PREFACE

The economy of Vietnam is a developing planned-market economy. Vietnam's economy has experienced profound positive step forward, dynamic, and are gradually integrated, immersed in the world economy. We are ready to expand cooperation, to do business with all countries in the region and worldwide. Besides that Vietnam has become the 150th member country of the World Trade Organization (the WTO) this is the turning-point for the large Vietnam's economic development leads to the development of International Transport services. In this context, foreign trade in general and import-export in particular play an important role driving force for economic development. Importing a shipment from foreign countries to Vietam is very important. When I was admitted to practice in Inter-Uni Corp with the knowledge I have learned in the school auditorium during the past three years, I have seen the importance and necessity of the process of importing a product from overseas to Vietnam, so I decided to choose the subject report is graduation practice :" Process of importing frozen chicken meat products at Inter-Uni Corp" in order to understand deeply than about spearhead economic sector of Vietnam. Although I always try my best to finish this report .But with my limited knowledge and practical difficulties in collecting data so the report is completed. this report can not be avoided some shortcoming. I look forward to receive the comments of my instructor and friends to

The transaction with foreign countries is extremely important to replenish (provide) the goods that our country has no production facilities as well as produce and sell domestic goods abroad.Importing goods are subjected to the international transport services. So, the same to the other companies, International Union Logistic Service Trading Corporation (Inter-Uni Corp) are always striving to assert company's position. Moreover, the economy is taking our country industrialization-modernization, trying to step up(phat huy) promotion of scientific technical. Vietnam lacked a lot of material and technical basis(co so vat chat ky thuat) from machinery, equipment and production lines to build infrastructure. So import achievements in the world as a more practical significance in the economy today.

OVERVIEW ABOUT INTERNATIONAL UNION LOGISTIC SERVICE TRADING CORPORATION ( INTER-UNI CORP)

1.1

Corporate history and milestone of Inter-Uni Corp.

The trade beween countries more and more developed led to the demand of the market about forwarding services import-export products, as well as freight cagoes constantly growing. In fact that, many import-export businesses can not implement as well as bring their goods to foreign countries effectively and on contrary. The reason is the limit of profesional and expertise. Therefore the establishment of logistics service trading for delivery are necessarily. International Union Logistic Service Trading Corporation (Inter-Uni Corp) is one of the company was born under the above situation Inter-Union Logistic Service Trading Corporation is an organization with legal entity, independent business and take under the control of the State, used its own seal, independent record. International Union Logistic Service Trading Corporation was established in 06/2010 the certificate of business registration No. 0310072540 dated 15/6/2010 issued by Department of Planning and Investment of Ho Chi Minh City with details as follows: Company name: UNION LOGISTIC SERVICE TRADING CORPORATION Trading name: INTER_UNI CORP Office : 1B GROUND FLOOR, 123 TRUONG DINH STREET, WARD 7, DISTRICT 3, HOCHIMINH CITY, VIETNAM Phone: (08) 38249772 Fax: (08) 38249732

Tax code: 0310072540 Bank account no: 0721000516373 at Vietcombank Ho Chi Minh City Brach. Email: inter-unicorp@gmail.com The company is established at the end of the year 2010 with the initial authorized capital is 3 billione VND. Up to now the number of chartered capital of the company has up to 10 billion VND and is a reputation companies in Vietnam. The quantity customers use the service of company more and more increased, quality services providing more completed. The company officially went into operation nearly a year, its could be a period so short for a business can find a foothold in the market. However, This time also has an steady step in business strategy toward creating a team of professional staff is always to meet demand of customer. Under the situation of import-export business has more and more competitive, the company is always ensured business guidelines: "Prestige-Enthusiastic-Competitive prices". Thus, Inter-Uni Corp is considered one of the freight forwarding trading corporation well-operated in HoChiMinh City. Getting result today is subject to the company has a right step, reasonable combined with market expertise, appropriate business strategy to quickly create customer's trust. This is the most important to help company have more new customer in the future. Inter-Uni Corp. has gradually asserted its position in the market. 1.2 Corporate's mission When begin to operate, the company has oriented the business motto

Safety and quality. Anytime, anywhere.

- Operating of the company are mainly consultant, negotiation, draffting and signing of the contract, liquidation of foreign trade contracts, re-exports.... - Proving customs declaration services and freight forwarding import-export cargoes for customer.

-Shipping, forwarding import-export cargoes in domestic and foreign countries by sea, road and airway. - Getting the service entrusted import and export of goods to customers. -Besides that the company are also import fresh and frozen foods such as: chicken, buffalo, pork, etc... from Brazil, United States, Ustralia, Canada, India in order to distribute to domestic and foreign countries. Inter-Uni Corp is a young business potential, with a team of professional and dynamic staff. Company achieved tremendous progress in quality service.
1.3

Organizational structure Organizational chart

1.3.1

DIRECTOR

VICE DIRECTOR

ADMINISTRATIVE DEPARTMENT

SALES DEPARTMENT WAREHOUSING DEPARTMENT IMPORT-EXPORT DEPARTMENT ACCOUNTING DIRECTOR

DOCUMENTATION DIVISION

LOGISTICS DIVISION

From the diagram above, We can see organizational structure of the company as a system closely link. Head of the company are Director, under Director is Vice Director and departments. Overall Compnay are organized follow wide business model. 1.3.2 Departments and functions Parts of the comany are divided clearly, specifically. The staff are instructed directly of superior so activities business should be became easy. Import-export department is the main division of the company with young staff, progressive and creative spirit. Director

- Who is the head of the company with executive function both companies. - Who is the legal representative of the Company, is responsible before the law and

administering the daily business operations. - Autonomy in business operations in addition to strictly abide by the law. - Signing contracts with partners.
- Organizations implement business plans and investment plans of the company.

- Holding the finacial of the Company

[nm vai tro] get a role nm vai tro lanh ao grasp leading role

Vice Director

- Making period report and promote new plans to Director

- Operating the company on behaft of Director and preponsible before Director when he

is on business. - Evaluating business situation of the Sales Department - Business planing and marketing for the company - Who supports and implements decisions of Director

Administrative Department

- Organization recruiting new staff provide for production, business, conduct of labor

norms (nh mc lao ng), payroll staff in the company.

- Besides that Administrative department evaluates personel in order to inform to

Director, also provides stationery esential to departments. Sales Department

- Consult Director to build the business strategies, long-term, middle-term and short-

term development programs.

- Contact frequently and concern to customers, organize and update the databases of

customers, record and collect data in order to solve the claim of customers. - Plays an important role to create turnover and products consumption market for company. Making customer relationship and receiving feedbacks from customers. Import-export Department

- Transactions with customers, receiving and processing information file, hard words

and complete customs declaration, contracts and liquidation of import records.

- Implementation and development customs declaration services and freight forwarding

import-export products for customers towards specialization, fields diversification, many types of company and develop selectively. Accountant Department

- Sales Department is responsible for income and expenditure balance, control cashflow and financial planing process in each stage. - Accountant Department manage income and expenditure, salary, payment in advance, bonus to employees. Providing timely financial to departments, especially to Sales Department. Warehousing Department

1.3.3 Organizational chart and personel structure

C H A R T O F P E R S O N E L S TR U C TU R E ( S o u r c e s o f A d m in i s t r a t ive D e p a r t m e n t ) H ig h s c h o o l C e r t ifi c a t e 1 2 .5 % P o s t -g ra d u a te 10% B a c h e lo r D e g r e e 2 2 .5 % V o c a t io n a l C e r t ifi c a t e 40%

A s s o c ia te D e g re e 15%

There are 8 people have Post-graduate degree in charge of key positions to operate and manage the entire operations of the company. 18 people have Bachelor degree is working in various departments. 12 people have Associate degree and 32 people have Vocational Certificate focus on warehousing, factory, and logistics division.

Remaining 10 people have High-school certificate mainly in factories and complex parts of the company. The company now has 80 employees active and experienced rapid adaptation(thich ung) to the environment, qualified and skilled workers is high, with a high sense of responsibility to meet all customer requirements.

1.4

Corporate's growth in 2010

Business overview in 2010

QUOTA Turnover Expenditure Profit before tax Profit after tax

2010 1.324.938.914 622.880.710 702.058.204 551.543.653

( Sources of Accounting Department)

Despite was only established a year but turnover of the company activities very strong growth. 2010 is a year with the economic crisis has effected to Vietnam but Inter-Uni Corp has maintained the growth level. It means that companys strategy and planning is very effective and positive.

1.5 Services and clients

Clients in 2010 Market Brazil Ustralia United States Canada India Another market Volums 155.901.645 80.562.278 199.395.007 95.256.659 82.555.400 59.415.887 % 23.16 11.97 29.62 14.15 12.26 8.84

The policy of the State is encouraging export and limitting import, but in fact that recents years export quota of our country are less than import quota. United States and Brazil are always the potential markets in import goods. Besides that many large markets such as Canada, Ustralia, India also have large quota but it not equal. These markets is large but turnover got from it very limited. Therefore the question we need businesses to reach out(dat ra) is how to expand trade relations with these markets. Getting the result market structure can more balanced, and divided it among more than market 1.4. Corperate orientation - Company will expand more domestic and foreign branch as: Singapore, Thailand, Nha Trang, Da Nang...
- Compnay will gain higher market share. Increase of market share will require

introduction of new offers and services, optimization of internal processes and the

work of delivery chain, personal responsibility of truck drivers and logistics specialists, active work with customers etc. - Company will develop cost-effective transportation rates while reducing overhead, total inventory, and overall cost-per-order processing by working closely with their transportation provider. Establish a two-way relationship with carrier to frequently share best practices , issues, and opportunities. - Create long - term relationship with many partners such as Commodities Internationla Inc, Sellari Enterprises Inc, Interra International Inc,...besides looking for new potential suppliers. - Ensure quality, price, delivery day as well as belief of customers. - Company support clients across operations, corporate's finance, organization, and sales and marketing.

II. PROCESS OF IMPORTING FROZEN CHICKEN MEATS AT INTERUNI CORP

Our country has many sea ports system consists of 114 large and small ports, located along the coast from north to south as the ports of Haiphong, Saigon Port, VICT, Tan Thuan, Cat Lai...Currently, according to statistics, around 95% of the total volume of goods traded internationally are transported by sea. Therefore importing a shipment from foreign countries to Vietam by sea is very important As a company specializing in providing goods and logistic services, Inter-Uni Corp has organized the implementation of procedures and professional delivery of goods imported by sea very tight, professional save costs and time. The following is a process of importing goods in which companies representive for clients to implement contract. 2.1 Receipt of customer enquiry Inter-Uni Corp is operating in the name of logistic services compnay. Customer is THUAN PHAT DAT IMPORT-EXPORT COMPANY LIMITED (Address: 25/6/3 TA16 STREET, KP3, THOI AN WARD, DISTRICT 12, HI CHI MINH CITY, VIETNAM) Two parties have cooperated together many times, multiple shipments delivered successful, safe and effective. In the spirit of mutual trust, both parties have agreed a new shipment, Inter-Uni Corp is hired service so company undertake the service and received a service charge. This service is done on the basis of commercial contracts signed between customers and Exporter. 2.2 Contact with the Seller After shipped on board, exporter or foreign banks will send copy esential sets of documents to Inter-Uni Corp instead of customers throught mail to save time and money. Then we must examine carefully the contents of the documents to avoid

documents with content does not coincide with each other, and would be very complicated customs clearance procedures, customs will refuse registration of declaration and ask customs procedures explained and repaired until the documents coincide together. Sets of documents consist of: Sales contract, Commercial invoice, Packing list, Health certificate, Certificate of Origin, Certificate of Insurance, and Notice of arrival is sent by Shipping Line. Because Inter-Uni Corp pay by released wire so the Exporter will send original bill of lading to shipping line. After receiving set of documents by mail, documents staff of Inter-Uni Corp will print and check carefully sets of documents by examinging both of content and form of Sales contract, Commercial invoice, Packing list, Health certificate, Certificate of origin, B/L, Certificate of Insurance,..etc. Because of Inter-Uni Corp on behalf for customer, so if these documents have errors documentation staff of Inter-Uni Corp will confirm directly to Exporter in order to amendment and send original documents . After examing, documents are ok then will put information into custom declaration and make customs clearance. Examing set of documents is very important in the entire process of importing goods, because if documentation is accurate, uniform and valid delivery will help employees get the goods quickly, saving time and unnecessary costs such as cost saving Cont, storage charges, demurrage charge... So logistic staff should examine carefully documents as follow:

Sales contract: (see annex 1)

- Name and address of importer, exporter

- Commodity, Quantity, Unit price, Total amount, - Quality, Origin, Brand - Specification
- Shipment:

- Payment

- Documents required - Insurance - Arbitration - Penalty - Others Check the above have coincided with the details on the C/O, Invoice, Packing, B / L or Health certificate., etc.
-

Commercial Invoice:(see annex 2) Name and adrress of import, exxport No and date of Commercial Invoice and ship date Name of Port of loading, port of discharge Name and no of vessel Container no Commodity, quantity, unit price, total amount Signed of exporter

Check the above have coincided with the details on the Sales contract, C/O, Packing, B / L or Health certificate., etc. Commercial invoice which is the seller make for the buyer to know the total number of goods actually delivered. This is the documents required to pay for the goods of Seller. In particular, the date issue of commercial invoice have to show before or the same day of signing B / L, and if not then documents are not valid.
-

Packing list (see annex 3) Name and adrress of import, exxport No and date of Packing list and ship date Name of portof loading, port of discharge,

Name, No, Nationality of the vessel Commodity, brand, origin, packing of goods Container no Number of case, netweight, grossweight, Signed of exporter

Check the above have coincided with the details on the Sales contract, C/O, Commercial Invoice, B / L or Health certificate., etc.

Health certificate (see annex 4)

- Name and address of Importer, Exporter

- Plant number - Name of products - Number of packages in lot - Signed of inspector and district Check the above have coincided with the details on the Sales contract, C/O, Commercial Invoice, B / L or Health certificate., etc.

Certificate of Origin (see annex 5)

- Same to the Commercail In voice, Packing list, B/L

Bill of Lading (see annex 6 )

- Name and address of Shipper/Exporter, Consignee, Notify party - Date of issue B/L and B/L no

- Name of portof loading, port of discharge, - Name, No, Nationality of the vessel - Commodity, brand, origin, packing of goods - Container no

- Number of case, netweight, grossweight

Checking the name of the consignee which is very important because only who is shown on Consignee could receive cargo. Checking the charge is shown on B/L it is Freight Prepaid charge or Collect. If customer import by CIF terms then the charge is shown on B/L is Freight Prepaid. After checking documents on B/L consistency between the detail of Sales Contract, Commercial Invoice, Packing list, C/O.., etc logistic staff will bring set of photo documents to cutomer signed and stamped copy of original. This help documentation staff easy to make customs declaration. Logictic staff will take reference letter of customer: 3 sheets, 1 sheet to take the delivery order from shipping line, 1 sheet to do registration for Veterinary Certificate, 1 sheet to make customs clearance signed and stamped. Set of documents need to signed and stamped of customer.

- Sales Contract: 4 photo - Commercail Invoice: 4 photo - Packing list: 4 photo - B/L: 4 photo - Health certificate: 2 photo - Registration form for Veterinary Certificate: 3 sheets - Animal import license from DAH: 1 photo 2.1.2. Applying for Animal import license from DAH (Department of Animal Health) Documents staff of Inter-Uni Corp will arrange a dossier of application for Animal import license from DAH in order to have quota of importing.

A dossier consits of:

a. Application for import quarantine of animal products b. Certificate of business registration c. HACCP (Hazard Analysis and Critical Control Points) certificate of manufacturing facilities, food processing (certified copy of the business) d. Certificate of food permitted for consumption on the market (certified copy of the business) 2.1.3 Applying for automatic import licenses of The Ministry of Industry and Trade (MOIT) for later customs declaration.

A dossier of application for an automatic import license comprises:

a/ Automatic import registration application: 2 copies b/ Import contract: one copy (with the trader's true-copy seal); c/ Commercial invoice: one copy (with the trader's true-copy seal); d/ Letter of credit or payment document or written certification of via-bank payment (enclosed with a written request for via-bank payment certification): one copy (with the traders true-copy seal) e/ Bill of lading of the goods lot: one copy (with the trader's true-copy seal. The Ministry of Industry and Trade shall grant automatic import licenses to traders by certifying the import registration application for each goods lot. An automatic import license is valid for 30 days, counting from the date the Ministry of Industry and Trade gives its certification 2.1.5. Applying for Veterinary Certificate Sets of documents in order to registration for Veterinary Certificate include:

- Registration form of Veterinary Certificate: 3 sheet - Health Certificate: original - Animal import license: 1 copy - Sales contract: 1 copy

- Commercial Invoice: 1 copy - Packing list: 1 copy - B/L: 1 copy - License of the Ministry of Industry and Trade: 1 copy After that logistic staff will fill in sampling register to registration for foods. Staff of veterinary centre will inspect the sample of goods. Chicken meat shall originate from country in which avian influenza, The chicken meat must be produced from a poultry establishment which is regularly inspected by the veterinary authority and found free from contagious avian diseases and fit for human consumption. If it is safety they will give for logistic staff local Health certificate after 5 days. 2.1.6. Taking Delivery order (D/O) from the shipping line Delivery order is the document which details the delivery information of an item, is very important in distribution. A delivery order is an important document in 2 ways: it has full details of how the delivery will take place and, in some cases, warrants the release of a shipment from port or other authorities. The documentation staff ask accountant staff payment for lot of shipment after that Exporter will release for shipping line. The logistic staff must carry Notice of Arrival, Reference letter, copy of B/L to shipping line to take D/O. Due to the goods is received in freight-prepaid shipments so original B/L was sent directly from a consignor or shipper of a shipment to a carrier or freight forwarder to release Surrender Bill to the named delivery party. Logistic staff must contact with shipping line staff to finished related charges : fee D/O, terminal halding charge, power fee, container bet charge, demurrage charge,..etc. Every shipping line also have difference related charges such as: Maersk line - THC (Terminal Halding Charge) : - Power: USD 123.1579 ( VAT) USD 40/day

- D/O fee

420.000,00 VND 300.000,00 VND

- Sanitary container - Demurrage charges: + Free: + From 4th -6th day + From 7 days onwards

first 3 days USD 66/day USD 77/day

Zim Intergrated Shipping Services (VN) LLC. - THC (Terminal Halding Charge) : - Power: - Container bet fee: - D/O fee : USD 121 (VAT) USD 60/day 3.000.000,00 VND 420.000,00 VND 260.000,00 VND

- Sanitary container - Demurrage charge: + Free: + From 8th -14th day: + From 15th onwards

first 7 days USD 38/day USD 68/day

Staff of shipping line will examine the name and no of vessel, container and seal no,..etc. Especailly they will examine carefully commodity, specification to give free untill for lot of shipment. After finished verification, staff of shipping line will sign and issue a delivery order signed direct delivery for logistic staff. 2.2. Customs clearance 2.2.1. Pre-customs declaration

Set of document to registration for E-customs declaration consits of 1 sheet

- Delivery receipt customs dossiers

- Customs declaration: - GATT (if have 5 cont onwards) : - Reference letter: - Packing list: - Commercial invoice: - Sales contract: - B/L : - License of the MOIT: - Health certificate:

2 sheet 2 sheet 1 sheet 1 original, 1 copy 1 original, 1 copy 1 copy 1 copy 1 original 1 copy

Fill in and declare a E-customs declaration. Step 1: Fill in general information in E-customs declaration -

Name and address of Importer, Exporter Types of business License of the Ministry of Industry and Trade Date and contract no Commercial Invoice no Date of Commercial Invoice Bill of lading Payment currency and exchange rate Payment term ....

Step 2: Fill in the detail of import goods in E-customs declaration - Fill in enough information about goods, HS code, origin, quantity, unit price,..etc.

Step 3: Fill in the dossier attached to the E-customs declaration -

Bill of lading B/L no ETD (Estimated Time of Departure), ETA (Estimated Time of Arrival) of the

vessel Name and nationality of the vessel Name of the shipping line Name and adrress of the Exporter, Importer Port of loading, port of discharge, Container and seal no

Types of container .... License of the Ministry of Industry and Trade

- Fill in enough information about date and no of License of the Ministry of Industry and Trade, name of goods, HS code,Customs Office code quantity, unit price,..etc.

Sales contract:

- Date and no of contract - Name of Importer, Exporter - Fill in enough information about goods, HS code, origin, quantity, unit price, total amount,..etc. Commercial Invoice:

- Date and no of Commercial invoice - Name of Importer, Exporter

- Fill in enough information about goods, HS code, origin, quantity, unit price,..etc.

GATT (General Agreement on Tariffs and Trade)

- Fill in the GATT about ship date, date registration of customs declaration, HS code, commodity, unit price,..etc. Step 4: Inform the E-custom declaration to customs After type all information in E-customs declaration, document staff will confirm Ecustoms declarations to customs authorities.

Step 5: Get the results returned by customs - After receiving the electronic customs declaration from the business, customs authorities will send feedback to the business about number of declarations,

classification results, guides the customs procedures, ...etc. Classification results have 3 flow: green flow, yellow flow, red flow. - If the declaration is green flow: businesses print 2 sheet of the electronic customs declaration, signed, stamped of the business, carry to the customs registration officials stamped the customs clearance of goods. In this case, the registration officials for customs clearance. - If the declaration is yellow flow, business do the same to the green flow. - If the declaration is red flow: businesses print 2 the electronic declaration, signed, stamped of the business, together with import and export documents necessary to bring the customs. The statement will be processed through the stages of registration and taxfinal inspection to inspection of goods. In this case, tally officer for clearance of goods. As for import declarations: businesses have to print notices of tax to finish customs procedure. If the declaration is modified, companies have to print editing of the declaration, fill in the information before and after editing, to submit the declaration procedure. Step 6: Print customs declaration and continue the electronic customs clearance procedures Businesses print the declaration and the procedures followed by the electronic customs clearance procedures. 2.2.2. Customs clearance

2.3. Claims and settlement of disputes if any

In the process of delivery and receiving goods and takes the goods to private warehouse, if there are any losses or damages and faults detected of cargo belong to the Exporter or Shipper Inter-Uni Corp will invite SGS to inspect lot of goods. If the shipment is shorted weight InterUni Corp will calculate percentage of shorted weight, total amount and attached file send it to Exporter reference and solution. Inter-Uni Corp will take a picture and send it to Exporter and ask them compensation for goods as soon as possible to keep up with claims time. The company will claim the carrier in case of damages or losses and the faults belong to the carrier The company has the right to claim insurance company if goods object of insurance is damaged in the terms of insurance. Letter of claim must be attached evidence of damage, commercial invoice, bill of lading, insurance policy for comparison. 2.4. Liquidation of the contract