FOREIGN TRADE UNIVERSITY

SCHOOL OF ECONOMICS & INTERNATIONAL BUSINESS

----------***---------

REPORT
TOPIC: ANALYZING SALE CONTRACT BETWEEN HOP
TAC XA CONG NGHIEP NHAT QUANG AND GAOMI
WOSHUN PROTECTIVE EQUIPMENT
Group 11

Subject: International Trade Transaction

Class: TMAE302.3
Instructor: Dr. Vu Thi Hanh

Hanoi, September 2021

 EVALUATION THE LEVEL OF COMPLETION OF EACH MEMBER
GROUP 11

Numeric Name Student ID Task Grade

al order

Nguyễn Hà 19155305 Collect Sale contract and related

Nam documents
24
CHAPTER III. RELATED DOCUMENTS
I. Bill of lading
II. Proforma voice
III. Commercial voice
IV. Packing list
V. Certificate of origin
VI. Booking notes
VI. Debit note
VII. Telegraphic transder remittance
CHAPTER IV. IMPORT AND EXPORT
IMPLEMENTATION PROCESS
I. Applying for import license
II. Book ship and booking note
II. Customs procedures
III. Receiving and checking documents
IV. Delivery
V. Payment obligation procedures
VI. Complanation
VI. Files and documents storage
Nguyễn 1915530526 INTRODUCTION
Thị Huyền CHAPTER I. THE CONTRACTUAL
PARTIES AND PRODUCTS
Ngân
I. Seller:
II. Buyer: 
III. Product
IV. Market
1. Global Photographic Goods Market
2. Vietnamese Photographic Goods Market
CHAPTER II. CONTRACT ANALYSIS
I. Theory of international sales contracts
1. International Sales Contract Concept
2. Characteristics
3. Seller
 4. Buyer
II. ANALYZE AND COMMENT TERMS
OF THE CONTRACT
1. Commodity, Unit Price, Total Amount
and Trade Terms
2. Payment Terms
3. Delivery Terms
CONCLUSION
REFERENCE
Trần Lưu Đại 19155307 III. GENERAL COMMENTS ON THE
Nghĩa 12 CONTRACT AND ADDITIONAL
TERMS
1. Information about the Parties Involved
2. Quality Terms
3. Delivery Terms
4. Documents Required Terms
5. Arbitration Terms
6. Force Majeure Terms
7. Penalty And Compensation Terms
8. Law Provisions In The Contract
9. General Provisions
 Table of Contents
INTRODUCTION...................................................................................................................5
CHAPTER I. THE CONTRACTUAL PARTIES AND PRODUCTS.......................................7
I. SELLER: GAOMI WOSHUN PROTECTIVE EQUIPMENT....................................................7
II. BUYER: HOP TAC XA CONG NGHIEP NHAT QUANG........................................................7
III. PRODUCTS...............................................................................................................................8
IV. MARKET...................................................................................................................................9
1. Global Safety Shoes Market...........................................................................................................................9
2. Vietnamese Safety Shoes Market.................................................................................................................10

CHAPTER II. CONTRACT ANALYSIS...............................................................................11

I. THEORY OF INTERNATIONAL SALES CONTRACTS..................................................11
1. International Sales Contract Concept.........................................................................................................11
2. Characteristics...............................................................................................................................................11

II. INTRODUCTION CONTRACT OVERVIEW........................................................................11

1. Seller...............................................................................................................................................................11
2. Buyer..............................................................................................................................................................12

III. ANALYZE AND COMMENT TERMS OF THE CONTRACT.............................................12

1. Commodity, Unit Price, Total Amount and Trade Terms........................................................................12

IV. GENERAL COMMENTS ON THE CONTRACT AND ADDITIONAL TERMS.................20

1. Information About The Parties Involved....................................................................................................20
2. Quality Terms................................................................................................................................................20
3. Delivery Terms..............................................................................................................................................21
4. Documents Required Terms.........................................................................................................................21
5. Arbitration Terms.........................................................................................................................................21
6. Force Majeure Terms...................................................................................................................................22
7. Penalty and Compensation Terms...............................................................................................................22
8. Law Provisions In The Contract..................................................................................................................23
9. General Provisions........................................................................................................................................23

CHAPTER III. RELATED DOCUMENTS...........................................................................23

I. COMMERCIAL INVOICE........................................................................................................23
1. Definition........................................................................................................................................................23
2. Functions........................................................................................................................................................23
3. Contents Of Commercial Invoice.................................................................................................................24
4. Analysis Of Commercial Invoice.................................................................................................................25

II. PACKING LIST........................................................................................................................27

1. Definition........................................................................................................................................................27
2. Functions........................................................................................................................................................27
3. Contents Of Packing List..............................................................................................................................28
4. Analysis Of Packing List...............................................................................................................................28

III. BILL OF LADING...................................................................................................................31

 1. Definition........................................................................................................................................................31
2. Function and Purpose...................................................................................................................................31
3. Classification..................................................................................................................................................32
4. Basic Contents Of The Bill Of Lading.........................................................................................................35
5. Process Of Issuing Bill Of Lading................................................................................................................36
6. Analysis Of Bill Of Lading In The Transaction.........................................................................................36

IV. CERTIFICATE OF ORIGIN...................................................................................................39

1. Definition........................................................................................................................................................39
2. Functions........................................................................................................................................................40
3. The Process Of Obtaining Certificate Of Origin........................................................................................41
4. Classification Of C/O....................................................................................................................................41
5. Basic Contents Of C/O..................................................................................................................................42
6. Certificate of Origin In The Context...........................................................................................................42

V. SGS TEST REPORT..................................................................................................................42

1. Definition........................................................................................................................................................42
2. Analysis Of SGS Test Report In The Transaction.....................................................................................49

VI. TELEGRAPHIC TRANSFER REMITTANCE......................................................................49

1. Definition........................................................................................................................................................49
2. Charateristics.................................................................................................................................................50
3. The Process To Make A T/T.........................................................................................................................50
4. Electronic Payment Analysis In The Contract...........................................................................................51

CHAPTER IV. IMPORT AND EXPORT IMPLEMENTATION PROCESS.........................52

I. APPLYING FOR IMPORT LICENSE......................................................................................52
1. The Subjects Are Allowed To Import.........................................................................................................52
2. Imported Goods Must Be Applied For An Import License.....................................................................52
3. The Order And Procedures For Granting Import License.......................................................................52

II. BOOK SHIP AND BOOKING NOTE......................................................................................53

1. Book Ship Schedule.......................................................................................................................................53
2. Analysis the contract.....................................................................................................................................54
3. Check And Confirm Ship Schedule.............................................................................................................55

II. CUSTOMS PROCEDURES......................................................................................................55

1. Register For Certification Related To Shipment.......................................................................................55
2. Customs Declaration Of Imported Goods..................................................................................................55

III. RECEIVING AND CHECKING DOCUMENTS....................................................................61

IV. DELIVERY...............................................................................................................................62
V. PAYMENT OBLIGATION PROCEDURES............................................................................62
VI. COMPLANATION...................................................................................................................63
VI. FILES AND DOCUMENTS STORAGE.................................................................................63
CONCLUSION.....................................................................................................................64
REFERENCE.......................................................................................................................65
 INTRODUCTION

Trade between countries throughout the world is becoming increasingly important. More and
more agreements are being formed between nations in order to reduce barriers to commerce and
encourage import and export operations. Vietnam has also caught on to the global trend, as
demonstrated by the fact that it has negotiated a significant number of free trade agreements
(FTA) with other nations, virtually entirely removing import and export duties with some
countries in order to encourage commercial transactions between the two countries. In terms of a
recent example for Vietnam, the signing of the CPTPP (February 4, 2016) or EVFTA (June 30,
2019) will have a significant impact on future import and export operations in Vietnam.

However, due to geographic, time zone, linguistic, and legal regime variations across states;
There will be problems and disputes between the parties involved in the exchange of products.
As a result, it is critical to have documentation of a prior mutual agreement to bind the parties.
Contracts and required paperwork are essential documents in the process of conducting
international goods transactions. In that situation, understanding the process as well as
procedures in import and export activities is critical to ensuring the interests of Vietnamese
enterprises when bringing commodities abroad as well as importing all types of goods from
foreign countries into the domestic market, ensuring the smooth import and export process.

Our team chose the topic “Analysis of import contract for safety shoes of Hop tac xa cong
nghiep Nhat Quang and Gaomi Woshun Protective Equipment” for international trade
transaction essay in order to understand the content specified in the contract and the information
appearing on the import/export documents, as well as the actual contract implementation process.

With the aim of being able to understand thoroughly and have a comprehensive view of the
contract, we would like to analyze our essay based on six main parts:

INTRODUCTION
CHAPTER I: THE CONTRACTUAL PARTIES AND PRODUCTS
CHAPTER II: CONTRACT ANALYSIS
CHAPTER III: RELATED DOCUMENTS
CHAPTER IV: IMPORT AND EXPORT IMPLEMENTATION PROCESS
 CONCLUSION
We hope that at the end of this essay, we will have a comprehensive understanding of the
commercial contract, the export-import procedure, and the contract papers. Furthermore, we will
learn how to examine a commercial contract, determine the advantages and drawbacks of it, and
amend it in order to create a tight contract. All of this would aid us in gaining a thorough
understanding of the subject "International Trade Transaction" and comprehending its essence.

Furthermore, all of the lessons we have learned will serve as background knowledge and
information for us to examine and analyze this issue. However, owing to a lack of knowledge on
the contract's parties and a lack of comprehension, our essay is still incomplete and contains
certain errors, therefore we hope you will disregard it and advise us to ỉmprove our assignment.
CHAPTER I. THE CONTRACTUAL PARTIES AND PRODUCTS
I. SELLER: GAOMI WOSHUN PROTECTIVE EQUIPMENT
1. Address: No.8188, Gaodong Road, Heya Sub-district, the Northeast Township, Gaomi
city, Shandong.
2. TEL:13864690335
3. FAX: 0536-2772151
4. Industry: Professional production of safety shoes
5. Specialities: professional safety shoes, pu injection shoes, cemented shoes and goodyear
welt shoes.
6. Legal representative: Herry Huang
7. Position:
Gaomi Woshun Protective Equipment is a professional manufacturer and exporter that is
concerned with the design, development and production of safety shoes and army boots. It is
located in Heya Community, Gaomi City, with convenient transportation access. All of products
comply with international quality standards and are greatly appreciated in a variety of different
markets throughout the world. Based on a domestic advanced production line, perfect inspection
equipment and domestic first-class product quality, the company produces various series work
shoes and safety shoes with oil resistance, acid resistance, alkali resistance, insulation property,
smashing prevention, anti-static property and other properties, falling into more than 300
varieties. Well-equipped facilities and excellent quality control throughout all stages of
production enable Woshun to guarantee total customer satisfaction.

As a result of high quality products and outstanding customer service, Woshun have gained a
global sales network reaching Europe, America, Russia, Mid-east, Australia, Southeast Asia. As
a committed global citizen, the Woshun group of companies always constantly innovating and
developing with the motto "To provide safety and reliable working shoes is our aim, good
industrial design and economical price is your best choice."

II. BUYER: HOP TAC XA CONG NGHIEP NHAT QUANG

1. Trade name: HOP TAC XA CONG NGHIEP NHAT QUANG
2. Tax code: 0101032826
3. Address: Lot 03-9B, Hoang Mai Industrial Park, Hoang Van Thu Ward, Hoang Mai
District, Hanoi, Vietnam

4. Legal representative: Nguyễn Văn Quang

TEL: 0084436342378
FAX: 0084436342404
5. Main job:
Hop tac xa cong nghiep Nhat Quang is a leader in production, trade, import and export of plastic
equipment and workwear. With the goal of putting the customer’s experience and safety first,
Nhat Quang tries every day to improve the best quality to consumers.

III. PRODUCTS
1. Safety shoes bestrun 01

Product name: Safety shoes Bestrun 01

Brand: Safety jogger

Specifications: made of synthetic leather,

the toe and sole have a puncture-resistant
steel lining

Synthetic leather material

Origin: PRC

Month/year of production: 2021

Bestrun shoes are often widely used at construction sites thanks to their full protective features
that are not inferior to other high-grade protective shoes: anti-nail, anti-stamping, anti-static,
anti-slip, anti-slip. water, oil resistant.. Body made of genuine leather, will have better water
resistance and dirt resistance than other types of materials but also many times more durable. For
those who work at the construction site, protective shoes made of genuine leather like this will
help keep the shoes from getting dirty and it won't take much time to deal with the stains. The
inner lining (lining) is made of nylon mesh to help keep the feet from being too tight due to
walking or wearing for many hours. Steel toe cap bearing up to 1500kg. More than enough for a
small truck to run over. The steel nail-resistant lining helps you confidently step on the job site
without fear of sharp nails getting stuck in your feet. Soft, supple and soft E.V.A lining helps
absorb dynamics to bring comfort to the foot when exercising a lot. Dual-layer PU molded
outsole provides foot support and shock-absorbing support. The grooves in the deep cut sole
make the shoe anti-slip, oil-resistant and increase the durability of the shoe.

2. Safety shoes helios 02

Product name: Safety shoes Helios 2

Brand: Helios

Specifications: made of synthetic leather, the

toe and sole have a puncture-resistant steel
lining

Synthetic leather material

Origin: PRC

Month/year of production: 2021

Helios Safety Shoes is a new model of safety shoes in Vietnam market. The company's branded
product line. Helios Safety Shoes are manufactured using advanced technology with steel toe
structure, steel sole and genuine leather material. Product features: Impact resistant: has a steel
nose that can withstand strong impacts. Anti-piercing: with steel sole to prevent sharp objects
from penetrating. Anti-slip: soft rubber sole, anti-slip while working” with “shoe sole with steel
core.” Suitable for: Travelers, mountain climbers, workers in construction sites, tunnels Mining,
working in chemical, petrochemical, automotive, electronic,... with prices ranging from $8 to
$15

IV. MARKET

1. Global Safety Shoes Market

Global Safety Shoes Market, By Product (Shoes, Boots), Material (Plastics, Rubber, Leather,
Others), End-User (Construction, Oil & Gas, Food, Pharmaceuticals, Mining, Transportation,
Manufacturing, Chemicals, Others), Country (U.S., Canada, Mexico, Brazil, Argentina, Rest of
South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands,

Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia,
Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E, Saudi Arabia, Egypt, South
Africa, Israel, Rest of Middle East and Africa) Industry Trends and Forecast to 2028.

Overview
Safety shoes market will reach at an estimated value of USD 16.65 billion and grow at a rate of
8.00% for the forecast period of 2021 to 2028. Safety footwear market report analyses the
growth, which is currently being growing due to rising industrialization activities in the
developing regions
Safety footwear can be defined as layering and protection footwear that are produced for specific
purposes and protection against specific circumstances and elements. These categories of
footwear have being reinforced and enhanced for rough and tough use. These footwear have
been produced with specific materials that protect the wearer in a number of applications such as
during mining, construction, and various other activities from a number of industries.

Rising concerns towards worker’s safety along with stringent legislations is a vital factor
responsible for the upliftment of the market growth, also increasing concerns towards worker’s
safety along with stringent legislations, rising intensifying product usage across various
industries, rising employments in industrial and utilities activities requiring protection and safety
clothing and accessories, increasing concerns and awareness regarding workplace safety, rising
adoption of these inexpensive shoes, rising introduction of occupational safety standards and
compliance with stiff regulations and rising demand for safety shoes are some of the prime
factors among others driving the safety shoes market. Moreover, rising introduction of
technological advanced footwear, rising research and development activities and increasing
untapped geographical regions will further create new opportunities for safety shoes market the
in the forecast period mentioned above.

However, rising presence of fake and cheaper products that compromise on quality and
assurance from various local players in the market are the major factors among others which will
obstruct the market growth, and will further challenge the growth of safety shoes market in the
forecast period mentioned above.

2. Vietnamese Safety Shoes Market

Vietnam's safety shoes industry plays a crucial role in the global footwear industry and its supply
chain. Vietnam's safety shoes industry needs innovative automation technologies to increase
production, sophisticated domestic buyers, investment in domestic enterprises, diversified
relationships with supporting industries, show commitment to social responsibilities, and
improving workers' skills as a way to overcome difficulties and gain access to resources that
contribute to the nation’s competitive advantage. It is necessary to focus on the future to achieve
the desired performance of the supply chain in terms of service level and logistic costs, creating
the nation's economic growth.
 CHAPTER II. CONTRACT ANALYSIS
I. THEORY OF INTERNATIONAL SALES CONTRACTS

1. International Sales Contract Concept

An international sale and purchase contract, also known as an import-export sale contract
or a foreign trade contract, is an agreement between involved parties having their place of
business in different countries, under which one party is the so-called exporter (seller) is obliged
to transfer into the possession of a party called the importer (purchaser) of a certain asset called
the good, and the buyer is obliged to accept the goods and pay for the goods.
2. Characteristics

An international sale and purchase contract has characteristics:

- The subject of an international trade contract relationship has a commercial
headquarters in different countries or has different places of residence - This is the most
important feature of the international sales contract.
- The subject of a contract is goods moving from one jurisdiction to another. Usually the
object of an international trade contract is goods that are transported across the country's borders,
however, in many cases, goods that do not need to cross national borders are still considered
international trading activities as goods are offered. putting into non-tariff zones, tax-suspension
warehouses and bonded warehouses.
- Payment currency is the foreign currency for one or both parties.
- Governing law sources: Diverse, complex, governed by many different legal systems
such as international commercial treaties, international trade practices, legal precedents,
precedents, national laws, etc.
II. INTRODUCTION CONTRACT OVERVIEW
1. Seller

- Seller: GAOMI WOSHUN PROTECTIVE EQUIPMENT

- Address: No.8188, Gaodong Road, Heya Sub-district, the Northeast Township, Gaomi
city, Shandong.
- Tell: 13864690335
- Fax: 0536-2772151
- Legal representative: Herry Huang
2. Buyer

- Buyer: HOP TAC XA CONG NGHIEP NHAT QUANG

- Add.: Lot 03-9B, Hoang Mai Industrial Park, Hoang Van Thu Ward, Hoang Mai district,
Hanoi, Vietnam
- FAX: 0084436342404
- Tel: 0084436342378
Comment:
- According to Article 6 of Commercial Law 2005 and Decree 13 CP / 2013 on business
rights import and export, both subjects in the contract are legal entities and have rights
import and export business in Vietnam.
- This is a one-document form of a document drafted by both parties, a short-term
document and is an export contract.
- The introduction part of this contract generally has all the necessary contents in terms
of title and number contract, date of signing the contract, names and addresses of the
parties. However, in this contract, there is still an important part missing that the seller
and buyer representatives sign the contract. The contract should add the name of the
representative and the position in the company for confirmation of the person that has
the authority to sign the contract or not as well as define the responsibility legal
belongs to whom.
III. ANALYZE AND COMMENT TERMS OF THE CONTRACT

It is mutually agreed between both sides to sign this contract covering the following terms
and conditions.
1. Commodity, Unit Price, Total Amount and Trade Terms
a. Name of Commodity, Unit Price
Name of Commodity:
The commodities of this contract are safety shoes. This term “Name of Commodity” is
considered as one of the most important conditions under the contract because the two parties
will use it as a fundamental evidence if there is a dispute in the future.
There are many ways to name a commodity. For example, a product can be identified as:
- Name + Trade name + Science
- Name + Nameplate
- Name + Name of the manufacturer
- Name + Specification of a good
- Name + Function of a good
- Name + HS code of a good
For service provision contracts, the object of the contract is an act, an intangible
commodity or a service, so it is difficult to predict and quantify. Therefore, in the purchase, sale
and supply of services, the parties in the contract must clearly explain the performance standard
of the service, setting the specific requirements for the quality of service that the contracting
parties want to target.
In this contract, the name of the product is described in the style depending on the trade
name of the products:
- Trade name of the good
Example: Safety shoes bestrun 01
 - Name of the product: Safety shoes
Trade name of the good: Bestrun 01
Because all the products are devices with various technical parameters, naming according
to parameters will make it more transparent for people to visualize and classify the machine,
thereby making it easier for customers to choose the right product. However, this contract does
not separate Commodities but add it in Description of goods. This may not affect so much on the
contract because both the companies have strong long-term relationships but may create
inconvenience between two parties when they want to classify the product with no way except to
base on the details of the product.
On the other hand, although this contract just has Description of goods, it implements the
code of the product, which may be easier for the seller to find goods in the system and prepare
the order for the buyer. Besides, if the contract contains specifications of the goods, the buyer
could test the quality of the commodity with no trouble.
Moreover, this contract also includes a column of the origin of the product such as Thailan,
Japan,.. In spite of the fact that all the items are not products related to food or health of
customers, it still includes this to affirm the quality of the product. Therefore, the buyer can
analyze clearly and be certain of the quality of the product in order to avoid counterfeit goods
and poor quality goods.
To conclude, in this condition, the name of the commodity must be clarified and suitable
with technical specifications or features of the products. It has to be legally strict, clear, concise
and easy to understand. Both parties have to name the product in a common way, avoiding the
dependence on the culture of each partner. In order to guarantee the best order, the name of the
product should be described following the Harmonized System. All of this will make sure that if
there are any conflicts in the future, especially under circumstances that the benefit of one party
is affected, both of them cannot base on that to cancel the contract.
Unit price:

- Price currency
When making a transaction, two parties usually choose the currency of one of the two or choose
the common currency of a third country. In this contract, the exporter is China the importer is
Vietnam, both of them have their own currency, so for the most easy payment, both have decided
to choose the common currency is USD.
- Price determination method
The price in this contract is agreed to be a fixed price. In the above image, each product has a
specified price. This means that right after the two parties sign the contract and during the
contract performance process, the price will not change.

- Unit price is clarified in this contract to avoid mistakes in calculate amount

To sum up, this contract had mentioned clearly about the name of commodity and unit price.
Because this is a technical product, there is an accurate weight, with no numerical error.

b. Total Amount and Trade terms:

Total Amount:
Total amount of the order is clearly written in number, which is 13.362,8 USD. However, the
amount should be written in words to avoid confusion in the wrong units.

For example:
- Number: 13.362,8
- Word: Thirteen thousand and three hundred sixty-two dollars and eighty cents usd only
Trade terms:
In this contract, the trade terms used is FOB Qingdao, China. According to Incoterms 2020, Free
on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for
goods that are damaged or destroyed during shipping. Under these rules, FOB means Gaomi
Woshun Protective Equipment has fulfilled its obligation when the goods are loaded on the
vessel nominated by Hop tac xa cong nghiep Nhat Quang at Qingdao’s port of loading, while
Hop tac xa cong nghiep Nhat Quang is responsible for everything else necessary to get the goods
to the final destination. The risk or liability for the goods transfers from GAOMI WOSHUN to
Hop tac xa cong nghiep Nhat Quang when the goods are on board the vessel, and Gaomi
Woshun Protective Equipment bears costs from that point forward.

The contract has indicated clearly and fully: FOB + Port of loading: FOB Qingdao.
Clarifying that will help both the company know where the products are loaded and who is
responsible for the commodity at that time.

The responsibilities of Gaomi Woshun Protective Equipment:

- Deliver the product to named port and load the goods on vessel nominated by Hop tac xa
cong nghiep Nhat Quang
- Bear all the fees, damages or risk before goods are loaded on the board
- Pay the export customary, provide export license and pay taxes
- Send all related documents and certificates to Hop tac xa cong nghiep Nhat Quang
- Inform Hop tac xa cong nghiep Nhat Quang that goods are shipped to port of unloading
The responsibilities of Hop tac xa cong nghiep Nhat Quang:
- Pay the cost of the commodity
- Bears all the fees, damages or risk after goods are loaded on the board
- Nominate a vessel to deliver the goods
- Pay the ocean freight cost
- Clear Import customs and pay the tax
Therefore, the price in this situation is understood as FOB in Qingdao and includes product
price, export customary cost as well as all duties, taxes and other charges payable upon export.
Nikon must also pay the costs for checking the product which are necessary for the purpose of
delivering the goods and freight cost until the goods are loaded on board in Qingdao port.

Besides, using the FOB terms brings benefits and risks for both parties:
Hop tac xa cong nghiep Nhat Quang
Advantages:
- When signing a contract under FOB terms, they have the right to decide on their own
transport. From that they will actively negotiate transport contracts to bring them the best benefit

- The price will be cheaper because the freight charge is not included
Disadvantages:
- Export under commercial terms is the kind of trade that requires the buyer to mobilize
and assume most of the obligations and risks when importing the goods.
Gaomi Woshun Protective Equipment
Advantages:
- FOB terms help the seller to quickly sell the goods, terminate the transport contract and
accept the responsibility for the goods as soon as the goods are loaded on board.
Disadvantages:
- Do not get as high profit as using CIF price
FOB is one of the terms used the most in International Trade. In this contract, Gaomi Woshun
Protective Equipment and Hop tac xa cong nghiep Nhat Quang use this term so the
responsibilities of Hop tac xa cong nghiep Nhat Quang is higher than that of Nikon. The reason
why Hop tac xa cong nghiep Nhat Quang accepts this condition may be that Hop tac xa cong
nghiep Nhat Quang is comfortable with the price and quality of the product and its satisfaction is
just to buy the product. Moreover, Hop tac xa cong nghiep Nhat Quang may own the transport
contracts which bring more benefits to it (eg, discount freight, enjoy commissions from the
owner), so they will prefer to use FOB. In conclusion, each party of the contract should be
determined right from the start so that both parties can easily execute the contract. However,
both the companies do not indicate FOB in 2010 or 2020 so this can cause confusion when
performing a contract.

2. Payment Terms
Payment terms (stated in the Contract): T/T, full payment of 100% value before delivery.
- According to contract, commodity originally included Safety Shoes BESTRUN 01 only,
with the total amount of 10282.80 USD. The information in the commercial invoice is different
from the information in the contract (different in terms of commodities) because this invoice is
issued for 2 separate contracts between Hop tac xa cong nghiep Nhat Quang and Gaomi Woshun
Protective Equipment. The contract analyzed in this research is the transaction of Safety Shoes
BESTRUN 01 only, while the old contract of Safety Shoes HELIOS 2 happened a duration
before between 2 companies.

Due to the context of the COVID-19, at the time of trading Safety Shoes HELIOS 2, the 2
companies could not complete the business. Later when Safety Shoes BESTRUN 01 was dealt,
Gaomi Woshun Protective Equipment conveniently issued a document containing both
commodities, including Safety Shoes HELIOS 2 to complete the last business. Hop tac xa cong
nghiep Nhat Quang later made corresponding payment for both commodities.

This also applies to all other related documents including Bill of Lading, Packing List... below.
This explains why there is a difference between the contract and the related documents in this kit
in terms of commodities and amount of money. However, this report only provides an in-depth
analysis of Safety Shoes BESTRUN 01 contract.

Advantages:
- This is a simple and fast payment process.
+ The cost of paying T/T via bank is more economical than L/C payment.
+ Buyer does not have outstanding L/C margin.
+ Proof of goods does not have to be done as carefully as L/C payment.
- Prepaid money transfer is convenient for exporters because they receive money before
delivery, so they are not afraid of risks and damages caused by late payment of importers.
- Postpaid money transfer is convenient for importers because they receive goods before
delivery, so there is no fear of damage caused by slow delivery of goods or poor quality goods.
- In this payment method, the bank is an only intermediary making payment according to
the authorization to enjoy the fee (commission) procedure and is not bound to anything.
Disadvantages:
- This payment method contains the greatest risk because the payment depends on the
goodwill of the buyer. If both parties use this method, the interests of the exporting organization
are not guaranteed. Therefore, this method is only used in cases where the two parties have trust,
long-term cooperation, mutual trust and pay relatively small amounts such as payment for costs
related to import and export, transport costs of insurance, compensation for damages, or used in
payment of trade fees, remittance of capital, remittance of investment profits

Although the conditions of contract do not indicate that the payment method here is T/T before
shipment or after shipment, we can base on that payment is made by T/T on the 30th days from
the date of invoices, meanwhile shipment will be made within 25 days since the date of Sales
Contract signed, therefore this method is T/T after shipment. This may create disadvantages for
GAOMI WOSHUN under circumstances that Hop tac xa cong nghiep Nhat Quang does not pay
for Gaomi Woshun.

Hop tac xa cong nghiep Nhat Quang and Gaomi Woshun Protective Equipment had agreed to
use the payment method T/T. This method can be detrimental to Gaomi Woshun Protective
Equipment because if Hop tac xa cong nghiep Nhat Quang delays in making a money transfer
order (due to financial difficulties or lack of goodwill) which is sent to the bank, Gaomi Woshun
Protective Equipment will receive late payment. In a worse case, Hop tac xa cong nghiep Nhat
Quang can cancel the order so Gaomi Woshun Protective Equipment has to bear all the fees and
the stock must be sold cheaply or re-exported. Therefore, although Hop tac xa cong nghiep Nhat
Quang and Gaomi Woshun Protective Equipment have long-term cooperation, Gaomi Woshun
Protective Equipment still required Hop tac xa cong nghiep Nhat Quang to open an irrevocable
Standby L/C so that even if Hop tac xa cong nghiep Nhat Quang does not pay the order, Gaomi
Woshun Protective Equipment will receive payment from the representative bank of Hop tac xa
cong nghiep Nhat Quang to this one of Gaomi Woshun Protective Equipment. This is a very
strict clause in order to avoid unfortunate consequences in the future, assure the benefits of both
parties.

3. Delivery Terms
a. Transportation by Sea
Port of loading: Qingdao
Port of Discharge: Hai Phong
Because the products are safety shoes so it is better to ship the goods by sea than by airway.
Besides, based on the geographical location of Vietnam and China, seaway delivery is the most
suitable and inexpensive method than the others.

b. Shipment from Qingdao port to Hai Phong port, Vietnam

This term is used to clearly mention delivery location, port of loading and port of discharges to
avoid delivery wrong place.

c. Shipment will be made within 25 days since the date of Sales Contract signed
The date of Sales Contract signed is May 27th 202. However, in this clause, it is necessary to add
provisions about how to handle if the delivery is delayed. For example, in the situation that the
seller fails to deliver the goods on time without taking remedial action to the buyer, the buyer
may immediately terminate the contract or claim damages arising from the delay delivery.

d. Partial Shipment is not allowed

Hop tac xa cong nghiep Nhat Quang does not accept Partial Shipment in order to guarantee the
quality and quantity of the order because the packages are small and possibly be lost and the
transportation distance from China to Hai Phong is quite long.
e. Packing: Export Standard Pacing
Safety shoes are export products, so it is necessary to pack the goods in accordance with standard
specifications to be able to export to foreign countries. The transportation route from China to
Vietnam also takes a long time, so the goods need to be guaranteed during the trip. Besides, the
goods are a photographic device so it should be stored in a dry container, avoiding moisture.

General comment: This is a contract with all the basic terms, but still lacks terms such as force
majeure events, complaints, inventory, ... In fact, in the negotiation process, it is not necessary to
compose a full contract but subject to both parties. In this case, since Hop tac xa cong nghiep
Nhat Quang and Gaomi Woshun Protective Equipment are long-term business partners, the
contract has been shortened to that. However, we think that both parties should add more details
on the terms of force majeure, inspection or complaints and compensation (if any).

IV. GENERAL COMMENTS ON THE CONTRACT AND ADDITIONAL TERMS

In overall, Contract No. WSVN2101 has largely satisfied the standards of a standard
international sale contract in terms of form and substance. A clear provision on the conditions of
a formal, official, and legal contract with a clear legal foundation is included in the contract.
Both parties have established and agreed on the conditions of the products, including the items'
name, quantity, price, delivery method, and payment. However, the contract should be modified
and augmented in some of the provisions mentioned below to guarantee openness, clarity, and
avoid future problems.
1. Information About The Parties Involved
The contract contains complete information on the names, addresses, phone/fax numbers,
and representatives of the two companies. However, in addition to the representative's name and
position within the firm, the contract should include additional specific information to assess
whether or not the individual is competent to sign the contract. (A power of attorney or the
company's charter authorizes the legal representative to enter into a contract or allow another
person to do this act under Vietnamese law.)
2. Quality Terms
Quality of goods combined with the name of the goods will help parties identify the goods
clearly and in detail. In this case, the contract does not have quality terms which could cause a
dispute and risk.
 Although the two companies have been cooperating for a long time and Nikon's products
always meet high quality standards, the quality terms in the contract are still essential to ensure
that any disputes over product quality can be easily resolved and that the two parties can
continue to benefit from their long-term relationship.
3. Delivery Terms
The FOB-based mode of carriage should refer to a specific version (year) of Incoterms to
avoid misunderstanding.
4. Documents Required Terms
According to the requirements of the quality of the goods specified by the buyer since it
directly affects the health and safety, to ensure the interests of the buyer, the certificates set
should include a certificate of quality and a certificate of origin. This should be indicated in the
contract.
The terms of certificates are rather straightforward, requiring simply a Bill of Lading,
Commercial Invoice, and Packing List. Additional documentation, such as a Certificate of Origin
or a Certificate of Quality, are required for some unique items. Lack of needed certifications in
the contract pertaining to the origin and quality of the products might put the goods in jeopardy
during shipping from the seller's to the buyer's nation, and may even result in a disagreement
between the two parties owing to apparent contract discrepancies.
- C/O: Certificate of origin is determined according to a specific rule of origin and this
rule must be accepted and recognized by the importing country. If the goods do not
meet the requirements of origin, the goods will not be cleared through customs, thereby
causing damage to both parties.
- C/Q: Certificate of goods quality in accordance with the standards of the country of
manufacture or international standards. This certificate is used to prove that the goods
meet the quality standards attached to the goods. The lack of C/Q will cause many
disadvantages if the goods do not meet the standards; specifically, VIC Vietnam will
not be able to petition Nikon Singapore for compensation because the contract does not
specify the quality requirements of cargo. Such a risk can happen.
5. Arbitration Terms
When the parties have a disagreement, arbitration terms are used. If the parties' issue
cannot be resolved via dialogue, the matter can be referred to the Arbitral Court for arbitration.
The arbitrator's judgment will be the ultimate decision with which the parties must comply. As a
result, the arbitration conditions should be incorporated in the contract so that, on the one hand,
the parties' duties before the law are more clearly defined, and on the other hand, there is a
foundation for safeguarding interests in the event of a loss or disagreement.
The legal validity of the parties' rights and duties under the contract shall be determined by
the applicable legislation. Because the contract provisions may not always fully explain the
parties' rights and responsibilities, the parties need to know which law applies to the contract
while fulfilling it. The parties should also keep in mind that the legislation governing contract
content and arbitration procedures may differ. The law that regulates the arbitration procedure is
usually the same as the legislation that rules the arbitration itself. The law of application in
international trade might be the legislation of a neutral country. In case the parties do not have an
agreement on applicable law, the arbitration council will decide the law that best suits the
contractual relationship.
The ability of each side to negotiate determines where the arbitration will take place. If the
parties cannot choose an arbitration venue in their own country and must choose one in another,
they should carefully evaluate whether the legislation of the nation where the arbitration is held
is comprehensive, as well as the scope and function of the courts in connection to the arbitration
procedures.
If the contract does not allow for dispute resolution, it is conceivable that the first contracts
include these conditions, and subsequent contracts are necessary to minimize the exporter's
heavy phrasing. Despite the fact that the two firms are strategic partners who have worked
together for a long time, arbitration conditions must be considered in this situation.
6. Force Majeure Terms
Force majeure is a legal occurrence that occurs outside of the parties' subjective intentions
and has a direct impact on the contract's execution. Storms, floods, droughts, earthquakes,
tsunamis, volcanoes, conflict, violence, and economic crises are examples of natural or socio-
political disasters. This is a typical scenario in which one or both parties are unable or unwilling
to execute their responsibilities. The law does not obligate the law to assume responsibility for
the property when a party breaks the contract due to a force majeure occurrence (no penalty, no
compensation for damage). In fact, if there is no clear agreement on force majeure, it is very easy
for the violating party to take advantage of the force majeure to withdraw the responsibility,
leading to damage to the violating party.
7. Penalty and Compensation Terms
These clauses spell out what happens if the contract isn't fulfilled (in whole or in part). At
the same time, this word has two objectives: Prevent your opponent from attempting to perform
or performing poorly on the contract, and figure out how much you'll have to pay to make up for
the harm. There will be no basis to penalize the parties to the contract's bad performance without
penalty and compensation provisions. Should include a breach of contract provision to increase
awareness and bind the two parties to the contract's terms. When negotiating, the parties should
be guided by their connection and mutual trust, which specifies or excludes the issue of breach.
Normally, with customers who have a close relationship, trust each other, the prestige of the
parties has been confirmed for a long time, they do not regulate this term.
8. Law Provisions In The Contract
When a disagreement develops, the parties should indicate whose nation law will apply in
the contract. For example, the law that applies to this contract is Vietnamese law, not a specific
statute (Vietnam Commercial Law 2005), but rather the basic requirements of a country's law.
9. General Provisions
This clause is added to provide some general necessary information such as number of contracts,
language of the contract, date of signing and date of validity. This information is especially
important for future contract retrieval.

CHAPTER III. RELATED DOCUMENTS

I. COMMERCIAL INVOICE
1. Definition
Commercial Invoice is a basic commercial document made by seller or exporter, used for
payment between the exporter and the importer, requiring the importer or the buyer to pay the
exact amount stated on the invoice to the exporter. Commercial invoices (CI) should include
information on the products, unit pricing, total worth of the commodities, and delivery, payment,
and transportation terms.
A commercial invoice is a document used in the taxation of commodities that is required
by customs to establish the real value of imports. Commercial invoices (CI) are also essential
components in the dossier to the bank for payment, as well as insurance premiums issued to the
insurer. This is a mandatory component of the international transaction's set of papers.
2. Functions
Commercial invoice has some basic functions:
- The foundation for the seller to demand money and the buyer to pay between the seller
and the buyer, the exporter and the importer.
- One of the most significant papers to establish the payment to the partner when
purchasing and selling foreign products.
- An essential criterion for calculating import charges based on the customs value of
items.
- The basis for calculating import and export taxes; individuals who file customs
declarations will have a good understanding of how to enter the invoice amount into
customs software.
- Facing information and other associated papers throughout the parties' contract
execution, as well as the related import and export processes
When filing a customs declaration, for example, it is critical that this document be cross-
checked with the necessary Bill of Lading information, Packing list... If a problem arises, the
document creator or customs declarant must review and rectify the information as soon as
possible.
3. Contents Of Commercial Invoice
In international trade, a commercial invoice is a document that shows the acquisition and
sale of a company. Commercial invoices are frequently duplicated and utilized at various stages
of the business. A commercial invoice clearly indicates the following items, according to the
commercial accountant:
- Any commercial invoice must include an Invoice number, number and date, which is a
reference number provided by the seller. The commercial invoice number is also needed
to complete customs declaration processes for export and import.
- Buyer, seller, import-export nation, and shipper information: name, address, tax code, etc.
- Additional References (if any): You can supplement any additional shipment references
or other information required by the customer.
- Country of Origin (Country of Origin): This information can be left out, however it
should be provided to make the customs statement more logical. Based on real products
information, documentation staff can "create" this information to the commercial invoice.
- Name of the destination port and country: This is the country to which the items were
most recently transported.
- Mode of transport: water (by sea) or air (by air) (by air). Because commercial invoices
are generally provided prior to shipment and do not contain a vehicle-specific number,
the vehicle's name and model number are not necessary.
- Port of Loading (Port of Loading): Can mention the port of loading as well as the nation
associated with it. It could be a harbor or an airport.
- Port of Discharge: The name of the port of discharge, also known as the destination port,
when goods is unloaded from an airplane or ship.
- Payment conditions and delivery terms: According to Incoterms, the terms of delivery.
Are the terms of payment TT or LC, DA/DP, or No Payment?
- Number of packages (Packages): Keep track of the overall number of packages in the
shipment, which is typically combined with the total gross weight (Gross Weight - kgs).
This information is part of the packaging section (Packing), and if the packing
instructions aren't too difficult, the information from the Packing List - packing slip can
be integrated with the commercial invoice.
- Description of goods: name, product code (code), model, characteristics, serial, quantity,
unit price, payment currency, methods, amount, total value, specification, symbol...
4. Analysis Of Commercial Invoice

Seller information (Exporter):

- Seller: GAOMI WOSHUN PROTECTIVE EQUIPMENT CO., LTD
- Address: NO.8188, GAODONG ROAD, HEYA SUB-DISTRICT, THE NORTHEAST
TOWNSHIP, GAOMI CITY, SHANDONG
- Telephone/Fax: 0086-536-2772151
- Invoice no: WSVN2102 coincides with the number stated on the packing list and contract
- Issue date: 25/05/2021. The invoice release date coincides with release date packing list.
 Buyer information (importer):
- Buyer: HOP TAC XA CONG NGHIEP NHAT QUANG
- Address: LOT 03-9B, HOANG MAI INDUSTRIAL PARK, HOANG VAN THU
WARD, HOANG MAI DISTRICT, HANOI, VIETNAM
Exporting countries: China
Importing countries: Vietnam
Terms of delivery basis (stated in the Contract): FOB Qingdao, China. FOB price does not
include transportation costs, insurance to the destination, the buyer must bear the rental fee of the
means of transport, the cost of goods and other costs in addition during transportation.
Commodity are listed in detail:
- Item Descriptions
- Quantity (Pairs)
- Unit Price
- Total Amount
Total amount of money: 13,362.80 USD (written in numbers and letters)
- Currency: USD
- Payment terms (stated in the Contract): T/T, full payment of 100% value before delivery.
- According to contract, commodity originally included Safety Shoes BESTRUN 01 only,
with the total amount of 10282.80 USD. The information in the commercial invoice is
different from the information in the contract (different in terms of commodities) because
this invoice is issued for 2 separate contracts between Hop tac xa cong nghiep Nhat
Quang and Gaomi Woshun Protective Equipment. The contract analyzed in this research
is the transaction of Safety Shoes BESTRUN 01 only, while the old contract of Safety
Shoes HELIOS 2 happened a duration before between 2 companies.
Due to the context of the COVID-19, at the time of trading Safety Shoes HELIOS
2, the 2 companies could not complete the business. Later when Safety Shoes BESTRUN
01 was dealt, Gaomi Woshun Protective Equipment conveniently issued a document
containing both commodities, including Safety Shoes HELIOS 2 to complete the last
business. Hop tac xa cong nghiep Nhat Quang later made corresponding payment for
both commodities.
This also applies to all other related documents including Bill of Lading, Packing
List... below. This explains why there is a difference between the contract and the related
 documents in this kit in terms of commodities and amount of money. However, this
report only provides an in-depth analysis of Safety Shoes BESTRUN 01 contract.
II. PACKING LIST
1. Definition
A packing list (packing order) is a document used in international trade that lists the items
and categories of commodities packed in a certain event (shipper). It offers information about the
cargo to the exporter, international freight forwarder, and final consignee, such as how it's
packed, the dimensions and weight of each package, and the markings and numbers on the
outside of the boxes.
The buyer's intention in using this voucher is to resale items to a third party. When
importing and exporting all sorts of commodities, this is a very important component of the
papers. A packing list, while not strictly needed by Customs, is beneficial to include with your
cargo since it makes the import/export procedure easier for both shippers and Customs.
The quantity of units, boxes, and any other packaging information on your export packing
list should all match the Commercial Invoice and represent the same parties engaged in the
transaction. If solid wood was used to pack the consignment, the packing list should include state
so, as well as any required fumigation or heat treatment certificates.
2. Functions
Some functions of Packing List includes:
- Determining which location is ideal for loading and unloading the number of products.
- The items will be clearly written on the packaging, thanks to the packing slip, which will
indicate where they are situated when the goods are checked at customs.
- Knowing what sort of products are being handled and whether or not to employ
machinery, lifting devices, cranes, or just workers to do so.
- Arrange and distribute cars of the correct size for each sort of cargo.
- Determining the right time for various items, as well as how to maximize time in a more
efficient and cost-effective manner.
- In the event that products are judged hazardous or dangerous, serving as verification of
the inland Bill of Lading or Material Safety Data Sheet.
- Identifying the data needed for the Certificate of Origin
- It supplies much of the information required by the Automated Export System's
Electronic Export Information section.
 - Serving as a supporting document for a letter of credit reimbursement.
- When putting the listed items into their country's import database, since it provides vital
information, allowing buyers to quickly inspect the goods before getting them via
Packing List tickets and serving as a reference for the receiver/buyer when counting the
products they got.
3. Contents Of Packing List
Basically, Packing List will include the following main contents:
- Number & date of invoice (usually people do not use Packing List number)
- Information about the full name and address of the buyer and the seller.
- Port for loading and unloading goods, port of destination.
- Consignee contact information.
- Information about the cargo ship as the origin address, destination address, trip number,
the name of the vessel.
- Information of commodity types: volume, size, weight, quantity, item description,
number of bales, number of packages, volume of goods.
- Contracts and conditions.
- Commercial invoice number for this shipment
4. Analysis Of Packing List
Date: 25/05/2021
Contract number: WSVN2101
Seller information (Exporter):
- Seller: GAOMI WOSHUN PROTECTIVE EQUIPMENT CO., LTD
- Address: NO.8188, GAODONG ROAD, HEYA SUB-DISTRICT, THE NORTHEAST
TOWNSHIP, GAOMI CITY, SHANDONG
- Telephone/Fax: 0086-536-2772151
Buyer information (importer):
- Buyer: HOP TAC XA CONG NGHIEP NHAT QUANG
- Address: LOT 03-9B, HOANG MAI INDUSTRIAL PARK, HOANG VAN THU
WARD, HOANG MAI DISTRICT, HANOI, VIETNAM
General comments:
When the Packing List was compared to the appropriate papers, it was discovered that the
information matched with information in Invoice in terms of commodities (it is explained above
that the related documents in this kit consists information of 2 commodities from 2 separate
contracts between 2 companies, however this report only analyze 1 contract, explained why the
information between contracts and related documents differed). Additionally it contains the
Commercial Invoice Number, Seller and Buyer, Merchandise, Detailed Sizes, Number of
Cartons, Quantity of Products, Net Weight of the item matched and Gross Weight. However, the
information of like port of loading and unloading, delivery terms, payment method are not
included in the Packing List, it is already stated in the Contract.
No. of Cartons in the Packing List helps to indicate the weight of the container in moving
goods and placing the goods in the box to facilitate the calculation of the weight of the cargo
clearance by actuaries at warehouses and ports.
The overall weight of the items, including packaging, is called Gross Weight, whereas the
Net Weight is only the weight of the goods. As a result, we may deduce that Gross Weight
includes Net Weight. It should be noted that Gaomi Woshun Protective Equipment charges by
Gross Weight rather than Net Weight for freight. As a result, they optimize this unit in order to
save money.
Gaomi Woshun Protective Equipment also calculates Net Cubic Meter (CBM) is 28 m3.
When it comes to transportation, CBM assists this firm in calculating how much cargo has to be
transported in one trip. Furthermore, the number of CBM blocks assists the carrier in measuring
and arranging the location of products in the ship's compartment in order to take up the least
amount of space, transport the most goods in a single trip, and save transportation time.
In general, buyers may see how the package is packed by looking at this packing list,
which helps them calculate:
- How much loading and unloading area is required
- It can be loaded and unloaded by humans, or specialist equipment such as forklifts and
cranes must be used...
- How to organize transportation, such as a few-ton vehicle, jacks, and how many boxes to
accommodate
- Where specific products are situated during customs clearance inspection
 The Packing List has a similar appearance to the Commercial Invoice, and all the
information are identical (for example: commodities). The two, on the other hand, serve different
functions. A commercial invoice is a payment receipt that specifies the amount owing. And the
packing list should include information such as how the products are packaged, the number of
bales, the weight, and the volume…
III. BILL OF LADING
1. Definition
A bill of lading (sometimes abbreviated as B/L or BOL) is a document issued by a carrier
(or their agent) to acknowledge receipt of cargo for shipment. Although the term historically
related only to carriage by sea in British English, a bill of lading today in American English may
be used for any type of carriage of goods. Bills of lading are one of three important papers used
in international trade to ensure that exporters get paid and importers get the goods. A policy of
insurance and an invoice are the two other documents. An insurance and an invoice are both
assignable, while a bill of lading is not.
A bill of lading is a document of title, a receipt for shipped goods when the carrier delivers
the goods to a designated location, and a contract between a carrier and shipper. The kind,
amount, and destination of the items being transported are all listed on a bill of lading. This
document must be signed by an authorized representative from the carrier, shipper, and receiver
and must accompany the sent items, regardless of mode of transit. If managed and reviewed
properly, a bill of lading can help prevent further asset theft.

2. Function and Purpose

A bill of lading is a legally binding document that gives the carrier and shipper all of the
information they need to complete a cargo correctly. A negotiable bill of lading must be
transferable, has the legal qualities and serves three main functions as followed:
- Affirmation/Proof/Evidence of Contract of Carriage
The first function of a Bill of Lading is that it serves as a proof of the contract of shipping
which has been signed between the Seller/Goods owner and the shipping agent/carrier. It
contains or evidences the terms of the contract of carriage, or in another way represents the
agreed terms and conditions for the transportation of the goods, under which the goods
transportation will be carried out. This is to ensure that the transportation of the shipment is done
in accordance with the sales contract between the seller/sender and the buyer/receiver.
 - Receipt of the Shipment
The next function is that a bill of lading is a conclusive receipt for the shipped products i.e.
an acknowledgement that the goods have been loaded. The logistics company/carrier issues a B/
L to the shipping agent of the seller which serves as evidence endorsing that the carrier has
received the shipment or cargo as per the contract from the shipping agent in a safe and sound
condition as it was assigned to the shipping agent by the seller/sender of the goods. So, this B/L
also serves as a receipt of the cargo service.
- As a Certificate/ Document of Title
A bill of lading serves as a document of title to the goods described in the bill of lading,
permitting the sale of goods in transit and the raising of financial credit. The B/L serves as a
document that confers or proves ownership of the holder of the Bill of Lading when the goods
are finally delivered at a predetermined destination. It gives the holder the authority to claim the
shipment or assign it to someone else.
A bill of lading is important based on the practical situation. The physical custody of the
products passes from the exporter to the carrier after they have been dispatched. The exporter
may not have received paid at this point. As a result, the B/L is an important part of the
transaction. In international trade, bills of lading allow the exporter to relinquish custody of the
packages to the carrier, allowing the exporter to maintain indirect control over the products
during the transit phase. The B/L is especially crucial for goods transportation since the
information it contains has an impact on a variety of operations. This information might include
the shipment's destination, the quantity of parcels in the consignment, billing information,
payment recovery instructions/details, and specific instructions for managing goods at the docks
or in trailers.
3. Classification
Considering the aforementioned functions of a bill of lading, it may take various forms.
We can classify B/L into certain categories.
Bills of lading based on the status of loading and unloading goods:
- On-board bill of lading: is a certificate certifying that the specified goods have been
received in apparent good order and condition from the named shipper (consignor).
Normally, it that merchandise has been physically loaded onto a shipping vessel, such
as a freighter or cargo plane on the stated date. Banks funding a shipment require this
type of B/L and not a received for shipment bill of lading.
- Received for Shipment bill of lading: This bill is sent from agent/charterer to shipper.
The endorsement of this bill indicates that product has been received, but is not
guaranteed to have already been loaded onto a shipping vessel. (Typically, a freight
forwarder at a port or depot will issue it.) When such banknotes are loaded, they can be
converted. The BLs for documents received for shipping are used to expedite the
delivery of papers to the consignee. However, if the payment method is LC (Letter of
Credit), these BLs are not accepted.
Bills of lading based on the statement:
- Clean bill of lading: says that the cargo was loaded in apparent good order and
condition onboard the ship. A phrase or note that specifically states a faulty condition of
products and/or packaging will not appear on such a bill of lading. A dirty bill of lading
is the antonym. It indicates that the products were not received in excellent condition by
the transporter.
- Dirty bill of lading: If the ship-owner objects to "the condition of the cargo being in
good order," he or she might insert a clause, causing the bill of lading to be "claused or
filthy," with remarks based on the cargo condition's findings. For example, ripped
packaging, broken cargo, a lack of supplies, and so on.
Bills of lading based on the ownership, or Negotiable and Non-Negotiable documents:
- Straight bill of lading: is used when payment is paid in advance of shipment and the
item must be delivered to the proper party. It indicates that the products have been
assigned to a certain individual and that they are non-negotiable free of current equities.
It means that any endorsee will have no more rights than the endorser. This is also
known as non-negotiable bills of lading, and they are not safe in the eyes of the banking.
Military cargo is frequently paid with this sort of bill.
- Seaway bill of lading: is similar to a straight bill of lading in that it is a non-negotiable
document. A Seaway Bill is typically given for intercompany shipments, such as those
between Hollywood and ACME in the Australian Outback, or when a transport happens
between two businesses and there is no need for direct or indirect talks between the two
companies for cargo release.
- Order bill of lading: is utilized when shipping products prior to payment, requiring a
carrier to deliver the merchandise to the importer and allowing the carrier to transfer
title to the importer upon the exporter's endorsement. Endorsed order bills of lading can
be sold as a security or used to secure financial obligations. This is the bill that makes it
 negotiable by using express language. This indicates that delivery will be delivered to
the consignee's subsequent order, as indicated by terms like "delivery to A Ltd. or to
order or assign." Only the genuine bill of lading holder receives the cargo, which must
be validated by an agent who provides the delivery order and the verified bill of lading.
- Bearer bill of lading: is a document that states that delivery will be made to the person
who holds the document. This type of bill can be generated deliberately or it can be an
order bill that fails to name the consignee in its original form or by a blank
endorsement. Physical delivery is one way to settle a bearer bill. They're utilized for
bulk freight that's only moved in small quantities.
Bills of lading based on the legality:
- Original bill of lading: is a hand-signed bill of lading that may be exchanged or
transferred. It may or may not include the “Original” mark.
- Copy bill of lading: is a sub-version of an original bill of lading that lacks a hand-
signature, is marked with a "Copy" mark, and is non-negotiable.
Bills of lading based on the itinerary of carriage, or carriers’ responsibility:
- Direct bill of lading (also called port-to-port bill of lading or ocean bull of lading):
is one that is produced when commodities are carried straight from the port of loading
to the port of discharge without passing through any intermediate ports. In this kind of
bill of ladings, carriers responsibility starts at port of loading and ends at port of
discharge.
- Multimodal bill of lading (also called combined transport bill of lading): This type
of bill of lading includes several modes of transportation (for example, ocean and rail or
ocean and road) as well as all forms of transportation. From the time the goods is
received until it is delivered, the carrier is responsible. The cargo can be
hired/subcontracted by the carrier to be transported in one or more modes of transport. It
provides data on goods carried in big containers by sea and land, i.e. via multimodal
transportation.
- Through bill of lading: is a legal document that permits cargo to be delivered from
point A to point B directly. The bill enables for the transportation of goods both inside
the country and internationally, since it acts as a cargo receipt, a carriage contract, and
sometimes even title for the items. The major difference between a through bill of
lading and a multimodal bill of lading is that a through bill of lading has just one means
of goods transit, but a multimodal bill of lading contains several legs, such as sea and
 interior waterways. A multimodal bill of lading, on the other hand, must include at least
two modes of goods transit (like sea and land). In terms of the carrier's obligation, the
bill of lading specifies that the carrier is exclusively liable for their leg of the maritime
shipment.
4. Basic Contents Of The Bill Of Lading
Depending on the type of B/L and/or the shipping and business terms, the exact contents of
a B/L will vary from case to case. A B/L is likely to contain the following information:
1. Title of bill of lading
2. Name and details of the shipping line
3. Shipping bill number and date
4. Name and address of the delivery person or seller (Shipper, Consignor, Sender) as well
as the receiver, along with necessary contact details, plus a mention of the date to
facilitate tracking of the shipment
5. Name and address of the Consignee: In the straight bill of lading, this box will include
the name and address of the consignee; In the bearer bill of lading, it will have the
information "to (the) - order", "to (the) order of ... "
6. Notify Party: The name and address of the consignee or the bank opening the L/C to
notify the cargo information, ship itinerary.
7. Purchase order number or similar reference number; this makes it easier to cross-refer
the agreed terms and conditions (E.g. the delivery terms, incidence of expense etc.)
8. Special instructions – this is an important section as it has all the extra service requests,
terms and conditions, and reminders for the carriers
9. Description of the goods in the shipment, giving details of the units, their dimension,
weight, content details, conditions, etc.
10. Packaging details, which discloses information of the packaging and use of cartons,
crates, pallets, and drums used for shipping
11. Freight classification, which determines the cost of the shipment
12. Indication of hazardous shipment, if applicable
13. Signature and initials of the concerned officer
14. There is also the other informations: Place of Receive, Port of Loading, Port of
Unloading, Vessel Name and Voyage No., Number of Original and Copy issued B/L,
Terms and place of payment, Marks and Numbers, date and place of issue of bill of
 lading, signature of either the carrier, shipping company, vessel operator or captain of
the ship or authorized agent of any of these.

5. Process Of Issuing Bill Of Lading

The carrier (ship-owner) or their representative must sign and issue the bill of lading, as
well as describe the legal status. In practice, the carrier, the ship's owner, the master or agent of
the carrier, the owner, or the master sign the bill of lading. Originals (Originals) and copies
(Copies) of bills of lading are issued (Copy). Originals are sold in sets of two or more, with each
set including one original or two or more identical originals. The process of issuing a bill of
lading consists of 7 steps as follows:
- Step 1: The shipper delivers the cargo to the ship agent at the loading port and requests
the issuance of a bill of lading.
- Step 2: The ship agent at the loading port gives the shipper the original bill of lading,
which generally has three copies: 3/3 of the original B/L
- Step 3: You have two options for sending the bill of lading to the consignee:
Option 1: Shipper delivers one original B/L to Consignee directly;
Option 2: Shipper sends original B/L to Consignee via Bank.
- Step 4: The ship agent at the port of discharge sends the Consignee a notification of
goods (Notice of Arrival). In most cases, the consignee must estimate when the vessel
will arrive at the port of discharge to pick up the cargo ahead of time.
- Step 5: The consignee issues a legitimate bill of lading.
- Step 6: Change the delivery order (Delivery Order): The agent at the port of discharge
D/O (Delivery Order) can typically swap three D/O with one B/L. If the container is in
good condition, the consignee completes import procedures and goes to the shipping
company agent to pay tax (if applicable) and sign a deposit to borrow the container.
- Step 7: The port agent unloads the cargo once the consignee presents the delivery
order.
6. Analysis Of Bill Of Lading In The Transaction
In this case, Gaomi Woshun Protective Equipment directly charters a transport ship. In the
transaction between Gaomi Woshyn Protective Equipment and Hop tac xa cong nghiep Nhat
Quang, there is the bill of lading issued by “Smooth International Logistics Limited”.
 This B/L is the Seaway Bill of Lading issued by “Smooth International Logistics Limited”
to track goods during import and export and specify the parties directly involved in the loading
and unloading of goods.
 Particularly, this bill of lading includes the following contents:
- Bill of lading no.: SMFCL21050253
 - Logo and name of issuer: Smooth International Logistics Limited
- Shipper: GAOMI WOSHUN PROTECTIVE EQUIPMENT CO.,LTD
Gaomi Woshun Protective Equipment (China) is responsible for the cargo until it is loaded
onto the ship for departure.
This information is also shown to tell us that the original owner of the traded commodity
was GAOMI WOSHUN PROTECTIVE EQUIPMENT CO.,LTD.
- Consignee: HOP TAC XA CONG NGHIEP NHAT QUANG
Hop tac xa cong nghiep Nhat Quang (Vietnam) is the consignee and responsible for the
goods when they dock in Vietnam.
This also means that, after the transaction is completed successfully, the ownership of the
goods will be transferred from Gaomi Woshun Protective Equipment to Hop tac xa cong nghiep
Nhat Quang. Additionally, the B/L clearly states the name and address of the buyer. Thus, the
carrier only delivers the goods to whom named on the bill of lading, only this party has the right
to receive the goods (when presenting a valid bill of lading).
- Notify party: same as consignee, HOP TAC XA CONG NGHIEP NHAT QUANG.
When the goods are coming, the shipping company will issue a notice of arrival to the
consignee (possibly the shipper), informing the time, place, and warehouse at which the
shipment will arrive.
- Ocean vessel voyage No.: XIN HANG ZHOU V.141S
- Place of receipt: N/A
- Port of loading: QINGDAO, CHINA
- Place of delivery: HAIPHONG, VIETNAM
- Port of discharge: HAIPHONG, VIETNAM
- Container No. and Seal No.: CCLU3710570 / N475348
CCL is the owner code, including 3 capital letters agreed and registered with the
international registry through the national registry or directly registered with BIC - Bureau
International des Containers et du Transport Intermodal, globally accepted. “U” illustrates that it
is a freight container.
371057 is the serial number, this is the container number, consisting of 6 digits. This serial
number is set by container’s owner, but the rule is that each number is used only for one
container.
 0 is the check digit (after the serial number), used to check the accuracy of the preceding
string of characters, including: prefix, serial number. The necessary check digit will be computed
for each character string, including prefix and serial number, using the container check digit
method. The check digit is used to reduce the possibility of mistakes during the container number
entering procedure. In reality, the number of containers is utilized by numerous objects (shipper,
forwarder, shipping firm, customs, etc.) on various papers (B/L, Manifest, D/O, etc.), which
increases the chances of inputting mistakes. A check digit will be assigned to each container
number (containing the prefix and serial number). As a result, because the check digit differs
from reality, the erroneous entry will be recognized most of the time.
Number of packages and containers: 1 container.
- Description of packages and Goods/ Type or kind of packages and containers:
SAFETY SHOES. This is a special commodity that needs attention and should be included
in the transaction transparently (it is explained above that the related documents in this kit
consists information of 2 commodities from 2 separate contracts between 2 companies, however
this report only analyze 1 contract, explained why the information between contracts and related
documents differed. The information in all related documents did match others).
HS CODE: 6403400090 are HS code of commodity delivered in this transaction.
HS stands for Harmonized System. It was developed by the WCO (World Customs
Organization) as a multipurpose international product nomenclature that describes the type of
good that is shipped. Customs officers must use HS code to clear every commodity that enters or
crosses any international borders.
6403400090: Other footwear with uppers of leather, incorporating a protective metal toe-
cap (with outer soles of rubber, plastics, leather or composition leather)　
- Gross weight (Including the weight of the package) of all commodities is 5,566.00 KGS.
- Measurement of all commodities: 28.000 CBM.
- Freight & Charges: Freight Collect.
This means that the consignee or receiver is responsible for the freight charges and it
implies that shipping, as well as additional charges, are the responsibility of the shipment
receiver.
- No. of original B(s)/L: 3
- Place and date of issue: Shenzhen, China, May 27 2021
IV. CERTIFICATE OF ORIGIN
1. Definition
A Certificate of Origin (CO) is an international trade document that identifies the country
in which a commodity or item was produced. It refers to a special form for identifying products
in which the authority or organization that is authorized to issue it declares specifically that the
items to which the certificate pertains are from a certain nation. A statement by the manufacturer,
producer, supplier, exporter, or other competent person may also be included in the certificate of
origin, together with information on the product, its destination, and the country of export.
Customs, banks, private parties, and importers all require COs for a variety of reasons.
Almost every country in the globe requires CO for customs clearance operations, such as
calculating the tariff that will be imposed on the products or, in certain circumstances, evaluating
whether the items may be lawfully imported at all. The CO is an essential form since it may
assist evaluate whether particular products are allowed for import or whether they are subject to
tariffs. It is required by numerous treaty agreements for cross-border trade.
2. Functions
In general, a certificate of origin is required in international commercial transactions
since it serves as confirmation of the product's origin, which serves as the foundation for
determining tariff preferences and other trade measures. Importers, for example, will benefit
from C/O in identifying items that have obtained preferential treatment as a result of bilateral
trade agreements. Although meeting the norms of origin in theory qualifies a product for
originating status and hence preferred tariffs, in most circumstances, a claim for preferential
tariffs must be accompanied by a certificate of origin given to the customs authorities at the point
of entry. The importer, unlike the exporter or producer, who is responsible for (and capable of)
demonstrating the product's origin to the issuing authority (or self-certifying), typically has little
understanding of how the goods fulfills the origin standards. Instead, the importer must show
documentation, such as a certificate of origin issued or received by the exporter or manufacturer.
Because of this separation of obligations, even though a product may originate in a certain
nation, the importer's refusal to provide a certificate of origin may result in the products being
denied preferential treatment.
Aside from border security, a certificate of origin serves a function in verifying a
product's origins and therefore its reputation. As a result, the importer may require it to present to
his target market customers. In some circumstances, a certificate of origin can assist establish
whether a product can be lawfully imported, especially if the importing government has imposed
a ban or punishment on commodities from specific countries. It also includes the imposition of
anti-dumping and subsidy charges. When products from one country are dumped on the market
of another, determining the origin leads to anti-dumping actions and the possibility of applying
countervailing duties. C/O is also responsible for trade data and the quota system's upkeep. It is
simpler to generate trade data for a country or an area when the origin is determined. The quota
system can be maintained on this basis by the commercial authorities.
3. The Process Of Obtaining Certificate Of Origin
To get a certificate of origin, all business owners must complete the steps below:
- Before starting the application, look over the checklist, which includes things like the
goods' origin and applicable rules, the goods' HS code, and so on. Fill out an appropriate
affidavit and get it notarized.
- If you are a merchant asking for the first time for a certificate of origin, you must submit
the appropriate commercial papers. Submit application dossiers for a new certificate of
origin application. Provide a manufacturing invoice or a commercial invoice that
identifies the location where your items are made.
- Complete the certificate of origin form. To your chamber of commerce, provide a
notarized affidavit, a certificate of origin document, and the related invoices. Make a list
of the papers you'd want to have stamped.
- If a certificate of origin has expired or been lost, it can be reissued. You must submit the
following documents with your application for a reissued certificate of origin:
Application form, fully completed certificate of origin copies, receipts and note cards, old
certificate of origin, and other documents as proof of reasons for re-issuance of the
certificate.
- Declare the origin certificate online.
- The certificate of origin will be issued once the application has been approved.
Additionally, to get an electronic certificate of origin, all business owners can submit the
required documentation online and get an electronic certificate stamped by a chamber of
commerce in less than a day or get an expedited paper certificate overnight.
4. Classification Of C/O
Chambers can issue two different sorts of COs according to preference aspect:
 - Non-Preferred COs: verify that the items do not receive preferential treatment. These are
the most common kind of COs that chambers may produce, and they're also referred to as
"Normal COs."
- Preferential COs: verify that products are subject to lower taxes or exemptions when
exported to nations that provide these benefits. These COs are frequently linked to
Regional Trade Agreements.
In addition, based on direct or indirect aspect:
- Direct C/O: This is a C/O issued directly by the nation of origin, which can also be the
exporting country.
- Back-to-back C/O: A C/O issued indirectly by the exporting nation is not issued by the
country of origin. In this situation, the exporting country is referred to as the country of
origin.
5. Basic Contents Of C/O
This certificate must contain following information based on the purpose and features of C/
O:
- C/O Form: to depict a C/O issued in accordance with a set of particular origin
regulations.
- Importer or exporter's name and address.
- Transportation criteria (name of mode of transportation, port, loading/unloading location,
bill of lading…).
- The goods' criteria (name, package, packaging label, weight, quantity, value...).
- Criteria for establishing the origin of products (criteria for determining the origin, the
country of origin of the goods).
- Certification by the exporting country's relevant authorities.

6. Certificate of Origin In The Context

Gaomi Woshun Protective Equipment and Hop tac xa cong nghiep Nhat Quang have a
significant history of partnership for the past 3 years. There has also been a precedent in the past
when Hop tac xa cong nghiep Nhat Quang ordered a shipment of goods similar to current
shipment and Gaomi Woshun Protective Equipment had attached a Certificate of Origin when
sending all documents to Hop tac xa cong nghiep Nhat Quang.
 Since then, the two parties have formed a close relationship. According to the salesperson
in charge of this current deal at Hop tac xa cong nghiep Nhat Quang, the importer by now have
complete confidence in the origin of the products from Gaomi Woshun Protective Equipment
and the company no longer required Certificate of Origin this time because the shipment was the
same as before and hence, COO is not included in this full set of documents.
V. SGS TEST REPORT
1. Definition
SGS is the abbreviation of Societe Generale de Surveillance S.A., translated as "General
Notary Public". SGS is a recognized world's leading inspection, verification, testing and
certification organization, and also globally recognized benchmark for quality and integrity. It is
a comprehensive inspection agency that performs a variety of physical, chemical and
metallurgical analyses, including destructive and non-destructive testing, providing the client
with a complete quantity and quality inspection and related technical services, providing
shipping.
The core services offered by SGS include the inspection and verification of the quantity,
weight and quality of traded goods, the testing of product quality and performance against
various health, safety and regulatory standards, and to make sure that products, systems or
services meet the requirements of standards set by governments, standardization bodies or by
SGS customers. The former inspection service provides various services related to international
trade such as commodity technology, transportation, warehousing, etc., and supervises all or any
part of the commercial trade and operation related to the purchase and sale, trade, raw materials,
industrial equipment, and consumer goods migration process.
SGS Test Report is a certificate or report issued by SGS for compliance or testing services
performed by SGS on a product or organization according to a country's standards, regulations or
customer requirements.
2. Analysis Of SGS Test Report In The Transaction
The Test Report is the type of Selected Test requested by applicant – Gaomi Woshun
Protective Equipment, about identifying the product Safety Shoes BESTRUN 01, Sample
Receiving Date from December 12 2020 and Test Performing Period from December 12 2020 to
December 20 2020 means that the result of the test is valid at the time the transaction happened.
The Report showed the Test Result of some essential criteria of the tested product – the
shoes in order to assess the quality, including:
 Identification of Leather Type
 Thickness Test of upper
 Thickness Test of insole
 Water Vapour Permeability & Coefficient
 Martindale Abrasion Resistance
 Sold Slip Resistance
 Energy Absorption of Seat Region
 Oil Resistance of Sole Material
 Smash-Proof of Toecap
 Anti-Puncture of Mid-Plate
The results indicated that, all the characteristics of the product met the requirement from
SGS’s given criteria, guaranteeing the quality of the tested product. At the end of the Test Report
signed by Section Head. This helps the exporters – Gaomi Woshun to confirm the quality of
commodities accurately to Hop tac xa cong nghiep Nhat Quang.
VI. TELEGRAPHIC TRANSFER REMITTANCE
1. Definition
A telegraphic transfer (TT) is an electronic means of sending money that is mostly used for
international wire transfers. In the United Kingdom's banking system, these payments are most
frequently referred to as Clearing House Automated Payment System (CHAPS) transfers. To put
it another way, T/T is an international payment method in which the remitter instructs the
receiving bank to transfer a specific amount of money to the beneficiary in another country in
accordance with a specific local instruction within a specified time frame using my preferred
method of transfer (Swift/telex).
 The following parties participate in the TT payment mechanism for import-export
payments:
 The buyer is the remitter.
 The seller, or the person who receives the payment, is the beneficiary.
 At the request of the remitter, the remitting bank performs the money transfer order.
 The agent bank is the beneficiary's bank and has an agency connection with the
remittance bank (usually the bank where the beneficiary opens an account).
The seller's preferred payment method is probably telegraphic transfer since it relieves
them of the burden of developing dangers and allows them to receive the items promptly.
However, because this technique complicates financial flow and raises the risk for purchasers,
buyers rarely take payment before getting the products.
Banks merely function as a middleman between the sender and the receiver in transaction
money transfers. The Bank is entitled to payment commissions and is not obligated by any
responsibility in the sender's or receiver's system. Banks, on the other hand, may be compelled
by national law to undertake checks on the entrance and outflow of foreign cash.
2. Charateristics
T/T is a type of telegraphic transfer that operates by bouncing money through multiple
banks until it reaches its intended destination. Telegraphic transfers can be slower and more
expensive than money transfer services since each bank the money travels through en route has
its own costs and processing delays. The SWIFT network is the name given to this group of
institutions.
Money will only be transferred between banks with pre-existing commercial connections,
referred to as "correspondent banking." Each correspondent bank along the way will take a share
of the money as it passes through their hands to cover processing costs, and the payment may
take a day or two to complete.
3. The Process To Make A T/T
The buyer will need to perform the following steps in order to make a telegraphic transfer:
 Step 1. The buyer visits his or her bank to place an order for a money transfer to pay the
exporter.
 Step 2. The buyer's bank gives the buyer a debit notice.
 Step 3. The money is transferred from the buyer's bank to the seller's bank.
  Step 4. The seller receives credit notes from the merchant's bank.
 Step 5. The vendor hands over the items to the buyer and records them.
When it comes to money transfers, there are four processes involved:
 Step 1: Gather money transfer applications;
 Step 2: Review remittance records
 Step 3: Creating a wire transfer
 Step 4: Accounting - Maintaining Records
Fees associated with T/T include: Sender’s bank fee, Corresponding bank fees, Exchange
rate margin, Recipient's bank fees.
4. Electronic Payment Analysis In The Contract
Since Gaomi Woshun Protective Equipment and Hop tac xa cong nghiep Nhạt Quang are
loyal partners, the TT payment process is simple and concise for both parties according to the
salesperson in charge. In the contract, the full payment is stated to be made before delivery.
The bank transfers the amount of money to Gaomi Woshun Protective Equipment by
means of money transfer (Swift/telex) on the basis of SME's instructions. After 1-2 days Gaomi
Woshun can receive the money.
 CHAPTER IV. IMPORT AND EXPORT IMPLEMENTATION
PROCESS
I. APPLYING FOR IMPORT LICENSE
1. The Subjects Are Allowed To Import
Except for commodities on the list of prohibited imports, Vietnamese traders who are not
foreign-invested economic entities are allowed to import and engage in other relevant activities
regardless of their registered business lines.
Branches of traders are permitted to import with the permission of the traders.
When conducting import activities, foreign-invested economic organizations and branches
of foreign traders in Vietnam must adhere to Vietnam's commitments in international treaties to
which it is a party, the list of goods and a roadmap announced by the Ministry of Industry and
Trade, as well as the provisions of law.
2. Imported Goods Must Be Applied For An Import License
Importers may need to apply for an import license depending on the sort of items they want
to bring into Vietnam. To minimize the time and cost of keeping containers at the port, they
should do this ahead of time and early. As a result, applying for an import license before loading
the products is recommended.
 Radio transmitters, receivers-transmitters, and other goods under special government
supervision
 Pharmaceuticals, medical devices, chemicals, industrial precursors, and explosive
precursors.
 Plant-protecting chemicals, plant types, wild animals, and plants.
 Animal feed, veterinary medication, and live aquatic goods.
 Vaccines, medical biologicals; insecticidal chemicals and preparations bactericidal used
in household and medical fields and medical equipment, cosmetic products.
3. The Order And Procedures For Granting Import License
Composition profile:
 A written request for a license from the trader;
 An investment certificate or a certificate of business registration, or a certificate of
business registration;
 Relevant legal documents
 Application location: The license is issued by the ministry or a ministerial-level agency.
Form of application: You can apply in person or by mail.
Processing time: Within a maximum of 10 working days from the date of receipt of a
complete and valid application dossier, ministries and peer agencies, unless otherwise prescribed
by law on the time limit for licensing, ministries and peer agencies, within a maximum of 10
working days from the date of receipt of a complete and valid application dossier, ministries and
peer agencies, within a maximum of 10 working days from the date of receipt of a trader
response document is included in the package.
Note: Ministries and ministerial-level agencies rely on the above rules to issue or submit
specific regulations on licensing dossiers and announcing agencies, organizations, and addresses
to the competent authority for promulgation. to accept licensing paperwork from merchants.
Photographic products are not on the list of commodities barred from import, according to
the government's Decree No. 69/2018N-CP dated May 15, 2018.
Furthermore, pursuant to the Government's Decree No. 187/2013 / ND-CP dated
November 20, 2013, detailing the implementation of the Commercial Law with respect to
international goods sale and purchase, purchase agency activities, selling, processing, and
transiting goods with foreign countries, camera products that are not on the list of goods
imported and exported under permits and subject to specialized management As a result, Hop tac
xa cong nghiep Nhat Quang simply needs to go through standard import processes at the
Customs Branch at the border.
II. BOOK SHIP AND BOOKING NOTE
1. Book Ship Schedule

Definition:
- Vessels (Liners) are cargo ships that travel along a predefined route on a regular basis,
calling at specific ports on a predetermined timetable.
- The fact that the owner contacts the ship owner or the ship owner's representative to seek
space aboard the ship for welding is known as the booking shipping schedule.
Characteristics:
 They are cargo ships that travel at 18-20 knots and are equipped with separate loading
and unloading equipment.
 Runs between ports according to a predetermined timetable.
  The Bill of Lading governs the interaction between the ship-owner and the shipper.
 The bill of lading contains the transportation terms and conditions.
 Freight rates for market ships typically include loading and unloading fees, which are
determined according to the tariff of the shipping line.
 The carrier is the ship owner, and he or she is responsible for the cargo while they are
being transported.
Advantages: No restriction on the number of products shipped; simple shipping and
receiving procedures; and stable and active tariffs.
High prices, the owner of the products is not permitted to negotiate on transportation
conditions, and extended delivery time are the disadvantages.
The processes to charter a market ship are as follows:
 Goods owners find ships for transportation directly or through a ship-searching broker.
 The ship is located by the broker, who then provides the Liner Booking Note.
 The ship's owner and broker agree on several important handling and transportation
parameters.
 The freight fee is sent to the owner by the broker.
 The products' owner is pleased with the ship's timetable for transporting the cargo to the
delivery port.
 On the owner's request, the shipowner or the shipowner's representative shall issue the B/
L.
2. Analysis the contract

The trade term is FOB Qingdao, China, according to the contract. It implies the seller is
responsible for transporting the products from their location to the port and loading them onto
the ship. They will cover all shipping charges, export clearance fees, taxes (if any), and any other
expenses. Until the products arrive at the buyer's warehouse, the buyer will book the ship to
transport the items, pay for sea freight, import customs clearance, taxes (if any), and any other
charges incurred.
As a result, Hop tac xa cong nghiep Nhat Quang must seize control of a carrier that will
transport commodities from China to Vietnam. Gaomi Woshun Protective Equipment is in
charge of putting the items onto the ship, paying all export duties, and delivering a business
invoice or electronic document as well as evidence of delivery.
 If the products have not yet been placed aboard the ship, Gaomi Woshun Protective
Equipment is responsible, and if the goods have been loaded on board, Hop tac xa cong nghiep
Nhat Quang is responsible.
For the booking shipping process, in this case, Hop tac xa cong nghiep Nhat Quang
contacted Gaomi Woshun to book a ship in order to deliver the goods from Qingdao port to
Haiphong port. Because the term trade in the contract is FOB, 2 parties use Freight Collect for
the most convenient shipment. It means that Hop tac xa cong nghiep Nhat Quang will pay the
freight at the port of discharge. Gaomi Woshun received a Booking note and Bill of Lading from
Hop tac xa cong nghiep Nhat Quang to arrange shipment to port.
3. Check And Confirm Ship Schedule

After agreeing and booking the ship, Hop tac xa cong nghiep Nhat Quang checked all the
information with Gaomi Woshun about ship schedule and code of ship:
- Port of loading: Qingdao, China
- Port of discharge: Hai Phong, Vietnam
- Number of Container: 1 container (286 cartons)
After that, Hop tac xa cong nghiep Nhạt Quang sent that information to Gaomi Woshun
Protective Equipment in order to prepare for shipping the goods to the port and loading on board.
II. CUSTOMS PROCEDURES

1. Register For Certification Related To Shipment

What processes the importers must register to be awarded the necessary certification
depends on the kind of goods, HS code, etc., and the State legislation. If the importers do not
sign up for the shipment's certification. The cargo will not be cleared by customs, and the
authorities will have trouble dealing with the contents.
2. Customs Declaration Of Imported Goods

This is a crucial stage in the importation of goods by sea. The preparation of paperwork is
the most essential phase in the customs procedure. Importers must prepare the following papers
in order to make a seamless customs declaration:
 Contract
 Commercial invoice
 Packing list
  Bill of lading
 C/O - certificate of origin (if any)
 Import permit (if any)
 Other documents
Following this, the customs declaration will be advanced. Currently, we may use the
electronic customs declaration system to make online declarations. Importers must have all of the
following papers in order to file a customs declaration online:
 Sales contract
 Commercial invoice
 Packing list
 Bill of lading
 C/O, bill of identification (if any) and some other relevant documents.
When exporting and importing products into our nation, the owner of the commodities
must report the goods to the controlling party using a customs declaration. When a company has
a shipment that has to be exported or imported, it must go through customs processes, which
include not incinerating the customs declaration, which is necessary if all import-export
transactions are not suspended.
Customs declaration form:
 Hop tac xa cong nghiep Nhat Quang must also pay attention to the digital signature while
logging in and transmitting the declaration on the electronic customs declaration program.
The next step in the process of importing goods by sea is to open and clear the declaration.
First, Hop tac xa cong nghiep Nhat Quang had to do customs clearance at the port.
 Green flow declaration: Importers who pay taxes can print the barcode, liquidate, and
receive products under the green flow declaration.
 Yellow flow declaration: Pay tax before or after finishing the opening, declaring,
liquidating, or receiving operations with a yellow flow declaration.
 Red flow declaration: Similar to the yellow flow declaration, but there is an additional
step after opening the real declaration to conduct a physical examination of the items.
Next, Nhat Quang proceeded to open the declaration. To do this step, importers needed to
prepare the following documents:
 Referral
 Disclosure declaration
 Invoice
 Packing list
 Bill of lading
 Other necessary documents (C/O, bill of charge, import license, etc)
When presenting documents to customs, as the documents are valid, customs proceeded
with customs clearance on the system.
III. RECEIVING AND CHECKING DOCUMENTS

Before entering a cargo, Nhat Quang determined what papers should be included in the
cargo. Then, request that the Gaomi Woshun begin preparing the papers for them. Next step was
double-check that the information on the documents is correct. Because even a minor mistake
might land the package in serious problems with customs or government officials.
When a set of paperwork is given, Nhat Quang thoroughly inspected all needed documents,
as well as the substance, validity, and legality of the documents. If anything is missing, Gaomi
Woshun must supply replacements as soon as possible to avoid delaying the delivery.
There also should be a language in the contract that states that if the vendor does not
produce adequate papers on time, Nhat Quang can cancel the transaction or Gaomi Woshun must
pay for DET or DEM.
IV. DELIVERY

Delivery schedule:
- Estimated Time of Departure (ETD): within 25 days after receiving the deposit.
- Port of shipment: Qingdao port, China
- Port of destination: Hai Phong port, Vietnam
Common surcharges that Gaomi Woshun had to pay:
- Delivery Order fee: When there is a consignee imported into Vietnam, consignee must go
to the shipping company/ Forwarder to get the delivery order, bring it out to the port and
present it to the warehouse (odd cargo)/ make an EIR (container cargo FCL) to get the
goods. Carriers/ Forwarders issue a D/O and they collect D/O fee.
- Bill of Lading fee, Document fee (Documentation fee). Similar to the D/O fee but every
time there is an export shipment then the Shipping Lines have to deliver a so-called Bill
of Lading or Airway Bill.
- Container Freight Station fee (CFS): Every time there is an odd shipment for export/
import then the Consol/ Forwarder companies have to unload goods from the container to
the warehouse or on the other hand, and they charge a CFS fee.
For the carrier, Gaomi Woshun had to pay the following costs:
- Freight cost (from warehouse to port of loading)
- Customs declaration fees
This cost is paid in time of agreement.
V. PAYMENT OBLIGATION PROCEDURES

Before delivery of the goods, Hop tac xa cong nghiep Nhat Quang proceeded with payment
procedures for Gaomi Woshun.
Payment method: T/T (Telegraphic transfer)
Telegraphic transfer: the transfer bank sends a payment order to the correspondent bank
over the telecommunication network, instructing the correspondent bank to pay the selected
recipient.
About the payment process by T/T:
  Step 1: Write a money order and submit a remittance package to Hop tac xa cong nghiep
Nhat Quang, requesting that the bank transfer a specific sum equivalent to the amount to
be paid to Gaomi Woshun.
 Step 2: The receiving bank will verify to see if the application is legitimate. Gaomi
Woshun has a full profile and account with full capacity, and the bank is deducting
money to pay the recipient. Hop tac xa Nhat Quang is the debit remitter's account.
 Step 3: The payment order is issued by the remitting bank to the correspondent bank.
 Step 4: Money will be transferred to Gaomi Woshun by the correspondent bank.
 Step 5: Gaomi Woshun provides Hop tac xa cong nghiep Nhat Quang with a complete
delivery of products or services, as well as papers (invoices).
When the payment process is completed, the importer receives all of the products and the
money promised in the contract.
VI. COMPLANATION

Normal complaint resolution activities take place only after a client has lodged a
complaint. In most cases, when a client complains, the exporter will handle the situation
according to the contract's terms. In this case the complaint might resulted from unqualified
products, that Hop tac xa Nhat Quang has the right to cencal the order and reject the goods when
checking the goods during production, meanwhile Gaomi has to pay 10% of the total amount of
the contract and return the deposit to the buyer. However there was no further complaint.
The two firms collaborated on the import and export of a wide variety of items. To
minimize disagreements and needless complaints, all sides of the business worked carefully
while placing orders, executing contracts, and delivering items. Since this is a loyal alliance,
privileged by the firm, collaborating on trust and long term, they do not required rigid
restrictions and are flexible to modify as needed.
VI. FILES AND DOCUMENTS STORAGE

All papers connected to the process of importing products by sea must be properly kept for
comparison in the event of an issue, complaint, or other similar situation. In addition to a set of
import paperwork, Hop tac xa cong nghiep Nhat Quang are responsible for storing:
 Customs dossier, extra declaration dossier, list of tax-exempt products registration
dossier, report on duty-free goods usage dossier
 Dossiers for tax exemption, reduction, refund, or exemption consideration.
  Documentation for transportation, packing slips, technical documents, etc.
 Books and vouchers for accounting.

CONCLUSION
Up to now, there have been many studies on import-export contracts under many different
angles. However, in order to contribute to a more in-depth study of the reality of signing a
contract, as well as what has arisen while signing a contract, particularly the cabinet on signing
and implementing export contracts, my group has conducted research and analysis of contracts
and documents related to Gaomi Woshun Company's import and export activities. Thereby, we
has grasped the essential procedures, information and legal basis for a successful international
commercial transaction. Figure out the content and presentation of a contract. Understand how to
make a correct set of documents: from Commercial Invoice, Bill of Lading, Insurance, Packing
List to Certificate of Origin and so on. In addition, we now have a better grasp of one of today's
most common payment methods, LC payment, as well as the process of establishing an export
contract. We hope this will be an article with many practical implications, laying a solid platform
for future study into topics such as international payment, transportation, logistics, insurance, and
so on. With the limited amount of knowledge and references, the research process cannot avoid
shortcomings, we do hope to get your evaluations and suggestions in order for our group to
enhance this essay. We sincerely thank you!
 REFERENCE
1. 2020, Lecture on international trade.
2. Incoterms 2020.
3. CPM Vietnam. (2017, July 37). CPM Vietnam. Retrieved from https://cpm-vietnam.com:
https://cpm-vietnam.com/Thi-truong-may-anh-so-Viet-Nam-phat-trien-nhanh-nhat-Dong-
Nam-A/
4. Fresh Books. (2020). FreshBooks Cloud Accounting. Retrieved from
https://www.freshbooks.com/hub/invoicing/proforma-invoices
5. VINALOGS CO., LTD. - SHIPPING AND LOGISTICS IN VIETNAM. (2020).
Vinalogs Container Transportation. Retrieved from Proforma Invoice là gì - trong XNK?:
https://www.container-transportation.com/proforma-invoice-la-gi.html
6. Incoterms 2010
7. Decree on applying for an export license
8. https://thuvienphapluat.vn/archive/Nghi-dinh-187-2013-ND-CP-huong-dan-Luat-
Thuong-mai-hoat-dong-mua-ban-hang-hoa-quoc-te-vb213821.aspx?
fbclid=IwAR0tpfo2Bh2xs1dhVnr_DyLT-pYUNlQ5JbceAMG9btLJlySnIpKePbibXhE
9. Term of Guarantee Sample Clauses
https://www.lawinsider.com/clause/term-of-guarantee
Export Guarantee | Finnvera
https://www.finnvera.fi/eng/products/guarantees/export-guarantee#:~:text=By%20means
%20of%20an%20Export,performance%20bond%20or%20a%20warranty
https://vcci-hcm.org.vn/activities/certificate-of-origin/c-o-form-declaration/ ( C/O Form
and Declaration)