Improving sea freight service for import and export at bach viet transport co , ltd

ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL
SCHOOL OF ECONOMICS AND FINANCE

GRADUATION THESIS
Topic: “ Improving sea freight service for import and export at

Bach Viet Transport Co., Ltd ”

Supervisor: MA. Doan Anh Tuan
Student: Dang Thi Van Anh
Student ID: 5083106529
Class: KTĐN CLC 8.2

Hanoi, June 2021


TABLE OF CONTENTS
LIST OF TABLE ..................................................................................................................
LIST OF FIRGUES ..............................................................................................................
LIST OF ABBREVIATIONS ..............................................................................................
INTRODUCTION ................................................................................................................
1.

Reason for choosing topic ................................................................................................

2.

Purpose and tasks of the research topic ............................................................................

3.

Subjects and scope of the research ...................................................................................

4.

Research Methods ............................................................................................................

5.

Thesis structure .................................................................................................................

CHAPTER 1: THEORETICAL BASIS OF IMPORT AND EXPORT GOOD
DELIVERY ACTIVITIES ...................................................................................................
1.1.

Overview of forwarding ...............................................................................

1.2.

Forwarding of import and export goods by sea ..........................................

1.3.

Criteria to evaluate the results of business activities of import and expor

forwarding services.............................................................................................................
1.4 Service quality ..............................................................................................................
1.5.

Commonly used service quality assessment model ...................................

1.6.

Factors affecting freight forwarding services by sea ..................................

CHAPTER 2: SITUATION OF TRANSPORTATION BY SEA AT BACH VIET
TRANSPORT COMPANY LIMITED ..............................................................................
2.1.

General introduction at Bach Viet Transport Co., Ltd ................................

2.2.

The forwarding of import and export goods by sea at Bach Viet Transpo

Ltd.

.....................................................................................................................


2.3. Business results of freight forwarding services by sea at Bach Viet Transport Co.,
Ltd in the period of 2018 - 2020....................................................................................... 48
2.4. Factors affecting freight forwarding activities at Bach Viet Transport Co., Ltd.........55
2.5. The criteria for evaluating the results of business activities of import and export
freight forwarding services............................................................................................... 63
2.6. The service quality assessment model that customers often use................................68
2.7. General evaluation..................................................................................................... 76
CHAPTER 3: SOME POWERFUL SOLUTIONS FOR TRANSPORTATION
ACTIVITIES BACH VIET TRANSPORT COMPANY LIMITED................................. 82
3.1. Objectives and development orientation of the company in the coming time............82
3.2. Analysis of the company's opportunities and challenges...........................................83

3.3. Some solutions to develop freight forwarding services............................................. 87
CONCLUSION................................................................................................................ 93
REFERENCES................................................................................................................. 94


No
Table 2.1
Table 2.2
Table 2.3
Table 2.4
Table 2.5
Table 2.6
Table 2.7
Table 2.8
Table 2.9
Table 2.10
Table 2.11
Table 2.12
Table 2.13
Table 2.14
Table 2.15
Table 2.16
Table 2.17
Table 2.18
Table 2.19

1


No

Figure 1.1
Figure 1.2
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5
Figure 2.6
Figure 2.7
Figure 2.8
Figure 2.9

2


LIST OF ABBREVIATIONS
No

Abbr

3

1

B/L

2

CFS

3

Co., L

4

CUS

5

D/O

6

DEM

7

FCL

8

ICD

9

L/C

10

LCL

11

OPS

12

ROA

13

ROE

14

ROS


INTRODUCTION
1. Reason for choosing topic
In the current period of international economic integration, foreign trade activities
such as international transactions, international trade in goods, export and import of goods
are necessary and should be further promoted. In particular, it is impossible not to
mention the importance of the logistics industry for import and export activities. The
development of import and export activities has led to the development of freight
forwarding and logistics companies, acting as a bridge between import and export
enterprises and logistics and increasing competition between businesses.
Bach Viet Transport Company Limited is one of the companies in the field of
freight forwarding mainly by sea with 16 years of experiences. The company is gradually

affirming its reputation and service quality to meet the needs of customers in the best way,
stand firm and become a leading company in Vietnam in the field of transportation,
contributing to building a foreign trade of the country. However, Bach Viet also
encountered many difficulties in freight forwarding activities by sea such as the
unfavorable customs clearance process leading to delayed clearance and delivery time and
lost, broken goods. Facing the above difficulties, I chose the topic " Improving sea
freight service for import and export at Bach Viet Transport Co., Ltd " for the thesis
topic.
2.Purpose and tasks of the research topic
•

Systematize the theoretical basis of freight forwarding services for import and

export by sea
• Find out the business situation of freight forwarding by sea at Bach Viet Co.,
Ltd
•

Evaluate the operation situation at the company, identify the areas that are

achieved, the areas that are still limited.
•

Offering solutions to develop import and export freight forwarding services by

sea at Bach Viet Co., Ltd

4

3.Subjects and scope of the research
3.1. Subjects
The problems in freight forwarding services for import and export by sea in
Vietnam in general and Bach Viet Transport Co., Ltd. in particular, then find solutions to
develop forwarding services at the Company.
3.2. Scope of the research
- About space: at Bach Viet Transport Co., Ltd
- About time: learn about import and export goods forwarding by sea at Bach Viet Co.,
Ltd in the period of 2018 - 2020.
4. Research Methods
- Data processing method: the thesis primarily employs statistical methods, analyzing data
after it has been synthesized from information provided by company employees, as well
as previous studies.
- Qualitative method: case study (analyzing the current situation at a logistics service
company), face-to-face meetings with employees from other departments to extract
information relevant to the research content.
- Comparative method: a method of comparing quantified economic indicators and
phenomena with similar content and properties in order to identify trends and volatility
levels of indicators.
5. Thesis structure
In addition to the introduction and conclusion, the main content of the graduation
thesis is divided into 3 chapters:
Chapter 1: Theoretical basis of import and export goods forwarding activities
Chapter 2: Actual situation of freight forwarding by sea at Bach Viet Transport Co., Ltd
in the period of 2018-2020.

5


Chapter 3: Solutions to promote freight forwarding by sea at Bach Viet Transport Co.,

Ltd until 2030.

6


CHAPTER 1: THEORETICAL BASIS OF IMPORT AND EXPORT GOOD
DELIVERY ACTIVITIES
1.1. Overview of of forwarding
1.1.1. The definition forwarding
According to the model rules of the International Federation of Forwarding
1

Associations (FIATA) : “Freight Forwarding service is any type of service related to the
transportation, consolidation, storage, loading and unloading of goods. packaging or
distribution of goods and services or in connection with such services including customs,
financial, insurance, payment, collection of documents relating to the goods”.
According to the Commercial Law of Vietnam, Article 163: “The freight
forwarding service is a commercial act whereby the person providing the freight
forwarding service receives the goods from the sender, organizes the transportation,
storage, warehousing, doing paperwork and other related services to deliver the goods to
the consignee under the entrustment of the goods owner, the carrier or other forwarding
service provider (collectively, the customer)”.
Thus, in summary: "Freight forwarding is a collection of jobs related to the
transportation process in order to move goods from the place of dispatch (shipper) to the
place of receipt (consignee).
1.1.2. Characteristics
Firstly, because the products of the delivery service are intangible goods, so there
is no uniform quality assessment standard, it is impossible to store and store, production
and consumption take place at the same time and the recipient is not satisfied. service will
feel and appreciate the best quality of service.

Secondly, the delivery service does not create a physical product, it only changes
the location of the object in space, but does not technically change the object.

1

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7


Thirdly, this service depends a lot on the needs of the customer, the regulations of
the carrier, the laws and regulations of the government, etc.
Fourthly, the forwarding service serves import and export activities, so the volume
of import and export goods greatly affects the forwarding service. Therefore, forwarding
activities will be seasonal because import and export activities are seasonal and change
from time to time.
Fifthly, in addition to jobs such as doing procedures, brokerage, and freight, the
forwarder also provides other services such as: consolidating, dividing, loading and
unloading. Therefore, the technical facilities and experience of the forwarder will greatly
affect the completion of the job.
1.1.3. Types of forwarding services
1.1.3.1. Forwarding of import and export goods at seaports
This is a form of freight forwarding and forwarding across national borders by sea,
goods are transported by sea, is considered the most popular and developed form of
forwarding today because of its characteristics suitable for the transportation of goods and
services. Transporting large volumes of goods over long distances and at an economical
cost. According to the Vietnam Logistics Report 2019 of the Ministry of Industry and
Trade, sea transport will still make the largest contribution to the total volume of global
freight movement and is expected to handle about ¾ of the volume of goods by 2050. Sea
will grow at a rate of 3.6%/year until 2050, which will triple the volume of sea trade by
2050. For high-volume and high-volume items, this is Optimal solution for businesses to

reduce shipping costs. However, because the speed of ships is not great, this method will
take a lot of time, especially for long transport routes, long distances, and ships still have
to transship through areas to get goods.
1.1.3.2. Forwarding of import and export goods by air
Freight forwarding by air is often used for small, high-value, small-volume goods. With
the characteristics of high operating speed, fast transit time, air freight forwarding is
always safer and provides more standard services than other means of transport. However,
8


the disadvantage of this type is that the freight rates are very high, not suitable for
transporting bulky goods, goods with large volume or low value and requiring high
infrastructure investment. Facilities include airports for parking as well as for taking off
and landing of aircraft, an area for import and export goods, transshipment; Airplanes are
transport tools and equipment for loading and unloading goods (aircraft pallets,
containers, etc.)
The forwarder will help his or her clients with the following specific tasks (on
behalf of the exporter): choosing a transport plane, packing the goods, advising the
exporter on the importance of insurance. cargo, storage, weighting, transportation to the
port, doing customs procedures at the port authorities, monitoring the transportation of
goods, helping exporters in claiming for damage, loss or damage of goods.
1.1.3.3. Forwarding of import and export goods by road
Forwarding import and export goods by road is the most flexible delivery method
but has the least internationalization of the delivery methods. Currently in the world there
is only one common convention to unify and standardize rules and conditions governing
contracts for the carriage of goods by road, that is: “Convention on Contracts of Carriage
of Goods by Road.” internationalization by land” of Western European countries.
1.1.3.4. Forwarding of import and export goods by rail
This is a form that is being invested for development, which can overcome the
disadvantages of sea transport, which is the transportation time is too long, and it can

transport large volumes of goods and do not cost too much like air freight. However, in
order to develop this type of investment, it is necessary to invest in building infrastructure
systems with high costs and transportation is not as flexible as roads. Goods delivered by
this method must be sent in batches, goods can only be loaded into one batch when there
is the same recipient, the same departure and loading location, the same destination and
unloading place, and the same time limit. transported and received at the same time and
are not prohibited goods to be stowed together. The form also has retail shipping and full
package shipping. When the goods arrive at the station, the railway is responsible for
9


notifying the recipient, after completing the procedures for receiving goods: paying for
freight, administrative procedures, the railway will deliver the goods to the owner.
1.1.4. Rights and obligations of the forwarder
1.1.4.1. The definition of forwarder

2

The person doing the forwarding service business is called "Forwading - Freight
Forwarder - Forwading Agent". The forwarder can be the goods owner, ship owner,
loading and unloading company or warehouse, professional forwarder or any other
person.
The forwarder has professional qualifications such as: (i)Know how to combine
many different modes of transport. (ii) Know how to make the most of the capacity and
tonnage of transport tools thanks to the service collection service. (iii) Know the
combination of transport - delivery - import and export and have good contact with
organizations related to the process of transporting goods such as customs, ship agents.
The forwarder also creates favorable conditions for import and export traders to operate
effectively thanks to their forwarding services.
1.1.4.2. Rights and obligations of the forwarder

In the Commercial Law of Vietnam (2005), article 235 stipulates the rights and
obligations of logistics service providers as follows. Firstly, unless otherwise agreed,
traders providing logistics services have the following rights and obligations: They are
entitled to service remuneration and other reasonable expenses. In the course of contract
performance, if there is a legitimate reason for the benefit of the customer, the trader
providing logistics services may perform differently from the instructions of the customer,
but must immediately notify the customer. When there is a situation that may lead to the
failure to implement part or all of the customer's instructions, the customer must
immediately notify the customer for instructions. In case there is no agreement on a
specific time limit for performing obligations with customers, they must perform their

2

Phạm Mạnh Hiền (2012), “Nghiệp vụ giao nhận vận tải và bảo hiểm trong ngoại thương”, NXB
Lao động – xã hội

10


obligations within a reasonable time. Secondly, when carrying out the transportation of
goods, traders providing logistics services must comply with the provisions of law and
transport practices.
1.1.4.3. Responsibilities of the forwarder
First of all, when enjoying the right from the forwarding business service to the
customer, the forwarder must also have the appropriate responsibility towards the
customer, depending on the case where the forwarder is an agent or the main carrier.
Secondly, when the forwarder acts as an agent, he must be responsible for his or her own
mistake or negligence or that of the person employed to perform the service. For example,
when delivering goods contrary to instructions; forgot to buy insurance or failed to insure
the goods despite instructions; mistakes when doing customs procedures; delivery to the

wrong address; delivery without collection from the recipient; re-export does not follow
the necessary procedures or does not refund taxes, etc., the forwarder is responsible for
the above issues. Thirdly, the forwarder is also liable for any loss of life or property that
he has caused to a third party during his operation. However, the forwarder is not
responsible for the fault of a third party such as a carrier, or another forwarder, etc., if he
proves to have chosen it carefully. Fourthly, when the forwarder acts as the main carrier,
as the trustee, as an independent contracting party assumes responsibility on his behalf to
perform the services requested by the customer. Therefore, the forwarder must be
responsible for the negligent acts of the carrier, of other forwarders that he uses to
perform the contract. Generally forwarders negotiate service prices with customers rather
than taking commissions. Fifthly, as a trustee, the liability to the third party, the powers of
limitation of liability and the right to make arrests are the same as if he acted as an agent.
When taking on the role of the main carrier providing consolidation services, multimodal
transport services or transporting goods by themselves by different means of transport, the
standard business conditions generally do not apply. to which international conventions or
rules promulgated by the International Chamber of Commerce apply.
1.1.4.4. Service scope of forwarder
11


Except in some cases where the consignor or consignee himself wants to
participate in any formalities and documents himself, usually the forwarder takes care of
the transportation of goods on his behalf. forwarders can perform services directly or
through subcontractors, agents they hire, forwarders can also use their own agents abroad.
This service includes: (i) On behalf of the consignee (importer), (ii) On behalf of the
consignor (exporter), (iii) Other services. Depending on each export or import shipment,
the forwarder will carry out the appropriate transportation work to get the goods from the
place of receipt to the place of delivery.
1.1.4.5. Relationship among the relevant parties
In addition to the shipper and consignee, the forwarder must also deal with third

parties in the process of serving his customers. Firstly, The forwarder also has to deal
with relevant agencies: (i)Customs office to declare and do customs procedures, (ii) Port
authority for port clearance, (iii) Inspection agency to apply for a certificate of goods
quality inspection, (iv) Consular officials to apply for a certificate of origin, (v) Import
control agency, (vi) Transport licensing agency. Secondly, the forwarder also has to deal
with private parties including: (i) Carriers or agents such as: Owner of means of transport,
Transport traders. (ii) Warehouse keeper to store goods, (iii) Underwriters to insure the
goods, (iv) Organize packaging to pack goods, (v) Commercial banks to make
documentary credits.
1.2. Forwarding of import and export goods by sea
1.2.1. Legal basis of principles of import and export goods forwarding at seaports
1.2.1.1. Legal basis
The forwarding of import and export goods must be based on legal bases such as
international and Vietnamese laws: (i) Conventions on bills of lading, transport,
international conventions on contracts for the sale of goods... For example: Vienna
Convention 1980 on international trade. (ii) Legal documents of the Vietnamese state on
freight forwarding; New types of contracts and L/C ensure the interests of import and

12


export goods owners. Example: Law, code, decree,.... ( Maritime Code 1990, Commercial
Law 2005).
1.2.1.2. Principles
Current documents stipulate general principles in freight forwarding.
The loading, unloading, delivery and preservation of import and export goods at
the port is carried out by the port on the basis of a contract between the goods owner or
the person entrusted by the goods owner with the port. The person entrusted by the
shipper is usually the forwarder.
For goods that do not go through the port (not stored at the port), the goods owner

or the entrustee can deliver and receive them directly with the ship, only agree with the
port on the place of loading and unloading, pay the costs of loading and unloading and
other charges. other costs incurred.
The loading and unloading of goods within the port shall be organized by the port.
If the goods owner brings vehicles and workers into the port for loading and unloading,
the goods owner must negotiate with the port and pay relevant fees, if any.
When entrusted to receive goods from the ship, the receiving port by any method
must deliver the goods by that method.
The freight forwarder must present valid documents confirming the right to receive
the goods and must receive the correct volume of goods stated in the documents. The port
is not responsible for the goods leaving the port.
The delivery is carried out on the basis of entrustment of the goods owner, that is,
the goods owner entrusts the work to do it.
In addition, there are basic rules such as delivery must ensure the loading and
unloading norms of the port, goods through the port must have full symbols.
1.2.2. Duties of agencies participating in freight forwarding
1.2.2.1. Port's duties
13


Foremost, the port sign a contract for loading, unloading, delivery, preservation
and storage of goods with the goods owner. There are two types of contracts: consignment
contract for forwarding and lease contract ( the goods owner hires the port to load,
unload, transport, store and preserve the goods). Secondly, they deliver export goods to
the ship and receive the imported goods from the ship if authorized and delivery of
imported goods to domestic goods owners under the entrustment of import-export goods
owners. And then, they make an account with the ship on the delivery and receipt of
goods and make other necessary documents to protect the interests of the goods owners.
Fourthly, the port carry out loading and unloading, transportation, preservation and
storage in the port area and carrying out loading and unloading, transportation,

preservation and storage in the port area. They are responsible for the loss of goods
caused by themselves during the delivery, transportation, loading and unloading. Goods
stored in the port's warehouse are damaged or lost, the port must compensate if there is a
valid record and if the port cannot prove that the port is not at fault. The port is not
responsible for the goods in the following cases: the goods when the goods have left the
port's warehouse, the goods inside if the package, the seal is still intact and damage
caused by wrong or unknown product codes (leading to confusion and loss).
1.2.2.2. Duties of import and export goods cargo owners
Cargo owner signs an entrustment contract with the port in case the goods pass
through the port , conduct delivery and receipt of goods in case the goods do not pass
through the port or carry out the delivery of import and export goods with the port in the
case of goods passing through the port, sign a contract for loading, unloading,
transporting, preserving and storing goods with the port, provide ports with information
about cargo and ships and provide the necessary documents to the port so that the port can
deliver the goods. For export goods, it is included documents: (i)Cargo manifest: made
after the bill of lading for the whole ship, made by the shipping agent and provided 24
hours before the ship arrives at the pilot position. (ii) Cargo plan prepared by the first
mate in charge of cargo, provided 8 hours before loading the ship. For imported goods,
cargo owners need documents such: commodity manifest, queuing chart, details of the
14


hatch (hatch list), sea waybill in case of consignment to the port of shipment. These
documents must be provided 24 hours before the ship arrives at the pilot position. After
completing the above tasks, the cargo owner follow up the delivery process to solve
arising problems, prepare necessary documents in the process of delivery and receipt to
have a basis to complain to related parties,pay port charges.
1.2.2.3. Customs duties
Customs carry out customs procedures, carry out customs inspection, supervision
and control for ships and imported and exported goods, ensure the implementation of the

State's regulations on import and export, export tax, import tax and take measures to
detect, prevent, investigate and handle acts of smuggling, commercial fraud or illegal
transportation of goods, foreign exchange, and Vietnamese currency through seaports.
1.2.3. Process of forwarding of exported goods
Goods not in stock
•Deliver goods to
the port
•Export procedures
•Delivery of goods
to the ship

Goods in stock
•
Delivery to the
port
•
Port of
delivery for ships
•
Make a
set of
documents

Container goods
•
•

Shipping FCL
Shipping LCL

Figure 1.1: Export delivery process
1.2.3.1. For goods that do not have to be stored at the port
Goods that do not have to be kept in warehouses at ports are export goods
transported by goods owners from other parts of the country for export, which can be
stored in their own warehouses, not through the port's warehouses. From the private
warehouse, the shipper or the trustee can deliver it directly to the ship. Delivery include 2
steps. Firstly, the owner or the trustee brings the goods to the port by his own means of
transporting the goods to the port. Secondly, the owner or the trustee carrying out
15


procedures for exporting and delivering goods to ships in the following order. They
register with the port about the location, wharf loading and unloading, do customs
procedures for export goods, apply for a certificate of hygiene and quarantine if necessary.
After that, they organize transportation and loading goods on board. And then the cargo
owner or the trustee contact the captain to get the stowage chart, carrying out the loading
of goods on the ship by port workers, the forwarding staff must monitor the process to
solve problems, which must be loaded onto the ship and recorded in the tally sheet. The
ship will make a receipt for the mate to record the quantity and status of goods loaded on
the ship (which is the basis for issuing a bill of lading). They provide details of goods for
the carrier to issue a bill of lading and give the bill of lading to the carrier to sign and
stamp, make a set of payment documents for goods that the contract or L/C stipulates,
notify the consignee of the delivery, buy insurance for goods (if specified in the contract)
and calculate to penalty for fast loading and unloading (if any).
1.2.3.2. For goods stored at the port.
Goods are not delivered directly to the ship but must go through the port. Delivery
sequence includes 3 steps. Step 1 is delivery to the port. The goods owner or the entrustee
signs a contract for storage and preservation of goods with the port. The cargo owner
provide the port with documents such as: loading instructions (Shipping instruction), list
of exported goods (Cargo list), notice of shipment issued by shipping lines (Shipping

Order) and then delivering goods to the port's warehouse or yard. Step 2 is port of delivery
to the ship. Before delivering the goods to the ship, the cargo owner must carry out the
necessary procedures for export such as customs clearance, quarantine, sanitation, notify
the port of the expected date and time of the ship's arrival and deliver to the port a loading
chart. After that the goods is Loaded and delivered to ships. Before loading, organize the
transport of goods from the warehouse to the port, arrange the loading schedule, assign
the loading tray, arrange the vehicles and workers and escorts (if necessary). Carrying out
loading and unloading and delivery to the ship. The loading of goods onto the ship is done
by port workers. The goods will be delivered to the ship under the supervision of a
customs representative. During the delivery process, the port's tally
16


officer must record the quantity of goods delivered in the Tally Report, at the end of the
day, in the Daily Report and when a ship is loaded, record into the final report. On the
ship's side, there is also a staff to count and record the situation on the Tally Sheet. The
tally may also hire staff from another company that specializes in tallying parcels. When
delivering a batch or the whole ship, the port must take the mate's receipt (Mate's Receipt)
to make a bill of lading on that basis. Last step is preparing payment vouchers. Based on
the purchase and sale contract and L/C, the forwarder must make the necessary
documents to form a set of documents and present them to the bank for payment. If
payment is made by L/C, the payment documents must be compatible with each other and
in terms of form with the L/C and must be presented within the validity period of the L/C.
The cargo owner inform the buyer about the delivery and purchase insurance for the
goods if necessary.
1.2.3.3. For container goods
For shipping in full container (FCL- Full Container Load), the shipper or the
trustee will have to deal with the shipping line or representative of the shipping line to get
the container and/or negotiate the price. After the two parties have agreed, the shipping
company will issue an order to deliver the container. The owner takes the empty container

back to his hangar location and invite representatives of customs, inspection and
quarantine to inspect and supervise the packing of goods into containers. After closing the
cave, the customs officer will seal and clamp it. The goods owner will deliver the
container to the driver at the specified container yard within the specified time (closing
time) of each train (usually 8 hours before loading) and get a receipt to receive the
container for transport. After the container has been loaded onto the ship, bring this
receipt to the ship's hangar to exchange for the bill of lading. For shipping retail (LCLLess than Container Load), owners deal with shipping lines or agents of shipping lines,
providing them with necessary information about exports. After being accepted, the two
parties will agree on the date, time, and place of delivery. The owner or the forwarder
brings the goods to the carrier for delivery at the specified CFS or ICD. The goods owners
invite the customs representative to inspect, inspect and supervise the packing of goods
17


into the container of the carrier or the consolidator. After the customs seals the container,
the goods owner completes the procedures to load the container onto the ship and request
a bill of lading. The carrier issues a receipt or a master bill of lading (Master Bill of
Ladinh) and loads the container onto the ship and transports the goods to the destination.
1.2.4. Process of delivery and receipt of imported goods at the port
Goods not in stock
•Shippers,
entrustors stand
forward to deliver
and receive directly
with the ship
•Directly receive
goods from the ship
and make necessary
documents
•Unloading from

the ship
•Customs
procedures
•Transportation
of goods to the
warehouse

Goods in stock
•
Port receiving
goods from prison
•
Port of
delivery for
shippers
•
Customs
procedures

Goods container
•
•

Import the FCL
Import the LCL

Figure 1.2: Import delivery process
1.2.4.1. Goods are not required to be stored at the port.
The goods owner or the entrustee stands out to deliver the goods directly to the
ship. In order to be able to carry out unloading, 24 hours before the ship arrives at the

port, the goods owner must give the port some of the following documents including:
manifest of goods (2 copies), queuing map (Cargo plan - 2 copies), details of cargo hold
(2 copies), details of oversized and overloaded goods (if any). The owner presents the
original bill of lading to the shipping line representative to get the delivery order (D/O)
and directly receive goods from the ship and prepare necessary documents in the process
of receiving goods such as: minutes of survey of the ship's hold (made before unloading)
to reserve the ship's liability for future losses, minutes of discharge (COR) for obvious
18


loss, letter of resistance (LR) for unspecified loss, the receipt of goods with the ship,
minutes of inspection, certificate of missing goods (made by the shipping agent). When
the goods are unloaded from the ship, the goods owner can take them to a private
warehouse and invite the customs to inspect the goods. If the goods are not sealed, they
must be escorted to the warehouse by customs. They do customs procedures for imported
goods and transport the goods to the warehouse or immediately distribute the goods.
1.2.4.2. Goods must be stored in warehouses and yards at ports.
The order of receipt of goods includes the following steps. The first step is port of
receiving goods from ship. Port will unload, receive goods from shipsand prepare the
necessary documents during the delivery process with the forwarder and bring goods to
the port warehouse. The second step is port of delivery for shippers. When receiving
notice of arrival of goods, the goods owner must bring the original bill of lading and the
introduction of the agency to the shipping company to receive the delivery order. The
shipping line or agent keeps the original bill of lading and gives 3 copies of the delivery
order to the consignee. The goods owner pays the document fee, storage fee, deposit to
borrow shell or deposit for cleaning (if any), loading and unloading fee and get a receipt.
The goods owner brings the delivery order along with the invoice and packing slip to the
ship management office at the port to confirm the delivery order and locate the goods.
The goods owner then brings this set of documents to the CFS warehouse department. to
make a delivery note. This department keeps a copy of the delivery order and makes 3

delivery notes for the shipper. The last step is doing customs clearance. Customs
procedures and present and submit relevant documents such as: declaration of imported
goods, import license, detailed list of goods (Packing List), foreign trade contract, an
original bill of lading (Bill of Lading), certificate of origin, certificate of inspection (if
any), commercial invoice (Invoice). Customs will check documents and goods, calculate
and notify tax payable. The goods owner signs and receives the tax notice (with a grace
period of 30 days) and obtains a certificate of completion of customs procedures. After
the customs confirms "customs clearance has been completed", the goods owner can take
the goods out of the port and take them to their own warehouse.
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1.2.4.3. Container cargo
For importing full container, when receiving the notice of arrival sent by the ship,
the owner brings the original bill of lading, the introduction of the agency or the power of
attorney (if any) to the ship to get the delivery order. The goods owner brings the delivery
order to the customs for customs clearance and registration of goods inspection (can
request to bring the whole container to a separate warehouse or ICD for customs
inspection but must return the shell on time or else will be fined). After completing
customs procedures, the goods owner brings a set of receipts with the delivery order to the
ship management office at the port to confirm the delivery order and take delivery notes
and receive goods. For the LCL, the goods owner brings the original bill of lading or the
consolidator's bill of lading to the shipping line or the consolidator's agent to get delivery
orders, then receive the goods at the specified CFS and follow the procedures like FCL
goods.
1.2.5. Types of documents arising in the delivery of import and export goods by sea

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Bill of Lading is a document issued by the carrier to the consignor to confirm that

the goods have been received for transportation. It has three main functions as a carrier's
receipt confirming that they have received the goods for carriage; the second is a proof of
fulfillment of the terms of a contract of carriage by sea and a document of title for the
goods, specifying to whom the goods will be delivered at the port of destination, thereby
allowing the sale of the goods. By transferring B/L.
There are many different types of B/L when considering many different aspects.
There are some commonly used B/Ls such as original and copy B/L, named B/L,
surrendered B/L, Master B/L and House B/L. Original B/L is the bill of lading used for
receipt of goods, payment, transfer, claims, lawsuits, etc., issued by the carrier at the
request of the shipper. The expression "original - Original" on the sea waybill of each
shipping line is also different, each shipping line has its own bill of lading form, so the

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Đoàn Thị Hồng Vân (2013), “Quản trị xuất nhập khẩu”, NXB Tổng hợp thành phố Hồ Chí Minh

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expression is also different. Copy B/L is not valid for circulation, people use copy bill of
lading for administrative procedures, reference or record keeping.
A bill of lading is a type of bill of lading issued to a specific consignee. Only the
person named on the Bill can receive the goods, this type cannot be transferred to another
person by endorsement. If you want to transfer the goods to another person to receive the
goods, you must carry out procedures for franchising according to the law or custom at
the port of destination. Delivered bill of lading (Surrendered B/L) is a bill of lading that
requires delivery to be received by the consignee. The consignee does not need the
original, a copy is okay but must have a telex. Master Bill of Lading (Master B/L) is
issued by the main carrier to the exporter or to the consignor for freight forwarding
services. The secondary bill of lading (House B/L) is issued by the forwarder. This is the

legal basis governing the relationship between the forwarding service provider and the
customer.
Commercial invoice (Invoice) is the basic document of the payment stage, is the
seller's request to the buyer to pay the amount of goods stated on the invoice. The invoice
must state the characteristics of the goods, the unit price, the total value of the goods, the
delivery conditions, the payment method, the means of transport, etc. In addition to the
commercial invoice that we often encounter in real life. There are also other types of
invoices such as provisional invoices, formal invoices, detailed invoices and proforma
invoices. Provisional invoice is an invoice for preliminary payment of goods in cases
where new goods prices are temporarily calculated, payment for each goods, etc. Official
invoice is an invoice used to pay for goods when performing the entire contract. copper.
Detailed invoice has the effect of detailed analysis of parts of the price. A proforma
invoice is a document that looks like an invoice, but is not used for payment because it is
not a claim for money.
Packing list is a document of goods that lists all items and types of goods packed
in packages (cartons, containers, pallets, ...) and the entire shipment. The packing slip is
issued by the producer/exporter when packing the goods. The form is usually made in 3
copies. The contents of the packing slip include the name of the seller, the buyer, the
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invoice number, the order number of the package, the packing method, the type of goods,
the quantity of goods packed in each package, the net weight, the total weight of the
goods. envelope. Detail List is a list of goods purchased and sold through the hands of
different companies, to specify the origin of goods, often accompanied by sales invoices
between companies.
Certificate of Quality is a document confirming the quality of the goods actually
delivered and proving that the quality of the goods conforms to the terms of the contract.
may also be issued by the goods inspection agency, depending on the agreement between
the two parties.

Insurance Certificate is a document issued by the insurance person/insurance
organization to the insured, in order to legalize the insurance contract and used to regulate
the relationship between the insurance organization and the insured. dangerous. The most
commonly used insurance documents are the insurance policy/policy and the certificate of
insurance. An insurance policy is a document issued by an insurance organization,
containing the main terms of the insurance contract and the insured. Certificate of
Insurance is a document issued by the insurer to the insured to confirm the insured goods
according to the contract conditions.
Referal is a paper issued by an enterprise to introduce its employees to the
customs office to receive or export goods, on the introduction paper must have the
enterprise's stamp, signature as well as the position of the customs authority. presenter.
Customs clearance declaration (Custom Decalration) is a document that the goods owner
must declare about the shipment when exporting or importing (entry and exit) into and
out of the Vietnamese territory so that the customs can consider the goods. more clearly
and based on the customs declaration, businesses can know the amount of tax payable to
the State.
Arrival Notice is a notice sent by the shipping line to the relevant party requested
by the person booking with the shipping line. In the notice of arrival, there will be

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