Chapter 7

CHAPTER 7
EXECUTION OF THE IMPORT-

EXPORT CONTRACTS
LOGO
29/07/2021 706026- Chapter 7: Execution of the import-export contracts 1
LOGO Contents
1. Export Procedure
2. Import Procedure

LOGO Learning Outcome
vUnderstand the export - import procedure in

Vietnam
vExport - import tax and duty calculation

Regulations and policies affecting
LOGO export-import procedure
vCommercial Law 2005 => Decree 187/2013/NĐ-

CP dated 20/11/2013
vImp-exp tax Law 2016 => Decree 134/2016/NĐ-

CP dated 01/9/2016
vCustoms Law 2014 => Decree 08/2015/ NĐ-CP

dated 21/01/2015 => Circular 28/2015/TT-BTC
dated 25/3/2015
Right to conduct the business of
LOGO import and export
ARTICLE 3/ DECREE 187/2013:
v Vietnamese Business entities shall have the right to

import and export goods irrespective of the lines of
business for which they have business registration,
except for goods on the lists of goods the import and
export of which is prohibited or temporarily suspended.
v Branches of business entities shall be permitted to

import or export goods as authorized by the business
entities.
LOGO Procedures for import and export
ARTICLE 4/ DECREE 187/2013:

1. Any business entity wishing to import or export goods for
which import and export is subject to issuance of a permit
must have a permit from the Ministry of Trade or other
ministry managing the specialized industry.
2. Import and export goods must comply with the relevant
regulations on plant quarantine and on hygiene, safety and
quality of foodstuffs and shall be subject to inspection by
the specialized industry State administrative bodies prior to
customs clearance.
3. Goods not on the lists of goods the import and export of
which is prohibited or temporarily suspended, and not
being goods stipulated in clauses 1 and 2 of this article
shall only be subject to customs clearance procedures at
the customs border gate.
Market Research
Marketing and Promotion

LOGO Preparation for
Credit Information Exporting
Enquiry
Offer Counter-offer
Acceptance Business
Negotiation
Contract
Good Preparation Reminding of Payment
Checking Name of Commodity, Examination of L/C
Specification, Quantity, Packing
and Marking Chartering,Space Booking
Inspection Application Insurance Company

Terminal
Inspection Authority
Customs Formalities Performance

Certificate of Inspection
of Contract
Certificate of Origin
Loading, Bill of Lading Insurance Policy
Documents Preparation for

Payment
15/02/2019
29/07/2021 706026-
Settlement Chapter
of Disputes (if7: Execution of
any) 7 7
the import-export contracts
LOGO Procedure for export
CHARTERING/
PAYMENT GOODS INSPECTION
SPACE
REMINDING PREPARATION (IF ANY) BOOKING
CUSTOMS DELIVERY INSURANCE

C/O APPLYING
FORMALITIES GOODS COVERING
DISPUTE
DOCUMENTS
SETTLEMENT
FOR PAYMENT (IF ANY)

LOGO PAYMENT REMINDING
The seller may declare the contract avoided if

the buyer does not:
- Perform his obligation to pay the price, or
- Take delivery of the goods, or
- If he declares that he will not do so within the
period so fixed
è T/T in advance, CAD, L/C

LOGO GOODS PREPARATION
The seller must deliver goods which are of the

quantity, quality and description required by the
contract and which are contained or packaged in
the manner required by the contract (Article
35.1)
èQuantity/ quality
èPacking & marking

LOGO PACKING
ü Use strong, reinforced boxes or crates to pack the
goods.
ü Seal and fill with lightweight, moisture-resistant
material.
ü Distribute the weight evenly to brace the container.
ü To deter theft, use strapping, seals, or shrink wrapping
where possible.
ü Don't list the contents or show brand names on the
outside of the packages.
ü For air shipments, you can use lighter weight packing
with high-test cardboard or tri-wall construction boxes
are more than adequate (at least 250 pounds per square
inch).
LOGO EU PALLET

LOGO EU PALLET IN CONTAINER

LOGO WOODEN CASE

LOGO WOODEN CRATE

LOGO CARTON

LOGO STEEL DRUM

LOGO ROLL

LOGO BALE

LOGO MARKING
Export packages need to be properly marked and

labeled
To meet shipping regulations
Ensure proper handling
Conceal the identity of the contents
Help receivers identify shipments

LOGO MARKING
Marks Required by Buyers:
Shipper's mark
Country of origin
Weight marking (in pounds and in kilograms)

Number of packages and size of cases (in inches and
centimeters)
Handling marks (international pictorial symbols)
Cautionary markings, such as "This Side Up."
Port of entry
Labels for hazardous materials (universal symbols of the
international Maritime Organization)
LOGO Shipping Mark

LOGO Hazardous Materials Shipping Labels
4.1
Class 4 Division 1
Flammmable Solid
4.2
Class 4 Division 2
Spontaneously Combustible

LOGO MARKING
1. INITIALS OR CONSIGNEE’S NAME
• ABC
2. REFERENCE NUMBER
• 1234
3. DESTINATION
• BOMBAY
4. PACKAGE NUMBER
• 1/25

LOGO INSPECTION
MANUFACTURER à SELLER’S
ACCOUNT
THIRD PARTY à BUYER’S

ACCOUNT
GOVERNMENT à SELLER’S
ACCOUNT

LOGO GOVERNMENT
1 2
Importing to EU: Regulation

ASC certificate 995/2010 of the
for tra fish
EU: timber
(Aquaculture
Stewardship traceability and
Council) legality

LOGO CONTRACT FOR CARRIAGE
The seller must contract for carriage?

• Liner booking space
• Voyage charter
• Air cargo booking space
The buyer make a contract of

carriage?
• The buyer must notify the seller of the name of
the person nominated for transport
LOGO CUSTOMS FORMALITIES
Article 16: When performing customs clearance

procedures, a customs declarant must:
• (a) Make a declaration and submit a customs declaration;
present source documents included in the customs file; in
the case where electronic customs clearance procedures
are conducted, the customs declarant shall make a
declaration and send the customs file via the electronic
database processing system of Customs;
• (b) Take goods or means of transportation to the stipulated
place for inspection of actual goods or means of
transportation;
• (c) Pay duties and perform other financial obligations in
accordance with law.
è Customs Clearance Decision

LOGO EXPORT TAX & DUTY IN SPECIFIC DUTY
Export tax = Quantity x specific duty

Where as:
ü E/R = the inter-bank foreign exchange market
publicized by the Vietnam State Bank at the
time of tax calculation
ü Quantity: indicated in the Customs Declaration
ü Specific duty rate set for a goods unit

LOGO EXPORT TAX & DUTY IN A PERCENTAGE (%)
Export tax = Tax Calculation Price x tax rate (%)

Where as:
üTax Calculation (Dutiable) Price = the
contractual sale prices at the border-gates of
exportation (FOB/ DAFàDAP prices)
üE/R = the inter-bank foreign exchange market
publicized by the Vietnam State Bank at the time
of tax calculation
üTax rate (%) = shall be specified for each goods
item in the Export Tariff
LOGO DELIVERY TO CARRIER
Seafreight à port/ terminal

-LCL shipment à CFS
-FCL shipment à CY
ØB/L
Airfreight à airport/ terminal
ØAWB

LOGO INSURANCE COVERING
-ICC (A), (B), (C) ?

-Application for cargo insurance
-Pay premium I= R x V
-R: Insurance rate (%)
-V: Insurance Value
è Insurance policy/ certificate
LOGO CERTIFICATE OF ORIGIN
v FORM PREFERENCE FOR EXPORT?

v ISSUANCE: MOIT/ VCCI ?

LOGO DOCUMENTS COLLECTION FOR PAYMENT
v RELEVANT DOCUMENTS?
v DOCUMENTS SENT?

LOGO Procedures for import
PAYMENT REMINDING
CHARTERING
INSURANCE COVERING
TAKING OVER DOCUMENTS
CUSTOMS FORMALITIES
PICKING UP THE GOODS

LOGO PAYMENT REMINDING
The buyer's obligation to pay the price includes

taking such steps and complying with such
formalities as may be required under the
contract or any laws and regulations to enable
payment to be made.
è T/T in advance, CAD, L/C

LOGO CONTRACT FOR CARRIAGE
The Buyer must contract for

carriage?
The buyer must notify the seller of

the name of the person nominated
for transportationà SHIPPING
ADVICE

LOGO INSURANCE COVERING
-ICC (A), (B), (C) ?

-Application for cargo insurance
-Pay premium I= R x V
-R: Insurance rate (%)
-V: Insurance Value
è Insurance policy/ certificate
LOGO PAYMENT FOR DOCUMENTS
WHAT ARE DOCUMENTS?
WHERE TO TAKE DOCUMENTS

LOGO CUSTOMS FORMALITIES
Article 16: When performing customs clearance

procedures, a customs declarant must:
• (a) Make a declaration and submit a customs declaration;
present source documents included in the customs file; in
the case where electronic customs clearance procedures
are conducted, the customs declarant shall make a
declaration and send the customs file via the electronic
database processing system of Customs;
• (b) Take goods or means of transportation to the stipulated
place for inspection of actual goods or means of
transportation;
• (c) Pay duties and perform other financial obligations in
accordance with law.
è Customs Clearance Decision

LOGO IMPORT TAX & DUTY IN SPECIFIC DUTY
Import tax = Quantity x specific duty

Where as:
of tax calculation
üQuantity: indicated in the Customs Declaration
üSpecific duty rate set for a goods unit

LOGO IMPORT TAX & DUTY IN A PERCENTAGE (%)
Import tax = Tax Calculation Price x tax rate (%)

Where as:
üTax Calculation (Dutiable) Price = the
contractual sale prices at the first border-gates
of importation (Customs valuation/ CIF prices)
of tax calculation
üTax rate (%) = shall be specified for each
goods item

LOGO DUTY RATES
Including:
Preferential duty rates
Special preferential duty rates
Ordinary duty rates:

LOGO DUTY RATES
Including:
Preferential duty rates
Special preferential duty rates
Ordinary duty rates

LOGO PICK-UP CARGO
The buyer:
PRESENTS B/L à D/O (DELIVERY ORDER)
PRESENTS D/O à CARGO’S RECEIPT
PRESENTS CARGO’S RECEIPT + CUSTOMS

DECLARATION FORM (CLEARED) à PICK-UP CARGO

LOGO CERTIFICATE OF ORIGIN
FORM PREFERENCE FOR EXPORT?
MOIT/ VCCI

LOGO DOCUMENTS COLLECTION FOR PAYMENT
RELEVANT DOCUMENTS?
DOCUMENTS SENT?

LOGO
29/07/2021 706026- Chapter 7: Execution of the 48
import-export contracts

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Chapter 7

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CHAPTER 7

EXECUTION OF THE IMPORT-

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 2

vUnderstand the export - import procedure in

vExport - import tax and duty calculation

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 3

vCommercial Law 2005 => Decree 187/2013/NĐ-

vImp-exp tax Law 2016 => Decree 134/2016/NĐ-

vCustoms Law 2014 => Decree 08/2015/ NĐ-CP

v Vietnamese Business entities shall have the right to

v Branches of business entities shall be permitted to

ARTICLE 4/ DECREE 187/2013:

Marketing and Promotion

Inspection Application Insurance Company

Customs Formalities Performance

Documents Preparation for

CUSTOMS DELIVERY INSURANCE

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 8

The seller may declare the contract avoided if

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 9

The seller must deliver goods which are of the

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 10

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 12

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29/07/2021 706026- Chapter 7: Execution of the import-export contracts 18

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Export packages need to be properly marked and

Ensure proper handling

Conceal the identity of the contents

Help receivers identify shipments

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 20

Weight marking (in pounds and in kilograms)

Handling marks (international pictorial symbols)

Cautionary markings, such as "This Side Up."

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 22

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 23

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 24

THIRD PARTY à BUYER’S

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 25

Importing to EU: Regulation

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 26

The seller must contract for carriage?

The buyer make a contract of

Article 16: When performing customs clearance

è Customs Clearance Decision

Export tax = Quantity x specific duty

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 29

Export tax = Tax Calculation Price x tax rate (%)

Seafreight à port/ terminal

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 31

-ICC (A), (B), (C) ?

v FORM PREFERENCE FOR EXPORT?

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 33

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 34

TAKING OVER DOCUMENTS

PICKING UP THE GOODS

29/07/2021 706026- Chapter 7: Execution of the import-export contracts 35

The buyer's obligation to pay the price includes

è T/T in advance, CAD, L/C