| International University – HCMC VNU

School of Industrial Engineering Management

IMPORT PROCESS
ANALYSIS: A Case Study
Of Glass Importing Of
Long Cam Co., Ltd.
Import – Export Management
Lecturer: Nguyen Thi My Hanh

MEMBERS:
LE DINH KHANH
CAO THI MINH ANH
VU TRUONG GIANG
TRAN TRUONG PHAT
NGUYEN DINH MINH QUAN
NGUYEN DANG NGOC MINH
Table of contents
Preamble……………………………………………………………………………………………………. 1
Chapter 1: Introduction……………………………………….……………………………….…… 2
1.1. Briefly introduction of the company………………………….…….……………. 2
1.2. The role of import – export in the company………………………….………… 2
1.3. Objectives of the project…………………………….…………………………………. 3
Chapter 2: Import Process…………………………………………………………………………. 4
2.1. Overview about imported products………………………………………………. 4
2.2. The steps of importing products……………………….…………………………… 5
2.2.1. Step 1: Contract Negotiation…………………………….………….. 5
2.2.2. Step 2: Payment……………………………………………………………. 5
2.2.3. Step 3: Preparing the document and customs procedure 6
2.2.4. Step 4: Preparing the customs declarations form…………… 16
2.2.5. Step 5: Receiving the products at the port……………………. 16
Chapter 3: Process Analysis: Pros and Cons………………………………………………… 17
3.1. Advantages…………………………………………………………………………………… 17
3.2. Disadvantages………………………………………………………………………………. 17
Chapter 4: Solution and Recommendations………………………………………………. 19
4.1. Identify the possible reasons of above problems……………………………. 19
4.2. Proposed solutions for occurring problems……………………………………. 19
Chapter 5: Conclusion....…………………………………………………............................. 21
References………………………………………………………………….................................. 22
Appendix A: The documentations needed for importing products…….…….…. A1-9
Appendix B: Comparing Cargo Policy Coverage table……………........................ B1
Appendix C: Contribution form……………………………………………........................ B2
Preamble
Taking Long Cam Co., Ltd. as a case study, this study report is to once investigate the
whole import process, particularly glass importation, under the Vietnamese and
international laws. Based on the original documentation provided by the professional
Import-Export company, each departmental step in the process is analyzed and
summarized to fulfill the most comprehensive insight and knowledge of how an import
process is conducted.
However, the project is aimed at a higher objective as it puts to light the occurring
problems within the import process of Long Cam as well as suggests this company some
solutions along with each problem.

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Chapter 1: Introduction
1.1. Briefly introduction of the company
Long Cam Limited Liability Company (hereafter Long Cam Co., Ltd.) is a professional
manufacturer and supplier of inox products, formerly known as a small plant, located in
Bong Sao St., District 8, Ho Chi Minh city. It was not until 2017, Long Cam officially
registered to become a Limited Company, which not only serves domestic but also
exports to foreign markets. They also expanded to the second plant in Binh Chanh in the
same year. The product range includes windows, coffee filters, and other stainless-steel
products. They are committed in guaranteed high-quality supply and ISO 9001:2015
certified.
Long Cam’s production is strictly managed for consistent and high-quality supply from
raw materials to final product packaging. Both two factories of Long Cam are equipped
with modern technology and own the workforce, including young, enthusiastic, dynamic
staff and engineers, always heading to the innovation and professional working styles.
They have been recognized as one of the top 500 leading Vietnamese trademarks by
VUSTA(1) and earned a reputation for their high-quality products just two years after being
put to operation.

1.2. The roles of import-export in the company

The company devotes all its resources to focus on product development and domestic
sales, then they have the strategy of outsourcing importing and exporting. They have
enhanced the relationship with many companies who are specializing in importing and
exporting through annual cooperation.
Every year, the amount of Long Cam products exported to foreign markets of the UK,
Germany, and Russia is up to 30% of total revenue. While the materials indirectly bought
from domestic importers also make up a large proportion. Thus, both Long Cam and their
import-export partners gain the vast benefits.
______
(1) VUSTA: Vietnamese Union of Science and Technology Associations

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1.3. Objectives of the project
In this project, we aim at analyzing the import and export process of Long Cam Co., Ltd.
and the third-party company as well as identify chances and challenges occurring during
the process. Due to the constraints of time and resource of information, the report
focuses on the importing process, particularly the glass importation. According to Article
155, Commercial Law 2005, it is stated “Purchase and sale of goods by mandated dealers
mean commercial activities whereby the mandatory conducts the purchase and sale of
goods in his/her/its own name under terms agreed upon with the mandator and is
entitled to receive mandate commission” then the whole importing process and all
documents involved we are supposed to analyze is are under the name of Phu Linh Co,.
Ltd., which is the authorized importer conducting importing raw glass of Long Cam.

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Chapter 2: Import Process
2.1. Overview about imported products
The Long Cam window is considered one of the leading products of Long Cam beside
stainless-steel coffee filter and spoon. However, windows account for most of the
products that are exported to foreign markets by Long Cam. This product of Long Cam
benefits them an annual amount of up to 35% of the company’s total revenue (in 2019).
Windows are sorted into two categories based on the difference in their material’s
machining method. There are windows made of standard float glass and those made of
tempered glass.
- Tempered glass:
Tempered glass, also known as toughened glass, is a type of safety glass. The glass is
treated by heat or chemicals, which increase its strength, making it about four times more
durable than single strength glass.
The tempering process produces highly desirable conditions of induced stress, resulting
in additional strength, resistance to thermal stress, and impact resistance. Fully tempered
glass must have a surface compression of 10,000 PSI (Annealed is below 3500 PSI), and
heat strengthened must have a surface compression between 3,500 and 7,500 PSI.
- Float glass:
Float glass is an extremely smooth, distortion-free glass used in many window
applications. It also provides the material for many other forms of glass, including tinted
glass (heat absorbing) and laminated glass.
Float glass is made by pouring the molten glass from a furnace into a chamber with a bed
of molten tin. The process is sometimes called the Pilkington Process. The atmosphere
inside the chamber is carefully controlled. The glass floats on the tin and forms itself in
the shape of the container. It spreads 90 to 140 inches wide at a thickness determined at
the time of manufacture.
Both are available with sizes varying from (0.85m x 1.9m) to (1.2m x 2.3m).

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2.2. The steps of importing products
Long Cam Co., LTD determine to import glasses via their authorized dealer Phu Linh
Commercial and Product Co., LTD. Thus, in this process, we will investigate Phu Linh’s
importing process.
2.2.1. Step 1: Contract Negotiation
The negotiation starts with Long Cam Co., LTD, sending an email to ask Phu Linh
Commercial and Product Co., LTD, to import glass from PT.MULIAGLASS. Then Phu Linh
will contact PT.MULIAGLASS requesting for a purchase through email.
After receiving the email from Phu Linh, PT. MULIAGLASS will conduct a sales contract.
The content includes a total quantity of 3,963.2296 m2 of dark grey float glass, which will
be sold with the amount of $16,965.39 with the price term according to the CIF term in
the 2010 INCOTERMS and the payment method will be L/C at sight. The shipment time
will be between the 20th and 30th of March 2020 at Qui Nhon port.
After finish making the contract, PT.MULIAGLASS will send back a soft copy for Phu Linh
to check. If all the content is correct, Phu Linh will continue to open a letter of credit and
PT.MULIAGLASS will proceed to pack and ship the product.
2.2.2. Step 2: Payment
Due to the term of payment being L/C at sight, PT.MULIAGLASS will receive the money
as soon as all the necessary documents are presented to the issuing bank or the
confirming bank.
The L/C at sight payment method is requested by PT.MULIAGLASS to ensure both
parties complete tasks on their side. First, Phu Linh will apply to open a letter of credit at
the issuing bank. Then PT.MULIAGLASS will deliver the goods, and the documents will be
provided through the advising bank. After receiving and checking that all the documents
that were sent by PT.MULIAGLASS coincide with the set of documents named in the letter
of credit, the issuing bank will make the payment to PT.MULIAGLASS. Finally, the issuing
bank will request Phu Linh to make the payment and deliver the documents to Phu Linh
if accepted.

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 Figure 1: Summary of the L/C payment method
2.2.3. Step 3: Preparing the document and customs procedure
Phu Linh needed to prepare all the materials for the Customs to check before receiving
the package. The papers can be early requested as a soft copy from PT.MULIAGLASS for
Phu Linh to check whether all the content is accurate to the contract. The document
includes:
- Sale contract:
A sale contract is a contract between the seller PT. MULIAGLASS and the buyer is PHU
LINH CO.LTD according to the CIF terms in the 2010 incoterm with a total of 3,963,2296
DARK GRAY FLOAT GLASS 5 MM 3660X2140 MM has an amount of $16,935.39. When the
seller delivers the goods, the buyer is responsible for receiving the products at the
designated port of discharge (CIF Qui Nhon, VN). The buyer must pay the purchase price
to the seller in accordance with the provisions of the sales contract upon delivery.
In this sale contract, it includes:
 Contract date Feb 10th, 2020, which is the date the contract becomes valid.
 Number: 2112026260: the code for numbering the contract.
 Parties’ information: we have two parties: the seller and the buyer

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For the Seller:
 The name of the company: PT.MULIAGLASS
 Address: ATRIUM MULIA 8th FLOOR, JL.HR.RASUNA SAID KAV B10-11,
SETIABUDI JAKARTA 12910 INDONESIA
 Telephone number: 02152907021-7024
 Legal representative: Mr. Wijono - General manager marketing
For the Buyer:
 The name of the company: Phu Linh commercial and production Co. Ltd.
 Address: Lot 15, Hoang Van Thai Street, Dong Da Ward, Binh Dinh Province,
VN.
 Name of goods and major specifications: DARK GRAY FLOAT GLASS 5 MM
3660X2140 MM
 Methods to denote quality: EXPORT STANDARD
 Content of a quality article:
 Inspection of quality
 Place of inspection: place of manufacture (Indonesia); place of delivery
(Any Indonesia port); place of destination (Qui Nhon port);
 Certificate of quality: LC at sight
 Quantity: 3,963,2296(+/-3PCT)
 Packing: Export packing quality
 Delivery:
 Time to delivery: FEB, LSD:20/03/2020
 Before a specific date: Before March 31st
 Port of delivery: Any Indonesia port
 Port of discharge: Qui Nhon port

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  A few notes in the contract:
 Partial shipment is not allowed. The seller must deliver to the buyer in 1 time,
not splitting into many times because the amount of goods is not too large,
if delivered in multiple shipments, it will be difficult to control each one and
it is quite easy to lose the products.
 Transshipment is allowed. In transporting goods from company to port and
from Indonesia port to Qui Nhon port, there needs many kinds of
transportations. This method is applied in order to minimize costs for each
intermediary transport stage.
 Price
 Currency of price: USD
 Unit price: 4,2807
 Total price: 16,965.39 (+/-3PCT)
- Commercial Invoice:
Commercial Invoice is the receipts between the buyer and the seller (or the importer and
the exporter) to indicate the payment bounded by them. This document also acts similarly
as a Bill of Exchange (B/E) – a proof for making sure the buyer will pay.
Commercial Invoice serves as fundamentals to calculate the importing or exporting taxes,
which is essential for applying the Customs Declaration later.
Included in this document:
 Invoice number 4112024476
 Invoice date 27/02/2020
 Shipper information
 Name: PT.MULIAGLASS
 Address: ATRIUM MULIA 8TH FLOOR, JL.HR.RASUNA SAID KAV B10-11.
SETIABUDI JAKARTA 12910, INDONESIA
 Telephone no.: (021)52907021-7024

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  Represented by: Mr. Wijono/GENERAL MANAGER MARKETING
 Buyer information
 Name: PHU LINH COMMERCIAL AND PRODUCTION CO.,LTD
 Address: LOT 15, HOANG VAN THAI ST., DONG DA WARD, BINH DINH
PROVINCE, VIETNAM
 Shipment information
 Port of loading: TG.PRIOK JAKARTA INDONESIA PORT
 Port of discharge: QUI NHON PORT, VIETNAM
 Package type: 2x20’ dry containers
 Vessel name: LADY OF LUCK V.124N
 Sailing date: 02/03/2020
 Terms of payment: L/C AT SIGHT
 Terms of price: CIF QUI NHON PORT, VIETNAM - INCOTERMS 2010
 L/C number: ILC2001935
 L/C date: 20/02/2020
 Issuing bank: JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF
VIETNAM, BINH DINH BRANCH, VIETNAM
 B/L number: JKT000095600
 Shipping mark: MADE IN INDONESIA
 Detailed product information
 Product description
 Product name: DARK GREY FLOAT GLASS, THICK 5MM, SIZE:
3660X2140MM
 PCS/BOX: 23 PCS
 SQMT/BOX: 180.1486 SQMT
 Quantity: 22 BOXES

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  Total SQMT: 3,963.2296 SQMT (+/- 3PCT)
 Price
 Currency: USD
 Price/unit: 4.2807
 Total price: 16,965.39. Including:
Freight cost: 1,107.00
Insurance cost: 62.72
Other cost: 0
Total FOB: 15,796.67
 Country of origin: Indonesia
 Packing: EXPORT PACKING QUALITY
 Quality: EXPORT STANDARD
 Price terms: CIF QUI NHON PORT, VIETNAM - INCOTERMS 2010
 All other details and conditions as per PI no. 2112026260

Figure 2. Lady of Luck

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 - Packing list:
The packing list shows the net weight, gross weight, packaging method of goods, type of
goods, quantity, packaging specifications. Here we calculate some of the following:
Arrange the warehouse, arrange transport means, load, and unloading of goods using
specialized equipment such as machinery or hiring workers. Immediately after packing,
the seller will send immediately to the buyer packing list for the buyer to check the goods
before receiving goods. This document includes:
 Packing List NO: 4112024476
 Packing List Date: 27/02/2020
 Messrs: Phu Linh commercial and production co., ltd. Lot 15, Hoang Van Thai street,
Dong Da ward, Quy Nhon city, Vietnam
 Ship from: TG. Priok Jakarta Indonesia port
 Destination: Quy Nhon port, Vietnam
 Pack into: 2 x 20 ft dry container(s)
 L/C No: ILC2001935
 L/C Date: 20/02/2020
 Issuing Bank: Joint Stock commercial bank for foreign trade of Vietnam, Binh Dinh
branch, Vietnam
 Vessel: Lady of Luck V.124N
 Sailing Date: 02/03/2020
 B/L No: 000095600
 Shipping Mark: Made in Indonesia
 Description of goods:
 Product: Dark grey float glass, thick 5mm, size: 3660x2140mm
 PCS/Box: 23PCS
 SQMT/Box: 180.1468 SQMT
 Quantity: 22 boxes
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  Total SQMT: 3,963.2296 SQMT(+/- 3PCT)
 Total net weight: 46,926 KGS
 Total gross weight: 50,212 KGS
 Total volumes: 38.06 M3
 Country of origin: Indonesia
 Packing: Export packing quality
 Quality: Export standard
 Price terms: CIF Quy Nhon port, Vietnam – INCOTERMS 2010
- Bill of Lading (B/L):
A document of carriage of goods by sea made and signed by the carrier (PT. MULIAGLASS).
The carrier confirms that he has received a certain number of cargo for transport by the
ship and undertakes to deliver the goods to the person entitled to receive the goods at
the port of destination in good quality and in the full quantity such as the receipt. There
are three copies of B/L each for the consignee (Phu Linh), carrier (PT. MULIAGLASS), and
the banker (JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM).
Combined Transport Bill of Lading or Multimodal Transport Bill of Lading is used in cases
where the goods are transported from place to place by two or more different means of
transportation. Many organizations and carriers issue many types of B/Ls, but the most
popular and widely accepted is the "Negotiable FIATA Multimodal Transport Bill of
Lading", which is published by FIATA - International Federation of Freight Forwarders
Association. Because of the reputation of this FIATA, banks accept the Letter of Credit as
the payment method. Although this type of B/L is mainly used for Multimodal transport,
it is also used for single-carrier transportation, for example sea transport (from ports to
ports).
- Certificate of Origin (C/O):
Declares in which country the good is manufactured. In this case, this float glass is
manufactured in Indonesia. The C/O contains information regarding the product, its
destination, and the country of export: information of the parties, shipment information,
certification standards, description of merchandise.

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 Exporter's information:
 Name: PT.MULIAGLASS
 Address: ATRIUM MULIA 8TH FLOOR, JL.HR.RASUNA SAID KAV B10-11.
SETIABUDI JAKARTA 12910, INDONESIA
 Importer's information:
 Name: PHU LINH COMMERCIAL AND PRODUCTION CO.,LTD
 Address: LOT 15, HOANG VAN THAI ST., DONG DA WARD, BINH DINH
PROVINCE, VIETNAM
 Shipment information:
 Port of loading: TG. PRIOK JAKARTA INDONESIA PORT
 Port of discharge: QUI NHON PORT, VIETNAM
 Vessel name: LADY OF LUCK V.124N
 Departure date: March 2,2020
 Port of discharge: Qui Nhon port, Vietnam
 Certification standards: FORM D, ASEAN TRADE IN GOODS AGREEMENT ASEAN
INDUSTRIAL COOPERATION SCHEWE CERTIFICATE OF ORIGIN
 Place of issue: ISSUING OFFICE IN KOTA ADMINISTRASI JAKARTA PUSAT,
INDONESIA
 Origin criterion: RVC 88%
 Number and date of invoices: 411204476, February 27,2020
 Description of merchandise:
 Product name: DARK GREY FLOAT GLASS, THICK 5MM, SIZE: 3660X2140MM
 PCS/BOX: 23 PCS
 SQMT/BOX: 180.1486 SQMT
 Quantity: 22 BOXES
 Total SQMT: 3,963.2296 SQMT (+/- 3PCT)

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  GROSS WEIGHT: 50,212 KGM (where RVC is applied)
 NET WEIGHT: 46,926 KGM (where RVC is applied)
Certificate of Origin approval process
 Step 1: Access to http://ecosys.gov.vn system of the Ministry of Industry and Trade,
conduct online declaration
 Step 2: Get the serial number, wait to be called at the appropriate counter
 Step 3: Apply at the called counter. Here, officers receive, check records and
transfer to experts to handle
 Step 4: Issue a C/O number, receive C/O data from the Website
 Step 5: Signing and approving the C/O
 Step 6: C/O is stamped. Regulatory authority keeps a copy, a copy of a valid C/O
payment for the trader
- Certificate of Quality (C/Q): is a document that certifies that the goods are of a
quality conforming to manufacturers' or international standards. It is for the seller to
show his commitment to the buyer about the quality of the goods. It provides information
on package type and condition, which must be of seaworthy and export quality, along
with gross and net weight, measurement, total quantity, total measurement, number of
containers.
- Certificate of Insurance: contains information on types and limits of coverage,
insurance company, policy number, named insured, and the policies’ effective periods. In
this case, the insurance company is PT.AIG Insurance Indonesia, the assured here is
PT.MULIAGLASS, the amount insured is $18661.93, which is 110% of the CIF price value.
Place and date of insurance is added, which is on 28/2/2020 in Jakarta.
Due to the CIF price term, PT.MULIAGLASS is responsible for purchasing the insurance of
the goods. First, PT.MULIAGLASS will contact to PT.AIG Insurance Indonesia to purchase
insurance. Then PT. AIG Insurance company will return an insurance claim form for
PT.MULIAGLASS to fill in the information of themselves, information about the goods,
insurance claims, and other information. After filling in, PT.MULIAGLASS is required to
send back a copy of the insurance claim to PT. AIG Insurance company, and PT. AIG

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Insurance company will send the insurance contract to PT.MULIAGLASS to sign and pay
the service fee given by PT. AIG Insurance company.
In L/C at sight, clauses, special conditions, and warranties as per marine open/cover
annual policy includes:
 INSTITUTE CARGO CLAUSE (I.C.C) 1/1/1982
 INSTITUTE WAR CLAUSE 1/1/1982
 INSTITUTE STRIKES CLAUSE 1/1/1982
 INSTITUTE CLASSIFICATION 1/1/2001
Below is the comparison of three types of Institute Cargo Clause 1982, which is applied
only for sea cargos, and each type has some factors that differentiate them from the rest.
The mission is to decide which I.C.C. to use for maximum insurance for the products and
safety for both parties.
Therefore, I.C.C. A is the best choice for this case because the goods are fragile glass and
only I.C.C. A accepts payment for risks such as breakage, steaming, contamination, and
nearly any other type of loss.
- Certificate of Fumigation:
The pest-control certificate is provided by RESOUR INTERNATIONAL to certify that all
wooden packaging materials in the containers are fumigated and pest-free. Information
of buyer and seller, shipment details, information on LC (if any) must be included. Finally,
the condition of containers, type of fumigant, and the dosage is added. Most distributors
use wooden bales to pack glass-related products, so a fumigation certificate, in this case,
is absolutely necessary.
- The conformity certification registration: The registration is sent to Vietnam
Control (VIF) to certify the product to correspond to the National Technical Standard and
the National Technical Specification.
After finishing preparing all the necessary documents, Phu Linh will continue to proceed
to the customs procedure by filling the Customs declaration form. Then Phu Linh will
receive the package and transfer them to the warehouse.
2.2.4. Step 4: Preparing the customs declaration form

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After Phu Linh opens the letter of credits, PT.MULIAGLASS will receive the payment after
they have sent the documents to the advising bank. Then PT.MULIAGLASS begins to pack
and ship the goods. When the goods arrive at Qui Nhon port, Phu Linh needs to complete
the Customs procedure before receiving it.
The Customs procedure includes preparing the documents, opening and filling in the
Customs Declaration Form, and paying the import taxes. The papers needed to prepare
are the original copy of the product declaration form (or the packing list), the commercial
invoice, the sales contract (can certified true copy), bill of lading (can certified true copy),
import licenses, and the origin copy of the delivery order.
After all the documents are ready, Phu Linh can fill in the customs declaration form online
and receive the form number and the form result right after. With the green channel form
result, Phu Linh only need to pay the import taxes and other costs incurred. Finally, Phu
Linh will print out the bar code of the form at the General Department of Customs and
bring it to the Customs to complete the procedure. At the Customs, the Customs staff will
scan the code and sign the form then the process is completed.
2.2.5. Step 5: Receiving the products at the port
After completing the Customs procedure, Phu Linh needed to bring the Delivery Order to
the port office to pay Equipment Interchange Receipt (EIR) print bill and to receive the
goods delivery notes and the container borrow receipt. Then Phu Linh will give the driver
the D/O, EIR, and the container-borrow receipt for the Customs gate supervisor to check
to drive in.
Before moving the container, Phu Linh will check for the quantity and quality of goods,
whether the same condition as written in the documents. After reviewing and make sure
that all the products are adequate and the condition is as same as written in the
documents, the driver will proceed to transfer the container to Long Cam warehouse to
deliver the goods then return the container to the port.

Chapter 3: Process Analysis: Pros and Cons

3.1. Advantages

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 - Lower the focus in the import-export process: All of the import and export
procedures (request for export license, asking for a letter of credit, booking blank
container, insurance, and so on) are done by a third-party company. Therefore, Long Cam
Co., Ltd. can save lots of time as well as intellectual resources. Instead of managing a small
import-export department, the company can concentrate 100% of their resource span
into manufacturing and innovating their products to gain greater revenues.
- Money saving: Partner companies whose agency has a professional workforce in
this feel. In addition, they usually have good relationships with Import-Export related
agencies such as ports or customs → The company can shorten the procedure, so they
can avoid any expenses relating to intermediaries.
- Lower risk: the import-export operation itself contains many risks. Errors in
procedures, documents sometimes cause the company to have many extra costs. Thus,
by sharing the responsibility to its partners, Long Cam Co., Ltd. can minimize those risks.
- Regional benefits: Many industries when exporting to ASEAN markets enjoy a lot
of preferences, especially on taxes. In recent years, Vietnam's exports to the ASEAN
markets have grown rapidly. Vietnam trade agreements with ASEAN countries have been
opening many opportunities for exporting enterprises.
3.2. Disadvantages:
- Lack of owned documents: The company cannot directly import or export goods
because it doesn’t have its own set of documents.
- Difficulties in choosing partners: Since there are no specific criteria for choosing
partners, Long Cam's selection is based only on the relationships to other companies, the
achievements of the partner company in the field of import and export as well as the
commission percentage for each project.
- Good services require high reputation: Companies with good import or export
services often have less cooperation with smaller companies.
- Limited options: Long Cam cannot unilaterally choose the import and export
method, all decisions related to the import and export practice must depend on the
partner company.

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 - High vulnerability to risks: Long Cam tends to be passive when risks arise because
the linkage will cause importing and exporting procedures to go through many
intermediaries.

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Chapter 4: Solution and Recommendations
4.1. Identify possible reasons of above problems
- Small scale of business: The company's scale (being a family company) is so small.
Hence, it does not have its own set of documents.
- Company orientation: Implementing the self-import and export model will develop
many risks and cannot create a breakthrough in terms of profit for Long Cam, therefore
they focus only in the manufacturing process only.
- Misunderstandings between partners: The manufacturing company and their
partners do not have the same rules on formulating the terms of the contract. This can
lead to some confusion and misunderstandings for both companies.
- Restricted budget: Balancing budgets for trusted intermediaries to be a notable
challenge.
4.2. Proposed solutions for occurring problems
- The company should consider registering the import and export function. But they
cannot make their own set of documents since the company’s scale is too small. There is
an option which is to expand the company size. To do so, they need to make more profits
by diversifying their products and if possible, they can consider accessing and breaking in
new markets. Or they can choose to hire full customs service from a third party who will
take care of the paperwork related to the import-export process.
- Long Cam should set their own criteria in selecting import-export partners, which,
for example, should be based on their desire of the quality of the output so that they can
choose companies who can ensure that there must be no vast difference in both the
quality and price of raw materials and the final products, or that selling the products will
profit significantly more than buying raw materials.
- Develop relationships with big companies by becoming their outsourcing company.
By that way Long Cam can gain access to a wider range of options for good import-export
companies.
- Since Long Cam company uses indirect import-export method, the most important
thing to note is the reputation and quality of the third party. Therefore, one of the top
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priorities they need to make is to carefully research the market and their partners.
Verification of partners' information can be through public information sources, buying
services from specialized inspection/information provision companies.

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Chapter 5: Conclusion
The study was conducted to know the process involved in an apparel firm and to study
about the various departmental functions which coordinates to complete the import
cycle within Long Cam Co, Ltd business. Despite occurring drawbacks, using mandated
company to import the product has been the best choice so far of a business with small
scope like Long Cam. Some recommended solutions are also drawn to help reduce the
risks Long Cam is facing. We cannot rely solely on the recommendations; however, they
are carefully considered based on the studies of actual situation and their causes.

21
References
[1] Nguyễn Tấn Lợi, “Chứng nhận hợp chuẩn, hợp quy”, Tạp chí Khoa học Đại học Quốc
tế Hồng Bàng (30/08/2016). Extracted from: http://quatest1.com.vn/chung-nhan-hop-
chuan-hop-quy.html?fbclid=IwAR1jWbU1rsSYBPtrL19AMOTUAXRCwebslwMkwO7nZ-
6VM0N5CvzF925-mmE
[2] “The Difference Between a Sales Contract and a Bill of Sale”, LegalNature. Extracted
from: https://www.legalnature.com/guides/the-difference-between-a-sales-contract-
and-a-bill-of-sale
[3] Anita Flynn, “The Difference Between a Commercial Invoice and a Shipping Invoice”,
bizfluent (26/09/2017). Extracted from: https://bizfluent.com/info-8790684-difference-
commercial-invoice-shipping-invoice.html
[4] “Importance and Benefits of Commercial Invoice”, Tank Farm Nigeria. From:
https://www.tankfarmnigeria.com/importance-benefits-commercial-invoice/
[5] Laurel Delaney, “The Importance and Preparation of Import and Export Packing Lists”,
The Balance Small Business (03/10/2019). From:
https://www.thebalancesmb.com/import-and-export-packing-list-what-it-is-1953510
[6] Catherine J. Petersen, “10 Reasons Why a Shipping Packing List Is an Important Export
Document”, Shipping Solutions, (15/09/2014). From:
https://www.shippingsolutions.com/blog/10-reasons-shipping-packing-list-is-important
[7] Raunek, “Bill Of Lading in Shipping: Importance, Purpose, And Types”, Marine Insight,
(15/04/2020). From: https://www.marineinsight.com/maritime-law/what-is-bill-of-
lading-in-shipping/
[8] L. Paul, “Top 3 Functions of Bill of Lading. Bill of Lading types”, Shipping Knowledge,
(16/05/2019). From: https://shippingknowledge.com/container-shipping/top-3-
functions-of-bill-of-lading-bill-of-lading-types/

22
Appendix A: Documentations needed for
importing products
A-1. Sales Contract
A sales contract is a contract contemplating the future sale of goods between a buyer and
seller. Although the goods might be exchanged immediately after the parties sign the
sales contract, the important point to remember is that it is used prior to any goods being
exchanged. Therefore, the contract spells out the terms on which the buyer agrees to
purchase the goods and the seller agrees to sell them.

For example, if the buyer was going to purchase an industrial-grade freezer, the sales
contract would spell out the details about the specific type of freezer, the price, the
delivery location, and the buyer’s right to inspect the freezer when it arrives and reject it
if it’s found to be nonconforming to the terms of the agreement.

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A-2. Commercial invoice
A commercial invoice, or bill of sale, is a financial document created for billing purposes.
This document must include the name and address of the bill-to party, as well as the
product name and quantity. The major difference between a commercial invoice and a
shipping invoice is that pricing must be noted on the commercial invoice. The invoice also
must note any freight charges, special packaging fees, insurance costs, or other items that
are to be paid by the customer. The commercial invoice should include an address where
payment should be directed, and a due date for the payment. Its functions may include:
- Record Keeping: One major importance of commercial invoice is record keeping.
A Commercial invoice does not only aid good record keeping but also, helps in
determining your stock level per given period of time.
- Sales Evidence: Commercial invoice also serves as sales evidence. It helps in
preventing a customer from denying a transaction. An invoice is a legal evidence with
which to demand payment. Also, it is needful when the need to prove your case in a law
court arises. It clearly shows buyer’s acknowledgement of goods sold.
- Exploitation Prevention: Commercial invoice protects merchants from
exploitation reason being that its detailed nature helps in exposing fraudulent buyer or
seller who tries to play smart on the other party.
- Payment Assurance: Although a commercial invoice isn’t a payment instrument,
it plays major role in payment assurance reason being that it’s a legal document that
proves that transaction actually takes place. Also, a seller could make reference to an
unpaid debt with the aid of a commercial invoice and this will invariably propel the
customer to pay up their debts.
- Accuracy Check: One major benefits of commercial invoice is that it provides
enough information needed by importer when checking orders and receipts accuracy.
With the aid of an invoice, a buyer can check to know if goods supplied corresponds with
his order both in quality and quantity.
- Due Payment Notice: An invoice could serve as notice for due payment. Also, use
of invoice as payment notice aids prompt payment. Furthermore, it is a tool for good
customer relationship.

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A-3. Packing list
A packing list accompanies an international shipment and is used to inform transportation
companies about what they are transporting. It also allows the customer and others
involved in the transaction to check what has been shipped against the proforma invoice.
Other names for this list include the packing slip, docket, manifest, or bill of the parcel.
Some of its uses:
- It is a count of the product being released and shipped to the buyer's facility.
- It supports the issuance of the inland bill of lading.
- It identifies details required for a certificate of origin.
- It provides the detail required by the law for the Electronic Export Information filing in
the Automated Export System (AES).
- It supports issuance of a Material Safety Data Sheet if the goods are deemed hazardous.
- It is used to create a booking with the international carrier and subsequently the
issuance of the international bill of lading.
- The importer's customs broker will use it to enter the goods into their country as it
contains required detail.
- In the event of loss or damage to the goods while en-route, it becomes a document that
will be used to support an insurance claim.
- It provides the buyer with the ability to accurately tally the product that they receive,
and subsequently reimburse the exporter (seller) of the goods.
- It may be used in support of reimbursement under a letter of credit.

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A-4. Bill of Lading (B/L)
A bill of lading in shipping is a record of the traded goods which have been received on
board. It is a document that establishes an agreement between a shipper and a
transportation company for the transportation of goods. Transportation Company
(carrier) issues these records to the shipper. A bill of lading indicates a particular carrier
through which the goods have been placed to their final destination and the conditions
for transporting the shipment to its final destination. Land, ocean and air are the means
used for bills of lading. A bill of lading has three basic roles:
- An affirmation/Proof of Contract of Carriage: The first function of a Bill of Lading is that
it serves as a PROOF of the contract of shipping which has been signed between the
Seller/Goods owner and the shipping agent/carrier. This is to ensure that the
transportation of the shipment is done in accordance with the sales contract between the
seller/sender and the buyer/receiver.
- Receipt of the Shipment: The logistics company/carrier issues a B/L to the shipping agent
of the seller which serves as evidence that the carrier has received the shipment from the
shipping agent in a safe and sound condition as it was assigned to the shipping agent by
the seller/sender of the goods. So, this B/L also serves as a receipt of the cargo service.
- As a Certificate of Title: The bill of lading here serves as a document that confers or
proves ownership of the holder of the Bill of Lading when the goods are finally delivered
at a predetermined destination. It gives the holder the authority to claim the shipment or
assign it to someone else.

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A-5. Certificate of origin (C/O)
A certificate of origin (CO) is a document declaring in which country a commodity or good
was manufactured. The certificate of origin contains information regarding the product,
its destination, and the country of export. Required by many treaty agreements for cross-
border trade, the CO is an important form because it can help determine whether certain
goods are eligible for import, or whether goods are subject to duties. Functions of a C/O:
Certificate of origin is required for availing concession under commonwealth preferences
(CWP) as well as Generalized System of Preferences (GSP)
It facilitates the importer to adhere to the rules and regulations of his country.
Customs in the importer’s country allow the concessional tariff only on production of this
certificate
When goods from some countries are banned, importing country requires this certificate
to ensure that goods banned countries are not entering into the country.
Exporting countries may insist on this certificate to ensure that the goods imported are
not reshipped again.

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A-6. Certificate of Quality (C/Q)
C/Q is the document declaring the quality of the products meet either the criteria of the
manufacturing country or international criteria. The purpose of C/Q is to prove that the
goods meet the quality standards announced with the goods. It is for the seller to show
his commitment to the buyer about the quality of the goods

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A-7. Certificate of Insurance
A certificate of insurance (C/I) is issued by an insurance company or broker. The C/I verify
the existence of an insurance policy and summarizes the key aspects and conditions of
the policy. For example, a standard C/I list the policyholder's name, policy effective date,
the type of coverage, policy limits, and other important details of the policy. Certificates
of insurance are designed to prove your insurance status and amount of coverage while
limiting the liability of the other company you're working with. These certificates are most
common when two businesses or organizations are working together, specifically if one
business is using the equipment or space of another. Certificates of insurance don't just
prove you have insurance. They also show what types of coverage you have and the
coverage limits. In addition, your coverage limits on items such as general liability and
professional liability must meet the minimums required by the other business. Most
certificates include effective dates of coverage, which means you should send new
certificates when you renew or change your insurance.

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A-8. Certificate of Fumigation
A Certificate of Fumigation, otherwise known as pest-control certificate, is a document
that serves as confirmation that any of the wooden packing materials such as pallets used
in cargo shipment have been fumigated. The document must contain details such as
treatment purposes, fumigants used, the amount of time they were used for, and a
temperature range for the product. Fumigation certificates are enforced upon for the sole
reason of protecting the forests in destination countries from insects that may reside
inside of shipping timber or wood. Otherwise, the harmful insects will likely cause big
damage to the forests of importing countries. This is a precautionary step for all.
Fumigation is a pesticide treatment using poisonous gases to kill pests inside of
internationally shipping wood. It is mandatory when being imported internationally,
however, it is not required for products that are wood-derived. In other words, if you’re
shipping items like cardboard, particleboard, or any other man-made products, you do
not need to get a Fumigation Certificate. To avoid the need for fumigation, many shippers
opt to use plastic packing materials instead.

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A-9. The conformity certification registration
A certificate of conformity, or CoC, is issued by an authorized party (sometimes the
manufacturer, sometimes an independent laboratory) and states that the product meets
the required standards or specification. The CoC can either be requested by a buyer to
ensure the product being manufactured has been tested and passes the set criteria within
a specification and meets both technical and safety requirements, or it would be a
mandatory requirement as stated by country regulations and law for certain products.
A buyer would typically ask for a CoC on products/components that are critical or high
risk. And, in some cases, specific documents are required for certification or to show the
end user/customer, that the product is safe. In some cases, it has to be provided for every
part with its own serial number. In other cases, batch CoC would be good enough.
Certain countries request a CoC for certain categories of imported products. The CoC is
sometimes called Certificate of Conformance or Certificate of Compliance. It is generally
inspected during customs clearance if the product being imported requires it. Without a
CoC, products may be impounded, confiscated, and in some cases, destroyed. The main
reason a CoC is required at customs is to prove a product that the product being imported
meets the required standard(s).

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40
Appendix B: Comparing Cargo Policy Coverage
table
ICC A ICC B ICC C
Separate circumstances for cargo loss or damage
conditions conditions conditions
Sailing on shoal, stucking, sinking, overturning of
YES YES YES
the ship or any similar event
Overturning or rollover of the land transport
YES YES YES
vehicles
Collision of ships or other means of transport YES YES YES
Collision with any other objects except for the
means of transport (with the exception of water YES YES YES
transport)
Forced unloading at airports YES YES YES
Fire or explosion YES YES YES
Earthquake, volcano eruption or lightning strike YES YES NO
Malicious acts of the third persons YES NO NO
Thefts and pilferage YES NO NO
General accidents YES YES YES
Forced throwing overboard YES YES YES
Washing off from the deck YES YES NO
Risks of war, riots, and strikes NO NO NO
Piracy YES NO NO
Water penetration into the ship, place of storage,
YES YES NO
container, or any other transportation unit
Loss at loading/unloading (only in cases of full loss) YES YES NO
Any other risks of physical cargo loss or damage not
YES NO NO
defined above

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Appendix C: Contribution form

Full name Student ID Contribution

Lê Đình Khánh IELSIU18053

Cao Thị Minh Anh IELSIU18002

Nguyễn Đình Minh Quân IELSIU18253

Vũ Trường Giang IELSIU18028

Nguyễn Đặng Ngọc Minh IELSIU18083

Trần Trường Phát IELSIU18247

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