TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION DEPARTMENT OF INTERNATIONAL BUSINESS PROFESSIONAL INTERNSHIP REPORT CARRYING OUT THE CUSTOMS PROCEDURES FOR FCL CARGO IMPORTING FROM CHINA AT DNV LOGISTICS CO., LTD SUPERVISOR: MBA TO DIEP PROFESSIONAL INSTRUCTOR: PHAM THE VU STUDENT’S NAME: DO LE TU UYEN STUDENT ID: 71406327 CLASS ID: 14070610 HO CHI MINH CITY 04/2018 FEEDBACK OF INTERNSHIP COMPANY Student’s name: Student ID: _ Class: _Academic Year: - Ho Chi Minh City, Date……………… Supervisor (Full name ands signature) FEEDBACK OF SUPERVISOR Student’s name: _Student ID: _ Class: Academic Year: - Ho Chi Minh City, Date………………………………… Counterargument Lecturer (Full name and signature) EVALUATION OF COUNTERARGUMENT SUPERVISOR Student’s name: _ Student ID: _ Class: _Academic Year: - Ho Chi Minh City, Date………………………………… Management Executive Officer (Full name, Signed and Sealed) TABLE OF CONTENT LIST OF TABLES AND DIAGRAMS LIST OF PICTURES INTRODUCTION CHAPTER 1: OVERVIEW OF DNV LOGISTICS COMPANY LIMITED 10 1.1 General information of DNV Logistics company limited: 10 1.2 History and development: .10 1.3 DNV Logistics Organizational structure: .10 1.4 Personel situation of DNV Logistics Co., Ltd: .12 1.5 Business operation performance of DNV Logistics Co., Ltd from 2016 to 2017: 15 CHAPTER 2: ANALYZING CUSTOMS PROCEDURES WITH FCL CARGO IMPORTING FROM CHINA AT DNV LOGISTICS CO., LTD .17 2.1 Analyzing Customs procedures with FCL cargo importing from China: 17 2.1.1 Describing the import customs dossier: .17 2.1.2 Analyzing Customs procedures for FCL cargo importing from China: 18 2.2 Advantages and disadvantages of DNV Logistics Co., Ltd: 26 2.2.1 Advantages: 26 2.2.2 Disadvantages: .27 CHAPTER 3: RECOMMENDATION AND SOLUTION TO IMPROVE CUSTOMS PROCEDURES .29 3.1 Review and comment: 29 3.2 Proposal and recommendation: 29 3.2.1 Recommendation to company: 29 3.2.2 Recommendation to customs: .30 CONCLUSION 32 REFERENCES 33 LIST OF TABLES AND DIAGRAMS Chart 1.1: Organization chart of DNV Logistics Co., Ltd Table 1.2: Quantity of employees in departments in DNV Logistic Co., Ltd Table 1.3: Working Age structure in DNV Logistic Co., Ltd Table 1.4: Qualification of employee in departments in DNV Logistic Co., Ltd Table 1.5: Sales Revenues, Costs, Profit of DNV Logistics Co., Ltd through 2015, 2016, 2017 10 + Address: 36/212A Street 12, Truong Tho Ward, Thu Duc District, Ho Chi Minh city + Tel: 0901 841 989 Fax: + Exporter: DONGGUAN YUYI TRADING CO., LTD + Address: No.4 Building Red Daning Industrial Zone of Humen town, Dongguan city, Guangdong, China + Tel: Fax: - Bill of Lading: + Bill of Lading No (Enter number on Bill of Lading): NBJYYT18030054 + Number of Packages (Enter the amount in Bill of Lading): 903 CT + Total weight (Enter weight in Bill of Lading): 9030 KGS + Transportation (Enter ocean vessel code and name’s vessel in Bill of Lading): CSCL SAO PAULOV/0206S + Date of Arrival: 18/03/2018 + Port of Discharge (Port in Importer’s country): Cat Lai Port + Storage Location (Enter storage place in Bill of Lading): Sai Gon New Port Corporation + Port of Loading: Ningbo - Commercial Invoice: + Invoice No.: A – HIC20171219L + Release date: 09/03/2018 + Terms of Payment: TT + Terms of delivery (Incoterm term signed on Sales Contract): FOB 25 + Currency: USD + Tax rate: + Delivery Freight: VND 100 + Insurance Freight: - Sales Contract: + Sales Contract No.: SMARTWINNER-0801 + Date of Sale Contract: 08/01/2018 + Expiration Date: - Packing List: + HS code for the company's goods lot (HS code is specified in the Tariff): 85166090 + Description of Goods: Air Circulation Fryer (Electronic) Model: MK-01, Label: Mishio, Voltage: 220V-240V/50Hz, Capacity: 1300W, Volume: 2,6L 100% brand new + Original: China + Quantity: 1.806 PCE + Invoice unit price: 19USD/PCE + Weight: + Total Amount: USD 34,3144 Import duty on fryer(Tax exchange rate: VND/USD) Under the Preferential Import-Export Tariff Schedule in 2015, the lot with the HS code is subject to the corresponding import tax and value added tax in accordance with Circular 83/2014/TT-BTC, the lot will be subject to VAT 0% or 5% depending on the type of goods + Tax value (Price multiple with tax rate): VND 783,293,150 + Tax and other: 26 + Import tax (Tax value multiple with tax of lot): VND + VAT (Import tax multiple with VAT tax rate): VND 78,329,315 + Total (Import tax plus with VAT): VND 78,329.315 c Submitting of Import Declaration Form (IDC): - Upon receipt the screen for registering the IDC declaration by the system feedback, the customs declarant checks the declared information, the information generated by the system automatically calculates If the information is correct then send to the system to register the declaration - After the inspection, the customs declarers detect any inaccurate or amended information, they must use the IDB operation to recall the IDA import information screen to correct the needed information Set and perform the tasks as precious instruction until being exactly - If the company's documents are valid, the customs office shall issue the declaration number to the company If the customs declarer finds that the customs response is correct, then continue to press on the rd declaration (official IDC) - In the declaration of e-customs procedures, there is a scan of accompanying documents Only when the customs office requests the scanned, company just scan and attach it to the declaration and return the declaration form, please note that the scanning file size does not exceed 2MB However, in order to avoid a slow solver system, only send the total size of 500 kb/declaration - In this case, the company’s lot of goods is confirmed as valid - Then, company receive feedback from customs office about number of declarations and results d Customs Declaration Channelization: - After obtaining the declaration number, the company shall continue to select operation code (take the flow allocation, customs clearance) Then, wait for the customs office to see the results of the declaration, divided into three main channels: green, yellow, red 27 - Goods divided into channel (Green channel): + Goods not on the list of those banned from import or on the list of those subject to import must be licensed or subject to inspection, analysis and classification but submitted by the owner of the goods to the customs office + Import goods are commercial documents and goods which are entitled to preferential treatment and exemption according to the provisions of law and non-taxable goods (including imported goods not subject to tax, goods subject to tax but exempt from tax according to the provisions of law) + On customs inspection: This cargo is exempted from physical inspection In cases where it is deemed necessary, leaders of Customs SubDepartments shall decide on probability inspection at the rate of between 1% and 5% of the whole cargo flow Carrying out actual inspection of goods by machine If detecting that a lot of goods are found to be in violation, the actual goods shall be inspected by manual measures for the whole lot - Goods divided into channel (Yellow channel): + Goods on the list of those banned or suspended from import or subject to inspection, analysis and classification, but have not yet been submitted to the customs offices for permission; + Goods subject to immediate tax payment; + Detected goods on customs dossiers; + Goods of the owner of this stream must check details of the dossier, exempt detailed inspection of goods; + A declaration showing the words " Customs authorities implement" + On customs inspection: Goods belonging to this channel are exempted from detailed inspection of goods In cases where it is deemed necessary, leaders of Customs Sub-Departments shall decide on the probability inspection at the rate of between 3% and 5% of the whole cargo volume by means of scanners In case of doubting or detecting a violation of a lot of goods, actual inspection of goods by manual measures shall apply to the whole lot 28 - Goods divided into channel (Red channel): + Import goods on the list of specialized management; + Goods subject to conditional import; + Imported goods are subject to tax with a declared value of more than VND 10 million; + Imported goods are items subject to key inspection according to the regulations of the specialized State management agencies; + Goods have not yet been determined for customs declaration; + Goods suspected of customs valuation as prescribed by law; + Declaration showing the word "Customs authorities implement " + On customs inspection: This cargo is inspected 100% of goods by hand Particularly for goods imported under forms of investment, processing, production, export or business, the actual inspection of goods shall comply with the separate regulations of each type of imported goods - The information from the import goods declaration (notifying the result of distribution): + Declaration No.: 101908551510 + Code of distribution: (Red channel) + Date of Registration: 19/03/2018 + The Customs Office receive declaration: + Storage Location: Sai Gon New Port Corporation + Port of Discharge: Cat Lai Port (HCM) + Port of Loading: Ningbo + Details of the lot and amount of tax payable: VND 783,293,150 29 - The company will produce paper documents and goods for Customs inspection (for Red Channel) e Amendments and supplements in customs clearance: - The system allows for declaration of amendment and supplementation in the customs clearance from the time of registration of declarations to customs clearance To make additional declarations in customs clearance, the customs declarer using the IDD service invokes the screen for additional information to be displayed displaying the entire import declaration information (IDA) in the case of a modified declaration, for the first time, or display the latest updated import declaration (IDA01) in the case of declaration of amendment or supplement from the second time on - Upon completion of the IDA01 declaration, the customs declarer sends to the VNACCS system, the system will issue the revised declaration number and return the revised declaration information at the IDE screen, when the declarant Pressing "send" button at this screen will complete the registration of amendment and supplement declaration - The amended declaration form is the last character of the declaration form, the number of declarations amended or supplemented in the customs clearance is times corresponding to the last character of the declaration number from to 9; In case of not making additional declarations in customs clearance, the final character of the declarations shall be - When declarers amend and supplement declarations, declarations may be redistributed or redundant (no distribute to Green channel) - The indicators on the screen amended, supplemented (IDA01) the same as the indicators on the display information import (IDA) The difference is that some indicators (specified in the IDA01 business guide) cannot be entered at IDA01 because they are not modified or modified f Pay the fee, tax and release the declaration: - The enterprise will bring the set of documents together with two copies of the import goods declaration to the Customs Sub-Department of the port to check the conformity of information on the set of documents with the 30 information declared on the e-customs declaration software of the customs office - If there are no errors, the customs office will make a receipt of the fee (receipt of the surcharge for goods, stamp fee receipt) The customs officer affixes the stamp to the upper left corner of the back of the imported goods declaration (attached to the customs declaration) and attaches a receipt of the goods charge (Green) to the import declaration form (Copy of Customs) - The customs officer then returns the dossier to the company together with a receipt of the goods charge (in red) and a stamp receipt Company shall have to complete the fee in order to receive back one original of the customs declaration form (Copy of Company) 2.2 Advantages and disadvantages of DNV Logistics Co., Ltd: 2.2.1 Advantages: - Because it is an e-customs declaration, the customs declarer does not have to go to the customs office but can sit at any place where the Internet is available and can process the customs declaration immediately No cost, time and effort to move as manual procedures as before - The procedures for carrying out e-customs declaration procedures are simple, clear and easy to implement because the company only has to declare electronic e-information and send it to the border-gate customs office to carry out procedures for registration of customs declarations E-mail declaration, electronic forms, easy data storage, easy to use, etc Therefore, the company saves time, cost, human resources, take initiative and cut operating costs This helps to increase the company's competitiveness - Relevant regulations and policies are published on the Customs website This helps the company take the initiative in its import and export activities, including customs clearance The capacity of the company to manage its customs declaration data is improved, especially for companies that use customs agent services to easily track data, control the customs clearance process - E-customs procedures help information between the customs and business systems are managed synchronously on the computer, facilitate the 31 search, search information, extract records later Besides, customs declaration software has high security, the company does not worry about control, confidential information - To comply with the law on customs management and prestige with the customs authorities, the e-customs clearance and customs clearance procedures are conducted smoothly In addition, customs standards are in line with international practice, so domestic companies working with foreign firms are more likely to meet the conditions in other countries 2.2.2 Disadvantages: - The introduction of e-customs as a substitute for manual customs has created a lot of confusion for the company Companies must be equipped with information technology equipment and customs declaration software when participating in e-customs - Employees who carry out procedures for e-customs declaration of the company must have college or higher level and be trained through the declaration classes organized by the training institutions of Customs and Finance After being granted the certificate, they will be eligible to participate in the customs declaration However, most of the import export staffs are confused and not know how to declare customs so that the company takes time to re-train so staff can declare them In addition, when encountering some difficult to handle shipments, staff have insufficient experience and knowledge to make customs procedures difficult - Customs declaration or network congestion and slow transmission speed make the customs declaration is prolonged, time consuming procedures for receiving goods later The equipment, network security system security of the company is limited - Continuous updating and revision of tax regulations, customs regulations, import and export difficulties, must be amended and updated in the software In addition, there is limited and not timely changes in the software, causing errors in e-customs declaration and must make modifications that make the process of importing goods delayed - Risk management system and support programs are not synchronous, because the network management from the general department to the 32 department level and then to the department Some network management problems when it comes to problems for customs officers and customs officers 33 CHAPTER 3: RECOMMENDATION AND SOLUTION TO IMPROVE CUSTOMS PROCEDURES 3.1 Review and comment: - As a logistics company specializing in transportation services, DNV Logistic has caught up with the trend of modern economy, carrying out activities related to import and export The company has the advantage of having good staff, good training, high productivity and reduced staff cost In addition, the treatment regime as well as the relationship between the superior and the staff is good, so avoid the risk of changing human resources and employees sticking firm with the company, bringing internal great strength for a young company like DNV Logistic - During the implementation of e-customs declaration procedures at DNV Logistics, I realized that there are some steps customs declarants can perform flexibly, without having to comply with the sample procedures offer The company has based its practice on refining the process to suit the company's available resources On the other hand, DNV is a company specializing in Import and Export goods, so there are some samples of company documents need not have, compulsorily have the contract documents, packing list, Therefore, the process of declaration procedures of the company are shorter and more flexible than other companies 3.2 Proposal and recommendation: 3.2.1 Recommendation to company: - Improve the personnel capacity of importing and exporting in general and customs clearance staff in particular Customs clearance staff should have at least one year of experience in order to ensure that they have a thorough knowledge of import-export laws and regulations and to accumulate experience to carry out customs procedures to minimize errors in their work - The company should have appropriate remuneration policies for employees, especially customs clearance staff This gives the employee the incentive to work better and be more motivated to his job Once there is motivation to work, it will limit errors and delays in the process, avoiding influencing others and other departments 34 - The company should actively contact the customs office about the ecustoms declaration roadmap Since then, the company has grasped the requirements and conditions of the law to build its own plan without being overly affected by objective factors from the customs - Regularly replace the computer system, upgrade the transmission line to ensure the suitability and good use of customs declaration software Avoid delays and unnecessary waiting times for software failure or transmission delays - The company should install a network security and data security system to ensure the security of the entire data system of the company Avoid losing confidential information, orders and customers need information security, affect the reputation of the company - Regularly co-ordinate with Ho Chi Minh city Customs Department or customs department to open e-customs declaration skills training courses for employees in the company This has helped strengthen the relationship with the customs authorities, as well as help import and export staff update, enhance professional information, improve professional skills 3.2.2 Recommendation to customs: - In order to ensure and create more favorable conditions for enterprises when implementing e-customs procedures, as well as for customs officers to implement smoothly, upgrading software for customs declaration, correcting errors, upgrading servers, data of goods, etc - Organize many training courses on the application of e-customs procedures to enterprises involved in import and export From there, we can answer questions from the business as well as help the staffs with solid business knowledge of customs This will help businesses boldly and reluctant to participate in the implementation of customs procedures - E-customs procedures need to take a new step in technology, since after the data is transferred to the customs office, the import-export staff of the company must print the declaration and bring it to customs customs procedures It is possible to just carry out manual procedures for goods in the yellow and red lanes, if modern e-customs procedures can be modernized, it is 35 really convenient and saves time and costs for both sides business and customs - Negative aspect in the Customs Department is still entirely much Therefore, it is necessary to have reasonable and thoughtful policies to protect the interests of enterprises as well as build a beautiful image for customs Minimize the negative aspect while import and export customs procedures to improve the good relationship with the business and help businesses implement the process of import and export goods quickly - Promote the implementation of good attitude, friendly and willing to help businesses in the process of customs clearance There are still situations of business reception with uncomfortable attitude, making it difficult in procedures of company 36 CONCLUSION DNV Logistics Co., Ltd has done well business as well as step by step assert itself on the market both at home and abroad in accordance with the guideline "Quality is above all" The prestige factor is always the most important factor when dealing with any partner, even with foreigners, especially with China partners On the other hand, being in touch with the sales process at the company, as well as working in the Logistics department to help me have more experience as well as knowledge that books can’t teach all Carrying out the report and internship at the company helps me to re-train what has been taught and test my knowledge during my studies at Ton Duc Thang University The suggestions that I made may be negligence because I have a weak ability that not yet grasp all the problems in the sales process of DNV Logistics should still have many shortcomings I am looking forward to teachers and company sympathize and understand for my limitations In the end, I would like to send my sincerely thanks to my teacher, for giving me the knowledge to make this report, as well as to the business which facilitated the supply of materials for me, specially for Mr Pham The Vu, - General Director, to complete the International Business Internship report Looking forward to receiving valuable contribution from the teacher and company so that I can improve my knowledge and my future job 37 REFERENCES - 38 39 ... Department Accounting Department Table 1.2: Quantity of employees in departments in DNV Logistic Co., Ltd (Resource: Accounting Department, 2018) - Total number of employee in DNV Logistic is... unit price, total amount, method of payment, beneficiary bank information - Packing List (01 original): itemized list of articles usually included in each shipping package, giving the quantity,... Capacity: 1300W, Volume: 2,6L 100% brand new + Original: China + Quantity: 1.806 PCE + Invoice unit price: 19USD/PCE + Weight: + Total Amount: USD 34,3144 Import duty on fryer(Tax exchange rate: