Implementation of export sales contract:

1.Implementation of export procedures prescribed by state:

Pursuant to the Government Decree No 12/2006/ CD – CP of Detailing implementation of Trade Law regulations on
international buying and selling of commodities and agent activities including purchasing, selling, sourcing, outsourcing,
border-gate transfer, and transiting of commodities with foreign countries.
Article 3. Right for export – import
1. For Vietnamese enterprises without foreign direct investment (better known as enterprises):
Excluding products in the List of products subject to export prohibition, temporary export cease and those in the Lists of
products subject to import prohibition and temporary import prohibition, enterprises can export – import goods without being
dependent on their fields of operation as registered.
Business branches can export – import commodities as trusted by their holding enterprise.
2. For enterprises with foreign investment, foreign companies, and branches of foreign firms in Vietnam:
When carrying out trading activities within the scope of effect of this Decree, enterprises with foreign investment, foreign
companies, and branches of foreign firms in Vietnam, in addition to following the regulations as specified in this Decree, shall
implement regulations of other relevant laws as well as Vietnam’s commitments in international agreements that it has signed
or joined.
Pursuant to the law of current practice and international agreements, the Minister of Trade provides the roadmap and operation
scope of businesses as specified in sub-Clause 2 of this Article.
Article 4. Export – import procedures
1. For commodities of which export – import requires license, enterprises which want to export – import must have license
granted by the Ministry of Trade or relevant Ministries.
2. Exported – imported commodities have to qualify regulations related to hygiene, food safety and sanitary, quality as well as
suffer from investigation by relevant State agencies before entry or exit.
3. Commodities that are not included in the Lists of products subject to export – import prohibition, temporary export – import
prohibition and those not mentioned in sub-Clauses 1 and 2 of this Article have to follow entry or exit procedures at Customs
authorities of border passes.
With each particular item, in the specific time, will have to follow the specific provisions of the state / authorities on permits/
export procedures.
Example: rice commodities, period 2009 – 2010
According to Vietnam Food Association, to export rice commodity, the businesses must be licensed by the association. Permit
application:
- Foreign trade contract
- Certificate of business registration
- License of tax code
- Referral from business.
These documents were sent to Association’s office, the staff will check them. If there are enough conditions, they will permit
by stamping directly on original contract. This stamped contract has functions as export permit and out of value until deliver
entire commodity.
2.The earlier step of payment:
In each specific payment method, this work will be done differently.
a. Documentary credit: the seller need
- Prompt buyers to ask the bank to open LC in accordance.
- Check LC: after checking LC, if agree with it, the seller conduct delivery. On the contrary, immediately notify the
buyer and the opening bank to amend until appreciate.
In some cases, the sellers can accept wrong spelling in LC, for an instance: “Robusta” coffee is written “Robusia” in LC, this
type of error without amendment. But document set up need be written like LC.
b. Cash Against Documents – CAD:
The sellers remind the buyer to open trust account. After the trust account was opened, the seller need to contact bank to check
payment condition. Pay attention to name of required documents, issuer, number of copies… checked if appreciate, conduct
delivery.
c. Prepaid telegraphic transfer – T/T:

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The seller remind the buyer to transfer money enough and on time. When the bank announces “debit”, conduct delivery.
3.Preparation exported commodities:

 Companies producing export goods:

a. Producing companies need to study carefully market, produce commodities with quality, shape,… suitable with
consumer’s demand. The commodities need to be inspected, packaged, printed code carefully… to satisfy the provisions of
the contract.
b. Companies which produce export commodities but don’t want or can’t export directly the commodities, they can
delegate export. This matter is clearly stipulated in Articles 17 and 18 government decree No. 12/2006/ ND – CP:

Article 17. Export – import trusting and accepting trustee export – import
Enterprises delegate other enterprises to export or import or be delegated by other enterprises to export or import commodities
excluding those included in the Lists of products subject to export – import prohibition, temporary export – import cease.

Article 18. Export – import trusting and accepting trustee export – import under license
For products of which export – import requires license as specified in this Decree, trusting enterprises or trusted enterprises
must have export – import license before signing trusting or trustee contract.
 Companies specializing in import and export business:
a. These companies need to study supply resources, fully exploit the export commodity resources in various forms:
- Purchasing commodities by obligation, and purchasing outside the obligation.
- Direct investment to produce export commodities.
- Selling raw materials and buying finished products.
- processing
- Ordering commodities.
- Barter of commodities.
b. The government usually encourages export operations. This is clearly stated in the commercial law and the under
law documents.
Legal basis to bind the import – export business units and producer is the economic contract signed between them. There are
some common contracts:
- Processing deal contract
- Exchange contract
- Export trusting contract
4.Inspection export commodities:
Before delivery commodity, the exporter has obligation in inspection commodity about quantity, quality, weight,… if the
commodity is animal, it need to be quarantined.
The inspection and quarantine are done through two levels: grassroots level and gate. In which, the inspection in grassroots
level plays an important role. The inspection in gate is used to verify the result of grassroots level.
The inspection in grassroots was conducted by KCS but the unit heads are responsible for the quality of goods. Thus, besides
the signature of the department KCS, must have the signature of the head of unit.
The quarantine in grassroots is conducted by plant protection chambers or Veterinary stations, diagnostic – quarantine animals
centers.
In some cases, according to provisions of state or the request of the buyer, the assessments need to be conducted by an
independent assessment organization. Such as: Vinacontrol, Foodcontrol, Cafecontrol, Davicontrol, SIC, SGS, Adil
International Surveyors Co, Oversea Merchandise Inspection Company.

 The assessment procedure includes these follow steps:

1. Send dossier require assessment, it includes:
- Assessment requirements document.
- Contract and accessory of contract (if have).
- L/C and amendment L/C (if have).

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2. Assessment organization conduct inspection the commodity at field:
- Analyze sample in laboratory.
3. Assessment organization announces the result and give temporary certificate to make customs procedure.
4. Inspection hygiene of cargo holds.
5. Supervision shipment process:
- At manufacture, warehouse.
- At field.
6. The assessment organization provides official certificate.
If commodities need to be disinfected they must submit application to “disinfection companies – quarantine departments “for
disinfection. The owner of good will receive the official certificate after the commodity was disinfected.
5.Customs procedure:
Article 16: customs procedures
When performing customs procedures, a declarant must:
a. Make a declaration and submit the customs declaration; submit or present documents included in the customs file.
b. Take goods or means of transportation to the stipulated place for inspection of actual goods or means of
transportation.
c. Pay duties or perform other financial obligation in accordance with the provision of the law.
6.Rent transportation:

If import – export contract provide that the seller rent vehicles to transport commodity to destination (delivery conditions of
export contract are: CIF, CFR, CPT, CIP, DES, DEQ, DDU, DDP, DAF), the seller must rent vehicles.
If the contract provides delivery at importer’s country, the importer must rent transportations (delivery conditions: EXW, FCA,
FAS, FOB).
Charter and booking are complex, require experiences, information about price, charter – party. Therefore in many cases,
import – export business enterprises usually trust charter ship in brokers – procurement of ship.
In each particular case, the exporter can chose one of these follow means of charters:
- Liner
- Voyage charter
- Time charter
• Liner:
Liner shipping, is also called Booking Shipping Space, is traders through brokers ask ship owners or carriers to let traders
charter part of the ship in order to transporting cargo from this port to another port.
Relationship between charterer and ship owner is adjusted by a certificate ocean bill of lading. Terms of the bill of lading is
stipulated available by shipping agent.
 characteristics:
 Small parcels of traded commodities, the cargo are often raw, and have cover on it.
 The navigation line is fixed, it is based on the declaration of the shipping company, so we call it liner shipping.
 The time and schedule for the shipping is declared by the shipping company (if they do well the transportation
arrangement, they can schedule for every quarter).
 Liner shipping fee is not bargained, the fee has already been set by the shipping company. The company has already
set transportation cost table. Traders can look over it and accept the fee (in special case, traders can negotiate with shipping
company to have a lower fee).
 When booking shipping space, both sides do not have to negotiate, because ship owners have Bill of Lading (B/L),
in B/L already had regulations, which is like a contract. In B/L only has the signature of the captain, does not have the
signature of the ship renter.
• Voyage charter:
Voyage charter is an activity that the charterers hire a part of tramp or entire tramp from the ship owners to transport goods
between a load port and a discharge port. The freight will be paid to the ship owners based on their arrangement. Relationship
between charterer and ship owner is adjusted by Voyage charter party.
 Characteristics:

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 Chartering large quantity of goods, goods are often full of ship or nearly full (90%), and include ore, coal,
cereals….
 In voyage charter, beside bill of lading, they usually negotiate about transport conditions and freight to sign charter
party. The bill of lading in this case called charter party bill of lading, it is considered as a receipt, a legal document
completing the charter party. Its effect is different from the bill of lading‘s effect in liner charter.
 There is usually charter broker in voyage charter. Charterer will employ broker to find, meet ship owner to
negotiate, bargain and sign contract.
• Time charter:
Time charter is a contract for the hire of a ship for a specified period of time; the owner must ensure that the ship has enough
ability to do its functions. The charterer has permission to use the ship during this time and must pays for the bunker fuel,
fresh water, port charges, etc. After the rental period, charterer must return the ship in good technical conditions at port within
the specified time.
7. Delivery goods to carrier
 We export goods mostly by sea. In this case, the shipper has to do these things: establish cargo list, including :
consignee, mark, B/L number, description of cargoes, number of packages, gross weight, measurement, named port of
destination...Base on that information, the shipping line establish S/O.
(S/O: Shipping order : Is Inventory control document that is used to identify what should be shipped from the warehouse and
to whom and where it should be shipped. The shipping order usually accompanies the shipment, so that the recipient can
verify that the items listed were received. The shipping order can then be used to prepare an invoice or, in the case of a collect
on delivery (cod) order, can serve as the invoice. The information included on a shipping order is typically an order number
and date, shipping and receipt dates, a customer purchase order number, special shipping instructions such as "UPS" or
"overnight," the buyer's name and address, the shipping address (if different), and a list of the items ordered, shipped, and/or
back-ordered, including quantity and warehouse storage location. The shipping order may also include a space for the
recipient's signature).
And then establish cargo plan or stowage plan in order to put the cargo in order and to calculate relative fee. Generally, cargo
plan is not directly given to the shipper, the shipper need to ask the shipping line to let them see cargo plan, so that they know
when and where is their cargo loading, if the shipper notices something wrong they can ask a change.
The delivering and loading onto the ship is carried by the shipping line, and shipper bear all cost. But shipper should
have someone at the port to monitor, supervise all these steps and ready to solve any problem occurs.
In the process of loading goods onto the ship, tally man of the port, always monitor goods, base on the real quantity of
the goods loading onto the ship, establish Tally report, after the cargo loading onto the ship, Tally man will check and sign
their name on Tally report. On the ship, there also have Tally man, when the cargo already loading on board, Tally man will
tell in Tally sheet. The content of Tally sheet is the same with Tally report.
When the cargo already on board, the port and carrier establish report on receipt of cargo and cargo plan to show that
they already loading the cargo onto the ship for the shipper. The mate ( vice captain of the ship) give the Maste’s receipt to the
shipper to show that their cargo is already on board. In that form confirm packages, code the status of the cargo on board, port
of destination...
Base on Maste’s receipt, shipper will change it to get Bill of Lading, the most important thing is to get the clean Bill of Lading.
 If deliver by air or road, the exporter after sign the transportation contract ( with CPT, CIP...term), delivery goods
to carrier(depend on the contract regulation), and then, get the bill of loading.
In Vietnam nowadays, deliver cargo by air is carried by transportation company, forwarder,...ex: Vietrans, Gemartrans...so the
procedure carried by the shipper is less complicated, very simple. Like:
After the shipper contact with the forwarder.
 Or shipper bring their cargo to the airport, operation department of the forwarder with the airport staff receive
goods, organizing loading activities, measure, packaging, marking...
 Or the forwarder come to the storage of shipper to bring the goods to airport, do custom procedure, scale, measure,
mark...Base on proforma invoice delivered by the shipper and the result of measurement at the airport, establish MAWB

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 ( Master airway bill which is delivered by the airline to the whole cargo, forwarder receive the cargo and issue HWB ( House
airway bill issued by forwarder to every batch, give to every shipper.
 If deliver by railway, exporter or forwarder, or register of a car, loading the cargo onto the car, and give to railway
company, and then, get the railway bill of loading.
 Deliver goods by container:
There is two ways:
Deliver by FCL_full container load.
Deliver by LCL_less than a container load.
 Deliver FCL
The term FCL/FCL means place goods in a whole container, the sender and the receiver have the responsibility put the cargo
into the container and take the cargo out of the container.
The procedure to transport cargo by FCL:
 Container is supplied by the carrier or trader rent from a company which has container for rent, trader packing
goods into the container at their storage or at other place in their country, and then being checked by the custom.
 Depend on the agreement, or trader or forwarder bring container which is already checked to the port to loading
onto the ship.
 At the destination port, carrier will transfer container to their container depot or of the port.
 Consignee has to do import custom procedure and unloading the cargo out of container by their cost.
The responsibility of the shipper: bear all cost to bring blank container to the first place, where they put the cargo into the
container, loading cargo onto container, and unloading them.
The responsibility of the carrier: when the container already checked by custom from container depot or container depot of
the port, the carrier will bear have responsibility by then. The carrier has to loading container onto the ship, unloading
container and bring them to container depot. The responsibility of the carrier is over when transfer the container to consignee
at the container depot.
 Deliver LCL:
The term LCL/LCL means: the carrier or forwarder collect cargo and then put them in a container and have the responsibility
put cargo in and get them out of container.
These are procedures when deliver goods by LCL:
 Cargo of the trader was sent to the carrier at the Container freight station (CFS) which is appointed by the carrier.
 The carrier will put the cargo into the container by their cost.
 The carrier loading the container onto the ship.
 At the destination port, the carrier will bring the container to CFS and get the cargo out of container, and give cargo
the consignee.
The responsibility of the carrier:
Base on the LCL/LCL method, the carrier by their cost have to put the cargo into the container, loading the container onto the
ship, unloading the container at the destination port, get the cargo out of the container and give them to the receiver. The
responsibility of the carrier is over when transfer goods to receiver at CFS.
Deliver through LSP ( Logistics Service Provider):
Many company, and large corporation have tendency deliver goods through LSP, the process of deliver footwear to American
through LSP happen like this:
-The receiver send information about cargo certificate (PO) to LSP before the cargo was drawn out of the factory. The
information of the PO is transferred byEDI to the network of LSP, or be sent by file document or by fax.
-When PO is finished, the cargo sender send booking to LSP.
-LSP check the details of booking with the information of PO received. If they are fit, LSP confirm and provide booking
number to let the sender deliver cargo into storage. In reverse, LSP is checked again with the sender and the receiver of the
cargo.
-Sender deliver their goods with subsidiary documents, scanfile to the storage of LSP. LSP will check the document, compare
with the cargo, receive goods and scan article numbering on the carton box.

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-LSP will compare the article numbering when receive goods with scanfile of the sender in computer. And then, LSP will load
the information of article numbering on the network and send information about the goods which was delivered into the
storage on the same day to the receiver.
-LSP plan to draw goods out and notify to receiver, receive notice loading and transporting goods.
-LSP send booking to carrier.
-LSP put LCL into full container and send B/L to carrier.
-In 2-4 working days after the ship navigated, LSP send loading report to receiver by fax or EDI.
-In 5-8 working days after the ship navigated, the sender send documents to LSP, LSP check and send these documents with
B/L to receiver.
-On each month, LSP compare PO information they receive with real exported PO to specify with cargo batch has not yet sent
out, and inform the sender and the receiver.
This process help save 4.870 USD/container 40’.
8. By insurance for export goods:
When export on CIF, CIP or D ( Incoterms), the buyer have to buy insurance for the goods. To buy insurance for the goods,
need to do these things:
 Choose conditions to buy insurance:
 If sell goods on CIF or CIP, the seller have to buy insurance as they deal in the contract or base on L/C ( if they
have deal with that). If the contract or L/C do not mention about this, the seller just has to buy the insurance with minimum
condition (FPA or ICC) ).
 If seller sell by D group of Incoterms, seller has to deliberate clearly, and choose the conditions to ensure safety for
the goods and also economically.
 Make insurance request form:
Base on contract and L/C( if have) fill all these contents in the insurance request form:
 Name of the person who is insured.
 Name of the goods which need insure.
 The type of package, way to package and code of cargo which is insured.
 The weight and quantity need to be insured.
 The name of the ship or means of transportation.
 The place to lay the cargo ( on board, under hatch,...).
 The first place to transport, transfer and the place where the insured goods is received.
 The date when the means of transport which is insured start to leave the port.
 The value of the insured cargo and the insurance money.
 The terms of insurance.
 The place to get compensation money.
 Otherwise, the person who need to buy insurance for their goods has to notify the insurer other important situations
that they know to help the insurer judge risks.
 Pay insurance fee and get insurance certificate:
After send insurance request to the insurer, the insurer will identify insurance fee the sender has to pay, the exporter pay
insurance fee and get the insurance certificate (insurance lecture or insurance certificate), back endorsed and send it to the
importer. Notice: insurance certificate is an accomplished document, so they can not supplement any other information or
details after that. Especially, when pay with L/C, insurance certificate has to fit with all terms in L/C, if they are not fit, the
bank will refuse to pay money for the exporter.
9. Establish payment document:
After deliver goods, the exporter quickly establish payment document and send to the bank to ask for money of their cargo. The
requirement of these documents is exact and fit with the requirement of L/C about the contents and type ( if pay by L/C), if
use other payment, they have to base on the requirement of the contract or of the bank.
 Payment documents: including means of payment( bill of exchange is usually used) and shipping documents.
Like:

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 Bill of exchange.
 Clean bill of loading.
 Insurance lecture or insurance certificate ( if use CIF, CIP).
 Commercial invoice.
 Quality certificate of the cargo.
 Weight certificate of the cargo.
 Certificate of origin.
 Packing certificate.
 Quarantine certificate of the cargo( if the cargo has to be quarantined).
 When establish L/C documents payment need to pay attention to these points:
All these documents have to meet the L/C requirement: about number of forms, description of the cargo, time to establish, sign,
quantity, licensor,...
In reality, if in L/C has some errors about the cargo, if that error is not very important, so we do not need to correct L/C, but
when we establish documents, these documents must have some errors like in L/C, so that the bank will check that and see it
is the same and pay money for us.
When establish B/E to ask the buyer to pay money, the value of money written in the Bill of exchange is equal to 100% the
value in invoice and not over the L/C limit( including limited allowance). In case, L/C regulate the payment will be carried out
when the exporter show accompanied documents...( do not need bill of exchange), so the seller do not need to establish B/E,
except the paying bank require.
If the B/L is blank endorsed, the seller has to sign in the back of the B/L before send it to the bank.
If the weight of the cargo is over the weight regulated in L/C, the exporter has to ask the buyer about this before the seller send
all of these cargo to the buyer, if the buyer accept that, then the seller will loading all of their cargo onto the ship. The exporter
needs to establish 2 sets of payment documents:
-One set is totally fit with L/C to get the payment base on L/C payment.
-The second set is establish for the overweight cargo and will be paid on D/A or D/P or TT...
When these documents already, check it clearly, and then quickly perform to the bank to get the money.
10.Claim:
a. The seller claim:
When the buyer breach the contract, the seller has the right to claim, the record that needed to claim including:
-Letter of claim, the content of the letter: the name and address of the plaintiff, defendant, the legal basement of the claim(base
on with terms...which contract number...), the reason of the claim, the loss we got cause by the opposite side, and request for
solution.
-Some supplementary documents:
+The contract.
+Commercial invoice.
+Correspondent, fax...that both side use to exchange for information...
If want to make a claim about the authority organization, the documents we need is the same above.
b. When the buyer or authority organization make a claim:
If the seller receive the claim record form the buyer or authority organization, the seller need to seriously, quickly see these
records clearly, and then find the appropriate solution.
11. Liquidate the contract.

Implementation of import contract

1.Import procedures prescribed by the State
Particular commodities, at particular time, must comply with the particular regulations of Government/ relevant authority about
license/ process of import .
For example : frozen chicken in the period 2009 – 2010
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If we want to import this commodity, we need the license issued by Department of Veterinary ( according to circular No.
615/TY-KD). To do this, company has to prepare application of import and send it to Department of Veterinary by email :
[email protected]. Then we send the record to Department of Veterinary in Ha Noi by express, including :
- Application for registration of animal quarantine.
- Business registration certificate (copy notarized).
- License of relevant authority according to regulation.
If the record is legal, Department of Veterinary will reply to company by email. Company will print that email in 2 copies and
come to regional veterinary offices ( Ho Chi Minh in region 6, address in 142 Pham The Hien str., district 8) to stamp to
import license.
2.Implementation of the first step of payment
a. If the contract is specified that method of payment is L/C, company has to do following affairs:
- Finishing documentary credit application .
- Depositing to open L/C.
Some notes:
- Every bank has their own form, this is the form of ASIA COMMERCIAL BANK:
- After applying documentary credit application, importer has to deposit, pay fee to the bank, and wait the bank open
L/C as request.
b. If method of payment is CAD, importer will request the bank to open a trust account to pay money to exporter.
c. If method of payment is T/T, Remittance payment in advance, importer need to do remittance procedure according
to terms in contract.
d. If method of payment is collection or remittance – deferred payment, importer waits seller delivery goods before
conducting the payment.

3.Chartering means of transport

If the contract is specified that : commodity deliveries in exporter’s country and means of transport is importer’s obligation
( term EXW, FAS, FCA, FOB), the importer has to charter mean of transport.
Chartering is not simple and requires knowledge and information about price, charge, and terms of charter-party. So, importer
usually entrust chartering for broker – shipping companies ( Vietfrancht, Vitranschart, Vosco, “Gemartrans”, Viconship
Saigon,…)
According to particular circumstance , importer will choose one of following chartering:
- Liner
- Voyage charter
- Time charter
 Liner
Liner charter, is also called Booking Shipping Space, is traders through brokers or themselves ask ship owners or carriers to let
traders charter part of the ship in order to transport cargo from this port to another port.
Relationship between charterer and ship owner is adjusted by a certificate called ocean bill of lading. Terms of the bill of
lading is stipulated available by shipping agent.
Commodities have these characteristics:
 Small parcels of traded commodities, the cargo are often raw, and have cover on it.
 The navigation line is fixed, it is based on the declaration of the shipping company.
 The time and schedule for the shipping is declared by the shipping company (if they do well the transportation
arrangement, they can schedule for every quarter).
 Freight rate is not bargained, the freight rate has already been set by the shipping company. The company has
already set the table of freight rate. Traders can look over it and accept the freight rate (in special case, traders can negotiate
with shipping company to have a lower freight rate).
 When booking shipping space, both sides do not have to negotiate, because ship owners have Bill of Lading (B/L),
in B/L already had regulations, which is like a contract. In B/L only has the signature of the captain, does not have the
signature of the ship charterer.
 Charter procedure is simple, but the freight is high.

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 Voyage charter
Voyage charter is an activity that the charterers hire a part of tramp or entire tramp from the ship owners to transport goods
between a load port and a discharge port. The freight rate will be paid to the ship owners based on their arrangement.
There are many types of chartering:
• Single voyage: chartering to transport goods only one time between certain ports. After the completion of
discharging the cargo in final destination, the charter party will be expired.
• Round voyage: chartering to transport goods in going and returning turn according to the contract.
• Connective voyage: it can be single-connective or round-connective voyage. Chartering to transport goods with
many continuous voyages for one turn or both going and returning turn.
• Lumpsum: freight rate is calculated and paid according to capacity or tonnage of ships (name, quantity of cargo
loaded, and type of chartering not included in charter party. Freight rate is calculated and paid according to the goods’ weight
or other goods’ unit).
Characteristics:
• Chartering large quantity of goods, goods are often full of ship or nearly full (90%), and include ore, coal,
cereals….
• In voyage charter, beside bill of lading, they usually negotiate about transport conditions and freight rate to sign
charter party. The bill of lading in this case called charter party bill of lading, it is considered as a receipt, a legal document
completing the charter party. Its effect is different from the bill of lading ‘s effect in liner charter.
• There is usually charter broker in voyage charter. Charterer will employ broker to find, meet ship owner to
negotiate, bargain and sign contract.
• Freight is high, but procedure is complex.
 Time charter
The ship owner lets charter use the ship to transport cargo or sublease in specific time. Ship owner’s obligation is transfer
ship’s possession to charter and ensure “seaworthiness” of the ship during time of charter.
Charter’s obligation is paying charter fee and do business with this ship; until the deadline, charter has to retrocede to ship
owner in good technical condition at port and specified time.
4.Buying insurance
When buying commodity in terms of EXW, FCA, FAS, FOB, CFR, CPT, importer need to buy insurance for them. These are
some affairs need to be finished :
- Choose suitable term to buy insurance : importer bases on characteristics of cargo, packing, means of transport,… to
choose suitable insurance term : to ensure the safe of cargo, and get high economic effectiveness.
- Insurance application form: the same as implementation of export contract.
- Pay insurance fee and receive deed of insurance: after insurance agent calculates insurance fee, importer pays fee
and receives deed of insurance as request.
5.Customs procedures
Customs declaration procedures

When carrying out customs procedures for exporting and importing goods, the customs declarers must submit and present a
customs dossier at the headquarters of Customs Sub-branch and be responsible for legality and lawfulness of customs dossiers
and accurateness of declared contents on customs declaration form.

• Documents to be submited and presented

- The import goods declaration forms: 02 originals
- The goods purchase and sale contract or papers of equivalent legal value: 01 duplicate
- The commercial invoice: 01 original
- The bill of lading: 01 duplicate

• Documents to be additionally submitted for the following cases

- The packing list of goods (for lots of goods of many categories): 01 original, 01 duplicate

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- The import goods declaration forms (for cases applied according to GATT): 02 originals
- The import permit of the competent State body (for goods on the list of goods banned from import or subject to
conditional import):
+ Single importation: 01 original
+ Multiple importation: 01 duplicate, submit the original
- The certificate of origin (C/O) (for cases requiring the submission as prescribed): 01 original
- The entrusted import contract (if umdertaking the entrusted import):
01 duplicate
- The written registration for goods quality inspection or inspection exemption notice issued by the State quality
inspection agency (for import goods included in the list of those subject to state quality inspection): 01 original
- The written quarantine registrations issued by quarantine agencies (for import goods subject to quarantine): 01 original.
- When carrying out customs procedures for goods imported through seaports, the customs declarers must additionally
submit the delivery order (D/O).

Documents to be produced:
- The business registration certificate: 01 original
- The certificate of import/ export business code registration: 01 copy (duplicate or original).

Other regulations on declaration, documents included in the customs dossiers:

- The customs declarers may submit the certificate of origin 60 (sixty) days later; other documents belonging to the
customs dossiers (excluding customs declaration) 30 (thirty) days later as of the registration of customs declaration form in
case where they obtain the approval of the Heads of Customs Sub-Departments.
- Before the time the customs officers conduct the actual goods inspection, if the customs declarers made written requests
which are approved by the Heads of Customs Sub-Departments, they may withdraw the registered customs declarations for
supplementation and/ or amendment or replacements.
- The customs declarers may register the customs declaration for the import goods before the goods arrive at the border
gates within 15 (fifteen) days, later than this time limit the customs declaration is no longer valid. If goods are imported later
than this time limit, the declarer must register the other customs declartion.
- If the goods owners who regularly exports and/ or imports the same items of goods within a given period under the
same purchase and sale contract may use a single customs declaration (registered once) for carrying out customs procedures
for the exportation or importation of such goods items within the delivery time determined in the purchase adn sale contracts.
Inspection of the goods’ actual conditions

· Exemption from actual goods inspection:

- Conditions for goods owners to enjoy exemption from actual goods inspection: the goods owners have a record of
two year’ importation, who have not been handled for customs-related violations or have been handled for customs-related
violations within the sanctioning competence of the Heads of Customs Sub-Departments.
- The goods of the owners who meet the conditions for exemption from actual goods inspection: Equipment,
machinery, fresh and raw foodstuffs, goods requiring special preservation; goods stored in bonded warehouses, goods stored
in tax-suspension warehouses; imports to be taken into export processing zones, tax-suspension warehouses or other customs
preferences zones; liquid and bulky goods and goods items whose volume, quality and categories must be determined on the
basis of competent State bodies or expertising organizations; regularly imported goods; other goods stipulated by the
Government.

· Probability inspection of the actual conditions of goods of no more than 10% of goods lot

- The subjects applied this probability inspection consist of: The goods owners and the goods of the owners not
belonging to the subjects that meet conditions for exemption from actual goods inspections, shall have to be inspected 10% of
goods lot before carrying out customs procedures.

· Determination of the inspection rate

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- If the goods are packed in bales, the inspection rate shall be the rate of inspected bales.
- If the goods are packed in containers, the inspection rate shall be the rate of inspected containers or the rate of inspected
bales in each container.

· Inspection of the actual conditions of the whole export or import goods lots
- For the goods owners who have been more than three times handled for customs-related violations within two years as
of the date of carrying out customs procedures for import activities, and one year, as of the date of carrying out customs
procedures for export activities, with the level of each fine falling beyond the sanctioning competence of the Directors of
Provincial, inter-provincial, and munipal Departments.
- For the export or import goods lots showing signs of violation of the customs legislation.
Conditions for goods customs clearance
The customs declarers have to abide conclusion of board of customs and perform relevant obligations. These are conditions for
goods customs clearance.
- The declaration of the customs declarer or the results of the State inspection body or expertising organization, for goods
exempt from actual inspection.
- The results of the actual goods inspection by the customs office, for goods subject to actual inspection.
- The certificate of registration of State inspection of goods quality, which is issued by the expertising organization, or the
notice on exemption from State inspection of goods quality, which is issued by a competent State management body, for
imports goods subject to State inspection of goods quality.
- The expertise results, for goods requiring expertise.
- Export goods and import goods not subject to taxes collected by the customs offices, duty-free goods, processed goods,
and other special goods shall enjoy customs clearance immediately after there is the customs office’s certification of the goods
inspection results on the declaration forms.
- Export goods and import goods subject to goods clear immediately after the customs declarers pay taxes. Goods
enjoying grace days of tax payment cleared immediately on the tax notification of the Customs office.
6.Goods receiving:
According to the regulations of the state " transportation agents ( station, port) have responsibilities for receiving import goods
on transport means come from abroad, preserving the goods during the course of loading and unloading, warehousing,
storage and delivery for import enterprises according to delivery order of the transport enterprises (shipping lines, agents ...)
which has received such goods.
Thus, when goods arrives port, the shipping line will directly make deal with the port, then bringing goods to the safety
position: warehouse or yards. Goods owners must sign a contract to trust the port to do this.

Prior to the ship arriving, shipping agent or shipping company will send a " arrival notice " to the consignee, to inform them to
go to receive "Delivery order-D / O" at the shipping agent. When going to get D / O need to bring: Original B / L and a letter
of introduction of the unit. The agent retain the original B / L and giving 3 copies of D / O to the goods owner. Some agents
may charge a fee to receive D / O, the rates are not uniform. When having D / O the importer need to do procedures to
receive their goods quickly. Because if receiving late they will be charged storage fee and assume all risk of arising loss.
In case: the goods have already come yet but the document still not come, importers need to think carefully to choose one of
two solutions: continue to wait or send documents to the L / C issuing bank to ask for a guarantee paper of the bank to
receive goods while haven't have the B / L original yet.
Goods receiving procedures:
a. Get bulk cargo (The number is not large, not enough of a ship) or gutted container at the port (send by LCL / LCL method):

Goods owner go to the port or ship owner (if the shipping line has already rent the warehouse) to pay the storage and handling
charges, get receipt. Then bring: the receipts of storage, 3 copies of D / O, invoice and packing list, to the agent office of
shipping line to certify D / O, to find positions to put goods , the agent office of shipping line will save one D / O. Goods
owners bring the left two D / O to logistics department to make delivery note This department keeps one D / O and makes two
delivery notes for goods owners.

Bring two delivery notes to the store to view goods, making stock output procedures, separate cargo to wait for customs

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 inspecting, coming to port customs to invite to warehouse customs supervising goods receiving process. After customs
confirmed that "customs procedures completed" the goods are output of stock, then bring the goods out of port to the specified
location.
b. Get entire container, customs checking in the separate warehouse:

After carefully considering economic efficiency, goods owner want to get entire container, checking in the separate
warehouse, in this case there are something need to do:

Make an application for inspection of goods at separate warehouses, applying with the customs procedures registration
dossiers. Container only be taken to the separate warehouse when first registered with customs and the warehouse has been
recognized have enough quality and licensed by custom officer (now customs regulated that goods inspection will be made at
the border gate).

Make container borrowing procedures at shipping line, payment, deposits, paying handling fees, containers freight from the
port to the separate warehouse (if renting cars of the shipping company).
Bring the set of documents to the agent office of the shipping line to make procedures to output container out of container yard.
This set of documents including:
• D / O (3 copies) has signatures of the procedure registration stage customs officers, stamped "received the
declaration."
• Paid unloading fee and freight receipts issued by shipping line.
Container storage charges Receipts.
• Approved container borrowing application.
Agent office of the shipping line will keep one D / O. Finding the container at the container yard, checking the integrity of the
container and seal with yard worker. Get two copies of " carrying order " of the warehouse staff. Bring entire documents to
warehousing customs to customs officers inspect and certify the numbers of container and seal, declarations and carrying
orders. Exporting container from the yard, submitting one carrying order to port gate customs, the other one to port security
guards , bring the container to separate warehouse. Going to Managing department, the city customs department, to pick up
customs officers to check the goods. Finished goods inspection, if there are no problems occur, will be confirmed "customs
procedures completed"

c. Get entire ship or receive goods in bulk:

After receiving the D / O, applying document for custom officer , get ROR (Notice of readiness), delivery staffs conduct to
receive goods. Should have representatives of the following agencies before hatch is opened:
• Import enterprise.
• Representative of seller (if has representative office in Vietnam)
• Commodity inspection agencies.
• Ship representatives, agents.
• Supervision Customs and control customs.
• Port representative.

Insurance (if there are suspects about insured goods was damaged)
In the course of receiving the goods , delivery staffs must monitor the site regularly, update data every hour, every shift, every
day. Errors should detected in time to have appropriate treatment. Goods inspection agency sampling and analysing to give the
conclusion whether the quantity and quality is consistent with the contract or not. Insurance agent determine the level of
damaged, make “ survey report”; the port make” cargo out turn report”, besides that it also make “ Report on receipt of cargo”
and “ certificate of short overlanded cargo and outturn report”. Finally, after goods are completely delivered, it need to sign
the " delivery summarizing report."
7.Checking imported goods:
According to government regulation, when the imported goods go through the border gates it should be checked carefully.

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 To all kinds of imported goods, each agencies depending on their functions have to conduct the inspection.
• Traffic agencies (stations, ports) must check seal before discharge goods from the mean of transportation. If the
goods may have losses or be arranged not comply with the B/L, the traffic agency invite the assessment company to set
"assessment report". If the goods which transported by sea was lossed or damaged then must have " the report on receive of
cargo", and if there have collapses then must have" carry out turn report".
• Import business, as a party named on the bill of lading, have to made " letter of reservation" if suspect or actual
losses that are found, they must ask to make " Survey report" if the goods have actual losses, shortage, not asynchronous, not
in accordance with the contract ...
• Inspection organizations have to perform the tasks of inspection, if imported goods are animals and plants.
Imported goods must be inspected by commodity inspection organizations. If the import goods are found missing, damaged or
in short, import enterprises can claim an indemnity with proof from commodity inspection organizations.

8. Complaining:
If the import goods are found missing, damaged or in short, import enterprises can claim an indemnity with proof from
commodity inspection organizations.
Complaint is one of two ways to solve the disputes arising in foreign trade contracts. By complaining the concerned parties
can negotiate directly with each other to resolve the disputes.
The target of claiming for an indemnity is concentrated on the commodity supply parties, shipping corporations or insurance
companies in line with different degrees in economic losses
Complaining the seller:

The buyer may complain about the seller when the seller does not deliver or late delivery, unsufficent delivery ... (if there is
no basis to blame for the carrier) or the quality of the goods does not conform with of contract, bad packaging, wrong code,
not deliver or deliver late technical documentation.
Procedures and complaint documents:
Complaint form is made in writing: letters, fax, telex. If using fax or telex then must have confirmed letter.
Contents of complaint form:
• Name and address of the complaining party and the party was complained.
• Legal basis of the complaint (Contracts No ...)
• The reason for the complaint.
• Specific claims for the seller.

In the complaint document , there are also attached documents as evidence of complaints, usually include:
• Sale contract.
• Bill of lading.
• Survey report.
Complaining carrier:
Complaining the carrier when they do not bring ship or bring ship arrival late, when goods are lost, shortage, when the goods
have poor quality ... due to faults of the carrier.

Records of complaint including complaint form and other attached documents.

Complaint form is made in writing. The contents of the form include: Name and address of the complaining party and the party
was complained, the number of the contracts, the reason for the complaint, specific claims for the seller.
Attached documents:
• Carrying contracts.
• Bill of Lading.
• Tally sheet of the delivery party and the consignee.
• Report on receipt of cargo.

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• Carry out turn report.
• Certificate of short overlanded cargo and outturn report.
............and others documents.
Complaining the insurance companies:
The necessary documents for a complaint:
• Insurance contract or original insurance certificate .
• Original bill of lading.
• Copy of original invoice or cost invoices.
• Documents certifying the quantity and weight of goods.
• Calculating the amount of complaint mail.
Also need to attach following documents for each complaint case:

a. For goods damaged or lost:

The survey report issued by the insurance company or it's agent.
Carry out turn report( COR).

b. For goods was missed in entire package:

Report on receipt of cargo.
Certificate of short overlanded cargo and outturn report.
c. For general average:
Written notice of general average claim of the ship owner.
Calculation and allocation of the general average of math professors.
The other relevant documents.( Valuation form Average Bon. G.A. Guarantee).
d. For total average cargo:
Notice of the carrier to the receiver about the total loss.
Confirmation of the carrier for goods has been loaded in ship.
Carriers Complaint letter.
Complaint documents must be sent directly to the insurance company or it's agent as soon as possible but no later than 9
months (if claims damages relating to the responsibilities of third person) since goods were unloaded from the ship at the port
is named in the insurance contract unless otherwise agreed.
9. Payment.

Payment is primary obligation of the buyer in purchase process. Depending on the methods, the payment may very different.

If the contract specified payment by L / C then: after receiving set of the documents sent by the seller, the bank which open L /
C will check very carefully. If the documents are perfect the bank will pay money and inform the buyer, inviting them to pay
back for the bank, then the buyer get the documents to receive goods. If documentation is not perfect, then consult with the
buyer, depending on the seriousness to give appropriate treatment method.
10.Liquidate the contract:

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