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<b>Faculty of Economics</b>

<b>MIDTERM REPORT</b>

<b>LOGISTICS MANAGEMENT - MGT1143E</b>

<b>No.Full nameStudent IDTasks</b>

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<b>II.CASE STUDY:...5</b>

<b>1. What is the function of the goods inspection area?...5</b>

1.1. Define:...5

1.2. The function of the goods inspection area in Cat Lai Port VietNam:...9

<b>2. Kind of warehouse in Cat Lai Port and the process of receiving and loading goods into that warehouse by forklift...10</b>

2.1. Kind of warehouse in Cat Lai Port:...10

2.2. The process of receiving and loading goods into that warehouse by forklift in warehouse CFS Cat Lai...12

2.2.1 The benefits of using a forklift?...12

2.2.2 The process of receiving and loading goods...12

<b>3. Maritime routes can cargo ships from Cat Lai take...15</b>

3.1. Shipping from Vietnam to Busan Port, Seoul Korea...16

3.2. Shipping from Vietnam to China...17

3.3. Shipping from Vietnam to Hong Kong...17

3.4. Shipping from Vietnam to Indonesia...18

3.5. Shipping from Vietnam to Japan...18

3.6. Shipping from Vietnam to Thailand...19

3.7. Shipping from Vietnam to Malaysia...19

3.8. Shipping from Vietnam to the Philippines...20

3.9. Shipping from Vietnam to Cambodia...21

3.10.Shipping from Vietnam to Myanmar...21

<b>4. Type of ship that Cat Lai port approves berthing...22</b>

<b>REFERENCES:...27</b>

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<i>Source: Tổng Quan Tân Cảng Sài Gòn | Công Ty Cổ phần ICD Tân Cảng - Long Bình. (2022). Retrieved 28 May 2022, from Lai Port was constructed in stages from June 1996 to 2002, with an initial area of about 170,000 square meters, including two 150-meter berths, which can berth ships of more than 20,000 DWT. Meanwhile, Ghi Lai has teamed up with the city to build Intercity Route 25 from Hanoi Expressway to Cat Lai Ferry to attract customers. The first train that stopped at Jilai in March 1998 was Nanping Mountain in China, loading and unloading more than 5,000 tons of rice. After switching to the container business, RCL Shipping's first vessel was berthed at Cat Lai in October 2002. In 2005, after the completion of Thu Thiem Bridge, Saigon New Port transferred all container ship operations from Sin Cang Port to Cat Lai Port, which has since become the main port in the southern region.

Currently, a 216-meter long dedicated container terminal (B7 terminal) can accommodate ships of 30,000 gross tonnage with a corresponding deadweight tonnage of 2,500 TEUs for the cargo handling terminal and the B7 berth (80 meters). Receipt of 2,200 dwt vessels and loading and unloading equipment for modern port operations including: 02 K.E Land Crane, 01 Kocks Land Crane, 01 Liebherr Land

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Crane, 02 Kalmar 6+1 Frame Crane and more than 30 tractors in continuous operation24 / 24 hours a day to meet all the needs of customers.<small>1</small>

In 2005, Cat Lai Port's throughput reached 1 million TEU, and by 2011 Cat Lai Port's throughput increased to 2.6 million TEU. Gillai Port currently has a market share of more than 90% of the container volume imported and exported through the port of Ho Chi Minh City, accounting for nearly 50% of the national market share, and is one of the 25 busiest container ports in the world.

The total area of Xincang-Gilae Port is 160 hectares, and the total length of the wharf is more than 2 kilometers. At the same time, it receives 09 feeder ships, and the receiving ships reach 45,000 deadweight tons and the transportation capacity of TEUs (equivalent to one million tons of cargo). Ports account for more than 93% of the market share of import and export goods in urban areas. Ho Chi Minh City, the 30th busiest container port in the world. Application of modern port management technology TOPOVN; Payment via Internet (E-Port); Electronic Delivery Order (EDO).

<i><b>Source: Cảng Tân Cảng- Cát Lái đón tàu lớn nhất vào cảng. (2022). Retrieved 28 </b></i>

<i>May 2022, from with the services of tugboats, pilots, warehousing, land transport, barge water transportation, customs clearance... In 2019, Tan Cang-Cat Lai Port achieved 3 best:

1 Hệ thống cơ sở hạ tầng và trang thiết bị . (2018). Retrieved 28 May 2022, from

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1) Receiving the largest container ship, a ship of 4,5 thousand tons.

2) The average ship clearance capacity is 71 containers/h, an increase of 11% compared to 2018.

3) Delivery time for 01 container only takes 43.8 minutes/cont (10% less than 2018). These results further highlight and confirm that the Tan Cang - Cat Lai port is an important gateway and the most dynamic seaport in the south. In 2019, the import and export tax of Tan Cang - Cat Lai Port exceeded 70 trillion VND, accounting for about 17% of the city's tax revenue.

5 millionth order in 2019 via vessel MERGUI 950S from Mearsk/Sealand via Tan Cang - Cat Lai port. The ship carries 1,329 containers (equivalent to 2,400 TEUs), of which 1,300 TEUs are imported and 1,100 TEUs are exported. Maark/Sealand Shipping is the world's leading container shipping company and has been one of the leading shipping companies in the Port of Tan Cang - Cat Lai for many years.<small>2</small>

<b>II.CASE STUDY:</b>

<b>1. What is the function of the goods inspection area?1.1. Define:</b>

Actual inspection of goods means that the customs authority checks the actual condition of the goods and compares the conformity between the actual goods and the customs dossier.

According to the Kyoto Convention, “inspection of goods” means that Customs authorities carry out a physical inspection of goods to ensure that the nature, origin, condition, quantity and value of the goods are in accordance with the specified costs. Details declared in the goods declaration.

2 Tân c ng Cát Lái sẵẵn sàng ph c v các hãng tàu và khách hàng | Doanh nghi p | Vietnam+ (VietnamPlus) . ả ụ ụ ệ (2021). Retrieved 28 May 2022, from class="text_page_counter">Trang 6</span><div class="page_container" data-page="6">

The goods inspection area in Cat Lai Port, Vietnam, serves as a crucial component of the port’s logistics infrastructure.

The goods inspection area will be directly related to the customs officer. In order to export or import a certain item, we must make a customs declaration so that they can inspect and supervise the goods in Vietnam.

Customs declaration is a mandatory procedure at border gates, seaports and airports that allow goods and means of transport to be exported or imported out of Vietnam’s national border.

<b>For customs declarations, their purpose is:</b>

-Manage goods, ensure that goods entering and leaving Vietnam’s territory are not on the list of banned goods such as

drugs, guns, etc. Official exporters are not allowed to export antiques and wild animals out of the country. - For the State to easily calculate and collect taxes. This is an important purpose for the State to build a richer and stronger country

<b>- Customs control and supervision</b>

for goods exported, imported, transferred from border to border, in transit, temporarily imported for re-export, temporarily exported for re-import, processed, invested, processed for export under the supervision of customs authorities. means of transport and means of transport on exit, entry, transit or transshipment within the customs area and at assigned locations in accordance with the Law.

-Customs control to prevent and combat smuggling and illegal cross-border transportation of goods and drugs. Preventing and combating economic fraud within the scope of assigned functions, tasks, responsibilities and fields of action. Coordinate with other functional forces to carry out the task of fighting against contraband goods, trade fraud and illegal cross-border transportation of goods outside the legally designated customs operation area.

- Customs supervision monitor and combat fraud in paying taxes and other incomes

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- Request for consideration of exemption, reduction, refund, non-collection, liquidation, extension, monitoring and arrears collection of tax arrears, tax coercion as prescribed by law.

- Organize the implementation of technical measures to manage risks in customs activities.

- Supervision of import and export goods

Currently, our country has an electronic customs system to replace the partial supervision of goods by customs. Each shipment will be declared to customs according to a ready-made form and filled out the information required by the declaration. We will then put that declaration on the electromagnetic inspection system, then the system will automatically stream the declaration.

<b>There will be 3 channel: Green channel, yellow channel and red channel </b>

-Green Channel: Many businesses want to enter the green stream declaration. Enterprises comply well with the provisions of the law on customs, exempt from detailed inspection of documents, and exempt from detailed inspection of goods. -Yellow Channel: Customs checks documents, exempts goods from detailed inspection. According to regulations, physical inspection of goods is exempted for imported and exported goods of goods owners who have well complied with the law on customs, and tax-exempt machinery and equipment of domestic and foreign investment projects. Goods brought from abroad into the free trade zone, goods in special cases decided by the Prime Minister.

- Red channel: Customs check details of records and check details of goods with different levels of physical inspection of shipments. In principle, if the goods have a

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high probability of violating the law, the customs declarant will fall into the red channel (will be physically inspected).

Actual inspection of goods will fall into one of the following two cases:

<b>-</b> Prioritize inspection through container scanners

<b>-</b> Manual inspection by customs officers.

When checking manually, the customs officer will check the probability of 5%. If during the inspection, there are signs of violations, the inspection rate will be increased to 10%, 50% or even 100%.

-Physical inspection of no more than 5% of the shipment: Conducted to assess the compliance with the customs law of the goods owner, if there is no sign of violation, the inspection will be ended, if any, continue to check for until the extent of the violation is determined.

-Actual inspection of 10% of the consignment: goods are exempt from physical inspection, but the customs authority, through information analysis, finds signs of violations, conducts inspection, if there are no violations, then the inspection ends. , if yes then continue to check.

-Check the entire shipment: for goods whose owners repeatedly violate the law on customs.

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The Customs is under the Ministry of Finance, so it is related to the currency and taxes that businesses have to pay. Each shipment, each item has a code called HS code. And each code has a certain tax rate that the business must pay. Enterprises must base on their products and their composition to use a fixed HS code. If there is an item, the tax is 0%, 5% or 10%. From there, businesses have to confront the customs to get the most benefit, choose the HS code to have the lowest tax rate.

<b>2. Kind of warehouse in Cat Lai Port and the process of receiving and loading goods into that warehouse by forklift</b>

<b>2.1. Kind of warehouse in Cat Lai Port:</b>

Cat Lai Port is one of the largest ports in Vietnam, with a wide range of warehouse facilities to cater to different types of cargo. Some of the types of warehouses available in Cat Lai Port include: Export and import CFS warehouse, Bonded warehouse, Inland warehouse, oversized warehouse

<b>Warehouse area with a total area of 46,250 m2, of which:</b>

-CFS Import warehouse: Warehouses 2 and 3 are for imported goods, with an area of 18,000 m , total capacity of 12,500 pallets, 64 shelves, 26 import and export <small>2</small> doors.

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-CFS Export warehouse: Warehouse 5 is for export goods: 1st floor with an area of 6, 250 m , total capacity of 3,500 pallets, 22 shelves, 19 import and export doors, 5 <small>2</small> elevators with a capacity of 5 tons/elevator

-Bonded warehouse: 2 floor with an area of 6,250 m2, total capacity of 3,500 <small>nd</small> pallets, 22 shelves, 5 months of machines with a capacity of 5 tons/elevator. -Oversized warehouse: Warehouse 1 is for oversized, overloaded goods, goods that do not fit the shelves, then put into warehouse 1, area 9,500 m .<small>2</small>

<b>* BENEFITS OF CAT LAI WAREHOUSE</b>

-Save cost & time

-The warehouse is located in the Cat Lai port area, saving costs and time in transporting goods from the warehouse to the loading port. The cut-off time is shortened compared to other ICDs in addition to the newly built warehouse with modern design and good equipment system

-Gate C with 4 lanes is put into operation exclusively for trucks weighing less than 15 tons to reduce traffic congestion. There are many different agents in the same warehouse and it is easy to pack goods

-Well-trained warehouse staff and good customer service skills

<b>*Visiting the warehouse at Cat Lai port:</b>

<b>During the visit to Cai Lai port, we had the opportunity to visit the Import CFS warehouse. CFS stands for "Container Freight Station". A CFS warehouse is a </b>

facility where cargo is consolidated or deconsolidated for shipping in containers. The CFS warehouse is responsible for handling the cargo, packing it into containers, and preparing it for transportation. At a CFS warehouse, cargo from various shippers is consolidated into a container for shipping to the same destination. This helps to optimize

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container space and reduce transportation costs. Similarly, deconsolidation involves breaking down a container into individual shipments for distribution to different consignees.

<b>2.2. The process of receiving and loading goods into that warehouse by forklift in warehouse CFS Cat Lai</b>

<b>II.2.1 The benefits of using a forklift?</b>

-Forklifts are used to transport high-volume products in factories, warehouses, workshops, etc. to help lift machines, pallets, and machines easily and quickly. -Forklifts help to minimize the possibility of occupational accidents affecting people and material property of workers and businesses.

-Solving difficulties for businesses when they have to transport heavy packages, blocking visibility without any protective equipment to protect them.

-Reduce labor costs, which can create good efficiency, save time and quality for work

<b>II.2.2 The process of receiving and loading goods</b>

<b>Process of making goods at cfs warehouse for imported goods-Prepare documents for general accounting</b>

The set of documents includes:

+Power of attorney of goods owner or warehouse tenant for CFS (2 copies) +Master bill of lading (1 copy)

+Manifest (1 set)

<b>–Carrying out customs procedures to exploit CFS imported goods</b>

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CFS unit updates ship arrival time from shipping lines. Normally, within 1 day, provided that the documents are complete and correct, CFS will take the container from the port to the warehouse to exploit the cargo.

At the same time, the CFS unit must register the exploitation time with the customs authority, notify the warehouse lessee of the time of cargo exploitation, invite the inspection agency as well as cooperate with related parties to ensure that the goods are exploited. Can exploit the fastest when the goods are brought to the CFS warehouse.

<b>-Delivery from the port to the warehouse</b>

Before taking the goods out of the port, the CFS unit must carefully check the container such as the number of containers, the number of lead, and the condition of the container. If detecting errors or abnormal signs such as dented, punctured, water leak or impacted containers, loss of goods, etc., it is necessary to immediately notify the lessee and request the port to provide relevant documents between the parties. Ports and shipping lines. At the same time, transfer this information immediately to the lessee.

The CFS party will only receive the container with the above error or technical damage if there is a written request from the warehouse tenant, the broken cargo record of the port and it is placed under the supervision of the warehouse customs as well as the inspection agency. .

<b>-Delivery goods to CFS</b>

The CFS party needs to arrange a reasonable time, ensuring the presence of the warehouse Customs, the inspection unit and the warehouse lessee’s representative in the process of handing over documents and breaking and exploiting goods. Office Informatics Certificate

Before breaking the lead of the container, the parties must check the container number, lead number and condition of the cargo container.

If detecting that the goods are not in their original packaging or damaged when exploiting the goods, the CFS unit must stop the exploitation immediately, notify the lessee and take pictures. At this time, the parties agreed on the method of loss determination, preservation, determination of the condition of goods to make a record and make an assessment certificate.

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The CFS unit will carry out the import and export of goods at the request of the lessee according to the principles of delivery, import and export goods in and out of the CFS warehouse and the provisions of the current Law.

How much CFS storage fee depends on the agreement stated in the CFS warehouse lease contract of the goods owner (or the warehouse tenant) with the CFS warehouse owner.

The process of managing import and export goods at CFS must be placed under the supervision of CFS and warehouse Customs according to the general regulations on management of import and export goods pending completion of customs

<b>The process of forklifts receiving goods and loading in the warehouse</b>

Employees use forklifts to lift and move goods that are put on the pallets. Forklifts at Tan Cang’s warehouse mainly run by electricity to protect the health of workers in the warehouse (prevent air pollution inside the warehouse by avoiding eliminating fuel) and reduce fuel cost. Other forklifts that run by diesel are used outside the warehouse. Each forklift has a dashboard for the drivers to operate this kind of equipment. However, forklifts are pretty noisy and they run quite fast.

Goods are brought from the container to the warehouse by an oil forklift, the goods are classified according to different shippers and then brought into the warehouse by an electric forklift. On each forklift, there will be a screen displaying full information about the goods and the location so that the driver just needs to look at it to know where the goods are located and run to that place.

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With the exit door of the import warehouse, the goods owner (importer) will bring the documents to the warehouse to pick up the goods. The staff receiving the document will check it and use the handheld device to scan the barcode with the system, if correct, send a confirmation order to the forklift, information about the shipment to be taken will be displayed on the electronic board of the vehicle. Staff based on the location information of the shipment displayed on the control panel, will arrive at the correct location and the loading process as below:

Depress the brake pedal to stop forklift 20 to 30 centimeters before the pallet. Apply parking brake and shift the select lever into neutral.

Position the mast at the vertical position. Lift the pallet about 15 centimeters above pallet stand.

Shift select lever into forward. Release the parking brake.

Move forward slowly until the pallet is directly above the unloading position. Depress the brake pedal to stop.

Apply parking brake and shift the select lever into neutral. Lower the pallet slowly.

Shift the select lever into reverse and release the parking brake.

Move backward until the distance between stand and front end of forks is 20 to 30 cm and stop.

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Lower the forks about 5 to 10 cm above the ground and tilt mast fully

Then the forklift will move the goods to the yard for the importer to check the goods and receive the goods

<b>3.Maritime routes can cargo ships from Cat Lai take </b>

Cat Lai, one of the biggest and most modern container terminals in Vietnam, situated in Ho Chi Minh City’s port area, is preferred over Cai Mep due to its proximity to Binh Duong, Ba Ria-Vung Tau, Dong Nai, and Ho Chi Minh City. Cat Lai is primarily used mainly on Asian routes, but because Cat Lai is not a deep-water port there are higher transshipment costs. In terms of tonnage that a port can hold, Cat Lai is called a feeder port, or another name is a container port because it only deals with container cargo. Therefore, Cat Lai port can only receive ships: Container ships with a maximum tonnage of about 2900 TEU, Feeder vessels and Barge. Because the depth of the port is not great, it is not safe enough to receive larger ships. And the feature of the feeder is that it can only move to the continent and inland.

Because Cat Lai has a system of small and medium-sized ships, Cat Lai’s maritime routes are mainly to Asia. And if you want to go to Europe, America...then these feeder ships will transship at major deep-water ports of Asia and transfer the goods to larger ships, so that those ships can transport goods to continents with deep-water ports that these feeder ships could not reach.

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