Many Universal global logistics

company has not been there as the competing trends.
Realizing that trend, with the unique advantages in the exporting goods and forwarding
by airway, the Universal Global Logistics Joint Stock Company has been gradually
asserted its brand with good quality of service, reasonable prices to meet growing
demand of customers.
Therefore, I chose the topic: “Procedures and settlement of exported good by
airway in Universal Global Logistics Joint Stock Company”. Those operations take
the main source of profits for the company. They also show me how the theory I have
learned is applied in actual fact. They also help me to consolidated knowledge and
experience for the job after graduation.

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TABLE OF CONTENTS


CHAPTER 1: OVERVIEW OF UNIVERSAL GLOBAL LOGISTICS JOINT
STOCK COMPANY………………………………………………………………1
1.1. History and development of Universal global logistics joint stock
company……………………………………………………………………………..1
1.2. Missions of Universal global logistics joint stock company………................2
1.3.

Organizational

structure

of

Universal

global

logistics

joint

stock

company……………………………………………………………………………2
1.3.1. The structural chart of the company………………………………………...2
1.3.2. The Human Resources situation of the company…………………………..2
1.4. Situations and results of current business activities of Universal global logistics
joint stock company……………………………………………………………….4
1.4.1. Situations……………………………………………………………………4
1.4.2. The results…………………………………………………………………..5
1.5. Current strengths and weakness of Universal global logistics joint stock
company……………………………………………………………………………7
1.5.1. The strengths………………………………………………………………..7
1.5.2. The weakness………………………………………………………………..7
CHAPTER 2:PROCEDURES AND SETTLEMENT OF EXPORTED GOODS
BY AIRWAY (FRESH FLOWER CHRYSANTHEMUM INDICUM FOR
CO.,LTD FRESH STRAWBERRY KHANH BICH ON 11 MARCH 2016) IN
UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY……..……9
2.1. Receiving information from customers………………………………………10

2.2. Booking Airline……………………………………………………………….10
2.3. Preparation of Documents…………………………………………………..11
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2.4. Request for Phytosanitary Certificate from plant protection sub department
region II (28 Mac Dinh Chi, Da Kao Ward, District 1, Ho Chi Minh
City)………………………………………………………………….…………….11
2.5. Customs Procedure…………………………………………………………..12
2.6. Taking over goods at TCS warehouse, scaling and paying labor fee……….16
2.7. Customs clearance……………………………………………………………16
2.8. Sending documents and taking bill from China Airline……………………17
2.9. Mailing the documents to the Japan Plant CO., LTD………………………..17
2.10. Evaluation procedures and settlement of exported goods by airway in
universal global logistics joint stock company…………………………………17
2.10.1. The strengths………………………………………………………………17
2.10.2. The weakness……………………………………………………………..18
CHAPTER

3:

CONCLUSIONS,

RECOMMENDATIONS

AND

EXPERIENCES…………………………………………………………………..18
3.1. Summarizing the content…………………………………………………….18
3.2. Recommendations for company…………………………………………….20

3.3. Experiences on this internship………………………………………………21
3.3.1. Benefits……………………………………………………………………..21
3.3.2. Shortages…………………………………………………………………..21
3.4. Conclusion…………………………………………………………………….22

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ABBREVIATIONS

TCS

Tan Son Nhat Cargo Services Company Limited

CO., LTD

Company Limited

MAWB

Master Air Way Bill

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LISTS OF TABLES

Table 1.1: Table 1.1: Demonstrate literacy of employees in the company
Table 1.2: The situation of the company's operations period 2013- 2015
LISTS OF CHARTS, PICTURES

Chart 1.1: Showing the percentage of degree-educated employees of the company:
(in 2016)
Chart 1.2: The results of service business activities of Universal global logistics
joint stock company period 2011-2013
Picture 2.1: General procedure
Picture 2.2: The interface of Vnaccs
Picture 2.3: Declare general information and information of exporter
Picture 2.4: Declared in the general information about the bill of lading
Picture 2.5, 2.6, 2.7: Goods declaration list
Picture 2.8: Declaration processing results

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CHAPTER 1: OVERVIEW OF UNIVERSAL GLOBAL LOGISTICS JOINT
STOCK COMPANY.
1.1. History and development of Universal global logistics joint stock company
Founded 8 July 2010, the company has taken business opportunities and meets the
development needs of the country in Vietnam to the foreign trade services also
increased so that the company has made business strategies is quite new and
reasonable.
The UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY permitted
direct import-export business and the implementation of import and export services,
freight and abroad under a business license issued on 8 July 2010 of the Department
of HCM City planning and Investment
 Director: Nguyen Minh Tu
 Capital: 6,000,000,000 VND (Six Billion VND)
 Company Name: The Universal global logistics joint stock company
 Abbreviation: UNI-GLOBAL LOGISTICS JS
 Headquarters: Floor 2F, Dinh Le Tower, 1-Dinh Le Street, Ward 12, District 4,

Ho Chi Minh City
 Phone: + 84-8-39435742 / 39435743; Fax: + 84-8-39435744
 Website:
 Email:
 Account: VIETCOMBANK 007.100.5684488 in HCMC
 Tax code: 0310140222

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1.2. Missions of Universal global logistics joint stock company
Associating with other organizations inside and outside the country to organize
transportation, freight forwarding import-export, exhibition goods, private goods
and documents related
Taking forwarding service, logistics, warehousing, purchasing the freight of
vehicles (cars, ships, plane, containers,…), implement other services that is related
to the mentioned goods such as: the purchasing, exportation-importation
procedures, and customs procedures, insurance and delivery of that goods to the
carrier to delivery to designated place.
1.3. Organizational structure of Universal global logistics joint stock company
1.3.1. The structural chart of the company

Director

Importexport 1.1.1.
documents
department

Accounting
department

Delivery
department

Sale
and
Marketing
department

Picture 1.1: Organization of Universal global logistics joint stock company
1.3.2. The Human Resources situation of the company:
As a company specializing in services, the Global World does not need too many
employees but all of them are linked together, each staff is responsible for a specific
work. They are always complete assigned work by together resolving difficult
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situations. Activity of each member is instructed and supervised by the director with
such a lean, simple structure but effectively.
Table 1.1: Demonstrate literacy of employees in the company
University

College

High School

Number

20

6

2

Percentage

71.43

21.43

7.14

(Source: Accounting department in 2016)

Chart 1.1: Showing the percentage of degree-educated employees of the company:
(in 2016)
Comment:
- The college graduated staff: is 21.43% and there is tending to be reduced because
employees are actively improving their education by University level to improve
their knowledge.
- The staff who are at intermediate level: the college levels are 7.14% and there is
tending to be reduced because they are also upgrading their level by night time
courses.
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- The staffs who are graduated university: in general these staffs are the highest
proportion of companies which is 71.4% in 2014 and is expected to be increasing in
the coming years.
- Based on above data, we found that the company's employees have a relatively

high level.
- The Organization of company is decided by directors based on the principle:
simple but efficient, suitable to specific activities of the company in the recent
period.
- The total number of company employees is 30 people, most of them are graduated
college and university. In addition all employees are qualified in language and
conversation.
-The company carries out policy on the management, labor - wage, social insurance
... as Vietnam regulation.
1.4. Situations and results of current business activities of Universal global
logistics joint stock company
1.4.1. Situations:
The company was founded and has participated in the market since 2010, so the
main objective of the company in recent years is the market penetration, looking for
new customers and increasing market share. Not only has the company market share
in the city, but also expand to the neighborhood such as the Mekong Delta
provinces, Binh Duong, Binh Phuoc, Dong Nai, ... create significant revenues for
the company. With 4 years of establishment and development the company
gradually has significant development, forwarding company reliable and gradually
asserted its position

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1.4.2. The results:
Table 1.2: The situation of the company's operations period 2013- 2015
Unit: million VND

(Source: Accounting Department in 2016)

Business results
Criteria
In 2013

In 2014

In 2015

Revenue from service providers

83.458,00

140.320,00

179.245,00

Cost of goods sold

76.850,00

125.139,00

137.370,00

Total cost

3.927,00

6.321,00

8.247,00

Profit before tax

2.681,00

8.860,00

12.628,00

The before tax Profit

670,25

2.215,00

3.407,00

Profit after tax

2.010,75

6.645,00

12.221,00

 The revenue and profit situations will give is an overview of Universal global
logistics joint stock company period 2013-2015

5

Chart 1.2: The results of service business activities of Universal global logistics
joint stock company period 2011-2013
 Comment:
Basically, the turnover has increased steadily over the years from 2013 to 2015 as
follows: the highest revenue level achieved ~ 57 billion in 2013-2014 (83.45 billion
in 2013 and 140, 32 billion by 2014). Following the increasing of turnover, the
company's profit also increased by ~ 4.6 billion. In 2015 the company achieved
revenues of 179.245 billion which is increased by 38.925 billion compared to period
in 2014. Management cost from 2013 to 2014 was kept at the rate 4.5% of sales
amount. However there is the remarkable profit which increased from 6.3% of sales
in 2013 to 7% of sales in 2014. It was mean that the company used its capital
effectively to increase the profit. In order to do that, the Company must do better
business operations, better control in financial. Those reasons showed that company
has been stable growing.
Regarding operation cost of company:
- Operation Expenses in 2013 was ~ 2.4 billion.
- In 2014, it was 1.9 billion.
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The cost of business related services of 2 stages on without much change. The cost
reduction by 20.8% in 2014-2015 compared to 2013-2014. This shows the positive
in the business of the company, with the management extremely reasonable cost of
doing business. This is also one of the key issues to bring success in business
processes of the company.
 Overall, the company is on track in the business process based on suitable
method. Besides, the support from the state's policy of raising the efficiency of the
production process, so export business operations of the company in 2013-2015,

achieving extremely good achievements.
1.5. Current strengths and weakness of Universal global logistics joint stock
company
1.5.1. The strengths:
- The company has trained professional employees who are always worked with
high responsibility to complete the assigned works. In addition, Sale and Marketing
team are always dynamic, market research, and brought the company special price
contracts. Specially, import-export department always properly implement the
contract, keep credibility with customers and create a stable income for the
company.
- With efficiency organization of Human Resources, everyone has a clear
assignment, so there is such a good coordination to process logical tasks or any
addition problems. Employees are always support and help each other when there
are difficulties and problems.
- There are many key employees who were experience in the field of Import-Export.
1.5.2. The weakness:
- The company has recently established for 6 years, so it does not have much
experiences, the relationship has not been widely

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- Company size is not large, logistics workforce is not enough for more contractual
performance, especially at a specific time when there are increase of orders,
increase of import and export demand
- Because the company has not had its own truck for transportation so the
transportation cost may become out of control. Transportation cost is now depended
on other vehicle services supplier. This is causing cost and profit of import-export
affected.

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CHAPTER 2: PROCEDURES AND SETTLEMENT OF EXPORTED
GOODS BY AIRWAY (FRESH FLOWER CHRYSANTHEMUM INDICUM
FOR CO.,LTD FRESH STRAWBERRY KHANH BICH ON 11 MARCH
2016) IN UNIVERSAL GLOBAL LOGISTICS JOINT STOCK COMPANY
Receiving information
from customers

Mailing
Mailing the
the documents
documents
to
to the
the consignee
consignee

Booking Airline

Sending documents and
Preparation of documents

taking bill from airline

Request for Phytonsanltary
Certificate from plant
protection sub department
region II

Customs clearance

Taking over goods at TCS
Customs Procedure

warehouse, scaling, paying
labor fee

Picture 2.1: General procedure
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2.1. Receiving information from customers:
When customers demand to export the goods, the customers will send the necessary
information related to export shipments, detail as:
Exporter: Fresh Strawberry Khanh Bich CO., LTD
Address: Da Tro village, Da Nhim commune, Lac Duong town, Lam Dong
province
Importer: Japan Plant CO., LTD
Address: 4-168 Kuronominam Gifu- Gifu City
Made in: Tan Son Nhat Airport, Ho Chi Minh City
Port discharge: Nagoya Airport
Net weight: 496 kgs
 Package quantity: 40 CTNS
Amount: 1,37400 USD
2.2. Booking Airline:
When receiving orders from customers, employees of delivery department will
contact the airline of the importing country to book for exported shipments by
Booking Request via mail, fax or directly call (if they are regular customers of this

airline).
Depending on the time of getting information about shipments, employees will
reserve to the airline. It is usually to reserve one day before the flight depart.
This shipment was booked CHINA AIRLINES.
After receiving the booking confirmation was sent by airline, forwarder will inform
Khanh Bich company the date of shipment: 11th March 2016,
Accordingly, the Khanh Bich company prepares for delivery to the Universal global
logistics joint stock company

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2.3. Preparation of Documents:
- The documents which the department staff prepared include:
+ Commercial invoice: 1 origin
+ Packing list: 2 copies
+ Airway bill: 1 copy
+ Electronic customs declarations: 2 origins
- Besides, there are also some other papers such as:
+ The referral of the company for forwarder
+ Poll receiving customs dossiers
+ Business license import and export operations
+ Reception cards electronic customs declaration
+ Quarantine certificate (for goods subject to quarantine)
2.4. Request for Phytosanitary Certificate from plant protection sub
department region II (28 Mac Dinh Chi, Da Kao Ward, District 1, Ho Chi
Minh City):
+Step 1: Phytosanitary Registration: before exporting, employees who are
authorized by customers must process the Phytosanitary registration at least 24
hours prior with the quarantine authorities region II.

+Step 1: Phytosanitary Registration: employees are authorized by customers going
Phytosanitary registration at least 24 hours before with the quarantine authorities
region II before exporting
+ Step 2: Submitting document to Customs Receiver and return it to Results
department.
+Step 3: Quarantine agency is responsible for taking and checking the completeness
and validity of documents as prescribed regulation
+Step 4: Phytosanitary agency will issue certification for company based on
physical examination results
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Department will issue 3 sets of quarantine certification include: 1 origin and 2
copies
Department will keep 1 copy and 1 packing list
The company is supplied 1 origin (send with documents via airline to importing
country), 1 copy for Universal global logistics joint stock company will send to
customers.
2.5. Customs Procedure:
Step 1: Start Ecus

Picture 2.2: The interface of Vnaccs
Step 2: On the interface will appear at the top of the window
Step 3: Next to register the export declaration forms

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Picture 2.3: Declare general information and information of exporter

Picture 2.4: Declared in the general information about the bill of lading

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Picture 2.5, 2.6, 2.7: Goods declaration list
After the customs system receives full information, they will respond and provide
contact for documents declaration. After about 10 minutes later, the Customs will
feedback ramification of declarations and consignments.
Described as Picture 2.8 below:

Picture 2.8: Declaration processing results
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