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<b>THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS </b>

<b>FACULTY OF INTERNATIONAL BUSINESS </b>



<b>GRADUATION INTERNSHIP REPORT </b>

<b>ANALYSING EXPORT DOCUMENTATION PROCEDURE FOR TEXTILE GARMENTS IN FCL BY SEA AT TOP </b>

<b>SHIPPING VIETNAM – DA NANG BRANCH </b>

<b>Student: HUYNH HONG GIANG Class: 46K01.2 </b>

<b>Instructor: MBA NGUYEN ANH TUAN </b>

<i>Danang, May, 2024 </i>

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<b>THE UNIVERSITY OF DA NANG UNIVESITY OF ECONOMICS </b>

<b>FACULTY OF INTERNATIONAL BUSINESS </b>



<b>ANALYSING EXPORT DOCUMENTATION PROCEDURE FOR TEXTILE GARMENTS IN FCL BY SEA AT TOP SHIPPING VIETNAM – DA </b>

<b>NANG BRANCH </b>

<b>GRADUATION INTERNSHIP REPORT </b>

<i>Danang, May, 2024 </i>

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<b>ACKNOWLEDGEMENTS </b>

Four years journey at the Da Nang University of Economics is gradually drawing to a close. The graduation report has indeed been the steadfast aspiration throughout my four years of academic endeavor. Achieving the outcome as present today has not only been a result of my personal diligence and perseverance but, above all, owes much to the earnest guidance and mentorship of the professors, the invaluable support from friends, and the encouragement from family and loved ones.

First and forrmost, allow me to extend profound gratitude to the Leadership Board of The University of Da Nang – University of Economics and all the professors of faculty of International Business. Through the guidance and mentorship of esteemed educators, i have acquires a wealth of knowledge, skills and fortified my readiness for the future.

I express sincere appreciation to my instructor, MBA Nguyen Anh Tuan – who has steered me from initial orientations, invested time in providing feedback, suggestions, and guidance for me to accomplish the report to the best of my abilities.

Futhermore, I wish to convey heartfelt gratitude to the Branch Manager of TOP SHIPPING Joint Stock Company – Danang Branch for providing me with the opportunity for internship. I am thankful to all colleagues in the documentation department as well as all employees of the company for their continuous assistance, meticulous guidance, and mentorship, enabling me to engage in practical experiences aligned with my academic pursuits, augmenting my knowledge and skills, and fostering a friendly, dynamic internship environment.

Lastly, deepest thanks to my family, friends and to all those who have consistently stood by my side, supported and encouraged me throughout my four years at the university, making the educational journey not only educational but also truly enriching and fulfilling.

With my knowledge and skills still in a state of evolution, errors and omissions may inevitably occur within this report. I earnestly anticipate evaluation and

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constructive feedback from the professors to identify and rectify any inaccuracies and deficiencies, thereby enhancing my understanding and contributing to my future growth. This graduation report cannot be completed without all the support. Sincerely, thank you for all of your help!

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<b>DECLARATION OF ORIGINALITY OF WORK </b>

I hereby affirm that the internship report on the topic "Analyzing export documentation procedure for export textile garments in FCL by sea at TOP SHIPPING Viet Nam – Da Nang Branch" is an individual research endeavor under the guidance of Instructor MBA Nguyen Anh Tuan and the supervision of the staff members at TOP SHIPPING Viet Nam – Da Nang Branch. The referenced information in this report is clearly cited and compiled in the reference list. The evidences and images presented herein are entirely authentic.

I pledge adherence to the standards of academic integrity and have subjected this internship report to scrutiny via Turnitin, achieving a compliance rate of 1%, meeting the requirements set forth by the department.

I assume full responsibility before the department and the institution, standing by the sincerity and commitment expressed herein.

<i>Da Nang,.../…./….. </i>

Student’s signature

Huynh Hong Giang

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<b>Assessments of defense committee </b>

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1.2.1 Definition of Freight Forwarding and Forwarder ... 6

1.2.1 Role of Forwarder in the Export – Import Freight Forwarding Process ... 7

1.3 Full Container Load (FCL) ... 9

1.4 Handling Procedures for Documentation of Full Container Load (FCL) Export Cargo via Sea Freight ... 9

1.4.1 Definition and Role of Documentation in Export Greight Forwarding ... 9

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1.4.2 Process of Documentation for Full Container Load (FCL) Export Cargo

Handling via Sea Freight ... 11

1.4.3 Classification of Documentation for Export Freight Forwarding ... 15

1.4.3.1 Sale contract ... 15

1.4.3.2 Shipping Instruction (SI) ... 16

1.4.3.3 Booking Note/ Booking Confirmation ... 16

2.1.1.1 General Information about TOP SHIPPING Joint Stock Company ... 21

2.1.1.1 General Information about TOP SHIPPING Joint Stock Company – Da Nang Branch ... 23

2.1.2 Historical Formation and Achievements ... 23

2.1.3 Mission and Operating Principles:... 24

2.1.3.1 Mission ... 24

2.1.3.2 Operating Principles ... 24

2.1.4 Organizational Structure ... 25

2.1.4.1 Organizational structure of TOP SHIPPING Company ... 25

2.1.4.2 Structure of TOP SHIPPING – Da Nang Branch... 26

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2.1.5 Responsibilities of Departments at TOP SHIPPING Company – Da Nang

3.1 Commodity Introduction ... 34

3.2 Export Documentation Handling Process for Full Container Load (FCL) Textile Garments at TOP SHIPPING Vietnam Joint Stock Company - Da Nang Branch .... 35

3.2.1 Receiving Customer's Request ... 37

3.2.2 Booking with Shipping Line and Obtaining Booking Confirmation/Booking Note ... 39

3.2.2.1 Booking with Shipping Line and Obtaining Booking Confirmation .... 39

3.2.2.2 Sending Booking Note to Customer ... 42

3.2.3 Custom Clearance ... 43

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3.2.4 Receiving SI, VGM Information from Customer to Issue House Bill of Lading

(HB/L) ... 49

3.2.5 Preparing SI, VGM for Shipping Line to Apply for Master Bill of Lading (Master B/L) ... 51

3.2.5.1 Submitting SI and VGM to Shipping Line via Website ... 51

3.2.5.2 Receiving, Checking and Confirming Draft MB/L with Customer and Shipping Line ... 55

3.2.6 Sending Documents to Overseas Agent (If Any) ... 56

3.2.7 Sending Debit Note and Full Set of Documents to Customer ... 57

3.2.8 Monitoring, Receiving and Solving Shipment Issues until Delivered to Consignee ... 58

<b>CHAPTER 4: LUTIONS AND RECOMMENDATIONS FOR IMPROVING THE DOCUMENTATION PROCESS FOR EXPORTING FULL CONTAINER LOAD (FCL) TEXTILE GARMENTS AT TOP SHIPPING VIETNAM JOINT STOCK COMPANY - DA NANG BRANCH. ... 59</b>

4.1 Advantages ... 59

4.2 Limitations ... 60

4.3 Proposed Solutions for Improving the Documentation Process for Exporting FCL Textile Garments by Sea at the Company ... 61

4.3.1 Solutions for Document Processing... 61

4.3.2 Solutions for Improving the Professional Expertise ... 61

<b>CONCLUSION ... 63</b>

<b>REFERENCES ... 1</b>

<b>APPENDIXES ... 5</b>

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<b>LIST OF ABRREVIATIONS </b>

Cus Staff Customer Service Staff

Docs Staff Documentation Staff

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<b>LIST OF FIGURE </b>

Figure 1-1 Forwarder’s Position in the Import – Export Process... 8

Figure 1-3 Basic Document Handling Procedures in International Logistics ... 11

Figure 2-1 Company logo of TOP SHIPPING Viet Nam ... 22

Figure 2-2 Organizational structure of TOP SHIPPING Viet Nam ... 25

Figure 2-3 Structure of TOP SHIPPING – Da Nang Branch ... 26

Figure 3-1 Illustrating checking the schedule of Yang Ming Line vessels ... 40

Figure 3-2 Custom declaration (Basic information) ... 45

Figure 3-3 Custom declaration (Information of Invoice) ... 46

Figure 3-4 Custom declaration (Attached information) ... 47

Figure 3-5 Custom declaration (Container information) ... 48

Figure 3-6 Custom declaration (Good’s information) ... 48

Figure 3-7 Instructions for submitting SI via Yang Ming Line ... 51

Figure 3-8 Submit SI via website of Yang Ming Line ... 52

Figure 3-9 VGM Submission Form via Email/Fax ... 53

Figure 3-10 Container Tare Weight Query ... 53

Figure 3-11 VGM submission interface via website of Yang Ming ... 54

Figure 3-12 Illustration of e-VGM submission ... 55

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<b>LIST OF TABLES </b>

Table 2-1 Personnel Statistics of TOP SHIPPING – Branch Da Nang 2023 ... 29Table 3-1 The processing procedures and related documents at TOP SHIPPING .. 35

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Vietnam's maritime region boasts favorable conditions for trade with nations across the globe. Our proximity to the East Sea serves as the paramount advantage for maritime transportation and the nation's economy. Additionally, Vietnam's advantageous geographic location positions it as both a pivotal hub in the region and a gateway for penetrating economies in the western part of the Indochinese Peninsula. Notably, vibrant commercial activities in the East Sea involving countries within the Asia-Pacific region are thriving. Leveraging these advantageous conditions, including our geographic location and maritime infrastructure, Vietnam's maritime import-export activities not only drive economic growth but also contribute positively to the global economy. The connectivity and flexibility in maritime trade underscore Vietnam's significant role within the international trade system.

Vietnam's import-export sector is on an upward trajectory and leveraging geographical advantages, Vietnam's key export commodities have maintained a prominent position in the international market. Particularly within the textile and garment industry, the year 2023 witnessed significant disruptions due to the global inventory pressure. Despite a

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9.2% decrease from 2022, the textile and garment export turnover reached an estimated $40.3 billion USD in 2023 (WTO CENTER, 2023). However, despite the decline in export value, recent data at the end of 2023 revealed a breakthrough in market penetration, with exports reaching over 100 different territories (NGỌC, 2023). This not only underscores the industry's adaptability to the international business environment but also unveils new opportunities for sustainable growth. Against the backdrop of substantial fluctuations within Vietnam's textile and garment sector, the export surge in 2023 signifies a positive development. It reflects the proactive efforts of industry stakeholders, affirming the crucial role of the textile and garment industry in Vietnam's economic advancement.

With import-export activities taking place enthusiastically, the number of freight forwarding businesses has also increased significantly. Particularly, sea freight forwarding services - the primary service of most forwarding companies - are becoming increasingly competitive. This necessitates companies to continuously enhance service quality, strengthen competitiveness across all operations, with document processing being a key focus. Document processing is a core activity of freight forwarding companies, directly reflecting the company's reliability and reputation in the market. Moreover, it ensures smooth delivery and payment processes. Every step in the process, from timely document preparation to accurate and complete information filling, plays a crucial role. A minor error could not only delay delivery and payment but also entail significant difficulties in the process. Export documentation plays a vital role in the export shipment process. A professional and rigorous document processing procedure will help freight forwarding businesses improve operational efficiency and establish a market position.

At TOP SHIPPING Vietnam - Da Nang Branch, export and import document processing is one of the core services, generating significant profits for the company. The document department also constitutes the majority of the company's workforce, indicating TOP SHIPPING's emphasis on goods documentation processing and commitment to providing customers with the best and smoothest documentation service. Textile garments are also among the products the company actively exports. During the

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internship at TOP SHIPPING Vietnam - Da Nang Branch, the author not only observed the potential but also identified unexpected issues in the document processing procedure at the company. With the desire to gain a deeper understanding and practical experience, explore and propose solutions to the issues encountered in TOP SHIPPING's document processing procedure, the author chose the topic "Analysing export documentation precedure for textile germents in FCL by sea at TOP SHIPPING Viet Nam – Da Nang branch” for the graduation report.

<b>Research objectives </b>

The research objective of this report is to comprehend the documentation processing procedure for exporting goods via sea freight at TOP SHIPPING Vietnam Company - Danang Branch, drawing insights from real-world experiences to identify strengths and weaknesses within the company's documentation processing workflow. Furthermore, it aims to provide insights and suggestions based on evaluation criteria of a processing procedure, contributing to enhancing understanding and improving the effectiveness of the export documentation processing procedure for TOP SHIPPING Company specifically and logistics companies in Danang in general.

<b>Research scope </b>

<b>Scope of the Topic: Procedure for Processing Export Documents of garment and </b>

textile via FCL Sea Freight at TOP SHIPPING Vietnam - Danang Branch.

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<b>Research methodology </b>

<b>Synthetic analysis method </b>

The research involves synthesizing and linking information chains, including data regarding the export process, particularly focusing on the current state of export documentation procedures for the textile industry. This process involves integrating relevant theoretical frameworks identified in the report. Data collection is based on the actual operations of export documentation procedures in the textile sector at TOP SHIPPING company and other pertinent documents.

<b>Systematization method </b>

The study organizes the research subjects - export processes in the textile industry - analyzed and synthesized according to a specific structure aimed at systematizing theoretical frameworks and evaluating the export documentation procedures at TOP SHIPPING company. This method facilitates a clear, coherent, and in-depth understanding of the research outcomes.

<b>Research Structure </b>

CHAPTER 1: Theoretical basis.

CHAPTER 2: Overview of top shipping joint stock company – da nang branch.

CHAPTER3: Export documentation handling process for textile garments by sea at top shipping vietnam joint stock company - da nang branch.

CHAPTER 4: Solutions and recommendations for improving the documentation process for exporting full container load (FCL) textile garments at TOP SHIPPING Viet Nam joint stock company – Da Nang branch.

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<b>1.1.2. Criteria to evaluate process </b>

According to (Marlon Dumas, et al., 2018), the criteria for evaluating a process include time, cost, quality, and flexibility.

Regarding time, it has long been a measure of competitive advantage for businesses in the market (Marilyn M. Helms, et al., 2000). Meeting time requirements is a fundamental expectation for any business, regardless of its sector.

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Various criteria can serve as measures for cost, including fixed costs, variable costs, labor costs, operating costs, etc. Among these, operating costs are highlighted as a significant part of assessing a company's performance. (Muhammad Istan, et al., 2021) has previously asserted that operating costs are a critical factor directly related to a company's profitability. Additionally, labor costs - expenses related to workforce in production and service provision - also play a crucial role in evaluating procedure performance.

(Manghani, Kishu, 2011) asserts that high quality is paramount for achieving its strategic business objectives. Quality is among the critical competitive advantages of the company, and can also serve as a distinguishing factor for its products and services. Nowadays, a crucial measure for assessing product and service quality is the level of customer satisfaction.

According to (Slack N. , 1987), flexibility pertains to the ability to adapt and alter production or service processes to meet new requirements and conditions. The assessment of flexibility encompasses two criteria: time flexibility and cost flexibility. Specifically, flexibility evaluates a business's capability to adapt and respond to changes in different time periods of customer demand.

<b>1.2. Freight Forwarding </b>

<b>1.2.1. Definition of Freight Forwarding and Forwarder </b>

Accroding to FIATA, “Freight Forwarding Services means services of any kind relating to the carriage, consolidation, storage, handling, packing or distribution of the Goods as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the Goods for official purposes, procuring insurance of the Goods and collecting or procuring payment or documents relating to the Goods” (FIATA, 2019).

While freight forwarding encompasses a diverse range of services, three primary categories can be identified based on their specialization and service scope (Milorad Kilibarda, 2016).

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First, full-service freight forwarders who offer a comprehensive suite of logistics solutions. These services typically include packing, cargo unit formation, transportation, storage and reloading, document preparation, customs clearance, and transportation insurance. The second consists of companies specializing in customs brokerage primarily navigating the complexities of customs procedures to ensure the smooth import and export of goods. The third features freight forwarders who focus on transport brokerage and trade flow management. Their expertise lies in arranging transportation modes and coordinating the flow of goods throughout the supply chain.

As of now, there is no universally agreed definition for the term "Forwarder," but various perspectives have been proposed by researchers. "Freight Forwarder means the person concluding a contract of Freight Forwarding Services with a Customer." (FIATA, 2019). Others, such as (Mohamed, et al., 2023), regard a Forwarder as an entity or individual providing transportation services, arranging the movement of large shipments from manufacturers or factories to retailers or other destinations. Similarly, (Douglas M, et al., 1998) has also argued that international freight forwarders have long been recognized as indispensable facilitators of cross-border trade.

In summary, it can be said that a forwarder in international transportation acts as an intermediary providing a range of post-shipment services to facilitate the transportation of goods from origin to destination. Forwarders become supportive elements in a business's import-export activities, making the process smoother and more streamlined through their skills, network relationships, and connections with other third parties.

<b>1.1.1 Role of Forwarder in the Export – Import Freight Forwarding Process </b>

Currently, the trend of globalization is significantly pronounced. Consequently, competition within the logistics industry is intensifying. Freight forwarding services are increasingly assuming an irreplaceable role in the sector. They function as a tool for enterprises to enhance their competitive advantage in the import-export process. Freight forwarders play a central role as intermediaries between buyers and sellers, facilitating seamless and continuous transactions between consignees and shippers.

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Sources: (Vũ Thị Hải, 2018) (Burkovskis, 2008) has emphasized the role of freight forwarders as intermediary organizations for facilitating the transportation of goods, being responsible for providing timely services, especially for companies with large cargo volumes. This significantly shortens the transit time of shipments. Additionally, (Huang Sheng Teng, et al., 2019) has asserted the vital role of freight forwarders as logistics service providers, aiding shippers in completing procedures and tasks related to cargo transportation. Moreover, freight forwarders maintain close cooperative relationships with carriers such as shipping lines and airlines. Collaborating and fostering good relationships with carriers enable forwarders to obtain competitive rates and deliver the best services to their customers.

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In conclusion, the role of freight forwarders in import-export operations is undeniably essential. This becomes even more critical for a new entrant in the market or when engaging in trade activities within an entirely unfamiliar market. The forwarder's significance is heightened as they facilitate seamless import-export processes, from contract signing to the completion of delivery operations.

<b>1.3. Full Container Load (FCL) </b>

Full Container Load or FCL is a packaging method suitable for large and uniform shipments, fully packed in one or more containers. In cases where the exporter possesses a substantial volume of goods, they will reserve the container exclusively for their cargo. Full container delivery refers to the transportation of goods from Container Yard (CY) to Container Yard (CY).

According to Trade Finance Global, FCL offers cost advantages based on per-unit basis (Trade Finance Global). Additionally, the fixed nature of import fees eliminates dependency on volume, ensuring consistent payments regardless of quantity. One advantage of utilizing Full Container Load (FCL) is its flexibility regarding departure times. For example, if you are a manufacturer, you may need to ship your products to a customer as soon as they are finished being produced.

When shipping via FCL, the exporter is responsible for packaging and loading the goods into the container provided by the carrier. Subsequently, the shipping entity will transport the entire container to the recipient via sea, air, road, etc. The recipient is then responsible for unloading the cargo from the container while ensuring its integrity before returning it to the carrier.

<b>1.4. Handling Procedures for Documentation of Full Container Load (FCL) Export Cargo via Sea Freight </b>

<b>1.4.1. Definition and Role of Documentation in Export Greight Forwarding </b>

Documents in the logistics and transportation operations, issued by authorized organizations or agencies, contain information regarding the goods, transportation, insurance, and payment. This set of documents facilitates the smooth and transparent process of importing and exporting goods, ensuring efficiency. Additionally, these

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documents serve as evidence, providing a basis for the importer to receive the shipment, make payments, and address any disputes that may arise between the parties. Throughout the logistics process, various types of documents may be provided by either the exporter or importer, aiming to ensure the credibility of the exporter and guarantee that the importer receives the goods in the specified quantity and quality.

For a freight forwarder, documentation plays a pivotal role, constituting one of the core services of the business. A smooth and accurate document processing procedure not only enhances the company's standing in the eyes of clients but also extends its reputation within the logistics industry at large. Ensuring comprehensive documentation is essential, particularly in cross-border transactions between two enterprises from different countries, as contracts for purchasing, transporting goods, or making payments all rely on the documentation.

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<b>1.4.2. Process of Documentation for Full Container Load (FCL) Export Cargo Handling via Sea Freight </b>

<b>Figure 0-2 Basic Document Handling Procedures in International Logistics </b>

<i><b>Note: Corresponding documents </b></i>

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For the document processing procedure, the steps will closely resemble those of a typical export shipment process. Therefore, the step-by-step analysis below will focus on the role of documents as well as the department responsible for document processing to provide a specific insight into the document processing procedure in export shipment logistics.

<i>Step 1: Receive customer booking requests </i>

The documents associated with this step are not yet considered formal documents according to the procedure. However, customer booking request emails are of paramount importance for processing personnel to grasp the customer's shipment requirements as well as any delivery instructions.

The forwarder will receive booking requests from customers to proceed with the booking with the shipping line for the customer's cargo. Typically, for returning customers, the Docs department will directly receive booking requests from customers. For new customers, the Docs department will receive booking requests from the Sales department. A booking request will include basic information related to the cargo: What is the export commodity? Is it classified as dangerous goods? Which type of container is required?...

<i>Step 2: Booking with the shipping line and receive booking confirmation </i>

The document of concern in this step is the Booking Confirmation/Booking Note issued by the shipping line. Subsequent to the documentation department initiating the booking process with the predetermined shipping line and receiving back the Booking Note/Booking Confirmation from the shipping line if space is available for the customer's cargo, the booking serves the purpose of confirming that the forwarder has successfully secured space with the shipping line for the customer's shipment.

The Docs department proceeds to make a reservation with the chosen shipping line based on the pre-selected vessel schedule by the customer. Reservation with the shipping line typically occurs through two methods:

- Sending an email through the Booking department of the shipping line

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<i>Step 3: Conducting customs clearance for the goods </i>

In this phase, the relevant documents include the Commercial Invoice, Packing List, Sale Contract, and Custom Clearance. Upon receiving confirmation from the forwarder regarding successful booking with the shipping line, the customer is required to submit these crucial documents to the documentation department for further processing. During the customs clearance stage, the documentation department must receive the Invoice, Packing List, and Sale Contract from the customer in order to declare the information and obtain the customs declaration form. The information provided in these documents is filled out by the customer and constitutes vital details concerning the shipment, serving as the basis for customs declaration and determining whether the shipment is eligible for clearance. The responsibility of the documentation department in this step is to urge the customer to submit these documents promptly to facilitate customs declaration within the stipulated timeframe, ensuring that the goods can be cleared according to the shipping line's schedule.

- Prepare electronic customs declaration - Receive cargo sorting results.

- Double-check order information.

<i>Step 4: Receiving S/I, VGM information from customer in order to issue the House Bill of Lading (House B/L) </i>

Documents relevant in this step include Shipping Instruction, Verified Gross Mass, and House Bill of Lading. SI and VGM are documents sent by customers to the

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documentation department. This department relies on the information provided by customers to submit SIs and VGMs to the shipping line with the purpose of obtaining the Master Bill of Lading - a crucial document in the cargo transaction proving ownership of the shipment as well as facilitating the receipt of goods by the importer. In the documentation department's workflow at the forwarder, upon receiving SIs and VGMs from customers, they can issue a HB/L - an adjusted B/L that regulates the relationship between exporter and importer, issued by the forwarder.

The bill of lading issued by the forwarder is termed as the House Bill of Lading (HBL). The documentation department must consistently track the shipment. Particularly, attention should be paid to the cargo cut-off date to remind customers to submit the Shipping Instruction (S/I) and Verified Gross Mass (VGM) in order to meet the shipping line's deadline. Additionally, it is advisable to confirm with the customer which type of bill of lading they intend to utilize.

<i>Step 5: Submit S/I, VGM và request issuance of Master Bill of Lading </i>

The Master Bill of Lading serves as the relevant document at this stage following the completion of the document submission process by the documentation department, which includes the submission of the Shipping Instruction (SI) and Verified Gross Mass (VGM) to the shipping line within the prescribed deadline.

The Docs department initiates the submission of S/I and VGM on the shipping line's website to request the issuance of the Master Bill of Lading. Subsequently, the shipping line generates a draft Master B/L and sends it to the forwarder. Upon receiving the draft B/L from the shipping line, the forwarder verifies and confirms the information recorded on the B/L with the customer. If there are any amendments required concerning the B/L, the forwarder is responsible for notifying and reminding the customer, particularly on crucial dates such as the deadline for B/L amendments to avoid amendment fees. Additionally, the forwarder undertakes the responsibility of making advance payments to the shipping line to obtain the original B/L.

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<i>Step 6: Sending documents to the overseas agent (if have) </i>

In this step, if the forwarder has an agent in the country to which the customer's shipment is intended for export, the documentation department will be responsible for sending all relevant documents pertaining to the shipment to that agent. This is aimed at facilitating the overseas agent's assistance in monitoring the shipment to ensure a smooth and error-free export process, and timely delivery to the importer.

<i>Step 7: Sending debit note and documentation to customer </i>

A Debit Note serves as a crucial document for a forwarder to invoice customers for services rendered. It encompasses all expenses incurred in the transaction, such as Ocean Freight and various Local Charges at the exporter's end. Typically, the shipping line issues a Debit Note to the forwarder, who, in turn, generates their own Debit Note to recover funds from the customer. This process is integral as the forwarder acts as the service provider and intermediary between the exporter and the shipping line.

When the shipping line sends the draft B/L to the forwarder, if there are no required adjustments, an email notification must be sent to the accounting department of the shipping line to proceed with the invoicing. If the shipment is prepaid freight, payment must be made in advance to the shipping line.

Once the debit note is prepared by the forwarder, it should be sent to the customer. The accounting department of the freight forwarder is responsible for monitoring the payment from the customer.

<i>Step 8: Monitor, receive, and address any arising issues of the shipment until it reaches the hands of the importer. </i>

<b>1.4.3. Classification of Documentation for Export Freight Forwarding </b>

<i><b>1.4.3.1. Sale contract </b></i>

"The sales contract is an agreement whereby the seller is obligated to deliver the goods, transfer ownership of the goods to the buyer, and receive payment; while the buyer is obligated to pay the seller, receive the goods, and obtain ownership of the goods as agreed upon," (Luật Thương mại Việt Nam , 2015). This document is an indispensable

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• Content of the contract: encompassing all obligations of the parties concerning the transfer of ownership rights regarding the goods, information related to payment, as well as delivery to the buyer and payment to the seller.

• Conditions required for handover in the international trade contract: delivery methods, document requirements, potential complaints, etc.

• Form of the contract: can be expressed orally, in writing, or established through specific actions.

<i><b>1.4.3.2. Shipping Instruction (SI) </b></i>

In international transportation, shipping instructions serve as a crucial document provided by the exporter (shipper) to the consignee or freight forwarder. The purpose of this document is to clearly define the requirements and terms related to the transportation of goods, ensuring a smooth and safe transit process.

Shipping instructions provide information to exporters, importers, carriers, forwarders, and other relevant parties to ensure seamless import and export processes. Clearly specifying the requirements and terms in the shipping instructions helps minimize the risk of disputes and cargo loss during transportation.

<i><b>1.4.3.3. Booking Note/ Booking Confirmation </b></i>

A booking note/booking confirmation is a document reflecting the agreement between the shipper and the shipping line regarding the reservation of space for their cargo in ocean transportation.

In the operations of a freight forwarder, bookings are primarily made with the shipping line through the line's website. The shipping line relies on the forwarder's booking to verify information within the system. If there is available space, the shipping line sends a booking confirmation to the forwarder via email. However, if space is unavailable

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upon verification, the shipping line also notifies the forwarder via email, allowing them time to select an alternative vessel schedule and provide the best possible service to the customer.

<i><b>1.4.3.4. Commercial Invoice </b></i>

The commercial invoice is a fundamental document in the payment process, obligating the buyer to compensate the seller for the specified amount indicated on the invoice. It comprises detailed descriptions of the products, pricing, and crucial terms stipulated in the letter of credit, along with information about brands and modes of transportation. As a mandatory document in the import-export of goods, the commercial invoice serves as evidence for order payment. Importers rely on the value stated on the commercial invoice to settle payments with exporters.

In addition to the Commercial Invoice, there are other types of invoices in logistics:: • Proforma Invoice: Resembling an invoice but lacking payment functionality. • Provisional Invoice: Used to settle the total amount of goods in cases where

pricing is provisional or payment is made in installments (partial delivery contracts)...

• Detailed Invoice: Analyzes the detailed components of the goods. • Final Invoice: Issued for payment upon completion of the order

<i><b>1.4.3.5. Packing List </b></i>

The packing list is a document detailing all the items and types of goods packed within each shipment unit (such as crates, containers, etc.) and the entirety of the delivered batch. Typically prepared by the seller and sent to the buyer, it serves to confirm the contents of the shipment, ensuring it is packed and ready for transportation. Customs authorities also utilize the packing list for inspection and clearance of goods. Typically, packing lists are created in triplicate.

A packing list typically includes the following information:

• Commodity Name: The name of the commodity must be clearly and accurately stated, in accordance with the specified commodity name in the purchase contract. • Quantity: The quantity of the commodity must be clearly and accurately stated,

using both words and numbers.

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• Evidence of Contract: A bill of lading functions as a comprehensive acknowledgment for the international shipment.Though not a formal contract, it stands as concrete evidence of your commitment to the shipping arrangement, delineating the involved goods and their voyage.

• Receipt of Goods: It acts as a confirmation receipt, verifying that the carrier has accepted the goods as described in the document.

• Document of Title: Depending on the bill of lading's type, it can also serve as a document of title, transferring ownership of the goods to the bearer of the original document. This empowers the consignee (recipient) to claim the goods upon presentation of the original bill. The seller, upon collection of the goods at the point of receipt, will present the bill of lading as evidence to facilitate the cargo pickup.

❖ Classification bill of lading (B/L)

Based on the cargo loading and unloading status: • Shipped on board B/L

• Received for shipment B/L

Based on the endorsement on the bill of lading: • Clean B/L

• Unclean B/L or Claused B/L

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19 Based on the transferability capability:

• Straight B/L • To order B/L • To order of shipper

• To order of a issuing bank • To bearer B/L

Based on the itinerary and mode of transportation for the cargo: • Original B/L

• Telex Release B/L • Surrendered B/L

Based on the issuer of the bill of lading: • Master B/L

• House B/L

<i><b>1.4.3.7. Customs Declaration </b></i>

In accordance with Article 21 of Section 4 of the 2014 Customs Law, "Clearance" refers to the completion of customs procedures for goods to be imported, exported, or placed under other customs business management regimes. Additionally, as stated in Article 23, "Customs procedures" encompass the tasks that declarants and customs officials must carry out in accordance with the provisions of this Law regarding goods and means of transport (Luật Hải Quan, 2014).

Customs declaration is a critical document wherein the cargo owner or forwarder must provide comprehensive and meticulous information about the shipment to the customs authorities, demonstrating that the consignment meets the necessary requirements for import or export into a country.

There are three types of customs clearance channels: green, yellow, and red (Hải quan Việt Nam, 2019).

• Green Channel: Goods under the green channel are automatically cleared and the customs declaration of the business entity is accepted. The business entity is exempted from inspection of any kind of documents or goods.

• Yellow Channel: The business entity is exempted from detailed inspection of the actual goods. However, the competent authorities will verify the customs

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TOP SHIPPING's array of logistics services includes Warehouse Leasing, Door-to-Door Services, Customs Clearance, Project Cargo Handling, Master Consolidation, Air Freight, Sea Freight, and Land Transportation. Over the course of over three years of establishment and development, TOP SHIPPING Vietnam has established three branches in major cities such as Hai Phong, Hanoi, and Da Nang, with plans for further expansion into Ho Chi Minh City. In 2022, TOP SHIPPING Vietnam achieved the prestigious milestone of becoming a member of the World Cargo Alliance (WCA) and WCA China Global. This alliance comprises independent Freight Forwarders specializing in providing competitively priced, high-quality cargo delivery services, constituting one of the most robust networks in the world logistics industry.

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• Phone Number: 02253.666.689 • Email:

• Website: • Logo:

<b>Figure 2-1 Company logo of TOP SHIPPING Viet Nam </b>

• Company Branches:

<b>TOP SHIPPING Vietnam - Hai Phong Branch: </b>

Address: Room 621, 6th Floor, TD Business Center, Lot 20A, Le Hong Phong Street, Ngo Quyen District, Hai Phong City, Vietnam

<b>TOP SHIPPING Vietnam - Hanoi Branch: </b>

Address: Room 1307, 13th Floor, CharmVit Building, 117 Tran Duy Hung Street, Cau Giay District, Hanoi, Vietnam

<b>TOP SHIPPING Vietnam - Da Nang Branch: </b>

Address: Room 57, 9th Floor, Block 11, Da Nang Post Office Building, 271 Nguyen Van Linh Street, Vinh Trung Ward, Thanh Khe District, Da Nang City, Vietnam

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• Adress: Room 57, 9th Floor, Block 11, Da Nang Post Office Building, 271 Nguyen Van Linh Street, Vinh Trung Ward, Thanh Khe District, Da Nang City, Vietnam.

• Representative: Ms. Doan Bich Van • Phone number: +84-23.3660.339

<b>2.1.2. Historical Formation and Achievements </b>

• August 27, 2021: TOP SHIPPING Vietnam Joint Stock Company was established with its headquarters in Hai Phong City, boasting a workforce of over 60 office staff.

• September 9, 2022: TOP SHIPPING Vietnam inaugurated its second branch in Hanoi, located at the CharmVit Building, 117 Tran Duy Hung Street, Cau Giay District, marking a significant milestone in the company's development and success in the logistics market.

• September 17, 2022: Within just one short month, the company further expanded by opening its third branch at the Da Nang Post Office Building, a prime and strategic location in the city center.

• TOP SHIPPING Vietnam has also been a generous sponsor supporting aspiring students passionate about logistics through the Young Talent in Logistics competition.

• Additionally, the company has fulfilled its social responsibility role by engaging in numerous charitable campaigns, providing aid to underprivileged children with opportunities for nourishment, clothing, and education.

•

TOP SHIPPING is currently one of the leading providers of retail cargo consolidation services in Vietnam.

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The company has set forth its mission to become a premier expert in multimodal transportation. This is evident in its operational focus, goals, and target audience. This mission also reflects TOP SHIPPING's ambition and commitment to delivering value to its customers and the community. Continuously seeking knowledge, learning, and refining to deliver professional and optimal services to customers is the company's top priority.

<i><b>2.1.3.2. Operating Principles </b></i>

Guided by the principle of ensuring customer satisfaction, TOP SHIPPING Vietnam is steadily growing, evolving into a professional, reliable transportation service company, asserting its quality in the market. Operating principles serve as the guiding light for the company's activities. TOP SHIPPING's operating principle places customers at the forefront, aiming to best fulfill their needs. Upholding this principle, TOP SHIPPING is gradually establishing a firm foothold and affirming its position in the logistics market.

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<b>2.1.4. Organizational Structure </b>

<i><b>2.1.4.1. Organizational structure of TOP SHIPPING Company </b></i>

<b>Figure 2-2 Organizational structure of TOP SHIPPING Viet Nam </b>

Source: Human resouces department (2023)

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<i><b>2.1.4.2. Structure of TOP SHIPPING – Da Nang Branch </b></i>

<b>Figure 2-3 Structure of TOP SHIPPING – Da Nang Branch </b>

Source: From Branch Manager

<b>2.1.5. Responsibilities of Departments at TOP SHIPPING Company – Da Nang Branch </b>

<b>Sales Department: </b>

At the TOP SHIPPING Da Nang branch, the company currently does not prioritize sales activities. Most orders are forwarded from the Sales department of the Hai Phong and Hanoi branches for further processing. The main individual responsible for sales at the Da Nang branch is tasked with attracting and acquiring new customers. The sales team seeks potential customers, advertises the company's services, and negotiates with clients. Upon receiving orders, staff members collaborate with relevant departments to handle the shipment. However, with a professional team, modern management system, and extensive customer network, TOP SHIPPING is committed to providing reliable and quality sales services, while fully meeting all customer needs.

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