CHAPTER 6

IMPORT/ EXPORT PROCESS

MS. Duong Dac Quang Hao

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 The objectives of Chapter 6
1. Understand the steps and work to be done after signing
INTERNATIONAL TRADE CONTRACTs

2. Understand the process of organizing the implementation

of export contracts

3. Understand the process of organizing the implementation

of import contracts

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6.1.1 THREE PRINCIPLES FOR IMPLEMENTING
INTERNATIONAL TRADE CONTRACTS

1 2 3
Really made the Right perform Co-operate
contract

3
 6.1.2 RESPONSIBILITIES FOR CONTRACT VIOLATION

Damages • Actual compensation must be paid

Punish
• 2 penalties are imposed: for failure to perform the
contract and due to late performance of the contract

Real • Repair defects of goods / Replace goods / Difference

performance
requirements compensation / ...

Suspension /
Suspension / • Depending on the severity of the violation
Cancellation
4
 01
Error
people
suffer

02
05
3rd
Force 6.1.3 person
Majeure error
RESPONSIBILITY
DUE TO
VIOLATION OF
CONTRACT

04 03
According
to the Decisions
waiver of State
agreement agencies
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Exporting
Process
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 6.2. EXPORTING PROCESS

Prepare the first Prepare export Checking, inspecting

stage of payment Obtain export goods exported goods
license (if any)

Exporting goods to Customs clearance Buy insurance for

Rent a vehicle
the carrier for export export goods

Make a set of Settlement of

Liquidation
payment documents complaint (if any)

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6.2.1 Prepare the first stage
of payment

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6.2.1 PREPARATION FOR THE FIRST STEPS OF PAYMENT

 Pay by L / C
Sellers need to:
- Remind the buyer to open L / C as required: The content
is correct with the contract, if there are any disadvantages
for the seller, it should notify the buyer and ask the bank
to open L / C for amendment.
- L / C inspection: After receiving L / C, L / C must be
inspected and the convenience of collecting such L / C
export goods. After checking L / C, delivery is appropriate.

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6.2.1 PREPARATION FOR THE FIRST STEPS OF
PAYMENT
 Pay by CAD
The seller should remind the buyer to open a trust account as
required; need to contact the bank to check the payment
conditions, pay special attention: the name of the documents to
be presented, the issuer, the number of copies ... if appropriate,
proceed with delivery.
 Payment in advance
Need to remind buyers to transfer money sufficiently and on
time.
 Postpay payment, Clean Collection, D / A, D / P
The seller must deliver the goods and then be able to perform
the tasks of payment.
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6.2.2 Applying for an export license

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6.2.2 PLEASE EXPORT LICENSE (if any)

Licenses are important legal prerequisites for conducting

other stages of each export shipment. In Vietnam, the
procedure for applying for a license has changed a lot in the
past time, towards an increasingly simple and convenient way.

 Depending on the type of goods, a license may be required

or not (Decree 187/2013 / ND-CP detailing the
implementation of the Commercial Law issued on November
20, 2013, takes effect from February 20). / 2014).
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6.2.3 Preparation of exports

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 6.2.3 Preparation of exports

Producing and collecting • For the production unit of export goods

export goods • For units specializing in import and export business

• Avoid improper packaging, leading to the importer refusing to receive goods, reducing
export prices, refusing to pay in cash, ...
Packing • It is necessary to have a good grasp of the type of packaging as defined by the contract
and the specific requirements of the packaging to select the appropriate packaging.
• General requirements: safety, beauty and beauty.

́
• Signs necessary for consignees;
• Signs instructing how to place, unload and store goods along the way from the place of
Signers code production to the point of sale;
• General requirements: bright, easy to read, do not fade, waterproof, paint / ink does
not affect the quality of foreign trade goods. 7
6.2.3 PREPARATION OF EXPORT GOODS

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6.2.4 Inspection and expertise of
exported goods

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6.2.4 Inspection and expertise of exported goods
■ The inspection system is conducted at 2 levels: BASE level and GATE LEVEL
■ Test methods : Testing and quarantine
Test
• Check quality, quantity, weight ...
• At the grassroots level: conducted by the product
quality control organization (KCS), playing a
decisive role. There must be a careful writing of
the unit head.
• At the border gate level: The inspection and
import-export inspection company
■ Independent assessment organization :
₋ FCC Inspection and Fumigation Company (fcc.com.vn)
₋ Vinacontrol Group Joint Stock Company (vinacontrol.com.vn)
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₋ Inspection Company for Coffee and Import-Export Agricultural Products
(Cafecontrol)
Quarantine
• If exports are animals, plants or foodstuffs,
further inspection of the possibility of spreading
the disease may be required.
• At the grassroots level: Plant Protection
Department / Veterinary Station, Animal
quarantine and diagnostic center.
• At the border gate level: The Department of
Animal Health and the Plant Protection
Department both have branches at the border
gates (international ports and stations) to verify
results at the grassroots level.
₋ Department of Agro-forestry-Fisheries Quality Assurance (NAFIQAD)
₋ Center for technical standards and quality measurement (Quatest 1, 2, 3)
8 (UK), UL (USA)
₋ SGS Vietnam (vn.sgs.com), TUV SUD (Germany), Intertek
 Goods Inspection Process
• Submit an inspection request: Written request for expertise; Contract + contract
accessories (if any); L / C and amendment L / C (if any)
1
• Inspection agencies conduct goods inspection at the scene
• Sample analysis at the laboratory
• Inspection of cargo hold sanitation (export of rice, agricultural products, etc.)

2 • Monitoring the export process: At the factory, warehouse; At the scene

• The inspecting agency shall notify the result and issue a provisional certificate to
carry out customs procedures (if required)
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• Official inspection agencies issue official certificates. If the goods have to be
disinfected, they must send an application to the "Fumigation Company - Plant
Quarantine Sub-Department" for sterilization. After the goods are disinfected, the
4 owner will get a certificate.
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 Some kind of Certificate
• Certificate number
́
• Certificate of Quality
• Certificate of Weight
• Quarantine certificate
– Animal product sanitary inspection certificate (SDAH level)
̣
– Plant: Phytosanitary certificate (Sub-Department of Plant
Quarantine)

• Hygiene certificate
• Certificate
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 Certificate number

QUANTITY : 840 bags in 02 x 40’ containers

Container No AMFU8756940. seal No 3163199
Container No CRXU9814217, seal No. 3163185
WEIGHT : We check-weighed 170 bags taken at random in the lot by platform scale and
a number of empties by proper capacity scale
Basing on the average weight of one bag found:
- Gross weight of one bag : 30.2 kgs
- Tare of one bag : 02 kg
- Net weight of one bag : 30.0 kgs
We computed the weight of whole lot:
Total 840 bags: - Gross weight : 25.368 00 kgs
- Net weight : 25.200 00 kgs
- Place of inspection At the shipper's warehouse, the laboratory and at loading time into containers
- Date of inspection: From Jan. 02. 2006 to Jan. 08, 2006
Quality certification
Hygiene certificate
 Bộ NÔNG NGHIỆP & PHẤT TRlỂN NÔNG THÔN MINISTRY OF CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM SOCIALIST
AGRICULTURE & RURAL DEVELOPMENT REPUBLIC OF VIETNAM Dộc lập - Tự do - Hạnh phúc
CỤC BẢO VỆ THựC VẬT PLANT PROTECTION DEPARTMENT INDEPENDENCE-FREEDOM-HAPPINESS

GIẤY CHỨNG NHẬN KIEM DỊCH THựC VẬT PHYTOSANITARY

CERTIFICATE
Gửi: Cơ quan Bảo vệ thực vật nưđc
TO: THE PLANT PROTECTION ORGANIZATION(S) OF

Certificate cum 1. Tên và địa chỉ người xuất khẩu:

NAME ANO ADDRESS OF THE EXPORTER
DIỄN GIẢI VỀ Lô HÀNG (DESCRIPTION OF CONSIGNMENT)
5. Nơi sản xuất:
PLACE OF ORIGIN
Sô' (No) ..01489.........

SOCIALIST REPUBLIC OF VIETNAM

phytosanitary
TRADE POINT CO., LTD
92 NAM KY KHOi NGHIA ST.. DIST 1, HOCHIMIW CITY TEL: 848 8217870 FAX: 648
8210639
6. Phương tiện chuyên chở:
:
DECLARED MEANS OF CONVEYANCE
BY SEA: MSC EDITH 0602A B/l NO MSCUVN 330310

2. Tên và địa chi người nhận: 7. Cửa khẩu nhập:

DECLARED NAME AND ADDRESS OF THE CONSIGNEE . DECLARED POINT OF ENTRY LATTAKIA, SYRIA
JAB BAN FOOD STUFF TRADING CO ; f • f Í v DAMACUS. SYRIA
TEL: 9631122 46443 FAX. 963 1122 21587
8. Tên và khối lượng sản phẩm:
NAME OF PRODUCE AND QUANTITY DECLARED

VIETNAM BLACK TEA, OPA 2

G.W: 25.388 KGS N.W: 25.200 KGS ONLY.

18. Ngày cấp:

•gUARANTIjjfc. NGUYEN DANH THACH

VICE DIRECTOR
Cục Bào vệ thực vật hoặc viên chức Kiểm dịch ihực vật của Việt Nam không có ưách nhiệm nào vé mặt tài chính liên quan đến giíy chứng nhận này.
No financial liability with respect to this certificate shall attach to Plant Protection Department of Vietnam or to any of its officers or representatives).
6.2.5. Rent transport means

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 6.2.5. Rent transport means
 Import and export goods of Vietnam are mainly transported by
sea.

 Hiring vehicles directly affects the delivery schedule, the safety

of goods and is related to many aspects of INTERNATIONAL
TRADE CONTRACTs.

 The chartering of cargo ships is based on the following 03

bases:
 Terms of INTERNATIONAL TRADE CONTRACT;
 Characteristics of goods for sale and purchase;
 Conditions delivery facility
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6.2.6. Purchase insurance

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 6.2.6. Purchase insurance
 Marine cargo insurance is the most common type of insurance in foreign
trade due to its many risks and losses.
 Buying insurance protects businesses' interests when there is loss and
creates a peace of mind in import and export business.
 When buying insurance for export goods, the insured should pay attention
to:
 Insurance should be purchased before goods leave the warehouse;
 Export under CIF: buy insurance under minimum insurance conditions.
 Export under FOB / CFR: Exporters must notify the importer early on
the day of loading the ship to buy insurance for the goods (at the latest
right before the goods damage and after the exporter has received B / L) .
 Buy voyage policy and cover policy. Vietnamese businesses often buy
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insurance for each trip.
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6.2.7 Doing export customs
procedures

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 Customs procedures of enterprises

Submit HQ
Take goods,
declaration; Pay taxes
PTVT to the
Customs Submit and and other
designated
declaration produce HQ financial
location for
declaration obligations
inspection
documents

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Customs procedures of customs officers

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Process of electronic customs clearance

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6.2.8 Delivery of exports
to carriers

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6.2.8 Delivery of exports to carriers

Export
goods Export goods
transported shipped by
by market consignment
ship

+ Bulk cargo + Exporting whole cargo,

+ Container cargo (FCL, whole tunnels or in large
LCL) quantities

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6.2.9 Making a set of payment
documents

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 6.2.9 Making a set of payment documents
After delivery, the exporter quickly sets up a set of payment
documents to submit to the bank to claim the goods.
Requirements of the documents: exactly and in accordance with
the requirements of L / C in terms of content and form (if paying
by L / C). If payment by other methods, it is required by the
contract or the bank.
Note when preparing payment documents by L / C: All documents
must comply with the requirements of L / C: number of copies,
description of goods, time of making, recording symbols, quantity,
... In fact, if in L / C there is a certain spelling mistake of goods, if
the error is not serious, it is not necessary to amend L / C, but when
making vouchers, it must be written incorrectly as in L / C. C, to be
accepted by the bank payment. 39
6.2.10 Settlement of complaints

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 6.2.10 SETTLEMENT OF COMPLAINTS (if any)
Buyer / relevant
Seller complained
authorities complain
•When a buyer violates a contract the •When a buyer or relevant
seller has the right to complain, a authorities make a complaint:
complaint dossier comprises: • If the complaint is received by
• Complaint, content of the complaint: the buyer or other related
address of the plaintiff, defendant, parties, the seller should
legal basis of the complaint (based on seriously, quickly study the file,
terms ... contract number ...) cause find appropriate solutions.
yourself, request resolution.
• Attached documents:
• INTERNATIONAL TRADE
CONTRACTs.
• Commercial invoice.
• Letters, electricity, fax ... transactions
between the two sides ...
• Complain to the relevant authorities
(similar records above).
6.2.11. Contract Liquidation

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 6.2.11. Contract Liquidation
 After the two parties have completed the contract of
import and export of goods, it is necessary to conduct
acceptance and liquidation of the contract in order to
terminate a contract that has been signed.

 Liquidation of the contract to redefine the obligations

and rights of the contractual parties have been
completed or not and the issues to be resolved after the
termination of the contract.

 In fact, international goods trading contracts are usually

not liquidated.
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Importing
Process
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 6.3. IMPORTING PROCESS

Applying for import Prepare payment

Urge delivery Rent a vehicle
license (if any) stage

Receive imported
Customs clearance Buy insurance for
goods from the Proceed to payment
import imported goods
carrier

Check imported Settlement of

goods complaint (if any)
 6.3.2 PREPARATION OF PAYMENT SECTION
 Pay by L / C
 Applying for L / C opening
 Execute deposit and open L / C
 After making the L / C application, the importer must sign the deposit and pay
the bank fee, then wait for the bank to open the L / C as required.

 Pay by CAD
Importers need to ask the Bank to open a deposit account to pay the exporter.

 Pay by TT prepaid
Importers need to follow procedures for money transfer in accordance with the
contract.

 Pay by collection or pay later

The importer waits for the seller to deliver the goods before proceeding with the
payment process.

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