Evaluation on importexport activities of Detech Joint Stock Company

FOREIGN TRADE UNIVERSITY
FACULTY OF INTERNATIONAL ECONOMICS
______***______

MID-COURSE INTERNSHIP REPORT
Evaluation on import activities of Technology Development
Supporting Joint Stock Company (Detech Joint Stock
Company)

Hanoi, 7/2018


TABLE OF CONTENT
INTRODUCTION........................................................................................................1
CHAPTER 1 LITERATURE REVIEW.....................................................................3
1.1

Definition of import and its effects on firm-level characterisics..................3

1.2

Types of product for importation...................................................................4

1.3

Import procedure............................................................................................6

1.3.1

Trade Enquiry............................................................................................6

1.3.2

Procurement of Import License and Quota..............................................7

1.3.3

Opening a Letter of Credit.........................................................................7

1.3.4

Obtaining Necessary Documents..............................................................7

1.3.5

Customs Formalities and Clearing of Goods............................................8

1.3.6

To obtain endorsement for delivery or delivery order...............................9

1.3.7

To pay customs or import duty...................................................................9

1.3.8

Bonded and Duty paid warehouses.........................................................10

1.3.9

Appointment of clearing agents..............................................................10

1.3.10 Making the Payment................................................................................10
1.3.11 Closing the Transactions.........................................................................11
CHAPTER 2. CURRENT SITUATION OF IMPORT ACTIVITIES OF DETECH
JOINT STOCK COMPANY IN RECENT YEARS (2015-2018)............................12
2.1

Overview of Detech Joint Stock Company..................................................12

2.1.1

Establishment and development process.................................................12

2.1.2

Structure, function and mission..............................................................14

2.1.3

Recent economic achievements...............................................................16

2.2

Current situation of import activities..........................................................17

2.2.1

Main import items....................................................................................17

2.2.2

Import process at the company................................................................17

2.2.3

Brief of import situation and its performance........................................22


2.3

Assessment of performance of Detech JSC’s import activities..................25

2.3.1

Achievements...........................................................................................25

2.3.2

Challenges...............................................................................................26

CHAPTER 3.............SOLUTIONS AND RECOMMENDATIONS TO IMPROVE
IMPORT ACTIVITIES AT DETECH TECHNOLOGY DEVELOPMENT
SUPPORTING JOINT STOCK COMPANY...........................................................28
REFERENCES...........................................................................................................34
INTERNSHIP TASK SUMMARY............................................................................35

TABLES AND FIGURES
Figure 2.1 Major milestones of the company............................................................16
Figure 2.2 Company structure...................................................................................19

Table 2.1 The process of importing goods of the Company.....................................22
Table 2.2 Import turnover of the company over the years......................................27
Table 2.3 Business Performance Report 2007 – 2008...............................................29


INTRODUCTION
1. Research background
With the integration of the region and the world, especially with the participation
in the international trade organization WTO, the demand for exchanging and trading of
Vietnam's commodities with foreign countries is increasing. Due to that reason, in the
past few years, the Government has been implementing the policy of innovation in
industrialization and modernization of the country in line with the trend of promoting
exports, gradually replacing imports. However, this is not the reason that the import
business activity has decreased but still increased according to the demand of
production and consumption in the country, especially the items such as machinery or
technical high-tech items.
Vietnam is a developing country, in order to comply with the policy guidelines of
the Government, there is no other way to promote exports, but reduce imports. But how
to ensure high import efficiency is not only a concern of the business but also of the
economy as a whole.
Recognizing the importance of import business activities, as well as after a period
of practice in the export department of Detech Technology Development Assistance
Corporation, on the job of an import-export officer, I chose the topic: "Evaluation on
import activities of Technology Development Supporting Joint Stock Company
(Detech Joint Stock Company)" as the subject of Internship report.
2. Research aim and objectives
My research will focus on the import activities of Detech JSC and analyze the
effectiveness of import activities on company’s business performance, thus hammering
out the solutions to tackle challenges and weakness.

3. Scope of the research
The research will collect data of income statement, financial statement and balance
sheet of Detech Joint Stock Company from the year 2015 to 2018.
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4. Methodology
The research uses quantitative method to analyze business performance and assess
effectiveness of import activities.
5. Structure of the study
This report includes 3 main parts:
Chapter 1: Literature review
Chapter 2: Current situation of import activities of Detech Joint Stock Company in
recent years (2015-2018)
Chapter 3: Solutions and recommendations to improve import performance of
Detech JSC

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CHAPTER 1

LITERATURE REVIEW

1.1 Definition of import and its effects on firm-level characterisics
"Import" consists of transactions in goods and services to a resident of a
jurisdiction (such as a nation) from non-residents. The exact definition of imports
in national accounts includes and excludes specific "borderline" cases.
Importation is the action of buying or acquiring products or services from another
country or another market other than own. Imports are important for the economy

because they allow a country to supply nonexistent, scarce, high cost or low quality of
certain products or services, to its market with products from other countries.
There are two types of import: Direct import and indirect import
The first type of import is direct-import which refers to a type of business
importation involving a major retailer (e.g. Wal-Mart) and an overseas manufacturer. A
retailer typically purchases products designed by local companies that can be
manufactured overseas. Secondly, we have indirect Import. In a direct-import program,
the retailer bypasses the local supplier (colloquial middle-man) and buys the final
product directly from the manufacturer, possibly saving in added costs. This type of
business is fairly recent and follows the trends of the global economy.
Imports are important for businesses and individual consumers. Countries often
need to import goods that are either not readily available domestically or are available
cheaper overseas. Individual consumers also benefit from the locally produced
products with imported components as well as other products that are imported into the
country. Oftentimes, imported products provide a better price or more choices to
consumers, which helps increase their standard of living.

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To date, there is only scant empirical evidence on the effects of imports on firmlevel characteristics. The available studies suggest the existence of a positive
relationship between imports and productivity11. Only Bernard, Jensen and Schott
(2005) for the US, Tucci (2005) for India and MacGarvie (2006) for France have so far
provided a comparative analysis of the exporting and importing behavior of firms and
its impact. The analysis that follows is more in the spirit of the study of Bernard,
Jensen and Schott (2005). They show how U.S imports and exports are both heavily
concentrated in the hands of a relatively small number of firms. Furthermore, they
show how traders account for a disproportionate share of total employment, when
compared with their numbers, and how firms that trade with more countries and/or
more products tend to be larger. They also argue that companies which both import and

export tend to dominate US trade flows and employment among trading firms.
1.2 Types of product for importation
One of the most important import decisions is the selection of the proper product
that serves the market need. In the absence of the latter, one is left with a warehouse
full of merchandise with no one interested in buying it. Nevertheless, importing can
become a successful and profitable venture so long as sufficient effort and time is
invested in selecting the right product for the target market. How does one find the
right product to import? The following are different types of products to consider.
Unique products:
Products that are unique and different can be appealing to customers because they
are a welcome change from the standardized and identical products sold in the
domestic market. The fact that a product is imported and different is in itself sufficient
for many people to purchase the item. However, some studies indicate product
uniqueness in terms of cultural appeal to be a relatively less important variable in the
purchasing decision of import managers (Ghymn, 1983).
Less expensive products:
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It is quite common to find imports that perform identically to the competitor’s
product but can be sold at a much lower price. As customers quickly switch allegiance
to buy the imported item, it is quite possible to capture a substantial share of the
domestic market. For firms selling in mature markets where there is little or no product
differentiation, cost reduction provides a competitive advantage (Shippen, 1999). For
consumer goods, the provision of quality products at lower prices is quite important in
increasing a firm’s market share. In the apparel sector, for example, imports presently
accounted for over a half of total U.S. market share in 2006, mainly due to their cost
advantage.
Availability:
Keeping abreast of market trends often helps identify products that are in great

demand. For example, increases in the immigrant population from Asia and Latin
America have encouraged growth in the import of more and greater variety of spices.
The United States imported an annual average of 530 million pounds of spices in 1990
to 1994 compared with 362 million pounds in 1980 to 1984 (Buzzanell and Lipton,
1995). In such cases where there is a continuous increase in demand for the product,
imports become a major source of domestic supply because the product is either not
produced in the country or not produced in sufficient quantities to satisfy the growing
demand. The major reason for global sourcing in the chemical industry, for example, is
the unavailability of needed products in the U.S. market.
Products of better quality:
Many products manufactured abroad are of better quality than those produced
domestically. German machine tools, Japanese cars, and French perfumes have proven
market demand because of high quality. In some cases, certain designs could best be
manufactured overseas. Identifying a quality product has the potential to increase
profits. Today’s consumers tend to be quality/brand name conscious and are more
willing to pay a higher price for good quality products. The provision of quality service
is often as important as the quality of the goods imported. Importers have often
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managed to offset the disadvantage in the provision of quality service through efficient
use of computer technologies such as quick response, just-in-time, and warehouse
management systems.
Any one of these types of products can be carefully selected based on one’s
background and expertise. Someone who likes gardening can import gardening
utensils, decorations, and so on, while the computer technician could find imports of
items such as peripherals and software enjoyable and easy to handle import procedure
1.3 Import procedure
The procedure for import trade differs from country to country depending upon
the import policy, statutory requirements and customs policies of different countries. In

almost all countries of the world import trade is controlled by the government. The
objectives of these controls are proper use of foreign exchange restrictions, protection
of indigenous industries etc. The imports of goods have to follow a procedure. This
procedure involves a number of steps. The steps taken in import procedure are
discussed as follows:
1.3.1 Trade Enquiry
The first stage in an import transaction, like any other transaction of purchase and
sale relates to making trade enquiries. An enquiry is a written request from the
intending buyer or his agent for information regarding the price and the terms on which
the exporter will be able to supply goods.
The importer should mention in the enquiry all the details such as the goods
required, their description, catalogue number or grade, size, weight and the quantity
required. Similarly, the time and method of delivery, method of packing, terms and
conditions in regard to payment should also be indicated.
In reply to this enquiry, the importer will receive a quotation from the exporter.
The quotation contains the details as to the goods available, their quality etc., the price
at which the goods will be supplied and the terms and conditions of the sale.
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1.3.2 Procurement of Import License and Quota
In order to obtain an import license, the intending importer has to make an
application in the prescribed form to the licensing authority. If the person imported
goods of the class in which he is interested now during the basic period prescribed for
such class, he is treated as an established importer.
An established importer can make an application to secure a Quota Certificate.
The certificate specifies the quantity and value of goods which the importer can import.
For this, he furnishes details of the goods imported in any one year in basic period
prescribed for the goods together with documentary evidence for the same, including a
certificate from a chartered accountant in the prescribed form certifying the c.i.f. value

of the goods imported in the selected year.
1.3.3 Opening a Letter of Credit
Generally, foreign traders are not acquainted to each other and so the exporter
before shipping the goods wants to be sure about the creditworthiness of the importer.
The exporter wants to be sure that there is no risk of non-payment. Usually, for this
purpose he asks the importers to send a letter of credit to him.
A letter of credit, popularly known as ‘L/C or ‘L.C is an undertaking by its issuer
(usually importer’s bank) that the bills of exchange drawn by the foreign dealer, on the
importer will be honored on presentation up to a specified amount.
1.3.4 Obtaining Necessary Documents
After dispatching a letter of credit, the importer has not to do much. On receipt of
the letter of credit, the exporter arranges for the shipment of goods and sends Advice
Note to the importer immediately after the shipment of goods. An Advice Note is a
document sent to a purchaser of goods to inform him that goods have been dispatched.

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It may also indicate the probable date on which the ship is expected to reach the port of
destination.
The exporter then draws a bill of exchange on the importer for the invoice value
of goods. The shipping documents such as the bill of lading, invoice, insurance policy,
certificate of origin, consumer invoice etc., are also attached to the bill of exchange.
Such bill of exchange with all these attached documents is called Documentary Bill.
Documentary bill of exchange is forwarded to the importer through a foreign exchange
bank which has a branch or an agent in the importer’s country for collecting the
payment of the bill.
There are two types of documentary bills:
(a) D/P, D.P. (or Documents against payment) bills.
(b) D/A, D.A. (or Document against acceptance) bills.

If the bill of exchange is a D/P bill, then the documents of title of goods are delivered
to the drawee (i.e., importer) only on the payment of the bill in full. D/P bill may be
sight bill or usance bill. In case of sight bill, the payment has to be made immediately
on the presentation of the bill. But usually a grace period of 24 hours is granted.
Usance bill is to be paid within a particular period after sight. If the bill is a D/A
bill, then the documents of title of goods are released to the drawee on his acceptance
of the bill and it is retained by the banker till the date of maturity. Usually 30 to 90
days are provided for the payment of the bill.
1.3.5 Customs Formalities and Clearing of Goods
After receiving the documents of title of the goods, the importer’s only concern is
to take delivery of the goods, when the ship arrives at the port and to bring them to his
own place of business. The importer has to comply with many formalities for taking

8


delivery of goods. Unless the following mentioned formalities are complied with, the
goods lie in the custody of the Custom House.
1.3.6 To obtain endorsement for delivery or delivery order
When the ship carrying the goods arrives at the port, the importer, first of all, has
to obtain the endorsement on the back of the bill of lading by the shipping company.
Sometimes the shipping company, instead of endorsing the bill in his favor, issues a
delivery order to him. This endorsement of delivery order will entitle the importer to
take the delivery of the goods.
The shipping company makes this endorsement or issues the delivery order only
after the payment of freight. If the exporter has not paid the freight, i.e., when the bill,
of lading is marked freight forward, the importer has to pay the freight in order to get
green signal for the delivery of goods.
1.3.7 To pay customs or import duty
There are three types of imported goods: non dutiable or free goods, goods which

are to be sold within the country or which are for home consumption, and re-exportable
goods i.e. goods meant for re-export. If the goods are duty free, no import duty is to be
paid at the custom office.
Custom authorities will permit the delivery of such goods after usual examination
of the goods. But if the goods are liable for duty, the importer has to pay custom or
import duty which may be based on weight or measurement of goods, called Specific
Duty or on the value of imported goods Ad-valorem Ditty.
There are three types of import duties. On some goods quite low duties are levied
and they are called revenue duties. On some others, quite high duties are charged to
give protection to home industries against foreign competition. While goods imported

9


from certain nations are given preferential treatment for the levy of import duties and
in their case full protective duties are not charged.
1.3.8 Bonded and Duty paid warehouses
The goods on which the duty has already been paid by the importer can be kept in
the duty paid warehouses for which a receipt called ‘warehouse receipt’ is issued to
him. This receipt is a document of title and is transferable. The bonded warehouses are
meant for goods on which duty has been paid by the importer. If the importer cannot
pay the duty, he may keep the goods in Bonded warehouses for which he is issued a
receipt, called ‘Dock Warrant’. Dock Warrant, also like warehouses receipt, is a
document of title and is transferable.
1.3.9 Appointment of clearing agents
By now we understand that the importer has to fulfill many legal formalities
before he can take delivery of goods. The importer may take the delivery of the goods
himself at the port. But it involves much of time, expenses and difficulty. Thus, to save
himself from the bother of complying with all the complicated formalities, the importer
may appoint clearing agents for taking the delivery of the goods for him. Clearing

agents are the specialized persons engaged in the work of performing various
formalities required for taking the delivery of goods on behalf of others. They charge
some remuneration on performing these valuable services.
1.3.10 Making the Payment
The mode and time of making payment is determined according to the terms and
conditions as agreed to earlier between the importer and the exporter. In case of a D/P
bill the documents of title are released to the importer only on the payment of the bill in
full. If the bill is a D/A bill, the documents of title of the goods are released to the
importer on his acceptance of the bill. The bill is retained by the banker till the date of

10


maturity. Usually, 30 to 90 days are allowed to the importer for making the payment of
such bills.
1.3.11 Closing the Transactions
The last step in the import trade procedure is closing the transaction. If the goods
are to the satisfaction of the importer, the transaction is closed. But if he is not satisfied
with the quality of goods or if there is any shortage, he will write to the exporter and
settle the matter. In case the goods have been damaged in transit, he will claim
compensation from the insurance company. The insurance company will pay him the
compensation under an advice to the exporter.

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CHAPTER 2

CURRENT SITUATION OF IMPORT

ACTIVITIES OF DETECH JOINT STOCK COMPANY IN
RECENT YEARS (2015-2018)
2.1 Overview of Detech Joint Stock Company
2.1.1 Establishment and development process
Detech Technology Development Supporting Joint Stock Company (DETECH
JSC) was established in 1991, when it was one of the affiliated company of the
National Center for Science and Technology (now the Vietnam Academy of Science
and Technology). Applying and deploying scientific and technological activities into
production and business.
Figure 2.1 Major milestones of the company

Source: />1991: Technology Development Supporting Company is established in
accordance with the Vietnam Academy of Science and Technology. Initially the
business is setup as an Intellectual Property Service.
1993: Other business activity begin to take shape with DETECH starting
assembly and produce of motorcycles. DETECH also starts a number of environmental
treatment projects throughout Vietnam.
1999: A factory designed for efficient production of modern motorcycles and
automobiles is set up in the Hung Yen Province. The Production capacity reaches
30000 units per year.

12


2002: Technology Development Supporting Company is privatized and
becomes DETECH Technology Development Supporting Joint Stock Company.
DETECH JSC is certified ISO 9001:2000 by BVQI (United Kingdom).
2003: DETECH makes its first investment into real-estate and water treatment
projects starting out at DETECH Center for project promotion and investment.
2006: DETECH builds the DETECH Orient Bio-medical Centre to research,

develop, and produce supplements for the Vietnamese marketplace.
2008:

DETECH

Center

for

project

promotion

and

investment forms DETECH Land Joint Stock Company to further develop real
estate and infrastructure construction projects.
2010:

DETECH

Center

for

project

promotion

and

investment is

renamed DETECH Environmental Technology Joint Stock Company to further
develop to environmental projects.
2011: DETECH celebrates 20 years in operation becoming a mature multifaceted business producing hundreds of quality products to meet the competitive
market demands.
2012: DETECH completes the 17 floor DETECH TOWER I which includes over
10,000 square meters of modern office space.
DETECH establishes DETECH NAM and opens a unique European style café
called Miriam’s. The 1st cafe was opened in February 18, 2012 at 1st floor, DETECH
Tower, No.8 Ton That Thuyet str., Tu Liem dist., Hanoi, Vietnam
2.1.2 Structure, function and mission
2.1.2.1 Company structure
Detech Support Joint Stock Company is an affiliate of Vietnam Academy of
Science and Technology. Therefore, the organizational structure of the company is
relatively tight and there is coordination between departments.
The specialized departments of the company include:

13


Organization - Administration Department: to carry information from the
management to the units and vice versa; Manages, recruiting, manning, recruiting, and
filing employee records, monitoring labor contracts in the Company, dealing with labor
regulations, insurance Social, health, salary and bonus according to the decision of the
State and Company.
Finance and Accounting Department: is responsible for carrying out the financial
and accounting work of the Company, collecting and processing economic information
for management and inspection of the use of materials and labor. , capital and all

production and business activities. To fully implement the accounting system, manage
capital, analyze the business situation of the Company, thereby providing information
to help the Board of Directors evaluate the business situation of the Company.
Export-Import Department: is responsible for managing and operating all importexport activities, conducting business activities of the Company with foreign partners,
expanding relations with foreign partners, carry out foreign trade procedures and
import-export business contracts.
In addition, the company also has its own members such as:
DETECHMotors: Automobile parts factory, Motor Detech
DETECHLand: Detech Real Estate
DETECHBio: Oriental Medicine Center
DETECHEnvi: Center for Environmental Technology
DETECHCHIP: DETECH & ASSOCIATES Intellectual Property Office
DETECH Gastronomy: SteakHouse Restaurant – Cientos
DETECH Int'l Business: International Cooperation Division
Figure 2.2 Company structure

14


Source: />2.1.2.2 Company’s mission
Company’s mission is maximizing their strength in the country as well as in the
region, as well as promoting international trade, create highly competitive products in
the market. The board of director manage effectively and use the existing capital
sources and at the same time to create capital for production and business as well as
15


investment in the renewal of equipment, machinery and technologies in service of
raising productivity in production and business to match the development trend of the
society.

They will try to research on effective implementation of measures to improve
product quality, competitiveness and expansion of the consumption market while
expanding the scope of new business potential, and staff are trained to keep up with the
development of science and technology.
The company does business in accordance with the law, fulfills the obligations of
the state, takes economic and civil responsibility for business activities and property.
They care for material and spiritual life for all employees in the company.
2.1.3 Recent economic achievements
In 2015, Detech JSC achieved awards related to sustainable development such as
Brands Featured Dictionary Vietnam in 2015; Brands Vietnam News Used 2015; Green
Resources Development in 2015; Green Brands 2015
In 2016, the company received good performance accountability DN Social security
and community development in 2016 and Well-known Trademark Vietnam 2016
On July 14, 2018, at the Au Co - Ha Noi Art Center, there was a ceremony to award
the famous trademark - Vietnam Competitive Brand In 2018, by the Vietnam
Intellectual Property Association (VIPA) officials. Espero Detech was honored to
receive the title "Top 50 Most Famous Trademarks of Vietnam in 2018".
2.2 Current situation of import activities
2.2.1 Main import items
Detech is a trading company in many fields, so the structure of the company's
products are diversified. At present, the main types of items imported by the company
are: spare parts, automobile components, motorcycles; water and environmental
treatment equipment; swimming pool equipment; raw materials, food additive...
These kinds of items are imported by Detech Company for different purposes:

16


Goods for production: Parts and components of cars and motorcycles are
imported and brought to DETECH Motors for production purposes. Currently, Detech

motorcycle products have been gradually creating their position in the domestic
market. Detech Motor is also producing a number of automotive parts for automotive
localization.
Types of items for domestic contracts: such as water and environmental treatment
equipment, swimming pool equipment, food additives are all products that are
researched and marketed by the company. Especially swimming pool equipment and
water treatment is a strength of Detech compared to domestic competitors with long
service and prestige in providing services in packages for large urban projects such as
Urban Area My Dinh, National Sports Complex, Four Season swimming pool...
2.2.2 Import process at the company
2.2.2.1 Diagram of goods import process
Detech is a company with a long history of development in its field of business,
not only the import of goods is a strength of the company against competitors of the
same size. Thus, the process of importing goods of the company is carried out in a
scientific order with the close involvement between departments, departments to
achieve maximum efficiency.

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Table 2.1 The process of importing goods of the Company

Executor

Work order

Administrator Dept.
Sales Department

Import-Export Plan

Import-Export Department
Director

Approving

Import-Export observer

Signing the contract

Accountant

Opening L/C

Import-Export observer

Tracking delivery by fax/email

Import-Export observer

Receiving documents

Forwarding staff

Prepare to receive the goods

Forwarding staff

Receive the goods

Forwarding staff

Checking, inspecting

Forwarding staff and store keeper

Warehousing

Source: Import-Export Department
2.2.2.2 Import procedure
a. Import plan

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The Board of Directors, the Sales Department, the Export-Import Department do
market research and analysis to identify specific items needed to meet business demand
through specific import plans.
Once the import plan is submitted to the board of directors and approved by the
company’s director, the import and export department prepares the contract and
submits it to the Director for approval.
b. Contact, sign contract
After the import plan is approved, the import and export department is
responsible for contacting the partner companies in the specific commodities sector
that need to be imported for price reference while using foreign trade to obtain the
agreement of the partner with reasonable price.
Once the price is negotiated, then the contract is drafted and send to foreign
partners by fax. After receiving the contract certified by the foreign party, the ImportExport Department will transfer to the Accounting Department for L/C opening
c. Delivery tracking
Transaction with foreign party are made via fax/email on contract signed. Then

the import-export department send the copy of the L/C to the foreign party by fax,
while also monitoring the estimated time of delivery (ETD) and estimated time of
arrival (ETA).
d. Receipt of documents
On the basis of expected time of arrival, export-import department follows up the
delivery of documents from the foreign (by fax or express delivery).
Receipt documents must include: Bill of lading, commercial invoice (Commercial
Invoice), packing List, certificate of Origin (C / O), certificate of Quality (C / Q), cargo
receipt at the border (Cargo Receipt) - used in the case of goods delivery at the border.
Documents are compared with the terms of the contract and L / C as appropriate. In
case of differences, request the foreign party to amend the voucher accordingly.
e. Prepare to receive
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Shipping Division must: prepare the necessary documents to open the customs
declaration; Notify warehouse staff at least one day in advance to prepare warehouse
space. In case of receiving goods by road, before getting goods, the forwarding staff
must know the number of trucks to transport goods in order to arrange the truck escort,
ensuring each vehicle is controlled by one person. After knowing the exact time the
truck runs from the border gate to the warehouse, he must immediately notify the
warehouse to have a plan to pick up goods.
f. Goods Receipt
For shipments by sea, packed in containers: Upon the completion of the
inspection process at the Customs' own warehouse, the freight forwarder shall have to
escort the goods to the warehouse of the Company. Make records of handover to
warehouse staff.
For goods transported by land, closed and transported by truck: Each individual
escort has the responsibility to accurately count the number of packages from foreign
vehicles in Vietnam. If the results of the actual counting are consistent with the

quantity inscribed on the foreign party's receipt, it shall be allowed to sign the foreign
party's written record of delivery. In case of any discrepancies, the goods shall be
counted again and the receiver shall have to grasp the counting situation of the vehicles
before handing over the CARGO RECEIPT to the foreign party.
Each individual escort must make a record of goods delivery and deliver to the
foreign driver and bring back the report. The delivery records will be the basis for store
keeper to enter each vehicle.
In the process of transporting goods from the border to the place of inspection of
the Company's own warehouse, escorts shall be responsible for the quantity of goods in
their vehicles. When the goods arrive at the warehouse of the Company, the escort
officer makes a record of handing over the goods to the storekeeper. The delivery
officer shall have to synthesize the delivery results of the vehicles at the warehouse and
report to the company leaders at the earliest extraordinary issues in the delivery process
20


at the warehouse. The delivery and reception staff shall have to guide, manage and urge
the escort workers to fulfill their assigned responsibilities.
g. Goods inspection after warehousing
After delivering goods into the warehouse, the storekeeper must check and
compare with the detailed packing slip sent by the foreign party and detail the quantity
and number of the missing container. Storekeepers must send urgent reports on the
shortage of goods to the Export-Import Department for immediate notification to
foreign partners.
Basing themselves on the missing reports detected by the teams, the storekeeper
shall have to summarize and make a report on the shortage of each consignment and
send it to the nearest import and export office. Reporting requirements must clearly
state the box number and the quantity of the missing container. After receiving the
detailed report, the Import and Export Dept. must immediately notify the foreign
partner. The Export and Import Department summarizes the missing and detailed

reports of foreign counterparties on a quarterly basis.
At the end of each month, the Export-Import Department shall make a report on the
performance of quality objectives, which includes: foreign contracts, documents;
Certificate of Customs declaration: BM - XN - 01 – 01; Minutes of receipt: BM – XN –
01 – 02; Minutes of goods delivery at warehouse: BM - XN - 01 – 03; Report on the
implementation of quality objectives: BM - XN - 01 – 04 and send them to the Board
of Directors of the Company,
In general, the import process of Detech JSC comply with Uniform Customs and
Practice for Documentary Credits. Nevertheless, the import process of Detech
Company is implemented in a shorter and simpler way, without asking for clearing
agents for instance.
2.2.3 Brief of import situation and its performance
In recent years Detech has made significant progress in the field of import, the
company always strives to research and understand the market tastes to put specific
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items into the import category of the company and also to meet the market most
effectively both in terms of time and place.
The products are considered as the strengths and strategies of the company, from
2015 to 2018 there have been changes in the structure of goods to fit the economic
situation in general as well as achieve the progress in business. The products of food
additives and components of automobile parts and motorbikes are the items that the
company attaches importance to the development of imports for both business and
production.

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