CHAPTER 4

IMPORT & EXPORT

PROCEDURES AND DOCUMENTATION
 EXPORT PROCEDURES

List responsibilities of exporter under CIF, Incoterms

2020; L/C payment
 EXPORT PROCEDURES

1. Require Importers to open L/C

2. Apply for license and other export formalities
3. Prepare export commodities
4. Pre-shipment inspection
5. Make a contract of carriage
6. Purchase cargo insurance
7. Implement export customs clearance
8. Deliver goods to carrier
9. Prepare documents and receive payment
10. Claim and dispute resolution
 1. Require importer to open L/C

Example:

Acceptable letter of credit to be issued in favor of the seller

within 7 days from the date of the contract accepted by the
buyer. The seller has option to ask for amendment within 3 days
of the receipt of original letter of credit.

 Urge importer to issue L/C according to sales contract

 Check L/C
https://www.letterofcredit.biz/index.php/2018/07/30/how-to-check-a-letter-
of-credit-as-an-exporter/
 1. Require importer to open L/C
Check L/C:
40A: Form of documentary credit
31D: Date and place of expiry
32B: Currency code amount
41D: Available with …. By….
42C: Drafts at …
44C: Latest date of shipment
45A: Description of goods and services
46A: Documents required
47A: Additional conditions
 2. Applying for export license

LIST OF EXPORTED OR ANNEX III DECREE 69/2018/ND-CP

IMPORTED GOODS REQUIRING
LICENSES OR UNDER GIVEN
CONDITIONS
Consolidate goods

3. PREPARING
Packing
EXPORT GOODS

Marking
 4. PRE-SHIPMENT INSPECTION

4.1 Self-certification
-Manufacturer’s certificate
4.2 Inspection by third-party agents
the goods conform to the requirements indicated by the
reference document (eg the pro forma invoice)
the goods are fit for their intended purpose and will be
adequately packed for shipment.
 4. PRE-SHIPMENT INSPECTION

4.3 Inspection by Government Authority

Department of Standards Metrology and Quality
Vietnam Register
Department of Food Hygiene and Safety
Department of Sanitory and Phytosanitory
 5. Make contract of carriage

- Using freight forwarding service

- Make a contract of carriage with NVOCC (Non-Vessel
Operating Common Carrier)
- Using ship broker to find a ship to charter
 Freight Forwarders (FF)
 What is the role of FF in transportation?

To facilitate the movement of cargo to the overseas destination on behalf

of shippers and process the documentation or perform activities related
to those shipments.
They advise shippers on the most economical choice of transportation,
book space, and arrange for pickup, transportation, delivery of goods and
also customs clearance
 NVOCC
 A NVOCC may be defined as an entity that provides ocean freight
services as a “carrier” albeit it may be with or without own or operated
vessels.
 The NVOCC accomplishes this by buying slots or space from a VOCC
(Vessel Operating Common Carrier) and reselling the same to their
customers who can be exporters or forwarders.
 NVOCC issues their own House Bill of Lading as a “carrier” and in doing
so undertakes the responsibilities of a carrier subject to of course the
terms, conditions and liabilities of their bill of lading.
 TYPES OF CHARTER

Liner Voyage Time

charter Charter charter
 TYPES OF CHARTER
Liner terms
 Ship is operated on one or more fixed routes, with
advertised, scheduled sailings
 A liner cargo vessel will accept any suitable cargo if space
permits. Most liners are container ships, or multi-purpose
vessels.
Basic procedure:
- Booking a shipspace, sign into Booking note
- Load shipment
- Make payment and receive B/L
 TYPES OF CHARTER
Voyage terms
- hiring of a vessel and crew for a voyage between a load
port and a discharge port.
- The charterer pays the vessel owner on a per ton or
lump-sum basis.
- The owner pays the port costs, fuel costs and crew costs.
VOYAGE TERMS
 6. PURCHASE CARGO INSURANCE

 Based on:
- Sales contract, L/C requirement, Incoterms
- Characteristics of commodities
- Type of vessel, route of shipment
- Product package
- Position of goods loaded on ship
 TYPES OF MARINE INSURANCE POLICY

(a) Institute Cargo Clause A: This policy covers all the risks of loss or
damage to goods. This is the widest cover.
(b) Institute Cargo Clause B: This policy covers risks less than under
clause ‘A’.
(c) Institute Cargo Clause C: This policy covers lowest risks.

War and Strikes, Riots and Civil Commotion (SRCC) clause is

excluded in all the above policies. These risks can be covered by
specifically asking for, paying additional premium.
TYPES OF MARINE INSURANCE POLICY
- Open policy
o Marine insurance policy in
which the insurer agrees to
provide coverage for all cargo
shipped during
the policy period
o Used mainly by
large exporter who ship by
sea routinely
 Voyage policy
o Marine insurance policy for
risks to a ship's cargo during
a specific voyage.
o Used mainly by exporters
who need to ship only
occasionally or only in small
amounts of cargo.
 7. EXPORT CUSTOMS CLEARANCE

Presented by Group 6
1) Customs declaration
Manually: Prepare a set of documents for customs clearance:
 Referral
 Customs declaration (2 copies)
 Export contract (photocopy, stamped as true copy -1 original)
 Commercial Invoice
 Detailed packing list (2 copies)
 Export license (if any)
 Import and export tax identification number paper (photocopy, stamped as
true copy) (1 copy) -presented when exporting goods for the first time=>
Bring it to the customs office for registration
 Electronic customs declarations:
 S1: Prepare documents such as manual declaration to get electronic customs
declaration information
 S2: Electronic customs declaration according to the criteria and standard
format and sent to the system of the customs authority.
 S3: Get feedback from the customs clearance system about the number of
declarations and the results of channeling
 Export Customs Clearance

2) Receive Order form and inspection level based on Risk Management System
Program.
+ Level 1 (green flow): Exemption from detailed inspection of documents,
exemption from physical inspection of goods
+ Level 2 (yellow flow): Check details of documents, exempt from physical
inspection of goods
+ Level 3 (red flow): Detailed inspection of records, physical inspection of goods
(whole or probability)
 Receive tax notices, signed and stamped customs documents or temporarily
release goods for export. (level 1, 2)
 Export Customs Clearance

3) Liquidation of declarations and export of goods:

 Green flow: email the HQ declaration to the border gate customs branch to
liquidate the declaration and export the goods
 Yellow flow: Bring the file to the customs branch outside the border gate for
inspection and stamp => transfer the stamped declaration to the border gate
customs for liquidation and export
 Red flow: Bring the file to the customs branch outside the border gate for
inspection and stamp => transfer the declaration with the stamp to the
border gate customs for liquidation and bring the goods and means of
transport to the specified location intended for customs inspection
 100% full inspection
 10% probability inspection
 5% probability inspection
 Export Customs Clearance

4) Obey the decision of the customs

+ For customs clearance
+ Allowing conditional clearance (paying taxes and performing other financial
obligations as prescribed by law, repacking, applying for more documents...)
+ No customs clearance
 8. SHIPMENT OF EXPORT CARGO

BULK CARGO
• Make cargo list then bring to Carrier to receive cargo plan
1

• Work with Port agency to acquire information about loading time

2

• Transport goods to Port

3

• Load goods onto board under supervision of Customs and Tally men
4

• Receive Master’s receipt (M/R)

5

• Present M/R and receive B/L from carrier

6
Receive Empty
container from C.Y
(Container yard)

Container
Packing goods into
container, sealed
under supervision of LC Cargo list
FCL
Customs authority
L

Transporting container Transporting

to C.Y, delivered to goods to CFS to
carrier
be consolidated

Received for shipment

B/L House B/L
9. PREPARE DOCUMENTS AND RECEIVE PAYMENT

 Meet requirements of L/C

https://www.letterofcredit.biz/index.php/2018/07/30/ho
w-to-check-a-letter-of-credit-as-an-exporter/
 10. CLAIM

Exporter Importer

Insurance

Authority
Carrier

Importer
Exporter

Claim
 10. CLAIM

Importer Carrier Insurer

• Late payment • Damaged • Insured risks
• Not provide goods due to • Risks caused
important lack of care by carrier 
information • Carrier errors Insurer will
• Not receive claim for
goods compensation
from carrier
 10. CLAIM

Exporter
• Low quality or insufficient quantity
• Unsuitable packaging  lower quality
• Lack of usage materials
• Late delivery
• Non delivery
SOLVING CLAIM

Seriously Respond as Cooperate to Using Be

consider soon as give consultancy responsible
claims from possible solutions service in in period of
partner need solving claim
 IMPORT PROCEDURES

List responsibilities of importer under FOB, Incoterms

2010; L/C payment
 IMPORT PROCEDURES

1. Obtain import license

2. Open L/C
3. Urge exporter to deliver goods and prepare storage
warehouse to take delivery
4. Make a contract of carriage
5. Purchase cargo insurance
6. Take delivery
7. Implement export customs clearance
8. Goods inspection
9. Make payment for the goods
10. Claim and dispute resolution
 1. Obtain import license

LIST OF EXPORTED OR ANNEX III DECREE 69/2018/ND-CP

IMPORTED GOODS REQUIRING
LICENSES OR UNDER GIVEN
CONDITIONS
3 types of license
- Import license
- License subject to quotas
- Automatic import license
Note: The issuance of the import license is subject to
specialized management of competent ministries.
 2. Open L/C

Application for L/C

Pay L/C issuance fee and L/C deposit
Deposit range from 0% to 100% L/C value
 3. Urge exporter and prepare warehouse

- Urge exporter to deliver goods by email, fax, phone…

- Prepare warehouse to take delivery
 4,5. Make contract of carriage and insurance

- Contract of carriage: same as for exporter

- Contract of insurance:
In case of Incoterms group E, group F and CFR, CPT
 6. Receive goods documents/ make payment

L/C?
Collection?
Remittance?
 7. Take delivery

2 ways:
Using forwarding service
Working directly with Port/ Airport authority to take
delivery:
+ Take goods from Port warehouse
+ Take goods directly from ship
 7. Take delivery

Before the ship arrives at the port

Before ETA: Collect information about ships, prepare
necessary documents
Upon receipt of the ETA: Prepare the means of collection;
Registration for testing, quarantine, quality control,
inspection
When receiving NOR: Exchange B/L for D/O
 7. Take delivery

Process of receiving goods

• Goods not packed in containers
• Goods packed in containers
• Legal documents initially collected
 7. Take delivery
Bulk cargo - not packed in container/ not stored in Port

 Register goods with the port, notify the customs

 Receive notification of arrival and give the port the necessary documents for
unloading (cargo manifest, stowage diagram, cargo hold details, etc.)
 Take the B/L and the introduction to get the delivery order – D/O at the
shipping company
 Receive goods and prepare necessary documents when unloading (receipt of
cargo survey, unloading record, letter of reservation, ROROC, inspection
record, certificate of shortage)
 7. Take delivery
Bulk cargo - not packed in container/ stored at the Port

 Entrusting the port to receive the goods

 Provide documents to the port of discharge
 Port of receiving goods from ship
 Shippers receive goods from the port
 Take the B/L, the introduction letter to the shipping company to get the D/O
 Pay the warehouse fee, get the receipt
 Bring the receipt, 3 copies of D/O with Invoice and Packing List to the ship
management office at the port to sign the D/O confirmation
 Bring D/O to the Logistics department for export procedures
 Clearing customs and transporting goods to a private warehouse
 7. Take delivery
Full-container load (FCL)
Full container ca
 Receive notice of arrival of goods, bring B/L, introduction letter to shipping
company to get delivery order (D/O)
 Bring the D/O to the customs for clearance, then bring all the receipts with
the D/O to the ship management office at the port to confirm the D/O.
 Receiving containers at CY yard
 Unloading from the container: At CY/ at the warehouse
 Return the container
 7. Take delivery
Less than container load (LCL)

 Bring the bill of lading to the shipping line or agent to take the delivery order
 Receiving goods at the freight forwarder's packing station (CFS)
 8. Import customs clearance

- Contact the shipping company (transport) for the delivery date

- Declare and submit customs declarations.
* Manual declaration: prepare and submit documents under customs dossiers
 Customs declaration of imported goods
 Commercial invoice – 1 original
 B/L – 1 copy
 Contract of sale of goods – 1 copy
 Other documents: Packing list, Import license (if any), customs value
declaration (imported goods for business), Certificate of registration for state
inspection of goods quality or Notice of exemption from state inspection of
quality, Certificate of origin...
 8. Import customs clearance

- Based on flows of goods (green, yellow, red), present the

goods for customs inspection
- Pay customs duties and fulfill other financial obligations
- Clear the goods and carry out post-clearance inspection
 8. Import goods inspection

Inspection of goods and containers may be required:

on arrival at the seaport or airport of first entry
at a third party site that has been approved by the
department.
Some goods subject to quality inspection by the
department.
For example:
Medical equipment – Institute of Medical Equipment and
Health Projects
 Quality/Quantity Inspection

Stations and ports:

 Before unloading – record of cargo inspection under SRWhile unloading
- damaged goods records broken COR
 After unloading - the receipt of goods with the ROROC vessel, the list
of goods lacking or excess compared to the manifestAfter the ship
leaves the berth – the representative of the shipping company issues a
certificate of missing goods CSC
Consignee
 Before and during unloading - letter of protest LOR
 After the goods have been unloaded - invite the inspection agency to make an
SR inspection report or CI inspection certificate
 Loss caused by peril covered – contact insurance company
 10. Make payment

For any methods of payment (T/T, M/T, collection or L/C)

importers need to check documents before making
payment
 Criteria of checking documents:
- Consistent
- Accurate
- Be accordance with contract or L/C
- Authentic
 11. Claim

o Seller
o Carrier
o Insurance company
 Documents in IEB

4.2.1 Documents of goods

4.2.2 Documents of insurance
4.2.3 Warehouse documents
4.2.4 Payment documents
Documents of
good
Invoice

 Commercial Invoice: A request from the seller that

requires the buyer to pay the amount of the goods

stated on the invoice.
 Proforma invoice: A preliminary bill or estimated

invoice which is used to request payment from the

committed buyer for goods or services before they are
supplied. A proforma invoice includes a description of
the goods, the total payable amount and other details
about the transaction.
Documents of
good
Invoice

 Other Invoices
 Confirmation invoice: signed by the Chamber of Commerce and
Industry of the exporting country
 Customs invoice: calculate the value of goods according to the tax
calculation price of the customs and calculate the customs fees.
 Consular invoice: certified by the consul of the buyer's country who
is working in the seller's country
Documents of
good
Packing list

 A packing list itemizes the contents of each package (box, pallets,

etc). It includes weights, measurements and detailed lists of the
goods in each package. The packing list should be included in
carton or package, and can be attached to the outside of a package
with a copy inside.
Documents of
good Certificate of quantity/ weight

Documents confirming the actual number of goods

delivered
Issuer: seller / inspection company
Content
 Certificate of Quality/ Inspection
Documents of
good
Certificate

Confirm the quality of the actual delivered goods in

accordance with the provisions of the contract

Issuer: seller/professional agency/inspection agency
Documents of
good Sanitary Certificate

Verification of the non-toxic status of a good for its

consumer
Issuer: Department of Quality Measurement,
Department of Export Goods Testing, Medical
Agency, Inspection Company
Commodity: Food
Documents of
good Veterinary Certificate

Certifying that the goods do not have germs

that cause disease in other animals or have been

vaccinated for epidemic prevention
Issuer: Sub-department of animal quarantine

Commodity: animals / derived from animals

Documents of
good Phytosanitary Certificate

Certification of goods that have been tested and

treated against diseases, poisonous mushrooms,

weeds
Issuer: plant protection and quarantine agency

Commodities: plants, herbs or of plant origin

Documents of
good Certificate of fumigation

 an approval document to indicate that shipment and shipping

materials have been properly fumigated. All the countries that

require the certificate will not clear any shipment without it.
 Commodities: rice, tea, cashew nuts, coffee, bamboo, rattan,

wood...
 After spraying disinfectant, the fumigation company will issue a

certificate
 Certificate of origin (C/O)

Confirmation of origin of goods from which

country / region, related to quality,
commercial value, import tax
State Issuer: usually Chamber of Commerce,
Ministry of Industry and Trade
 The Ministry of Industry and Trade has the right to issue C/O. This

Ministry authorizes a number of agencies and organizations to

undertake this work. Each agency is granted certain types of C/O:
 VCCI: issue C/O forms A, B…Import-Export Management

 Departments of the Ministry of Industry and Trade: issue C/O

forms D, E, AK...
 The management boards of EPZs and IZs are authorized by the

Ministry of Industry and Trade: issue C/O forms D, E, AK...

 Transportation
document
Bill of Lading

Function:
 Document of title to the goods described in the bill of
lading.
 Receipt for the shipped products.
 The agreed terms and conditions for the transportation
of the goods.
Issuer: Carrier
Transportation
document Bill of Lading
o Clean B/L and Unclean B/L
o Direct B/L; Through B/L; Multimodal B/L
o On board B/L; Received for shipment B/L
o To Order B/L; Straight B/L, To bearer B/L
o Consignee: To the order of Vietinbank
o Bill of lading under charter party: Charter Party B/L
o B/L surrendered; Seaway Bill
Transportation
document

Other transportation documents

 Cargo manifest: Prepared by shipping lines
 Delivery order – DO
 Stowage plan
 Original legal documents:
Minutes of ship tunnel inspection
Report on receipt of cargo- ROROC;
Cargo Outurn Report COR;
Certificate of Shortlanded Cargo CSC;
Letter of Reservation LOR
 Insurance Policy
Insurance
documents

 Drawn by an insurance organization to the insured, to

acknowledge a signed insurance contract, confirm the terms of
that contract
 Objectives: confirm the payment of premiums, claim insurance
claims
 Insurance
documents
Insurance Certificate
 Statement of coverage issued by the company that insures the
cargo.
 Provides a summary of your business coverage (cargo).
Chứng từ
kho hàng Biên lai kho hàng (Warehouse’s
Receipt)
Kho hàng cấp cho chủ hàng

Mục đích: Xác nhận kho đã nhận hàng để lưu trong

một khoảng thời gian nhất định với khoản thù lao nhất
định
Hàng hoá sẽ trao cho chủ hàng hoặc người thứ 3 do

chủ hàng chỉ định bằng cách ký hậu

Warehouse
documents Warrant
Warehouse provided to shippers
Purpose:
+ Confirm that the goods have been received for storage in the
warehouse
+ The goods will be delivered to the owner or a third person
nominated by the owner by endorsement
Consists of 2 parts: certificate of storage, certificate of pledge
 Payments

Bill of exchange (draft)

 Sight B/E: B/E which is payable as soon as it is presented for payment.
 Time B/E: B/E that allows a delay in payment
 Named B/E: B/E that is specifically designated for an individual or
organization whose name is written on the bill.
 To bearer B/E: B/E that does not have a specific name written on it 
anyone who holds the bearer bill of exchange can claim the payment.
 To order B/E: B/E that is payable to a specific person or their order. The bill
can only be transferred or endorsed to another party through a valid
endorsement by the payee.
Payment
documents

L/C: Letter of Credit

• Revocable/ irrevocable
• Confirmed
• At sight L/C / Deferred L/C
• Back-to-back
• Assignment
performance guarantee
Telegraphic transfer
Customs
Documents

 Customs declaration form

 Import/export license
 Certificate of inspection and certificate of hygiene
 Quality inspection certificate
 Certificate of origin (C/O)
 Consular invoice
 Customs invoice