Products assurance prior to export

Exported products often have high requirements that must satisfy international
standards, thus when items are manufactured or processed, they must be examined and
appraised to get quality and quantity certificates.
A certificate is an important document for subsequent payment and dispute settlement.
In this case, the Certificate of Quantity, Quality, and Weight (C/Q) is not a necessary
document to be filed to Customs, and the buyer is not required to have one.
Charterer and Booking
The party in charge of chartering the ship is 19-8 mechanical JSC, which pays the
transportation charges to Yangon Port - Myanmar according to the agreement of the two
parties by CIF (Incoterms 2020). If the freight is included in the price of the products, 19-8
mechanical JSC must pay the freight.
19-8 mechanical JSC chartered the ship KOTA NASRAT 0128S of PCL - Pacific
Container Lines with the expected departure date from Hai Phong-Vietnam export port of
January 26, 2021 to the import port of Yangon- Myanmar.
PCL Company - Pacific Container Lines was hired by 19-8 mechanical JSC to
undertake the entire process of transporting goods at the request of 19-8 mechanical JSC to
conform to the contract. Including the task of transporting goods from the warehouse of the
company 19-8 mechanical JSC to Hai Phong port, storing and performing chartering, loading
on board, ...
Insurance
The two parties have agreed to use the CIF (Incoterms 2020), so the seller is the
company 19-8 MECHANICAL JOINT STOCK COMPANY has the obligation to buy
insurance for the goods and provide insurance documents for the buyer, which is U MUTHU
company. & SONS TRADE COMPANY LIMITED
- Company 19-8 mechanical JSC chooses Bao Viet Insurance as the insurance provider:
• Address: No. 104 Tran Hung Dao, Cua Nam Ward, Hoan Kiem District, Hanoi.
• Phone number: (+84 24) 3826 2614
• Fax: (+84 34) 3825 7188
• Email: bvvn@baoviet.com.vn
- On January 21, 2021 in Hanoi: 19-8 mechanical JSC signed a type A insurance contract for
AUTOMOTIVE SPARE PARTS (BRAND NEW) shipment; LOOSE LEAF SPRINGS with
Bao Viet Insurance Company. Accordingly, Bao Viet Insurance Company is responsible for
damage assessment and compensation in case the transported goods are damaged. Amount
insured: USD 37,403.14 (110% CIF)

Customs clearance
According to CIF (Incoterms 2020), the seller is the company 19-8 MECHANICAL
JOINT STOCK COMPANY will have to be responsible for customs clearance for export and
pay related costs. The procedures are carried out as follows:
- Register Customs declaration
- Prepare documents for customs declaration, including:
• Commercial contract
• Commercial invoice
• Certificate of Origin
• Detailed packing list
• Bill of lading
• Cargo insurance
• Verified Gross Mass
- Because the shipment is classified into the green channel, it is exempt from physical
inspection of goods and from detailed inspection of the dossier.
- After being cleared, the Seller (Joint 19-8) conducts procedures to pay taxes and customs
fees, then gathers and checks the dossiers and saves them on the spot.
- Prepare an additional set of necessary documents/information to assist the Buyer in carrying
out import procedures (If necessary).
Delivery
- Information about shipping:
• Ship's name and number: KOTA NASRAT 0128S
• Departure port: Hai Phong, Vietnam.
• Destination port: Yangon, Myanmar.
- Delivery by sea, the goods owner prepare and do the following jobs:
• Based on item details, make a shipping registration table for the carrier to get loading
records.
• Contact the port for ship arrival and loading dates.
• After loading the goods onto the ship, receive the mate's receipt and exchange the mate's
receipt for a bill of lading with consignment function and a contract of carriage.
• Documents of ownership of goods, bill of lading (B/L) and is transactionable.
• Also includes bills of lading such as complete certification of goods, condition of packaging,
quantity of goods for transferable goods.

Procedure for payment of L/C

When the buyer receives the goods and the seller hands over the payment documents
to the bank. The issuing bank checks the payment documents, if it is consistent with the
provisions of the L/C, then makes the payment or accepts the payment. If the Bank finds it
unsuitable, it will refuse to pay and return the documents to the exporter.
- After delivery, the seller prepares a set of documents as required by the LC in Article 2 of
the contract with the request for collection, and sends it to the advising bank (BIDV).
- BIDV Bank checks and transfers the documents to the Issuing Bank (MICB), requesting
payment.
- MICB checks the documents. If the set of documents is valid, BIDV will notify the seller
and at this time, the seller will be paid by BIDV.
- MICB bank pays BIDV and issues payment to buyer/importer, money into bank account
opening L/C.
- The L/C payment process is completed.
Dispute (If any)
When one party is found to be at fault during the performance of the contract, the
affected party has the right to claim compensation.
Subject to Article 8 of the contract, All disputes arising out of or in connection with
this commercial contract shall be settled amicably by friendly negotiations. In the event that
an agreement cannot be reached, the two parties may submit to arbitration. Disputes will be
resolved by arbitration at the Vietnam Chamber of Commerce and Industry of the Vietnam
International Arbitration Center in accordance with Vietnam's procedural rules and taking into
consideration a number of international laws. The arbitrator's award is final and binding on
both parties. Arbitration fees shall be borne by the losing Party.
The complaint dossier set should be complete, valid and sent to the complained party
within the time limit for complaints prescribed by the Law applicable to this contract. The
complained party is obliged to settle the complaint in a spirit of cooperation and goodwill.