SUBJECT REPORT FIATA DIPLOMA IN FREIGHT FORWARDING AIR TRANSPORT MANAGEMENT CASE STUDY 01: EXPORT DRAGON FRUIT BY AIR

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VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION

SUBJECT REPORT
FIATA DIPLOMA IN FREIGHT FORWARDING
FD3: AIR TRANSPORT MANAGEMENT
CASE STUDY 01: EXPORT DRAGON FRUIT BY AIR

Instructor: Nguyen Tien Khanh
Thong Dang
Mentor:

Bui Xuan Thinh

Group: NO. 03, class: 16070610

Ho Chi Minh City, December 2018


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MEMBER LIST
No.
1
2
3
4

5
6
7
8
9
10

Full name
Nguyễn Tiến Thịnh
Vũ Thị Thanh Vân
Trần Thị Thùy Trang
Phan Châu Thanh Trúc
Nguyễn Thị Ái Nhi
Chindy Vongsuvan
Nguyễn Duy Khơi
Đồn Ngọc Anh Thơ
Nguyễn Lê Duy
Lê Đào Trúc Nguyên

Student ID
71608121
71608199
71608135
71607093
70608189
71608202
71608053
B1600230
71608021
71608086

Role
Leader
Member
Member
Member
Member
Member
Member
Member
Member
Member


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BẢNG PHÂN CƠNG VÀ ĐÁNH GIÁ MỨC ĐỘ HỒN THÀNH
CƠNG VIỆC
STT

Họ tên

1

Nguyễn Tiến Thịnh

2
3

Vũ Thị Thanh Vân

Trần Thị Thùy Trang
Phan Châu Thanh Trúc
Nguyễn Thị Ái Nhi
Chindy Vongsuvan
Nguyễn Duy Khơi
Đồn Ngọc Anh Thơ
Nguyễn Lê Duy
Lê Đào Trúc Nguyên

Nhiệm vụ

Mức độ
hoàn thành

Chữ ký


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ACKNOWLEDGEMENT
In order to present the present results, I would like to express my sincere gratitude
to instructor Bui Xuan Thinh for his devoted instruction, imparting knowledge to him,
helping him to understand more about his career. Fiata in theory and in practice
And during his study at Ton Duc Thang University, he was able to deal with real
work, compare and contrast with the knowledge he was receiving, helping him with
experience and knowledge. Actually creating the basis for the future work. To be
successful today, I sincerely thank:
• Ms. Pham Thi Ngan - Head of International Business at Ton Duc Thang University.
• Mr. Nguyen Tien Khanh, Mr. Thong Dang, FIATA lecturer.
• The brothers and sisters of VILAS and their sisters.

Directed them to us, enabling us to learn the most specific and clear about the
FIATA subject so that we can add the knowledge we have learned at the school and
completed this report well.
However, due to time constraints as well as knowledge and experience, there are
many shortcomings in understanding and solving problems. I hope to receive the
comments of teachers and siblings for us to have a complete report.
With great respect and gratitude, we would like to wish all teachers of Ton Duc
Thang University good health, good work, enthusiastic to achieve great success and to
congratulate the Institute. VILAS is more and more successful.
Ho Chi Minh City, April 2018.
Group 3-16070610-TDTU


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COMMENT


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GENERAL INFORMATION

I.
1. BNX SHIPPING, INC.
1.1.
Introduction

BNX Shipping, Inc., is an NVOCC, IATA Freight Forwarding, and CFS (Container
Freight Station) Operator established in October 1993.
BNX is a Cargo Agent for all International Air and Ocean Shipping Carriers under

Federal Maritime Commission(FMC #4028), International Air Transport Association
(IATA #01-1-9180/0013), and Container Freight Station (CFS ID #Z786), that
consistently provide air and ocean freight services to meet its customer's demands.
BNX has experienced tremendous growth and success each year and has firmly
established an excellent reputation with the export and import community, and feel that
our highest priority relies on our customer satisfaction.


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BNX will continue to fulfill its promise of quality service to become one of the best
freight forwarder in the United States. The Goal of BNX is not merely to become the
biggest NVOCC and IATA freight forwarder, but the BEST freight forwarder through our
service provided with efficiency and responsibility.
BNX will rise to challenge of meeting all of your remote requirements that can not be
matched by any other freight forwarders at the most competitive costs. We will remain as
flexible and accommodating as possible whatever special assistance you may require.
1.2.

Company History

An NVOCC and IATA freight Forwarder Company established in October 1993.
Has firmly established an excellent reputation with the export and import community,
and is confident that we meet the customers’ high expectation
Our energetic professional young staffs approach customers with the most effective
and efficient logistics solution
Has full coverage across North America through 7 branch offices in major USA
gateways and 2 in Canada, and expands to Japan (Tokyo office) and Europe by
establishing office in Germany on Feb. 1, 2006 and India on Dec. 2007
Provides the total global logistics service from International transportation to customs

clearance (Own customs office near LA U.S. customs building), inland transportation,
storage & Distribution Service, CFS Warehouse Operation.
Our goal is not to be the biggest but to be the best.
Founded

1993, by Daniel Kim in Los Angeles, California

Business Type

Corporation / International Logistics

Ownership

100% of Solo Proprietor

Offices

Los Angles, San Francisco, Miami, New York,
Chicago, Atlanta, Tornto, Tokyo, Frankfurt,
Mumbai, Chennai, Ho Chi Minh, Hanoi

C-TPAT Certifed

Apr. 2009


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1.3.

Major Clients & Commodities

1.4.

Busin
ess

scope
1.4.1. International
With expertise of cargo consolidators along with support from our overseas agents,
BNX can handle and process all small to over-sized heavy cargos at out own warehouse.
BNX offers a large range of international freight forwarding services from/to various
ports and airports of the United States, Korea, Japan, Hong Kong, China and
Central/South America.
BNX works with importers to determine the most efficient mode of transportation for
all cargos from their point of origin to their final destination. To satisfy our customers'


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needs, BNX will coordinate their cargo' s shipping processes with their overseas offices
to track the latest status of their shipments.
BNX maintains constant and expeditious exchange of information with our customers
via faxes and/or e-mail. With our existing yearly Service Contract with Hanjin Shipping,
Hyundai Merchant, Zim, P & O, COSCO, and SeaLand Lines, BNX performs a wide
variety of comprehensive international transportation services.
BNX also offers the following range of Global Logistic Service "connecting"
countries through our network system:
1.4.2. Domestic

Hawaii Service

•

Weekly LCL and FCL Service

•

Daily Air Service

Local Trucking Service
•

LCL and FCL

•

Bonded Trucking

•

Contracted Domestics Carriers

Warehouse and Distribution
•

Packing and Crating (wooden, vacuum)

•

Carnet / Exhibition goods

•

Storage and Distribution

•

Web-based P.O. Tracking system and Inventory control

•

Automobiles/ Motorcycle / Boat Loading

Container Freight Station ( USA C.F.S., Inc.)
•

Bonded CFS Operation

•

Domestic Intermodal Service via Rail


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1.5.
Organization/Association
1.5.1. C-TPAT

Customs Trade Partnership Against Terrorism (CTPAT) is but one layer in U.S.
Customs and Border Protection’s (CBP) multi-layered cargo enforcement strategy.
Through this program, CBP works with the trade community to strengthen international

supply chains and improve United States border security. CTPAT is a voluntary publicprivate sector partnership program which recognizes that CBP can provide the highest
level of cargo security only through close cooperation with the principle stakeholders of
the international supply chain such as importers, carriers, consolidators, licensed customs
brokers, and manufacturers. The Security and Accountability for Every Port Act of 2006
provided a statutory framework for the CTPAT program and imposed strict program
oversight requirements.
1.5.2. IATA

The International Air Transport Association
(IATA) is a trade association of the world’s airlines.
Consisting of 278 airlines, primarily major carriers,
representing 117 countries, the IATA's member
airlines account for carrying approximately 83% of
total Available Seat Kilometers air traffic.[2] IATA
supports airline activity and helps formulate industry policy and standards. It is
headquartered in Montreal, Quebec, Canada with Executive Offices in Geneva,
Switzerland.
1.5.3. FIATA


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FIATA, in French "Fédération Internationale des Associations de Transitaires et
Assimilés", in English "International Federation of Freight Forwarders Associations", in
German "Internationale Föderation der Spediteurorganisationen", was founded in
Vienna/Austria on May 31, 1926.
FIATA,

a

non-governmental

organization, represents today an industry
covering

approximately

40,000

forwarding and logistics firms, also
known as the "Architects of Transport",
employing around 8 - 10 million people

in

150 countries.
FIATA has consultative status with
Economic and Social Council (ECOSOC)

the
of

the United Nations (inter alia ECE,
ESCAP, ESCWA), the United Nations Conference on Trade and Development
(UNCTAD), and the UN Commission on International Trade Law (UNCITRAL).
It is recognized as representing the freight forwarding industry by many other
governmental organizations, governmental authorities, private international organizations
in the field of transport such as the International Chamber of Commerce (ICC), the
International Air Transport Association (IATA), the International Union of Railways
(UIC), the International Road Transport Union (IRU), the World Customs Organization

(WCO), the World Trade Organization (WTO), etc.
1.5.4. VCCI

Vietnam Chamber of Commerce and Industry
(VCCI) is a national organization which
assembles and represents business community,
employers and business associations of all
economic sectors in Vietnam. To promote trade
and business relations with enterprises abroad is
one of its main functions.[1] VCCI is an


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independent, non-governmental, non-profit organization having the status of a legal entity
and operating with financial autonomy.
1.6.

Information about agent in Hochiminh (Vietnam) and New York (USA)

Vietnam(Hochiminh) Office
13Fl, Dai Minh Convention Center,
77 Hoang Van Thai STR
Tan Phu Ward, Dist 7, Ho Chi Minh,
Vietnam
Tel: 84-8-6298-3440,
3488

84-8-6298-

New York Branch
Office
147-32 Farmers Blvd.
Jamaica, NY 11434
Tel: 718-244-6333


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2. SHIPPER: SONG NAM ITD CO., LTD – BINH THUAN, VIETNAM

2.1.

Introduction to Song Nam ITD

Song Nam ITD has grown up from dragon fruit farmer families, so we understand
all procedures from planting, growing to harvesting and packing of fresh dragon fruits.
When we export dragon fruits to our oversea costumers, they ask us to send other
Vietnamese products, so we have cooperates with other farmers, suppliers to provide
many other fruits and vegetables: seedless lime, coconut, longan, rambutan, lychee,
pomelo, guava, mango, chilli, vegetables…
Song Nam ITD have now only exported to traditional markets such as China,
India, Dubai, ASEAN, but also supplied to difficult markets like USA, Australia,
European Union, Japan, Korea, … If you really need premier dragon fruits, fresh fruits,
vegetables or agricultural products from Vietnam, we are one of the best suppliers for
long term business.
Moreover, with a experience team and having long term relationships with
supermarket chains, distributors, wholesalers in Hochiminh city, Vietnam, Song Nam has
become an importer, distributor, representative in many kind of consumer goods and
construction equipment, interior material manufactures. We are ready to be a partner of
international brands for Vietnam market.

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2.2.

Product: Dragon Fruit (Mainly)
There are three types of dragon fruits: round form, oval form, rambutan form

(small, shaggy outer peel).The shape
of the fruit depends on the ecological
conditions, especially the light mode
and the care regime.
Vietnamese dragon fruit is a type
of white dragon, bred by the cloning
method. There are two varieties of
red and yellow intestines is is
growing more and more. The red and
yellow intestines dragon fruit have
smaller shape and thicker peel but
more glucose sugar.
Song Nam has fresh dragon fruit and all the tropical fruit good for your health, and
we are looking for long term cooperation relationship.
2.3.

About Order:

Song Nam request BNX Shipping to transport dragon fruit to USA Market to a
customer in New York.
Information about shipment:

N
o
1

Packing
Description of goods
Fresh Dragon Fruit
Type of goods: This is belonged to Special
Cargo (Perishable)

Requirement of this shippment:

(Carton)
4.5KG
(10LB)/Ct
n

Quantity
(Cnt
(Kg)
)
400

180
0


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- All cargo must be fresh during the transporting time. This means that all dragon fruit

must be kept cool at the right temperature.
- Supply to our customer at a right time, right place and right quantity.
- Professional services at the lowest cost.
2.4. About Dragon Fruit Farm

Our farm as well as our packing station in:
Ham Tri commune, Ham Thuan Bac district, Binh Thuan province, Vietnam, which is a centra of


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Dragon fruits for USA market are harvested from dragon fruit farms coded by
America Ministry of Agriculture, packed at packing factory coded by America Ministry
of Agriculture and exported by professional exporters with registrated FDA codes issues
by U.S. Food and Drug Administration. Song Nam is a professional grower, packer and
exporter of dragon fruits. We control all the process from selecting dragon fruits at farms
to packing, irradiating and loading onto containers complying with costumer’s
requirements and American standards.
Our Company wishes to export more and more our Song Nam dragon fruits from
Vietnam into American market by building long term business relationship with our
customer and partner.
Customer of Shipper:
SONG NAM USA CORPORATION
2.5.

Address: 26521 Lilac Hill Dr, Escondido, CA 92026, United States
Company number: C3976792 - Date of issue: 30/12/2016 - USDA FDA number:
13041679402

New York City, USA

Requirement for this shipment: Buyer is highly concern about how to maintain product
quality throughout the supply chain while other requirements are strictly meet: codes
compliance, short transit time, on time at the destination, fully and promptly documented.


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II. ABOUT DRAGON FRUIT
1. Overview:

Dragon fruit has dominated Vietnamese fruit exports in the first four months of 2018
with total exports reaching US$427 million, a year-on-year increase of 9 per cent.
In addition to Binh Thuan, called the “dragon fruit capital,” the fruit is now being
grown in many southern provinces in Vietnam, specifically Long An and Tien Giang.
In order to maintain the export growth of vegetables and fruits and avoid devaluation,
the DFPPM said Vietnam’s fruit and vegetable industry must maintain control over
quarantine and food hygiene and safety, especially pesticide residues. In addition to
inspecting and speeding up the processing of factories every year, they must coordinate
with localities to concentrate on reinforcing the raw materials sector to ensure the quality
of raw materials for production and processing for export.
2. Specification of Dragon Fruit

Commodity: Dragon Fruit
Common Name: Pitaya Fruit
Weight: 300 ~ 450 grams; 460+
grams / piece
Color: White Flesh or Red Flesh.
Hylocereus undatus, which has fruit
with bright pink skin and white flesh,

and Hylocereus sp., which has fruit with
bright pink skin and varying hues of
pink flesh
Taste: Natural Sweet


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The fruit ripens to approximately 80-85%, the fruit peels in the final stage turn from
green to red, the fruit must be equal to ± 2g / fruit, evenly in the barrel and in a batch and
red shell over 70% of fruit area.
Minimum generic dose (400 gray) of irradiation for imported fruits and vegetables
including Dragon Fruit
Certificate: Global GAP, Phytosanitary, Certificate of Origin
Packing: 20.5 kgs, 9 kgs, 4.5 kgs/ carton box
3. Dragon Fruit Grade and size

3.1. Fresh Vietnam dragon fruits are sorted into 3 grades:
Grade 1: outstanding quality for exporting with the defecting surface is less than 2
cm2. The green skin is not acceptable. This grade can be exported by air, by sea or by
trucking.
Grade 2: good quality for exporting with the defecting surface is about 2-4 cm4.
The green skin is acceptable. This grade can be exported by trucking (to China) for
local market, because of short shelf life.
Grade 3: not good quality with virus, bacteria on the skin. This grade is left at
dragon fruit farms when harvesting or left at dragon fruit packaging stations when
sorting.
3.2.

Dragon fruit sizes

Vietnam dragon fruit is the best quality and the biggest dragon fruit in the world. We
often export 2 sizes basing on the weights of dragon fruits:
Small size of dragon fruits : 300 – 450g per dragon fruit.


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Big size of dragon fruits : 460g++ per dragon fruit.
For each market, we often call the number of dragon fruits per carton is the size.
4. Dragon Fruit for USA market

Dragon fruits for USA market are packaged in 4.5kg (nett) per carton. And the sizes
are 7,8,9 dragon fruits per carton….
Dragon fruits for USA market are harvested from dragon fruit farms coded by
America Ministry of Agriculture, packed at packing factory coded by America Ministry
of Agriculture and exported by professional exporters with registrated FDA codes issues
by U.S. Food and Drug Administration. Song Nam is a professional grower, packer and
exporter of dragon fruits. We control all the process from selecting dragon fruits at farms
to packing, irradiating and loading onto containerts complying with costumer’s
requirements and American standards.
Requirements for exporting dragon fruit from Vietnam to the United States?
Certificates regarding Transportation for this cargo: Global GAP, Phytosanitary,
Certificate of Origin
Requirement for export Dragon Fruit to USA:
The Dragon fruit from Vietnam or any other Food/Fruits that are in need of Import to
the USA have to be transported through commercial channel.
Prior Notice of Import Shipments - The FDA must receive prior notice of each
shipment of food entering the United States. This notice must include a description of the
goods, the manufacturer and the carrier, the grower (if known), the country of origin, the

goods to be shipped from, and the expected port of entry. .
The dragon fruit must be grown in area that the USDA (United States Department of
Agriculture) has given its code called “farming code”.


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To ensure that pests of quarantine significance do not enter the United States, APHIS
preclearance officers in Vietnam will inspect dragon fruit shipments for pests prior to
their export. If there are no pests present, the fruit will be treated with specified doses of
irradiation at an APHIS-certified facility prior to export. If, however, APHIS officers find
live pests during a preclearance inspection, the shipment will not be eligible for treatment
or export to the United States.
Dragon fruit must be packed in insect-proof boxes and safeguarded after treatment to
prevent the risk of subsequent pest infestation. The fruit must also be accompanied by a
phytosanitary certificate issued by the national plant protection organization (NPPO) of
Vietnam with additional declarations certifying that the fruit’s treatment and inspection
were completed in accordance with USDA regulations
•

Production Unit Code (PUC)

•

Treatment Facility Code (TFC)

•

Packinghouse Code (PHC)

•

Packing date

•

Lot number

•

A stamp with the words "Treated by irradiation" or "Treated with radiation"

•

The international radura symbol

If the boxes or cartons are not palletized, they must also include:
•

Treatment Facility Code (TFC)

•

Treatment Identification Number (TIN)


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When your dragon fruit arrives at a U.S. port of entry, CBP inspectors will verify
three documents accompanying the shipment to ensure that it was properly treated and

inspected.
• PPQ Form 203—Foreign Site Certificate of Inspection—signed by an APHIS
officer in the exporting country
• Phytosanitary certificate issued by Vietnam’s NPPO certifying that the shipment has
been treated
• APHIS import permit, verifying that the shipment has been authorized by USDA to
be imported into the United States
If these entry requirements are not met, the shipment will be prohibited entry. In
addition to verifying the accompanying documentation, CBP inspectors may further
inspect precleared commodities at the port of fi rst arrival.
5. Information about this shipment:

In order to transport this cargo, the shipper, who is Song Nam, must provider BNX
shipping with some important information, that is:
Farming code, packaging code


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The area where you grow Dragon fruits has to be verified and accepted by FDA
and USDA. The USDA only allow fruits that are Imported by Areas with have their
Farming code.
It is the same regulation for packaging. The FDA and USDA only accept the goods
that are packed in their verified facilities.
Prior to Notice
Mentioned before in the Requirements section, any cargo that are being Imported
into the US, the FDA has to be informed via Prior Notice paper. This paper include
information:
•
•

•
•

Name, address, contact number, company facilities
Name, address, contact number of the Shipper
FDA product code
Brand of the product
A declaration, commitment that the following information is correct and signed by

authorized party to apply the Prior to Notice.
Any facilities that are outside the US Borders have to assigned a representative
company in the US.

III. CARGO PROCESS
We divided the cargo process into 4 main stages

The period from the pre-cool storage at the warehouse, then put up reefer on the SCSC warehouse. Here is the preparation
Preparation phase:
- Irradiation
- Types of certification
- Procedures for warehousing

JFK

(4)

Farm

(1)

WH

(2)

SGN

(3)

SCSC

Goods receipt process
From harvesting to storage and preservation. Including stages from harvesting to putting into sortingProcess
and packaging
in stock before the goods boarded
What to do


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1.

PROCESS OF HARVESTING, PRELIMINARY TREATMENT, STORAGE

9


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defects on the surface but does not affect the
overall quality and bonded.
Explanation for process of
harvesting, preliminary treatment,
storage



Class 1

Dragon under this class must be in good
quality. We must characterize each different

Stage 1: Fruit of dragon fruit is not a varieties and / or commercial type, allowing:
respiratory mutation, so harvest the dragon - Slight defects in shape.
fruit when it reaches the appropriate age, about - Slight defects in the peel but not more than 2
30-34 days after flowering fruit, fruit peel has small green spots and a total kill insects by
turned red characteristic, fruit quality reach the disability area should not exceed 1 cm2, no
highest.
Dragon fruit has big size and great

fungus.
In all cases, the defects not affecting flesh

amount of water so it should be carefully and not affect the overall quality and bonded.
collected, placed gently in the containe, avoid Class 2
strong impact to scratch, stamping fruit; It is

Class 2 includes dragon which does not

easily damaged during preserve.

meet the requirements of the above type levels,

Stage 2: Preliminary classification at field.

but must meet the general requirements specified

We must choose fruits which are in and allows defects on the surface of a total area of
equal size and age, and esspecially Dragon disability but not exceed 2 cm2, no fungus.
fruit must be no defects, no pests and insect
stains, no mechanical damage.

In all cases, the defects not affecting flesh
and not affect the overall quality and bonded.

Stage 3: Classifying according to the Stage 4: Wash fruit
standards of consumer markets (in the - Wash fruit (with fresh water). When wash gently,
warehouse). Classified according to American avoiding breaking dragon fin.
standards.Thanh long được phân làm 3 loại:
 Class “special”

Stage 5: - How to soak:
+ Soak fruit in a solution of the drug at a

Dragon Fruit of this class must have the concentration of 500 ppm Benomyl about 1
highest quality. We must characterize each minute to treat fungal diseases.
different varieties and / or commercial
category; no defects, except for very small