FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

MID-COURSE INTERNSHIP REPORT

Major: External Economics

FERTILIZER IMPORTING PROCESS IN

VINACAM JOINT STOCK COMPANY

Internee: Phạm Kha Minh

Student ID: 1101017203

Class: K50CLC2

Supervisor: MA. Phùng Minh Đức

Ho Chi Minh City, June 2014

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INTERNSHIP ORGANIZATION’S REMARKS

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SUPERVISOR’S REMARKS
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Ho Chi Minh City, August 11th, 2014
Supervisor

MA. Phung Minh Duc

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TABLE OF CONTENT
INTERNSHIP ORGANIZATION’S REMARKS.................................................................I
SUPERVISOR’S REMARKS .................................................................................................. II
TABLE OF CONTENT ............................................................................................................III
LIST OF ABBREVIATIONS ................................................................................................... V
LIST OF TABLES ......................................................................................................................VI
LIST OF FIGURES....................................................................................................................VI
LIST OF CHARTS .....................................................................................................................VI
PREFACE....................................................................................................................................... 1
CHAPTER ONE: INTRODUCTION TO VINACAM JOINT STOCK COMPANY 2
1.1. The development process of VINACAM JOINT STOCK COMPANY .................. 2
1.2. Functions of Vinacam Joint Stock Company .................................................................. 2
1.3. Tasks of Vinacam Joint Stock Company.......................................................................... 3
1.4. Organization structure ......................................................................................................... 3
1.5. Business outcomes during 2011 – 2013.............................................................................. 5
1.6. Roles of fertilizer importing process in Vinacam Joint Stock Company ................... 7
1.7. Tasks assigned during internship period .......................................................................... 8
CHAPTER TWO: CURRENT SITUATION OF FERTILIZER IMPORTING
PROCESS IN THE PERIOD 2011 – 2013 .............................................................................. 9
2.1. Describe the fertilizer importing process in Vinacam Joint Stock Company........... 9
2.1.1. Negotiate and sign contracts .................................................................................. 9
2.1.2. Buy insurance for cargoes....................................................................................11
2.1.3. Open L/C...............................................................................................................13
2.1.4. Check vessel’s nomination ..................................................................................14
2.1.5. Receive notice of readiness..................................................................................15
2.1.6. Make payment & receive shipping documents from the issuing bank .............15
2.1.7. Do custom clearance and inspection ...................................................................15
2.1.8. Receive Delivery Order and unload shipments ..................................................17
2.1.9. Demurage and dispatch calculation ....................................................................18
2.1.10. Settlement .............................................................................................................18
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2.2. Summary of strengths and weaknesses of the fertilizer importing process............. 19

2.2.1. Strengths ...............................................................................................................19
2.2.2. Weaknesses ...........................................................................................................19
2.3. Comparison of importing process in theory and in practice ...................................... 20
2.3.1. Theory ...................................................................................................................20
2.3.2. Similarity...............................................................................................................20
2.3.3. Differences ............................................................................................................21
CHAPTER THREE: THE OUTLOOK, DEVELOPMENT ORIENTATION AND
RECOMMENDATIONS FOR IMPROVEMENT OF FERTILIZER IMPORTING
PROCESS IN VINACAM JOINT STOCK COMPANY ................................................. 22
3.1. The outlook of the fertilizer importing process ............................................................. 22
3.1.1. Opportunities ........................................................................................................22
3.1.2. Threats ...................................................................................................................22
3.2. The organization’s development orientation of the fertilizer importing process ... 23
3.2.1. Short-term orientations ........................................................................................23
3.2.2. Long-term orientations.........................................................................................23
3.3. Recommendations for improving the fertilizer importing process ........................... 23
3.3.1. Recruiting and training high-quality human resources ......................................23
3.3.2. Specify the fertilizer’s color by sample ..............................................................24
CONCLUSION ........................................................................................................................... 25
ANNEX 1: TAX AND INSURANCE CALCULATION FOR CONTRACT NO.
DW/VINACAM/201405050 ...................................................................................................... 26
Insurance calculation .................................................................................................................. 26
Tax calculation ............................................................................................................................. 26
ANNEX 2: INTERNSHIP JOURNAL .................................................................................. 27
ANNEX 3: LIST OF SHIPPING DOCUMENTS............................................................... 29
REFERENCES............................................................................................................................ 32
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LIST OF ABBREVIATIONS
Abbreviation Full word
B/L Bill of Lading
C/O Certificate of Origin
CFR Cost and Freight
CIF Cost, Freight, and Insurance
D/O Delivery Order
ETA Estimated Time of Arrival
HCMC Ho Chi Minh City
ICC International Chamber of Commerce
Incoterm Internation Commercial Term
JSC Joint Stock Company
L/C Letter of Credit
No. Number
NOR Notice of Readiness
USD US Dollar
Vinacam Vinacam Joint Stock Company
VND Vietnamese Dong
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LIST OF TABLES
Table 1.1: Vinacam's business outcomes during 2011 – 2013 ..................................... 5
Table 2.1: Total costs for the 5960 MT NPK 16-16-8-13S .........................................18

LIST OF FIGURES
Figure 1.1: The organizational hierarchy chart of Vinacam ...................................... 4
Figure 2.1: Fertilizer importing process in Vinacam Joint Stock Company ............ 9
Figure 2.2: Procedures to import ...................................................................................20

LIST OF CHARTS
Chart 1.1: Revenue structure classified in terms of sectors in 2013 .......................... 7
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PREFACE
Foreign trade industry is known as one of the most important industries that
has the role as a linkage between Vietnam’s economy and other economies. After
nearly 30 years of development, foreign trade has gradually asserted its crucial
position in accelerating the process of transformation of economic structure, ensuring
sustainable economic development, and supplying foreign currency.
Understanding the important role of foreign trade and desiring more
knowledge as well as practical experience, the author contacted and had an internship
at the Vinacam Joint Stock Corporation. With the experience accumulated in the
internship, the author can have a more practical perspective about fertilizer importing
process and the differences between knowledge from the lecture and activities in
reality at Vinacam Joint Stock Corporation.
From the above-mentioned desires, the author has decided to choose the topic
“THE FERTILIZER IMPORTING PROCESS IN VINACAM JOINT STOCK
COMPANY” with three chapters as follows
Chapter One: Introduction to Vinacam Joint Stock Company
Chapter Two: Current situation of Fertilizer Importing Process in the period
2011 – 2013
Chapter Three: The outlook, development orientation and recommendations
for improvement of Fertilizer Importing Process in Vinacam Joint Stock Company
The author would like to send sincere thanks to the Board of Directors,
Assistant Department, Operation – Business Department, Finance – Accounting,
especially Mr. Phu, Mr. Son, and Mr. Trinh in Vinacam Joint Stock Company, my
dedicated instructors Ms. Phung Minh Duc and other teachers at Foreign Trade
University Ho Chi Minh City Campus for their valuable and practical instructions.
Despite having spent much effort in completing this report, some mistakes are
inevitable due to the author’s limited knowledge and experience. Hence, the readers’
understandings and comments are highly appreciated for further improvement.
Student
Pham Kha Minh
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1. Chapter One: INTRODUCTION TO VINACAM JOINT STOCK COMPANY

1.1. The development process of VINACAM JOINT STOCK COMPANY
A branch of an agricultural materials corporation Vigecam in HCMC before,
Vinacam JSC officially founded and put into operation from the date of May 19th,
2005. With the main business sectors such as distributing exporting chemical fertilizers
and agricultural products, export plastic products, transportation services, and basic
construction, Vinacam has developed and gradually asserted its position in important
regions like Highlands, Southeast and Mekong Delta of Vietnam.
General information
- Name of company: Vinacam Joint Stock Company
- Vietnamese name: Công ty cổ phần Vinacam
- Abbreviation: VINACAM JSC
- Headquarter: 28 Mac Dinh Chi Street, Da Kao Ward, District 1, HCMC
- Business license no.: 4103003408 issued by Department of Planning and
Investment in Ho Chi Minh City.

- Logo:
- Tel: (+84) 38250322 – 38246527
- Fax: (+84) 38245500
- Email: Vinacamstar@vnn.vn – Vinacamwelcome@vnn.vn
- Website: http://vinacam.com.vn
Achievements
In 2006 and 2007, Vinacam supplied almost 600 thousand tons of fertilizer with
revenue about 2,500 billion VND. Vinacam is also recognized by the overseas
suppliers as one of leading fertilizer importers in Vietnam during this period.
Additionally, from 2007 to 2010, Vinacam was honored to be one of 500 largest
enterprises in Vietnam, VNR 500 voted by VietnamNet website.
1.2. Functions of Vinacam Joint Stock Company
After its foundation, Vinacam’s main function is to do business in chemical
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fertilizer export & import and agricultural products distribution. However, during its
development process, due to insights of the Board of Director into potential prospects
of other sector releting to agriculture, Vinacam gradually extends its functions as a
multi-sectoral company in sectors such as such as furniture and plastic products
manufacturing, transportation, packaging, and logistic services, basic construction and
advisory services related to investment, and agrochem business.
1.3. Tasks of Vinacam Joint Stock Company
Firstly, Vinacam has the task of finding reputable fertilizer suppliers to import
and distribute for the domestic market. Also, Vinacam always improves its import,
sales and distribution process so that fertilizer must be high quality, competitive price,
and suitable to many different crops.
Secondly, Vinacam must do business under the laws and policies of Vietnam’s
government, pay tax sufficiently, have specific methods to protect society’s discipline.
Thirdly, Vinacam has to use capital efficiently, proactive in raising capital for
the cover financial issues, actively increase its equity to brings benefits to its
shareholders.
Lastly, Vinacam implements salary policy and protects labors’ rights complying
with Vietnam’s laws. Besides, Vinacam has encouragement and training policies for
staffs to improve their expertises as well as support them to overcome difficulties
1.4. Organization structure
The organization structure of Vinacam bases on the model of functional
departmentalization. This can help Vinacam take advantage of putting together similar
people with common skills, knowledge and orientations. Additionally, this model can
enhance the professional training and development in all departments, share knowledge
and experience between managers and subordinates, improve problem-solving skills,
and have centralized decision-making. However, there are some certain drawbacks
such as poor communication across functional areas, conflicts between different
departments, and emphasis on the department rather than the organization leading to
limited view of organizational goals. In order to encounter these above drawbacks,
Vinacam always have regular meetings to communicate with employees about
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corporate’s goals, to listen to employees’ proposals, and to create a chance for all
departments to understand each other so that no conflicts can exist.
Figure 1.1: The organizational hierarchy chart of Vinacam

(Source: Vinacam’s Quality Handbook)

Functions of main departments
Conference of Shareholders has the highest power of the company, including
all of the shareholders entitled to vote and those who are authorized by the
shareholders.
Board of Management is elected by the Conference of Shareholder and has
responsibility for managing all operations of the company. The term of the Board of
Management is 5 years and the current Board of Management has 5 members.
Board of Directors includes a president and vice presidents who are responsible
for daily operations of the company.
Assistant department is responsible for advising the Board of Directors in
developing, checking and supervising all activities of the company as well as
performing export and import operations.
Finance – Accounting department is responsible for organizing accounting
activities in accordance with the law of Vietnam, making payment, reporting to the
Board of Directors and Conference of Shareholders in compliance with the company's
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regulations, and providing documentation for independent audit companies, inspection

teams, and other parties.
Operation – Business department
- Sales is responsible for scheduling a short term and long term business plan
for the company, managing contract economic and monitoring the sale of goods,
carrying out all procedures related to the purchase and sale of goods (both domestic
sales and export), and catching timely market information and information from
customers and suppliers.
- Logistic is responsible for doing import/export customs clearance of goods,
organizing auctions to supply fertilizer for other domestic fertilizer distributors, solving
problems arising with the insurance, inspector, and other related parties, organizing
transportation of goods and working with the port system to arrange for ship, and
buying and selling fertilizer in the authorized scope of Board of Director.
- Warehouse management is responsible for perfoming duty related to
inventories such as preservation, storing in compliance with the principle of fire
prevention and extinguishing.
Admin – HR deparment is responsible for resume management, performing
recruitment, retirement, discipline, reward, and retire, professional training programs
for employees in the company, managing salaries, and storing documents, papers,
books and other administrative seals.
1.5. Business outcomes during 2011 – 2013
Table 1.1: Vinacam's business outcomes during 2011 – 2013
Unit: VND
Year 2011 2012 2013
Revenue 69,723,963,000 97,251,853,000 72,014,404,000
Cost 18,142,178,000 33,614,288,000 13,941,433,000
Profit 51,581,785,000 63,637,565,000 58,072,971,000
(Source: Finance – Accounting Department of Vinacam)
Overall, revenue, expense and profit of Vinacam have large fluctuations in the
period 2011 – 2013.
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The revenue of Vinacam rises slightly about 3.29% in the period 2011 – 2013.
Specifically, revenue increases by 39.48% in the period 2011-2012 and drops sharply
35.05% during the period 2012-2013. The reason why revenue peak in 2012 can be
explained through the extremely close relationship between fertilizer industry and
agriculture, particularly cultivation sector. Even though the macro picture of Vietnam’s
economy remained quite grim in 2012 but agriculture had strong growth when
overcoming Thailand to have the highest turnover of rice export in the world, 8.1
million tons, and surpassed Brazil to become the top coffee exporting country in the
world. For this reason, demands on fertilizer increased, especially in the Mekong River
Delta, corresponding to rice market, and the Highlands, corresponding to coffee
market, which are the primary markets of Vinacam. In 2013, counterfeit fertilizer sold
under Vinacam’s package caused heavy damage for its revenues. At the same time, the
sources of the fertilizer for distribution were mainly imports, which had to compete
fiercely from domestic fertilizer production as Phu My, Viet Nhat, Nam Sao, etc. Also,
due to bad debts in the banking system, Vinacam met difficulties in loans for fertilizer
imports’s payment. All of above-mentioned reasons worsen the revenue of Vinacam in
2013.
Cost drops quite a lot, about 30.13% in the period 2011 – 2013. Particularly,
cost also climbs sharply during 2011 - 2012 up to 85.28% and plummets 141.11% in
the next stage. The cost peaks in 2012 mostly due to the increase in the fertlizer’s price
and operating cost such as transporting, packaging, and labor salary in this this year.
Besides, the cost raises as a result of increasing in basic salary, interest rate, foreign
exchange rate, price of oil and electricity, etc. In 2013, anticipating the difficult
prospect in fertilizer industry, Mr. Hai, Vinacam’s President, and the Conference of
Shareholders applied a so-called “Cut costs policy” to reduce expenses including
cutting salaries by not allowing its staffs to work on Saturday and limiting overhead
cost to the minimum level. The final result is that the expenses drops significantly in
2013.
Profit is up about 12.58% in the period 2011 to 2013, from over 51 billion in
2011 to over 53 billion in 2013. Separately, profit peaks in 2012 when soaring 23.37%
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compared to 2011, and later shrinks 9.58% in 2013. Due to higher demand in fertilizer
and strong growth in agriculture in 2012, the increasing of revenue rockets the profit of
Vinacam in this year. After that, as a result of difficulties such as increasing in
overhead costs, counterfeit fertlizer, bad debts in banking system as mentioned above,
the profit drops down significantly in 2013.
1.6. Roles of fertilizer importing process in Vinacam Joint Stock Company
The role of fertilizer importing process is extremely crucial due to two reasons.
Firstly, fertilizer importing process is the first operation and the core business
sector of Vinacam. Board of Directors always pay much attention to fertilizer
importing process to improve performance, expressing in including fertilizer import
into a target in the orientation development of Vinacam. Additionally, Vinacam’s
experienced employees, the majority of whom would work Vigecam from the 1960s
reaffirms the essence of this business sector.
Lastly, importing and distributing fertilizer accounts for over 60% of Vinacam’s
revenue in 2013 (see chart 1.1), which can be considered as a key business sector of
Vinacam. With diverse product line as SA (Japan & China), potassium (Israel), DAP
(China, Korea & Australia), Urea (China), fertilizer importing has become a more and
more important to Vinacam’s operations.
Chart 1.1: Revenue structure classified in terms of sectors in 2013

9% 2%

10%
Fertilizer importing
Vinacam Glass
Vinacam G7
15% Agricam
64% Vinacam Transport

(Source: Finance – Accounting Department of Vinacam)

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1.7. Tasks assigned during internship period

From June 2nd, 2014 to June 21st, 2014, I interned at Assistant Department and
was instructed by Vinacam’s staffs through the steps in negotiating and signing the
importing contracts, procedures to open an L/C and insure for imported shipment.
Also, I had a chance to use the software ECUS4 to make e-custom declaration and
prepare customs clearance documents, register inspection for for the contract no.
DW/VINACAM/20140505, which is clearly illustrated in the chapter two. Finally, I
supervised the process of unloading, packaging, transporting and distributing of the
above-mentioned cargo at Khanh Hoi Port.
2.
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Chapter Two: CURRENT SITUATION OF FERTILIZER IMPORTING

PROCESS IN THE PERIOD 2011 – 2013
2.1. Describe the fertilizer importing process in Vinacam Joint Stock Company
Figure 2.1: Fertilizer importing process in Vinacam Joint Stock Company

(Source: Assistant Department of Vinacam)

This process will be illustrated in detailed through the contract no.
DW/VINACAM/20140505 signed between Vinacam and Daewoo Corporation on
May 5th, 2014.
2.1.1. Negotiate and sign contracts
Assistant Department actively seeks potential fertilizer suppliers and negotiates
sales contracts. Customarily, most contracts are drafted by the exporter or fertilizer
suppliers, and the importer negotiates the terms of drafted contracts and later agrees to
sign the contract. If any parties request to amend the terms and conditions, the addenda
must be in writing and be agreed by the other parties.
The most important term in fertilizer importing contracts is specification,
especially colors of the fertilizer. This is because Vinacam’s customers always offer the
price of ferlizer through its color. The more discrepancies between the color of
fertilizer and the standardized color is, the lower the price the customers offer.
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However, the disadvantage of this step is that Vinacam only simply specifies
this term in most importing contracts between Vinacam and its suppliers, for example
“Color: Brown”, so conflicts related to color usually exist between Vinacam and its
suppliers.. Moreover, because the colors are varied and depend on each person's
subjective, i.e. there are a lot of level of brown such as dark brown, light brown, earth
brown, etc, this creates opportunities for fertilizer suppliers to avoid paying liquidated
damages.
Additionally, Vinacam’s negotiators always carefully pay attention to the
following terms because Vinacam usually use CFR Incoterm 2010 in all of its
importing contracts
Discharging rate: Exporters have tendency to reduce its freight by reducing
laytime. Therefore, if discharging rate in contracts is higher than that of the port,
Vinacam surely pays demmurage. Typically, the discharging rate is about 1200 MT per
day of 24 consecutive hours in most of ports in HCMC.
Price: Because the time from signature day to the time the goods are distributed
to the Vietnam market is quite long, sometimes more than two months. Therefore, the
risk of price fluctuations is inevitable, and importers should monitor fertilizer prices on
the international market and in Vietnam market to predict future prices.
Latest date of shipment: If the demand for fertilizer in Vietnam increased, the
latest date of shipment must be as soon as possible so that Vinacam could distribute
fertilizers with higher prices and vice versa. One-day-later date of shipment means
losing hundreds of million VND.
Specifically, the contract no. DW/VINACAM/20140505 (Annex A1) was
signed on May 25th, 2014 with the content that Daewoo International Corporation
(Korea) will deliver 6,000 MT of NPK 16-16-8-13S manufactured by Namhae
Chemical Corporation to Vinacam Joint Stock Company (Vietnam) after Vinacam
considered all the terms and conditions, especially the specification, the price of NPK
16-16-8-13S, the latest date of shipment, and discharging rate. On the 7th, 8th, and 26th
of May, 2014, Daewoo respectively sent three addenda in writing to modify its office
address (10 Tongil-ro, Jung-gu, Seoul, Korea instead of 84-11, Namdaemunno 5-ga,
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Chung-gu, Seoul, Korea), required shipping documents (add “C/O issued by

Manufacturer sent with L/C” and “C/O form AK sent via DHL prior to vessel arrives at
P/S), and the latest date of shipment (within May 27th), and Vinacam accepted those
changes (Annex A2, A3, A4).
2.1.2. Buy insurance for cargoes
Commonly, buying insurance for cargoes is the responsibility of the buyers in
most Vinacam’s contracts. This is partly because Vinacam assures the loss of goods
suffered is minimized and partly because the issuing bank only allows to open L/C only
if the cargoes has been insured. Insurable value is calculated based on CIF value of the
shipment on commercial invoice, not the contract value. Process of buying insurance
for cargoes is as follows
Assistant Department completed “Insurance request on cargo” by filling the
basic information such as contract number, quantity, unit price based on the importing
contract, sign at the box for Assistant Department, and pass the form to Finance –
Accounting Department.
Finance - Accounting Department chooses one of the three insurance
companies, Bao Minh, Bao Viet, and BIC. If L/C is opened at BIDV, Vinacam is likely
to choose BIC and fill “BIC insurance” at the box “Compulsory insurance company”.
If the L/C is opened at other commercial banks, Vinacam can choose any of three
above-mentioned insurance companies and the name of insurance company is filled at
the box “Optional insurance company”. Then Finance - Accounting Department signs
the box “Accounting Department” and passes to the President for his approval. Finally,
“Insurance request on cargo” returns to Assistant Department for storing purpose.
Asistant Department completes “Application for cargo insurance” and deliver it
to the insurance company. As for unknown information such as vessel name, date of
departure, B/L number, “Report later” is filled.
Assistant Department receives the drafted Policy Schedule from the insurance
company, on which the official Policy Schedule bases, to check its information and
correct if anything wrong. Then the President signs on the official Policy Schedule to
officially buy insurance for cargoes. After that, if receiving the unknown information in
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Policy Schedule, Assistant Department must make an amendment to add the unknown
information to Policy Schedule and receive endorsements from the insurance company.
Assistant Department keeps an orginal of Policy Schedule and its endorsements and
passes a copy to Operation – Business Department and another to Finance –
Accounting Department for contract tracking.
The Policy Schedule stipulates the date of proposal and declaration and the
latest date of paying premium. The date of proposal and declaration is the date the
goods begin to be covered and is the signature date in Policy Schedule. The latest date
of paying premium usually after the date of proposal and declaration and has the
meaning that if premium is paid before this date, the Policy Schedule will take effect.
Thus, cargoes still be covered if the risks occur before the latest date of paying
premium and premium is settled before the latest date of paying premium.
To illustrate contract no. DW/VINACAM/20140505, Department Assistant
filled “Request on Cargo Insurance" (Annex B1) with information like Daewoo
suppliers, contract number no. DW/VINACAM/20140505, signature date May 5th,
2014, quantity 6000 MT, unit price 356.3 USD/MT, bulk cargo and passed to Finance
– Accounting department. Then, Finance – Accounting Deparment selected BIDV
Bank as the issuing bank and chose Bao Minh as an optional insurance company.
Hence, Finance - Accounting Department filled the optional insurance box with “Bao
Minh” and passed to the President for his signature. Then, Assistant Department filled
“Application for Cargo Insurance” (Annex B2) with information such as NPK 16-16-8-
13S as goods insured, 6000 MT (±10%) as quantity, bulk cargo as nature of packing,
sea transport as means of transport, contract value as insured value, 100% CIF as
insurance condition, etc. The other information such as name of conveyance, departure
date, B/L no., which were not available at the time of filling “Application for Cargo
Insurance”, were filled "Report later". Then the drafted Policy Schedule was sent to
Assistant Department for approval. Then, Policy Schedule no. MCI/00720556 (Annex
B3) was issued and the standard rate was 0.33%. Thus, the standard premium was
45,042,440,052 VND. Then, on May 27th, 2014, Assistant Department added the
unknown information such as M.V Ocean Bright as name of conveyance, May 26th,
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2014 as departure date, OBYH14051 as B/L no., 5960 MT as actual quantity to the
Endorsement no.1 of Policy Schedule (Annex B4) based on information provided by
Daewoo. On June 6th, Bao Minh sent Vinacam Endorsement no.2 (Annex B5) to
modify the exchange rate USD/VND = 21,036 instead of 21,000. Due to lower actual
quantity, the new premium is equal to 147,902,231 VND. After that, Finance –
Accounting Department made payment for insurance of this cargo before June 9th,
2014, the latest date of paying premium.
2.1.3. Open L/C
Assistant Department fills in the “Application for a Letter of Credit” under the
form of issuing bank. Pursuant to the contract, the Assistant Department fills the
beneficiary name, advising bank, type of L/C, L/C expiration date, required documents,
etc. It should be noted the L/C expiration date will be subject to Article 14 paragraph
(c) UCP 600, which is 21 days from the latest date of shipment. In case the exporter
sends amendments to change the latest date of shipment, Assistant Department must
make “Application for a letter of credit amendment” to change be the latest date of
shipment and the L/C expiration date, and the amendment charges must be to the
exporter’s account. The “Application for a Letter of Credit” later be signed by Finance
– Accounting Department and the President.
Finance – Accounting Department brings the documents including “Application
for a Letter of Credit” signed and stamped, Sales contract (1 copy), Policy Schedule (1
copy), Business plan to the issuing bank to open L/C and pay margin. Usually, the
importer has to pay 10% of the contract value as initial margin, pays an additional 20%
at the time of receiving shipping documents, and borrows 70% and is charged VND
interest on this amount. The most important document is Business plan because this is
the basis of ability to settle the loan of Vinacam.
After receiving the L/C from issuing bank, Finance – Accounting Department
carefully checks the suitability of the information on L/C. After agreeing information
on L/C, Finance - Accounting Department informs the exporter is L/C has been
opened. Issuing bank, then, sends the L/C to exporter via advising bank specified in the
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sales contract. Exporter checks and accepts the L/C or sends amendmend in writing to
Finance – Accounting Department if there is something wrong in the L/C.
If the requirement is consistent with the benefits of both parties, the Finance -
Accounting Department will makes “Application for a letter of credit amendment” and
deliver it to the issuing bank.
As for the contract no. DW/VINACAM/20140505, Finance – Accounting
Department advised Assistant Department of the issuing bank, BIDV. Then Assistant
Department completed “Application for a Letter of Credit” (Annex C1) whose content
based on contract’s terms such as Daewoo International Corporation as beneficiary,
Woori Bank as advising bank, irrevocable as type of L/C, 90 days after sight as
payment terms, etc. Then Finance – Accounting Department brought essential
documents to International Payment Department of BIDV – Phu Tai Branch to open
L/C and paid margin. Then, BIDV sent drafted L/C to Assistant Department for
checking purpose. Assistant Department accepted information on L/C and sent notices
to BIDV. Then, BIDV sent L/C to Daewoo via Woori Bank, and Daewoo accepted this
L/C (Annex C2). However, Vinacam received amendment no.3 which modified the
latest date of shipment May 27th instead of May 25th. Hence, Assistant Department
made “Application for a letter of credit amendment” (Annex C3) to change the latest
date of shipment May 27th and the L/C expiration date June 17th under UCP 600 (Annex
C4).
2.1.4. Check vessel’s nomination
The hired vessel must meet some criteria of Vinacam such as being a member
of the P&I club, the age of vessel, etc. Assistant Department and insurance company
respond by email to the exporter to accept or require to change the vessel after
receiving vessel’s nomination from the exporter. The strong point in this step is that
Vinacam always require the supplier to charter a vessel participating in P&I club to
reduce the risks occuring during the process of transportation.
As for the contract no. DW/VINACAM/20140505, on May 9th, Assistant
Department received Vessel Nomination (Annex D1) from Daewoo with the
information including “MV Ocean Bright” as vessel’s name, its dimensions, 6 years
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old as vessel’s age (BLT’08). Additionally, “MV Ocean Bright” is a member of P&I
WOE in Vietnam. Therefore, Bao Minh and Vinacam advised Daewoo of the
acceptance of “MV Ocean Bright”. (Annex D2)
2.1.5. Receive notice of readiness
Vinacam respectively received the 1st, 2nd, 3rd, 4th Notice of arrival (Annex E1,
E2, E3, E4) on May 28th, May 30th, June 3rd, June 6th from Indochina Trading &
Shipping Co., Ltd, agent of MV Ocean Bright. The content of these Notice of arrival is
advising the ETA of MV Ocean Bright, which respectively is June 4th, 6th, 7th, and 8th.
Finally, Vinacam received NOR on June 9th, did mooring procedure by completing
“Application for vessel mooring” (Annex E5) and sent to the management department
of Khanh Hoi Port, port of discharging. Logistic Department also delivered a copy of
NOR to Finance – Accounting Department to make payment.
2.1.6. Make payment & receive shipping documents from the issuing bank
After receiving NOR from Logistic Department, Finance – Accounting
Department went to Internation Payment Department of BIDV Phu Tai Branch to
check the shipping documents including Commercial invoice (Annex F1), full set clean
shipped on board ocean B/L (Annex F2), Packing list (Annex F3), Certificate of quality
and analysis (Annex F4), Certificate of quantity (Annex F5), Certificate of hold and
hatch cleanliness (Annex F6), C/O issued by Manufacturer (Annex F7), C/O form AK
(Annex F8),. After agreeing to make payment, Finance – Accounting received shipping
documents in which B/L was endorsed to make Vinacam legal holder of the cargoes
5960 MT NPK 16-16-8-13S.
2.1.7. Do custom clearance and inspection
2.1.7.1. Complete customs declarations by Ecus4
Logistic Department declares software information of the shipment including
declarations information, packing lists, attached documents, and tax via the Ecus4
software. After finishing declaration, the software shows the classified results for
shipment. The results can be red flow or yellow flow. Rarely do the Vinacam’s
shipments be classified in green flow.
 16

Because chemical fertilizers are conditional imported goods, which is regulated

at Article 17 of Decree No. 202/2013/ND-CP, the fertilizer shipments must be
inspected by the state-licensed quality inspectors. Usually, Vinacam select Vinacontrol
– Ho Chi Minh City Branch to inspect its fertilizer shipments. Logistic Department
sends “Registration paper for inspection by state” to require Vinacontrol inspect the
quality and quantity of fertilizer shipments. Then, the Vinacontrol appoints staff to do
draft survey to determine the weight of the shipment and to take samples for quality
inspection.
2.1.7.2. Print custom declarations paper and pay tax
The “custom declaration paper” is printed by Logistic Department and signed
by the General Director. Then, Finance – Accounting Department pays taxes according
to the “Tax declaration for importing goods” and receives “State budget debit note”
according to the form C1-02/NS of Circular no. 128/2008/TT-BTC, signed and
stamped by Vinacam’s chief accountant and bank representatives.
2.1.7.3. Custom clearance for shipment:
As for the NPK 16-16-8-13S shipment, Logistic Department filled customs
declarations via Ecus4 and sent “Registration paper for inspection by state” (Annex
G1) for the shipment’s inspection on June 6th. Beside, Logistic Department also filled
“Application for draft survey” (Annex G2) and sent to Vinacontrol to do quantity
inspection. Ecus4 showed the shipment was classified as yellow flow at box no. 34 in
“Custom declaration paper” (Annex G3) and required Vinacam to bring paper
documents for detail checking at Customs Department of Saigon Port, area III. Beside,
Finance – Accounting Department paid tax under “Tax declaration for importing
goods” (Annex G4). The tax is calculated in detail in Annex 1.
After paying taxes, Logistic Department brought the documents to Customs
Department of Saigon Port, area III for custom officer Tran Nhat Phuong to check the
consistency of the documents and issued “Notice of result of paper document
checking” (Annex G5). While waiting for quality inspection conclusion from
Vinacontrol, Vinacam asked to transport the shipment to its warehouse in order not to
pay storage fee at Khanh Hoi Port (Annex G6). Finally, Vinacontrol concluded the
 17

shipment is allowed to import to Vietnam (Annex G7) on June 16th and delivered
“Survey report on weight” (Annex G8) on June 19th. By this way, Vinacam take full
advantage of using its available warehouse system to reduce storage fee, which is a
good point to create strong competiveness in price of Vinacam’s ferilizer.
2.1.8. Receive Delivery Order and unload shipments
Logistic Department presents introducing paper of Vinacam, NOR, original B/L
to receive D/O from shipping agent and examines information on D/O. Then, Logistics
Department pays fee to receive D/O originals. Typically, Vinacam hire another
company to unload and package the cargoes. Thus, Logistic Department will send one
original D/O attached with an authorization paper to this company to authorize to load
and pack the cargoes.
After that, a meeting between Vinacam, shipping agents, insurance company
representatives, and port representatives to register the hatch diagram, dispatch and
demurrage, number of cranes and derricks that the shipper can use, and responsibilities
of all parties. Then the shipper signs a contract, registers plans (see Annex H1) with the
port of unloading, and receives vessel position and prepare for trucks to go to loading
port. Then, Logistic Department prepares documents such as customs declaration
paper, NOR, D/O and sales plan, plans for transfering of goods to the warehouse,
unloading goods schedules, camera, and bags for samples collection for the unloading
process.
The unloading process includes the following steps. After the ship calls at berth,
the Logistic Department, Insurance representative, and inspector carry out hatch
surface inspection and measure the first draft of the ship. Packaging company arranges
unloading equipment such as crane, hope, bags and workers to unload the shipments.
Then, Vinacam’s staff transfers samples to Sales Department for appearance checking.
The samples is taken during unloading process. At the same time, Vinacam also
appoint staffs to monitoring bulk cargo unloading in hope.
The process of monitoring bulk cargo unloading in hope includes the following
steps. Vinacam’s staff checks the weigh of empty bags and packed bags, monitor and
record the number of truck in and out of hope to inspect the scale and update into
 18

“Diary on unloading cargo” (Annex H2) and Record of summarizing packaging

(Annex H3). Weight per standardized bag is 50.1 kg/bag and the test is carried out
continuously and randomly during handling. After receipt of goods, trucks is weighted
at port. If the discrepancies of the trucks’ weight is over +80kg per truck or -40kg per
truck, the supervisors at hope must check the number of bag to find the cause and
conduct truck charger. After finishing unloading, packaging, Logistic Department
receives Logistic report between Logistic Department and Sales Department (Annex
H4), Record of delivery between Vinacam and Saigon Packaging and Transporting
Company (Annex H5).
In short, this step requires a lot of personnel in Logistic Department to follow all
of this process at the same time. However, due to lack of staffs in Logistic Department,
staffs in other departments such as Finance – Accounting Department and Assistant
Department must partly be in charge of part of this process.
2.1.9. Demurage and dispatch calculation
Basing on the Time sheet of M/V Ocean Bright (Annex I1) or Statement of Fact
(Annex I2), Assistant Department writes the debit note to the exporter with Time sheet
attached as evidence in case finishing unloading earlier than the allowed time or
Finance - Accounting Department pays the exporter demurage regulated in the contract
and send Timesheet as evidence. In contract no. DW/VINACAM/20140505, Vinacam
used 121.16 hours while the time allowed is 119.19 hours. Therefore, Vinacam paid
292 USD for demurrage.
2.1.10. Settlement
The cost of shipment is sumarized by Finance – Accounting Department, and
the fertilizer importing process at Vinacam finishes. The cost of shipment in the
contract no. DW/VINACAM/20140505 are as follows
Table 2.1: Total costs for the 5960 MT NPK 16-16-8-13S
Charge for opening L/C 31.554.000 VND
Charge for amending L/C 5.123.000 VND
Charge for settling L/C 10.518.000 VND
 19

Premium 147.902.231 VND

Quantity inspection fee 5.373.091 VND
Quality stated inspection fee 9.090.909 VND
D/O fee 600.000 VND
Customs fee 5.200.000 VND
Unloading, transporting, packaging fee 687.535.700 VND
Total costs 902.896.931 VND
(Source: Finance – Accounting Department)
2.2. Summary of strengths and weaknesses of the fertilizer importing process
2.2.1. Strengths
2.2.1.1. Reduce main carriage risks with requirement that vessels for
shipments must be a member of the P&I club
P&I club is the club of shipowners engaged to pooling the risks of ship
transportation. If transportation risks occurs, troubleshooting costs will be incurred by
the P&I club, which is financed by regular fee of its members. Therefore, the P&I club
has the obligation to limit substandard ships. Thus, if a vessel is a P&I’s member, it
would be less likely to have main carriage risks in transportation. All contracts of
Vinacam always have this requirement, e.g. Article 10 of this contract
DW/VINACAM/05052014.
2.2.1.2. Transporting shipments to warehouse while waiting the quality
inspection result from state-licensed inspector to reduce storage fee
The time for quality inspection usually lasts more than a week. Thus, by this
way, Vinacam can avoid incurring storage costs, reduce production costs, and increase
the competitiveness of its products.
2.2.2. Weaknesses
2.2.2.1. Shortage of personnel in Logistic Department
Logistic workload requires time-consuming, has high pressure, and is related to
many different organizations, so it needs large numbers of personnel to be in charged
of. Due to lack of staff in Logistic Department, Vinacam must mobilize staffs in other
departments to support Logistic Department in the organization and supervision of
 20

cargo in some period.

2.2.2.2. Existing conflicts related to fertilizer’s color
Fertilizer’s color specified in the contract is very simple. E.g. “Color: Brown”.
Moreover, there are many level of the same color which entirely depends on the
individual’s visual feeling. For example, dark brown, light brown, brown earth are also
called brown, and dark brown that each individual defines is different. However, the
color of fertilizer directly affects to the price that Vinacam’s customers offer. For
example, the fertilizer with light brown can be sold at a higher price than the fertilizer
with dark brown. Thus, it takes Vinacam and its exporters a lot of time to negotiate and
resolve disputes.
2.3. Comparison of importing process in theory and in practice
2.3.1. Theory
Figure 2.2: Procedures to import

(Source: International Commercial Transactions slides

of PhD. Nguyen Tien Hoang)
2.3.2. Similarity
Most of the steps in the fertilizer importing process of Vinacam are similar to
the author’s knowledge acquired in the subjects like International commercial
transactions, International payments, Logistics and International Transportation, Risk
 21

management and Insurance in the Foreign Trade University. Although there are
differences in names of some steps, both processes include some basic steps such as
open L/C, transport arrangement, insurance, customs procedures.
2.3.3. Differences
Theoretically, in the event that the vessel arrives at destination port before the
shipping documents is delivered to issuing bank, the shipper can use Surrendered B/L
to receive the cargo. However, in the contract 9017 MT DAP fertilizer shipments,
Vinacam can handle this problem by using bank guaranteeing service. After Vinacam
pays 100% of the contract value, BIDV sends a shipping guarantee (Annex J1) to the
shipping agents in Vietnam with the conditions that agrees to pay 100% of the contract
value upon receipt of written claim for possession of goods from shipping agents. At
the same time, Assistant Department sends Letter of Indemnity (Annex J2) to carrier
and encloses shipping guarantee as evidence to demand the release of goods without
presenting B/L. Finally, the carrier agrees to release the cargo for Vinacam.
Therefore, by using shipping guarantee service of issuing bank, the importer can
also take delivery without presenting B/L to the carrier.
3.
 22

Chapter Three: THE OUTLOOK, DEVELOPMENT ORIENTATION AND

RECOMMENDATIONS FOR IMPROVEMENT OF FERTILIZER
IMPORTING PROCESS IN VINACAM JOINT STOCK COMPANY
3.1. The outlook of the fertilizer importing process
3.1.1. Opportunities
The demand for fertilizer in Vietnam is never exhausted since total cultivation
output still contributes a large part of some provinces’s GDP such as provinces in
Mekong River Delta, Highland, or Hong River Delta. Therefore, doing business in
fertlizer sector is a great opportunity for Vinacam to make profits, expand its importing
market, and diversify product lines with different types of fertilizer that can provide for
different crops.
The government policy such as preferential tariffs for importing fertilizer and
financing equity with low interest rate for businesses importing fertilizer could
facilitate business development in the future.
Trans-Pacific Strategic Economic Partnership Agreement (TPP) and the
bilateral economic agreements between Vietnam and other countries also facilitate
Vinacam can diversify its export markets, and avoid dependence on supply in its
traditional market such as China, Japan, South Korea, and Israel.
3.1.2. Threats
Administrative procedures are cumbersome, complicated, time-consuming,
especially customs procedures which prolong the clearance time for shipments. Red
tape, corruption still exists in some state officials and custom officers, affecting
progress of work of Vinacam.
Backwarding ports, low discharging rate, old equipment affects significantly to
unloading the shipment.
Counterfeit fertilizer remains complicated, affecting the reputation of Vinacam.
Specifically, counterfeit Israel potassium fertilizer is packed in Vinacam’s bags, which
are no longer in use since 2010, and uses crushed sea salt mixed with coloring
chemicals to make fake Potassium fertilizer to sell to the market.
 23

3.2. The organization’s development orientation of the fertilizer importing process

3.2.1. Short-term orientations
Companies continue to invest in promoting the development of two sector,
fertilizer business and finance & investment:
Fertilizer business
Vinacam continues to promote marketing activities for Kali Israel fertilizer on a
national scale, expands the distribution markets of North and Central of Vietnam,
selects and continues negotiations to become the exclusive distributor for a number of
key fertilizer items like DAP, NPK, SA, searchs new fertilizer supply partners in
China, Japan, and South Korea in order to keep the distribution volume at a minimum
level of 350,000 tons, its turnover at 4.000 billion minimum, and consolidated profit
before tax is 15 billion.
Finance and investment
Vinacam continues to improve capital restructuring, reduce stakes in
subsidiaries, joint ventures, focuses on financing venture for Binh Dien Fertilizer
Corporation at Ninh Binh, liquidates some fixed assets and real estate, which no longer
needs to use in Hanoi and Central Highlands.
3.2.2. Long-term orientations
With the goal of reaching the top in the field of supply of agricultural materials
and aims to develop multi-sectoral industry to help develop Vietnam's market
economy, Vinacam are always trying to provide its high quality products with the
cheapest price for cultivation sector. Moreover, the company is committed to
systematic management towards customer, mutually beneficial cooperation with
suppliers, and encouraging all staff to improve the quality of products and services.
Also, minimizing costs, shortening cargo clearance time, maximizing
corporation’s profits in order to bring maximum benefits to shareholders, and
increasing competition in the fertilizer sector are other long-term goals of Vinacam.
3.3. Recommendations for improving the fertilizer importing process
3.3.1. Recruiting and training high-quality human resources
 24

Human resources is a core element that affects directly to the operating results
of the business. Therefore, Vinacam should recruit more employees, especially in
Logistic Department to share the total workload. In addition, attracting younger staff
that are well-qualified in professional knowledge and are able to work well under high
pressure should be put into consideration, especially fresh-graduate students at the
universities specialized in training in logistics, import and export such as Foreign Trade
University, University of Law, Maritime University, University of Transport, etc.
Vinacam should host periodically training sessions for its staffs or support staffs
in engaging in the professional classes or training sessions in the foreign trade training
centers such as Logistics Research and Development Institute to timely updates to
changes in state policies as well as improve staffs’ expertise.
In addition, Vinacam should give more incentives to talented employees by
increasing salary or reward for those who have a good record or high productivity in
their jobs.
3.3.2. Specify the fertilizer’s color by sample
To more strictly defined terms of color, Vinacam can specify the fertilizer’s
color by sample. E.g. “The color of the goods shall be as the color of the sample No.
123, signed and stamped by both parties and be considered as a part of this contract.
Samples shall be made in three pieces, each party keeps one, and the remaining shall be
kept by Vinacontrol as basis of disputes settlement. Both parties shall be responsible
for sample preservation under the storage conditions of the manufacturer and keep the
samples until the end of claiming period specified under this contract.”
By this way, both Vinacam and the exporter are able to avoid inconsistency in
determining the color of the goods. Moreover, Vinacam can also take advantage of this
term to claim from the exporter for discount on disqualified fertilizers, especially from
its new exporters.
 25

CONCLUSION
Domestic demand for fertilizer has been growing beyond the supply of the local
fertilizer businesses. Hence, fertilizer import again affirms its essential role as one of
the activities to meet the fertilizer demands in agriculture in general and in cultivation
in particular.
Understanding this demand, Vinacam has gradually improved its fertilizer
importing process to improve products’ quality and meet the diverse needs of different
crops. Experienced and dedicated human resources with progressive spirits are the
extremely important factors for Vinacam to be in its strong current position.
Besides, there are still many weaknesses such as lack of personnel, disputes
related to colors of fertilizer, which has significantly reduced profit after tax of the
corporation. However, Vinacam has been trying to remedy the weaknesses in order to
provide the best products to the Vietnamese market.
With these potentials and opportunities in the fertilizer sector, the goal of
becoming a leading and reputable company in the field of agricultural materials supply
in Vietnam of Vinacam is very prospective to achieve in near future.
Again, the authors would like to thank to the Board of Directors, Assistant
Department, Operation – Business Department, Finance – Accounting, especially Mr.
Phu, Mr. Son, and Mr. Trinh in Vinacam Joint Stock Company and my dedicated
instructors Ms. Phung Minh Duc for their contributions in this report.
 26

ANNEX 1: TAX AND INSURANCE CALCULATION FOR CONTRACT NO.

DW/VINACAM/201405050
Insurance calculation
Description
Insured quantity 5960 MT Bases on commercial invoice
Unit price 356.3 USD/MT Bases on commercial invoice
Total CFR price 2,123,548 USD = Insured quantity x Unit price
Total CIF price 2,130,578.91 USD = CFR price : 0.9967
Standard rate 0.33% Bases on Policy Schedule
7030.91 USD = CIF price x Standard rate
Standard premium
= 147,902,231 VND VND/USD = 21,036
Tax calculation
Description
Taxable quantity 5960 MT Bases on commercial invoice
Unit price 356.3 USD/MT Bases on commercial invoice
Added adjustments: 7030.91 USD Bases on Schedule Policy
Insurance premium =1.1797 USD/MT
Taxable value for = 357.4797 USD/MT = Unit price + Insurance
import duty = 2,130,579.012 USD premium
= 44,818,860,096 VND VND/USD = 21,036
Import duty 2,689,131,606 VND Import duty rate = 6%
Taxable value for 47,507,991,702 VND =Taxable value for import duty +
excise duty Import duty
Excise duty 2,375,399,585 VND Excise duty rate = 5%
Total tax for the 5,064,531,191 VND = Import duty + Excise duty
shipment
In case the quantity of actual imported goods is less than the amount quoted on
commercial invoiced due to unqualified goods in Vinacontrol’s inspection result, the
tax is not refundable but will be deducted for Vinacam’s following shipments.
 27

ANNEX 2: INTERNSHIP JOURNAL

Time Description
- Search logistic company to contact through friends,
May 23rd – 28th
relatives, Internet, etc.
May 30th - Have an interview at Vinacam Joint Stock Company
- Intern at Assistant Department
- Be introduced general information of the company and
June 2nd
fertilizer industry by Mr. Phu and Mr. Son
- Find topic for the mid-course internship report
- Read all fertilizer importing contracts of Vinacam in 2013
and six first months of 2014 to understand important terms and
June 3rd
conditions when negotiating with exporters
- Listen to Mr. Son’s instruction about negotiating contracts
- Listen to Mr. Phu’s instruction about process of opening
L/C and buying insurance for cargoes.
June 4th
- Fill “Application form for a Letter of Credit” for the 3000
MT DAP
- Listen to Mr. Trinh’s instruction in Logistic Department
June 5th about process of customs clearance, receive D/O, prepare for
unloading shipment
- Follow Mr. Trinh to custom office to do custom clearance
for the contract no. DW/VINACAM/05052014.
June 6th
- Follow Mr. Trinh to Vinacontrol – HCMC Branch to know
about cargoes inspection
- Assign name of company for mid-course intership report
June 8th - Follow Mr. Trinh to do mooring procedure at Khanh Hoi
Port, take sample for Ocean Bright Vessel, and receive D/O.
- Systematize knowledge in Internation Commercial
June 9th
Transactions, International Payment, Logistics and
 28

International Transport to prepare for the mid-course

internship report.
- Assign topic for mid-course internship report
- Figure out detail outline for mid-course internship report
June 10th - Follow Mr. Duy and Mr. The to Khanh Hoi Port to
supervise unloading bulk cargo, packaging, and transporting
process
June 11th – 12th - Write the first chapter of mid-course internship report
June 13th – 18th - Complete the other chapters of mid-course intership report
- Ask Mr. Phu, Mr. Son, and Mr. Trinh for their opinions
June 19th
about the report
June 20th - Finalize the report
- Say goodbye to colleagues in Vinacam and ask for
June 21st allowance of Mr. Son about comments and stamps on
“Internship organization’s remarks”
- Meet Ms. Duc for her instruction about how to write the
June 26th
second and third chapter.
- Edit the report under Ms. Duc’s instruction and review the
June 27th – July 4th
report.
July 5th - Submit drafted mid-course internship report
July 6th – July 28th - Edit and review the report
July 29th - Submit drafted mid-course internship report (second time)
- Submit report in hard and soft version to Ms. Duc for her
August 10th
remarks.
- Submit report to Operation Department of Foreign Trade
August 11th
University, Ho Chi Minh Campus.
 29

ANNEX 3: LIST OF SHIPPING DOCUMENTS

Annex no. Name of shipping document
Negotiate and sign contract
A1 Sales contract no. DW/VINACAM/20140505
A2 Addendum no.1 to sales contract no. DW/VINACAM/20140505
A3 Addendum no.2 to sales contract no. DW/VINACAM/20140505
A4 Addendum no.3 to sales contract no. DW/VINACAM/20140505
Buy insurance for cargoes
B1 Request on Cargo Insurance
B2 Application for Cargo Insurance (Bao Minh Insurance form)
B3 Policy Schedule no. MCI/00720556
B4 Endorsement no. 1 of Policy Schedule no. MCI/00720556
B5 Endorsement no. 2 of Policy Schedule no. MCI/00720556
Open L/C
C1 Application for a letter of credit (BIDV form)
C2 L/C no. 58110370011467
C3 Application for a letter of credit amendment
C4 L/C amendment
Check vessel’s nomination
D1 Vessel’s nomination
D2 Vessel’s acceptance of Bao Minh Insurance Company
Receive notice of arrival and notice of readiness from shipping agent
E1 1st Notice of Arrival
E2 2nd Notice of Arrival
E3 3rd Notice of Arrival
E4 4th Notice of Arrival
E5 Notice of Readiness
E6 Application for vessel mooring
 30

Make payment and receive shipping documents

F1 Commercial invoice no. 0000439345
F2 Clean shipped on board ocean B/L no. OBYH14051
F3 Packing list no.0000439345
F4 Certificate of quality and analysis issued by Korea Surveyors and
Adjusters Co., Ltd
F5 Certificate of quantity issued by Korea Surveyors and Adjusters Co., Ltd
F6 Certificate of hold and hatch cleanliness issued by Korea Surveyors and
Adjusters Co., Ltd
F7 C/O issued by Manufacturer
F8 C/O form AK
Do custom clearance and inspection
G1 Registration paper for inspection by state
G2 Application for draft survey
G3 Custom declaration paper
G4 Tax declaration for importing goods
G5 Notice of result of paper document checking
G6 Notice of handover of supervising responsibility
G7 Result of quality inspection by state
G8 Survey report on weight
Receive Deliver Order and unload shipments
H1 Plan for unloading cargo
H2 Diary on unloading cargo
H3 Record of summarizing packaging
H4 Logistic report
H5 Record of delivery
Demurage and dispatch calculation
I1 Time Sheet of M/V Ocean Bright
 31

I2 Statement of Facts on Discharging

Comparison of importing process in theory and in practice
J1 Shipping guarantee
J2 Letter of Indemnity
 32

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