CHAPTER 4 International trade

transactions
PERFORMANCE OF THE IMPORT- EXPORT CONTRACTS
CONTENTS

Export Procedure Import Procedure

 • Commercial Law 2005
• Vietnamese Foreign Trade Management Law
(2017)
• Decree 69/2018/NĐ-CP on guidelines for
the law on foreign trade management dated
REGULATIONS 15/5/2018
ON EXPORT- • Customs Law 2014 => Decree 08/2015/
NĐ-CP dated 21/01/2015 => Circular
IMPORT 28/2015/TT-BTC dated 25/3/2015
PROCEDURE • Imp-exp tax Law 2016 => Decree
134/2016/NĐ- CP dated 01/9/2016
 Ministry of Finance: taxes, customs,
statistics
Ministry of Agriculture & Rural
RESPONSIBILITIES Development: quarantine, food
FOR STATE safety
MANAGEMENT Ministry of Health: border health
(ARTICLE 6 – quarantine, food safety
PART 2) Ministry of Science & Technology:
technical measures
Provincial People’s Committees: local
implementation, inspection,
reporting
 Article 3. Freedom to export and import

•1. A Vietnamese trader which is not a foreign-

invested business entity may export, import and carry
out other relevant activities regardless of its
FREEDOMS TO registered business lines except for the goods under
the lists of prohibited exports and imports as
EXPORT AND prescribed in this Decree; other prohibited exports
IMPORT and imports as per the law; and goods suspended
from export and import.
Article 3/ •A branch of a VN trader shall conduct foreign trade
decree according to the authorization of the trader.
•2. Foreign-invested business entities, branches of
69/2018 foreign traders in VN, when exporting or importing
regulated by this Decree, shall carry out undertakings
of VN in treaties to which VN is a signatory, list of
goods and road map laid down by the Ministry of
Industry and Trade and comply with this Decree and
relevant law provisions.
 PROCEDURES FOR EXPORT
AND IMPORT
(Article 4/ Decree 69/2018)
1. For goods requiring export or import license,
the exporter or importer shall obtain such a
license issued by the involved Ministry or
ministerial-level agency.
2. For goods only be exported or imported
under given conditions, the exporter or importer
must meet certain conditions as per the law.
3. For exports and imports subject to inspection
prescribed in Article 65 of the Law on Foreign
Trade Management, the exporter or importer
shall have its goods inspected by the competent
authorities as per the law.
4. For goods not prescribed in Clauses 1, 2, 3
hereof, the trader is only required to follow
export or import procedures at the customs
authority.
 Market Research

Marketing and Promotion

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
Certificate of Origin
of Contract
Loading, Bill of Lading Insurance Policy

Documents Preparation for

Payment
Settlement of Disputes (if any) 7
 PROCEDURES TO PERFORM EXPORT CONTRACTS

1. Asking for export license 2. Checking payment

4. Carriage and insurance 3. Preparing goods

5. Customs procedures 6. Making delivery

8. Dealing with claims 7. Payment procedures

8
1. EXPORT LICENSE APPLICATION

Subject to the government’s import-export controls in

the certain period of time.

Legal basis: Law on Foreign Trade Management and

Decree No.69/2018/NĐ-CP.

2 kinds of licenses for exported goods: export licenses

and automatic export licenses.

Goods under specific management: Certificate of

exportability required (e.g rice)
2. CHECKING PAYMENT

Inform buyers of delivery

Check obligations of preparation relating to

payments

In case payment is made by L/C, what

should exporters do?
 L/C CHECKING 40A: FORM OF
DOCUMENTARY CREDIT
20: DOCUMENTARY
CREDIT NUMBER
50: APPLICANT
31C: DATE AND PLACE 59: BENEFICIARY
OF ISSUE

31D: DATE AND PLACE

OF EXPIRY 32B: CURRENCY
CODE, AMOUNT

39A: PERCENTAGE CREDIT

AMOUNT TOLERANCE

11
 45A:
41D: AVAILABLE DESCRIPTION OF
WITH … BY … GOODS AND/OR
42C: DRAFT AT … SERVICES
42D: DRAWEE

43P: PARTIAL SHIPMENTS

44T: TRANSSHIPMENT
44A: LOADING ON BOARD/
DISPATCH / TAKING IN CHARGE
AT/FROM…
44B:FOR TRANSPOTATION TO:
44C: LATEST DATE OF SHIPMENT

46A: DOCUMENTS
REQUIRED

12
 71B: CHARGES

48: PERIOD FOR

PRESENTATION

13
46A:
DOCUMENTS
REQUIRED
 TIME SPAN WITH LC
Validity of L/C, delivery time and payment time

LC Delivery LC
min. 21 working days
opening date expiry

-L/C advice. -Prepare payment docs,

-L/C keeping at advising bank - Keeping docs at advising bank

-Checking L/C and amending (if any). - Sending docs to issuing bank/

-Goods preparation and delivery. negotiation bank.

- Reserved time. - Reserved time.

17
 TIME SPAN WITH LC
* At sight LC

Payment LC
LC issuing date expiry

*Deferred LC

LC B/E presentation Payment LC Payment

issuing and acceptance date expiry date

18
3. GOODS PREPARATION
3.1. Packing
Effective packaging for export goods is critical for
protecting products, ensuring smooth transit, and complying
with international regulations.
It involves much more than standard packing and must
account for the rigors of long-distance transport, including
multiple handling stages, varying climates, and customs
inspections.
Ensure compatibility with the type of transportation such as
ship, plane, or container truck,... Because each form will
require different packaging characteristics.
3. GOODS PREPARATION
3.1. Packing
Durability and cushioning: Use reinforced, heavy-duty
boxes or crates designed for the weight of your goods.
Employ cushioning materials like bubble wrap, foam, or
airbags to fill voids and absorb shock.
Moisture and corrosion prevention: For long sea voyages,
items susceptible to moisture and rust often require foil
packaging and moisture-absorbing desiccants (like silica
gel).
Wooden packaging materials: If using wooden crates or
pallets, they must comply with the International Standards
for Phytosanitary Measures No. 15 (ISPM 15). This requires
the wood to be heat-treated and marked with an IPPC
(International Plant Protection Convention) stamp to prevent
insect infestations.
3. GOODS PREPARATION
3.1. Packing: safe, economic, artful.
Outer packing

Drum Barrel
Box
Crate

Case Bag Bale Roll

21
 3. GOODS PREPARATION
3.1. Packing: safe, economic, artful.
❖ Inner packing

Wood shaving
Tarpauline
Cardboard

Oil, Gease
Foil PP, PVC Waste paper

22
EU PALLET
EU PALLET IN CONTAINER
WOODEN CASE
WOODEN CRATE
 3. GOODS PREPARATION
3.2. Marking
Shipping marks can be defined as a symbol, word or
number that is attached on to the each package unit
for easy identification and handling of the cargo.
Correct and complete marking of packages helps to
prevent incorrect handling, accidents, incorrect delivery,
losses of weight and volume and Customs fines.
The marking, also known as “Shipping Marks”, serve
two main purposes:
 first, as identification marks for the carriers and all those engaged in
the carriage and handling while in transit,
 second, for the consignee to identify the corresponding order and
activity to ensure correct delivery.
3. GOODS PREPARATION
3.2. Marking
The Marking needs to meet the following requirements:
• Must be durable, in English, and printed on or affixed
to the surface of a package
• Must be displayed on a background of sharply
contrasting color;
• Must be unobscured by labels or attachments;
• Must be located away from any other marking (such as
advertising) that could substantially reduce its
effectiveness.
3. GOODS PREPARATION
3.2. Marking
Purpose
Info relating to contract, special instructions.

Fragile Use no hooks This way up Keep away

from sunlight

Keep away Do not

from water Flameable destroy barrier Tear off here
SHIPPING MARK AND LABEL
3. GOODS PREPARATION
3.3 Goods Checking and Inspection

- Conformity with contract.

Why? - Subject to regulations of export/import
country.

Who inspect?

Validity of certificates?
 CONFORMITY WITH CONTRACT

Certificate of quantity

32
 CONFORMITY WITH CONTRACT

Certificate of quality

33
SANITARY CERTIFICATION

Health certificate

34
 QUARANTINE

Phytosanitary certificate

35
 3. GOODS PREPARATION
3.3. Goods checking and inspection
❖ Procedures

Doc application On-site inspection

Supervising Issuance of
goods delivery temporary certificate

Issuance of
official certificate
 4.1. Contract of carriage
• Liner term -> liner B/L
• Voyage charter -> Charter party B/L
4.2. Contract for insurance
• Insurance clause
• Amount insured
4. CARRIAGE • Form of insurance contract
& INSURANCE + Open policy/ voyage policy
+ Insurance certificate / insurance
policy
 1. Customs declaration and
submission

2. Get the classification

result of customs inspection
5. EXPORT
CUSTOMS 3. Carry out
export customs procedure
CLEARANCE
4. Pay customs duties

5. Clear the goods

 FORMS OF CUSTOMS DECLARATION

E-CUSTOMS OR
E-CUSTOMS PAPER-BASED
(Art 25.2 Decree
08/2015/ND-CP)
 Booking Note/ Booking confirmation:
Name of the vessel, port of discharge

Sales Contract

DOCUMENTS Commercial Invoice

PREPARED Packing List

FOR EXPORT
CUSTOMS Equipment Interchange Receipt (EIR):
container No., seal No.
DECLARANCE
Additional documents: Certificate of
Quality, Certificate of Analysis, Insurance
policy, fumigation, phytosanitary certificate
Export Licence
DOCUMENTS SUBMITTED FOR EXPORT
CUSTOMS CLEARANCE
1. Electronic Customs Declaration Form
2. Export license (if applicable)
3. Certificate of exportability (if applicable)
4. Certificate of inspection (health, fumigation,
phytosanitary) (if applicable)
5. Commercial invoice
6. Entrusted export contract (if applicable)
CLASSIFICATION OF CUSTOMS INSPECTION
Art.26-Decree 08, Decree 59;
Art.19-Circular 38,Circular 39

GREEN LANE: consignment cleared, subject to

neither document review nor on-site customs
inspection

YELLOW LANE: Subject to Customs’ document

review

RED LANE: Subject to both Customs’ document

review and on-site customs inspection
6. MAKING DELIVERY
By sea – not in container (Bulk cargo)
1. Cargo list

2. Cargo plan

6. Exchange MR for BL
Consigner Carrier

3. Ask for
date, time of
delivery

Port authority 43
6. MAKING DELIVERY
By sea – in containers (FCL)

1. Cargo list

2. Booking note
3. Give order to deliver cont and seal
Carrier’s
6. B/L issuing
agent
Consigner

4. Goods packing,
customs procedures,
deliver containers

Container yard - CY
6. MAKING DELIVERY
By sea – in containers (LCL)

1. Cargo list
2. Booking note
4. House B/L issuing
Consolidator
Consigner

Container freight station - CFS

6. MAKING DELIVERY

By air
• Booking.
• Deliver the goods and conduct procedures.
• Receive AWB (MAWB/HAWB).
• Advise consignee.

46
 7. PAYMENT PROCEDURES
• Preparing the documents as stated in the contract
or L/C.
• Presenting full set of documents to advising bank
within the given period of time to get payment.

47
8. DEALING WITH CLAIMS
1. Cases
2. Solutions
3. Documents
+ Letter of complaint.
+ Relevant docs: Contract, B/L, Tally sheet, Report on Receipt of cargo
(ROROC), Certificate of short-landed cargo (CSC), Cargo outturn Report
(COR), Survey Record, Customs Inspection Report.
+ Damage calculation.

48
COR
( CARGO OUTTURN REPORT)
CSC
( CERTIFICATE OF SHORTLANDED CARGO)
ROROC
( REPORT ON RECEIPT OF CARGO)
 DISCUSSION

 On 6 December 2020, Australian buyer order a consignment via a purchase

order
 On December 2020, the Vietnamese seller confirmed the order via the
proforma invoice

DISCUSS STEPS TO PERFORM THE CONTRACT FOR

EXPORTING WOODEN FURNITURE BY SEA AT THE
VIETNAMESE ENTERPRISE
[Link] TO IMPORT

Licence application Remind delivery

Transport arrangement Preparations for payent

Insurance Payment procedures

Taking delivery Customs procedures

Checking imported goods Complaints and solutions

54