Field trip report: The procedure of receiving imported goods to bonded warehoused in green logistics centre

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Field trip report: The procedure of receiving imported goods to bonded warehoused in green logistics centre tập trung trình bày các vấn đề cơ bản về: Introduction of the company; the procedure of receiving imported goods to bonded warehoused in green logistics centre (GLC); strengths and weaknesses of the process.

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Nội dung Text: Field trip report: The procedure of receiving imported goods to bonded warehoused in green logistics centre

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION __________________________ FIELD TRIP REPORT Name of student: Nguyen Thi Thuy Duong ID: 49874 Class: GMA0303 Place: GREEN LOSGISTICS CENTRE INSTRUCTOR: Vu Thi Thu Hang 09/2015
CONTENT PREFACE CHAPTER 1. INTRODUCTION OF THE COMPANY 1.1 Introduction of Vietnam Container Shipping Corporation (VICONSHIP) 1.1.1 History........................................................................................................................3 1.1.2 Functions....................................................................................................................4 1.1.3 Organization 1.2 Introduction of Green Logistics Centre ( GLC) 1.2.1 General introduction................................................................................................6 1.2.2 History........................................................................................................................7 1.2.3 Functions...................................................................................................................9 1.2.4 Organization..............................................................................................................9 1.2.5 Facilities...................................................................................................................10 1.2.6 Orientation production operations........................................................................11 CHAPTER 2. THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE (GLC) 2.1 Bonded warehoused 2.1.1 Definition .........................................................................................................13 2.1.2 Characteristics of goods in bonded warehoused ...............................................14 2.2 Responsibilities of the parties involved in the operation of bonded warehouse
2.2.1 Responsibilities of bonded warehoused owners................................................ 14 2.2.2 Responsibilities of customs bonded warehoused .............................................. 14 2.2.3 Responsibilities of goods owners (or forwarder) ...............................................14 2.3 The procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) 2.3.1 Diagram of process ...............................................................................................15 2.3.2 Describe the process .............................................................................................17 CHAPTER III. STRENGTHS AND WEAKNESSES OF THE PROCESS 3.1. Strengths. ................................................................................................................27 3.2. Weaknesses. ............................................................................................................27 3.3. Suggestions to advance the effect of the process ..................................................27 CONCLUSION
LIST OF FIGURES Figure 1.1: The organization map of Viconship Figure 1.2: the instruction of finding GLC on the maps Figure 1.3: The organization map of Green Logistics Centre (GLC) Figure 2.1: Bonded warehouse in Green Logistics Centre (GLC) Figure 2.2: Diagram of the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) Figure 2.3: The customs procedure Figure 2.4: applications for transfer gate Figure 2.5: VAT invoice
PREFACE Logistics is a tool to link the activities in Global Value Chain and is seen as a tool, a means to link many different areas of business strategy. Logistics is very important for economic development in Vietnam. Logistics services contribute to improving management efficiency and reduce costs in the production process, enhance the competitiveness of enterprises. Logistics services contributed to increase the business value of the transport companies. Acknowledging the importance of logistics in economics development in Vietnam, I decide to take my field trip in Green Logistics Centre, a developing logistics company in Haiphong. I hope this field trip will provide me practical knowledge, enhances my understanding of theories studied at the Vietnam Maritime University. In this report, I discuss about the procedure of receiving imported goods to bonded warehoused. By observation and practice, I expect to present clearly and accurately this procedure at Green Logistics Centre My report presents in detail the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre before analyzing and comparing it with the procedure in fact. By unbiased evaluation, I give some comments about the strengthes, weaknesses as well as proposing suggestions to improve this procedure more efficiently and advanced. In general, this report includes 3 chapters: Chapter 1: The introduction about company In this chapter, I present history and development of Vietnam Container Shipping Corporation and Green Logistics Centre, business functions of the company, organizational structure, evaluating generally business situation of the company in two recent years. Chapter 2: the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre This chapter is about the main topic of this report. The full procedure is presented specifically following each step. The role of each position in the company is also highlighted through each period in the procedure. Chapter 3: Strengths and the weaknesses of the process 5
This chapter is about the strengths and the weaknesses of the process. Depending on strengths, weaknesses and the risks affecting the procedure, some suggestions to improve the activities at Green Logistics Centre THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE CHAPTER 1. INTRODUCTION OF THE COMPANY 1.1 Introduction of Vietnam Container Shipping Corporation (VICONSHIP) 6
1.1.1 History VIETNAM CONTAINER SHIPPING CORPORATION (VICONSHIP) is one of leading Freight Forwarders and Shipping Agency Companies in Vietnam and has been actively providing its services since 1985. Founded in 1985, Vietnam Container Company (VICONSHIP) is a stateowned enterprise specializing in providing services to shipping agents, warehousing, loading, unloading and transporting container During the establishment and development, VICONSHIP has undergone significant stage. In April 2002,Haiphong VICONSHIP equitized and became a corporation under the name "Vietnam Container Shipping Joint Stock Company” VICONSHIP network operations in both the North CentralSouth with four 100 % owned subsidiaries, one branch and one joint venture. Business Scope extended terminal operators, shipping, gradually forming a closed chain logistics services. VICONSHIP Green Port is a major port of Haiphong and plays a key role in business operations. With initial charter capital equalization than 25 billion VICONSHIP continuous increases of charter capital in the form of shares issued internal issue for existing shareholders. To date the Company's charter capital is 80.3 billion. Corporation Vietnam Maritime VINALINES is the largest shareholder with 28.16 % stake and an important contribution to support the business activities of the Company. VICONSHIP was Ho Chi Minh City Stock Exchange listing approval and will be up in the first quarter of 2008 HOSE 1.1.2 Functions a. Shipping agent VICONSHIP is the only shipping agency's of two largest shipping company in the world in Vietnam. They are MSC and TSLines. As ship's and shipping agent, on behalf of shipping company and operators, VICONSHIP follow the governmental procedure when vessel enter and leave the port, undertake loading, unloading and delivery of cargo of those vessels, providing port, cargo and general protective agent's services, cargo handling service, stevedoring facilities, bunkering, bonded stores, fresh water, medical services and supplies, preparing shipping documents, general transportation and accommodation of crewmen, marine surveyors, vessel chartering, drydocking... Vessel repair services. 7
b. CFS Warehousing With its own warehouse of 5,000m2 which is located next to container main port of Haiphong, VICONSHIP is ready to meet customer's need for storage, transportation, and distribution processing of goods through the established nationwide transportation network. Warehousing & export packing provide full range of services to meet all requirements for ocean and domestic shipments. Service includes the consolidation and stuffing of equipment and supplies into container, flat rack and platform as well as securing and blocking materials. Products handled by us are of numerous different types. to guarantee the safety of merchandize is our responsibility c. Multimodal Transport Container Inland Haulage & Logistics: VICONSHIP offers a complete range of container logistic custody, dispositioning, inland transportation, maintenance, and repairs, leasing arrangement. As a pioneer in container transport with its own trucking fleet, the company has a full scale system, which uses specialized tractors, and trailers, trucking services are available to all part of Vietnam for any type of cargo, no matter how large in scales or small in lot. Use of specially equipped vehicles operated by special licensed drivers has given the company a solid reputation. rapid, safe and precise work is demanded for linking the vital land & marine routes 1.1.3 Organization a. Function of departments 8
Figure 1.1 : The organization of VICONSHIP Shareholders 9
Shareholder is the top power group in company. It includes the shareholder who have right to vote and decide the issues related to laws and regulation of company. Group examines the annual financial report and determine annual budget. Besides, shareholder can dismiss member of supervisory board and board of management. Supervisory board Shareholder elects member of supervisory board and they function independently with board of management. This group represents the shareholder and supervises all aspect of business operation. There are three members in group and their incumbency is five years. The Board of Management The Board of Management is the governing body of the Company, has full authority to decide on behalf of the Company the implementation of the rights and obligations of the Company are not under the jurisdiction of General Meeting of Shareholders. The Company's Board of Management has 09 members; each term of each member is 05 years. Chairperson elected by Board of Management. Board of director Board of director includes four members: general director and three vice general director. General Director is person who manages and takes responsibility for every aspect of economic activity. General Director also is legal representative of company b. Subsidiaries Infacon company: business warehouse; sales of gasoline, oil, supplies and accessories; shipping agent and ship broker Da Nang Viconship: Agent container services, shipping agency; shipbroker; transportation of imports and exports, goods in transit; Multimodal Transport International; T.S Lines: As agents of container; Freight forwarding and import and export inland container transport; Brokerage and import goods; Business Warehouse and storage buildings; Marine terminal operators, shipping business, shipping business multimodal. 10
Global Blue transport company: As agents of container; Freight forwarding and import and export inland container transport; Brokerage and import goods; Business Warehouse and storage buildings; Entrusted import and export of goods; other services related to serving the needs of customers. 1.2 Introduction of Green Logistics Centre ( GLC) 1.2.1 Establishment and Devolopment Name: Subsidiary of Vietnam Container Shipping Corporation, Green Logistic Centre One Member Limited Company Address: CN3.2G Dinh Vu Industrial Zone, Dong Hai II Precinct, Hai An District, Haiphong. Tel: (8431). 3797766 Figure 1.2: the instruction of finding GLC on the maps Director: Nghiem Tuan Anh Authorized operations: Vietnam Container Shipping Corporation 11
In May 2012, Green DMC Corporation was found that total charter capital is 75 billion based on equity of Vietnam Container Shipping Corporation VICONSHIP and DMC company under Petro Vietnam had been the investment certification of Management Board of Dinh Vu IZ with 74.900 m2 in lot 3.2G, Dinh Vu Industrial Zone, Dong Hai 2 Ward, Hai An District, Haiphong City. In October 2012, VICONSHIP paid back entire shares of DMC Company to convert Green DMC Corporation into Green Logistic Centre One Member Limited Company transaction name was Green Logistic Centre; and company raised the charter capital from 75 billion to 90 billion with 100% investment of the VICONSHIP. On 1 November 2012, Green Logistic Centre One Member Limited Company officially opened and put into operation a new container yard Phase 1 was completed with a total area of over 24.000m2. In December 2012, VICONSHIP bought 10.120m2 of the adjacent land to increase total used land area of GLC to 85.020 m 2. Besides, The Company signed lease for Joint Venture future green star (Green Future Star GFS) with 30,000m2 parks to provide services to the shipping company MSC. In January 2013, GLC started business yards on the remaining area. In February 2013, Project Board of VICONSHIP Group started work bonded + CFS warehouses in phase 1 with a total area of 7.525 m2. In September 2013, GLC completed warehouse construction in phase 1, they were received license and started exploit CFS Bond warehouses with total area of 7.525 m 2. Then, Company continued starting warehouse construction in phase 2 with 7.525 m2 of total land. In February 2014, GLC completed warehouse construction and started exploit warehouses in phase 2 rising total used warehouse areas to 15.050m 2. In addition, Company was received the licenses for the establishment of checkpoints concentrated in GLC depot. GLC completed all the procedures to become an island port (Inland Container Depot – ICD) that is only in Hai Phong with operating licenses within three main fields: CFS warehouse, Bond warehouse, Place of customs clearance outside of the ports. By the end of 2014, GLC officially operated at full capacity. The production of warehouse goods in monthly gained 40.000 m 3. The production of full containers and empty 12
containers in yards is about 12,000 TEUs. Furthermore, GLC took back 10,000 m2 area yards from GFS to up the container handling capacity for GLC yard area. 1.2.3 Functions Transport of goods by road Transport of goods by coastal and ocean Warehousing and storage of goods Loading and unloading of goods Activity support services related to the exploitation of transport Repairing fabricated metal products Repairing machinery and equipment Maintenance and repair of automobiles and other motor vehicles Sales of spare parts and accessories of car and other motor vehicles 1.2.4 Organization Director: Directors govern companies on behalf of the shareholder who elect them. Directors must comply with basic legal requirements under the Corporations, which specify main duties for directors with a number of other areas of key responsibility. Directs, supervises, and coordinates the works of the staff. Perform other duties as Director, ES and higher headquarter may direct. Deputy Director: Keeping the Director and staff informed on information affecting the unit. Represents the Director when authorized and acts in the absence of the Director. They see to it that all plans, instructions, and directions of the Director are properly observed, disseminated, and faithfully implemented. They prescribe the staff operating policies and procedures. Synthesis financial department: the department that manages and keep records of personnel, social insurance books; monitoring the social insurance, employee health insurance of 13
property. Besides, it tracks the salaries and allowances paid to employee monthly by regulations of Directors and the Board of Management. Figure 1.3: The organization map of Green Logistics Centre (GLC) Operating department: the department that manages and controls the warehouseyard system operations. Besides, this department builds up the operating cargo plans and arranges employees to handle goods arrived to the company. 1.2.5 Facilities With the goal of becoming a center of international large logistics, GLC business many warehouse yard services and the afterport service with the all land area of 85.020m2, including: Container yard of GFS rented in 3 years is 30.000m2. Container yard exploited by GLC is 25.000m2. 17 electric forklifts in the warehouse operators. 05 diesel forklift in the yard operators. 30 handle forklift in warehouse operators. 02 reach stackers 45 tons in the yard operators. 01 sidelift forklifts 10 tons in yard operators. 06 container trucks and 16 trailers of 40fts Bonded and CFS warehouse was built on modern international standards of Singapore with a total area of 15.050m2. Warehouse was installed the lights, natural oxygen, heatproofing and firefighting system, security cameras reached CTPAT standards, antitheft alarm system, intrusion prevention, hydraulic dock system automatically adjusts the height at all cargo door, Fourstages racking system with over 8 meters height and exploit entire plastic pallets lined up to standards against moths, mildew. Storage Foundation designed lying on the concrete pile from 36m42m long stretched every 3m / collateral against subsidence, cracking and bearing 5T / m2 1.2.6 Orientation production operations 14
Orientation production operations: Following the competition increased, GLC leaders require continue enhancing to 10% the marketing and 5% the customers by 2018. Besides, they search and find out the reasonable incentives such as reducing documents, reducing the cost when have large quantity of stored goods to take more customers for company. The Research and plan establishment of a representative office of GLC in Hanoi purposing take care of FWD, customers and representative factories in Hanoi, Bac Ninh, Bac Giang operate in the hard competition context when Yusen, SITC, Nippon ... prepare to put into operation. Company continues adding refrigerated containers, temporarily imported reexported goods through bonded warehouses to increase 12% profits in 2020. Seriously follow reducing costs plans which was submitted the CEO in 2010 about: costs of customs procedures, costs of pulling the outside shell through Yard, transport rental costs, which are decreased from 5% to 2%; utility costs, supply materials, repair vehicles costs, the costs of VPP, meeting costs went to 3% in 2020. Company will train the second job for staff to increase the effect of job rotation between departments. Besides, they disseminate awareness of executing discipline and maintaining equipment for employees of company in third quarter in 2015. 15
CHAPTER 2. THE PROCEDURE OF RECEIVING IMPORTED GOODS TO BONDED WAREHOUSED IN GREEN LOGISTICS CENTRE (GLC) 2.1 Bonded warehoused 2.1.1 Definition 16
Figure 2.1: Bonded warehouse in Green Logistics Centre (GLC) Bonded warehouse are store or site areas set up on the territory of Vietnam separated with the adjacent area for temporary storing, keeping or carrying out a number of services concerning goods brought in from abroad or from the country under bonded warehouse leasing contracts signed between store owners and goods owners under the inspection and supervision of the Customs. Goods temporarily stored or preserved in bonded warehouses, if destined for export, are those for which the customs procedures have been cleared for export: if brought from abroad, they are goods awaiting further transport to other country(ies) or the clearance of procedures for import into Vietnam, and not yet liable to import duty. Bonded warehouse and all goods and vehicles entered, left or stored and preserved in bonded warehouses shall be subjected to inspection, supervision, and management of the customs authorities. 2.1.2 Characteristics of goods in bonded warehoused Goods temporarily stored or preserved in bonded warehouses, if destined for export, are those for which the customs procedures have been cleared for export: if brought from abroad, 17
they are goods awaiting further transport to other country(ies) or the clearance of procedures for import into Vietnam, and not yet liable to import duty. Goods owners shall be assured of ownership over their goods left in bonded warehouses. 2.2 Responsibilities of the parties involved in the operation of bonded warehouse 2.2.1 Responsibilities of bonded warehoused owners Any shifting of goods within a warehouse or from one warehouse to another shall be notified to Bonded Warehouse Customs. Warehouse owners shall inform Bonded Warehouse Customs before the performance thereof and be subject to Bonded Warehouse Customs' supervision throughout the course of such performance. Bonded warehouse owners shall open books for following up the taking out and delivery of goods from warehouses according to the forms and the reporting and recording regimes prescribed by the General Department of Customs. Every year, warehouse owners shall make inventory of stocks outstanding in bonded warehouses under Bonded Warehouse Customs' supervision. Every 06 months and 1 year, bonded warehouse owners shall report to Bonded Warehouse Customs on the operation of warehouses. 2.2.2 Responsibilities of bonded warehoused customs Bonded warehouse customs is always present at the inspection, supervision and management of goods brought into or out and retention of stored according to regulations of the General Department of Customs. Bonded warehouse customs opens books to monitor and record full import goods warehouse to ensure the goods brought into the warehouse and properly stored product goods, the amount under the lease warehouse. They regular contact customs gate to monitor the situation in the domestic transit for goods, warehoused. Every day, when the time of work the end, Customs Bonded warehouse owners proceed with sealing all doors warehouse. 2.2.3 Responsibilities of goods owners (or forwarder) Goods owners or forwarder must comply with all the provisions relating to all activities of the bonded warehouse, provide sufficient information necessary for the shipment to the warehouse owner and the customs authorities to collate, check and supervision. Goods brought into bonded warehouses must correct the warehouse leases. 18
2.3 The procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) 2.3.1 Diagram of process *Note: (1): Forwarders received documents related to goods from customers (2a), (2b): Documentation Department conducts customs procedures of imported goods to bonded warehouses. Then, forwarder will bring these records to the port to get goods in, also report to Warehouse Management Department to plan for goods imported to bonded warehouse (3a), (4a): Forwarder goes to the seaport to complete customs procedures for bringing goods in bonded warehouses (3b): Warehouse management Department plan prepared for goods imported to bonded warehouse (4b): Forwarder and Storekeeper delivery goods to bonded warehouse 19
Figure 2.2: Diagram of the procedure of receiving imported goods to bonded warehoused in Green Logistics Centre (GLC) (5): Documentation Department completed customs procedures for goods imported to bonded warehouse (6): Report to customers that goods imported to bonded warehouse and invoice settlement with them 2.3.2 Describe the process a. Step 1 Forwarders received documents related to goods from customers (usually the customer will inform Documentation Department send forwarder to obtain documents in their office) B / L ( Bill of Lading) or SBL (Sea Way Bill) (Surrendered / original); Invoice (original + copy); Packing list; 20