Chapter 4+5 Incoterms FTU

1. IMPORT AND EXPORT
PROCEDURES IN VIETNAM
Dinh Khuong Duy (M.A)
Lecturer in International Trade Transactions
Faculty of Economics and International Business
Foreign Trade University

2. EXPORT PROCEDURES
 Assumption:
Contract has been signed, in which:
- Terms of delivery: FOB, Incoterms 2010
- Cargo: bulk (not containerized)
- Payment: by irrevocable L/C

3. EXPORT PROCEDURES
 Ask the buyer to open an L/C
- Check L/C
- Compare to Sales Contracts
- Request for amendment if necessary
 Apply for export license
- Goods free for imports
- Goods needs automatic licensing
- Goods under specific administration

4. EXPORT PROCEDURES
 Preparing export goods
- Collecting
- Packing and marking
- Preliminary quality inspection
 Arrange carriage and insurance
- Buyer’s liability
- Help the buyer under his cost and risk

5. EXPORT PROCEDURES
 Pre-shipment inspection
- Inspection agency
- Inspection location
 Customs clearance
- Exporter/Forwarder/Carrier
- Documents: Contracts, Customs
declaration, packing list…
- Procedures: green/yellow/red lanes

6. EXPORT PROCEDURES
 Delivery
- Contact port authority
- Carry goods to the port
- Watch the shipping-on-board process
- Obtain documents required (B/L)
 Payment
- Present documents required in L/C in
due time

7. EXPORT PROCEDURES
 Dispute settlement
- Claim settlement: according to sales
contract;
- Settlement by court of justice;
- Settlement by arbitration
Note: VIAC

8. IMPORT PROCEDURES
 Assumption
- Terms of delivery: CIF, Incoterms 2010
- Cargo: bulk (not containerized)
- Payment: by irrevocable L/C

9. IMPORT PROCEDURES
 Apply for import licenses
 Open an L/C
- Prepare documents: Application form,
Contracts…
- Open an L/C in due time (security
deposit may be required)
 Arrange carriage and insurance
- Seller’s obligations.

10. IMPORT PROCEDURES
 Customs clearance
- Who can perform customs procedures?
- Documents required?
- Procedures?
 Take delivery
- Preparation after receipt of NOR
- Obtain D/O
- Take delivery of goods (documents?)

11. IMPORT PROCEDURES
 Inspection of goods
- Quality inspection
- Quarantine (if required)
 Dispute settlement
- Claim and self-settlement
- Settlement by court of justice
- Settlement by arbitration

12. DOCUMENTS IN INTERNATIONAL
TRADE TRANSACTIONS
 Commercial invoice
 Certificate of quantity
 Certificate of quality
 Certificate of origin
 Bill of lading
 Import/Export license
 Customs declaration
 Others…