Chaper 1

Overview
MSC Tăng Minh Hưởng
 Import-export
"Import-export" is the process of buying and selling
international goods (tangible goods) and (intangible
goods - services).

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 The parties involved
• Objects of import-export activities: Goods/Services
• Shipper: Người gửi hàng
• Carrier: Người vận chuyển
• Consignee: Người nhận hàng

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 Carrier/Transporter:
• Shipping Lines: hãng tàu, chủ/ sở hữu Phương tiện vận tải chặng chính
• Evergreen, KTMC, MAERSK, CMA CGM, NYK, SITC, MSC, OOCL, YangMing
• Forwarder Logistics: Vinalink, SOTRANS, Indo Tran, UI Logistics, DHL, DAMCO

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 Transportation company
The choice of hiring transportation from Shipping Lines or Forwarder Logistics depends
on:
• The volume and characteristics of the goods being transported.
• The relationship between the import-export company and the transportation service
provider. If there is a good price, then hire.
• Depends on the ability to handle business operations of the transportation company
and the import-export company.

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 Customs
• Application of HS codes for import-
export taxation
• Inspection, supervision of imported
and exported goods
• The governing body of import-
export activities: Ministry of Industry
and Trade
• Structure of customs authorities:
• General Department
• Department
• Sub-department:

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 Banks: Providing international payment
services/Good trade financing
• BIDV, Vietcombank, Techcombank,
Vietinbank
• ACB, Eximbank, MB,...
• Maritime Bank, SHB, Shinhan, Citibank

Insurance Companies:
• Reputable: Bao Viet, Bao Minh...
• Good prices: PIJICO, PTI, MIC, BIC...

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 • Express Delivery Companies:
Reputable: FedEx, DHL...
Good prices: UPS, TNT, Viettel
Inspection Companies:
• Quantity and Quality inspection of goods. For
example: SGS, Vinacontrol, Nafiquad, Intertek...
• Fumigation Companies: Agricultural products
fumigation
• Port Authority
• Dispute Resolution Authorities: Court +
Arbitration

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 The contract commonly used in import-export activities
+ International Contract
+ Transport Contract
+ Insurance Contract
+ Credit/Discount Agreement
+ Foreign Exchange Sale Agreement

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 Objectives/duties of import-export employees/company

• Sales
• High prices
• Large quantities
• Developing new customers
• Retaining existing customers
• Debt recovery
• Achieving favorable payment conditions in the sales process (Tenor of payment -
advantageous TENOR. For Export: Payment in Advance. Payment at Sight)
• Taking good care of customers (Installation, warranty, claims, establishing a good
relationship with our customers...).

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 Objectives/duties of import staff/company:
• Importing goods
• Reasonable prices
• Ensuring the quantity and quality of goods
• Ensuring the delivery schedule (meeting the required schedule: by supervisors,
factories, customers)
• Achieving favorable payment conditions in the purchasing process: Deferred payment.
(Tenor of payment - advantageous TENOR. Payment after (Defer payment) – accounts
payable).
• TENOR: PAYMENT WILL BE MADE WITHIN 60 DAYS AFTER BILL OF LADING’S DATE
• PAYMENT WILL BE MADE WITHIN 120 DAYS AFTER COMMERCIAL INVOICE’S DATE

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 The biggest risk in import-export activities
• Export (XK): Delivering all goods + Not receiving payment.
• Import (NK): Making payment + Not receiving goods.

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 Prevention methods
• Research your partners thoroughly to find reputable and trustworthy
ones for business cooperation. Specify clearly and in detail the rights,
responsibilities, and obligations of the Exporter and Importer in the
FOREIGN TRADE CONTRACT;
• Use foreign trade techniques to minimize risks (utilizing terms, payment
methods, favorable payment terms, etc.).

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 Legal documents
Domestically:
• The Constitution is adopted by the National Assembly and signed into law by the
Chairperson of the National Assembly.
• Codes are adopted by the National Assembly and signed into law by the Chairperson of
the National Assembly.
• Decrees are signed into law by the Central Government.
• Circulars are signed into law by the Ministers. - Guidelines/Official letters are issued by
General Departments, Departments, State management agencies...

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 Legal documents:
International
• International law
• Multilateral agreements
• Bilateral agreements
• National laws
• Uniform Customs and Practice for Documentary Credits (UCP). International trade
practices. Example: Incoterms 2020, UCP600...

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 Special considerations in import-export transactions:
• Not dealing with prohibited items by law.
• Identifying signs of suspicious transactions:
• Prices: excessively high or low.
• Direct trading partner holds a high-ranking position, with only one person
conducting the transaction.
• Partner continuously pressures Vietnamese businesses to deliver goods (exports) /
make payments (imports).
• Emails with unusual signs, for example: @gmail.corn.

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 Goods:
• Do not engage in the trade of prohibited items by law.
• Exercise caution with items subject to specialized management by ministries, for
example: Oil, Milk, Pharmacy, Fertilizer...
• Exercise caution with items experiencing significant price fluctuations such as Rice, Oil,
Steel, Coffee, Pharmacy... requiring anticipation of market prices and exchange rates.

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 Market
• Reputation: EU, US, KR, JP... (country codes according to ISO standard)
• Be cautious when dealing with complex markets: China (CN), India (IN), Bangladesh
(BD)...
• Be cautious when dealing with sanctioned countries (EU, UN, US): Syria, North Korea,
Cuba, Venezuela, Iran...

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 Partners

• Do not engage with partners blacklisted by the US, EU, UN.

• Exercise caution when dealing with commercial intermediaries (Traders): HK, SG....
• E.g.: purchasing from Trader
• Higher prices
• Issues with quantity, quality, warranty, schedule...
• Partner company may be fraudulent

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 Job positions
The Sales Executive position:
• Responsibilities include:
• Seeking out customers.
• Negotiating and signing FOREIGN
TRADE CONTRACTS.
• Executing FOREIGN TRADE
CONTRACTS.
• This is a pivotal role within the
company.

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 Job positions
The Purchasing Staff (NK) position:
Responsibilities include:
• Finding suppliers.
• Negotiating and signing FOREIGN TRADE CONTRACTS.
• Executing FOREIGN TRADE CONTRACTS.
...

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 Job positions

The Documentation Staff position:

Responsibilities include:
• Preparing documents to facilitate customs clearance of goods.
• Inspecting documents related to imports.
• Handling documents relevant to the goods clearance process.

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 Job positions
The Operations Staff position:
Responsibilities include:
Liaising on-site with various parties such as
headquarters, shipping companies, banks,
inspection agencies, and insurance companies.

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 A. Blacklists from Organizations/Countries
• United Nations Security Council's blacklist: https://scsanctions.un.org/search/
• EU's blacklist: https://data.europa.eu/euodp/data/dataset/consolidated-list-of-
persons-groups-and-entities-subject-to-eu-financial-sanctions
• US OFAC blacklist: https://sanctionssearch.ofac.treas.gov/
• UK blacklist: https://www.gov.uk/government/publications/financial-sanctions-
consolidated-list-of-targets/consolidated-list-of-targets
• Terrorist blacklist as notified by the Ministry of Public Security:
http://bocongan.gov.vn/khung-bo/to-chuc-khung-bo.html

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 B. Embargo Policies of Organizations/Countries
• United Nations Security Council embargo policy: https://www.un.org/securitycouncil/
• Resolutions of the United Nations:
https://www.un.org/securitycouncil/content/resolutions
• US embargo policy:
https://www.treasury.gov/resourcecenter/sanctions/Programs/Pages/Programs.aspx
• EU embargo policy: https://ec.europa.eu/fpi/what-we-do/sanctions_en
• Public list: http://www.fatf-gafi.org/countries/#high-risk

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