Recommendations to improve the freight forwarding services for FCL
cargoes at DuyenHai Road Transport Co., Ltd

Preface

I declare that this report is my own unaided work. It has not been
submitted before.
If violated, I am solely responsible for and bear the punishments of the Institution
and University.

Student Name and Signature

NguyễnNgọcQuangAnh

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Acknowledgement
Firstly . I would like to express my sincere gratitude to my advisor Prof.
Tran Hai Viet for the continuous support of my dissertation study and related
research , for his patience , motivation , and immense knowledge . His guidance
helped me in all the time of research and writing of this thesis . I could not have
imagined having a better advisor and mentor for my study …

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Table of Content
Preface ................................................................................................................ 1
Acknowledgement ............................................................................................... 2
Table of Content ..................................................................................................3
List of figure........................................................................................................ 5
List of table ......................................................................................................... 5
Introduction ......................................................................................................... 6
Chap I: Literature Review ................................................................................... 7
1.1 The concept of delivery service and freight forwarder ...................................7
1.1.1 Freight forwarder service ............................................................................ 7
1.1.2 . Freight forwarder ...................................................................................... 7
1.2

Forwarding activities are part of Logistics operations ................................ 8

1.3 Business conditions Logistics Service .......................................................... 11
1.4 The service scope of forwarders................................................................... 11
1.4.1 Representation for exporters ..................................................................... 11
1.4.2 Representation of the Importer ................................................................. 12
1.4.3. Other services .......................................................................................... 12
1.5. Powers and duties of forwarders ................................................................ 12
1.6. The liability of the forwarders..................................................................... 13

1.6.1. When forwarders are the agent of goods owner ........................................ 13
1.6.2. When forwarders are carriers ................................................................... 13
1.7. The relationship of the forwarders with stakeholders .................................. 14
Chap II : The current status of the freight forwarding process of FCL cargoes at
Duyen Hai Road Transport Co.,Ltd ................................................................... 16
2.1 Introdcution of the company ........................................................................ 16
2.1.1 General information .................................................................................. 16
2.1.2 Personnel .................................................................................................. 16
2.1.3 The process of formation and development ............................................... 17
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2.1.4 Functions .................................................................................................. 18
a. Functions of TASA DuyenHai ....................................................................... 18
2.1.5. The company's organizational structure ................................................... 20
2.2 The process of import and export FCL goods .............................................. 24
2.2.1 The process of import FCL goods ............................................................. 24
2.2.2 The process of export FCL goods ............................................................. 31
2.3 Related Documents ...................................................................................... 36
Chap III : Recommendations to improve the freight forwarding services for FCL
cargoes at company ........................................................................................... 39
3.1 Assessments about service ........................................................................... 39
3.1.1 Strengths ................................................................................................... 39
3.1.2 .Weakness ................................................................................................. 40
3.2 Recommendation ......................................................................................... 40

3.2.1 Minimize the costs .................................................................................... 40
3.2.2 Training and skill improvement for employees ......................................... 41
3.2.3 Improving the quality of customer service ................................................ 41
CONCLUSION ................................................................................................. 43

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List of figure

Figure 1: Organizational structure………………………………………21
Figure 2: The overall process of import FCL goods…………………….24
Figure 3: The steps to prepare documents required to import shipment...25
Figure 4: The steps to take Delivery Order from shipping line………….26
Figure 5: The steps to make customs clearance for shipment……………28
Figure 6: The steps to receive shipment at port and transport to importer.30
Figure 7: The overall process of export FCL goods………………………31
Figure 8:The steps to take D/O and rent empty container………………...32
Figure 9: The steps to make customs clearance for shipment……………..33

List of table
Table 1 :Education levels of staff…………………………………………23

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Introduction
The important of the topic
Freight forwarding services is so important now in VietNam when in the
context of globalization in all part of the world , economic integration between
countries with each other is increasing strongly . So I would like to choose the
topic :” Recommendations to improve the freight forwarding services for FCL
cargoes at DuyenHai Multimodal Transport JSC”
Research structures
1.Introduction
2.Chapter I : Literature review
3.Chapter II : The current status of the freight forwarding process of FCL
cargoes at DuyenHai Multimodal Transport JSC
4.Chapter III : Recommendations to improve the freight forwarding
services for FCL cargoes at company
5.Conclusions
Research Object
This research is not only about learning in TASA DuyenHai but also
clarifying the cargo forwarding activities . In the last part is the recommendation
to solve will be proposed
Research scope
Research subject :Recommendations to improve the freight forwarding
services for FCL cargoes at company

Research scope :
-Place:DuyenHai Multimodal Transport JSC
-Time :1/9/2015-13/11/2015
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Chap I: Literature Review
1.1 The concept of delivery service and freight forwarder
1.1.1Freight forwarder service
Freight forwarder are operations in the circulation and distribution , an
important factor linking production with consumption ,two major aspects of the
process of social reproduction.
Freight forwarder perform functions bring products from the place of
production to point of consumption, complete the second side of the circulation
and distribution of the material distribution, when the first is commercial
procedures have formed.
Delivery and receipt linked and parallel with the process of transportation.
Through the delivery of the transport operation was conducted: collecting goods,
transportation, handling, storage, transport, packaging, procedures, vouchers ...
So there are many definitions of forwarders.
According to the form rules of the Federation of International Forwarders
Association (FIATA) about the delivery service, "delivery service is defined as
any kind of services related to transportation, collecting goods, warehousing ,
loading, packing or distribution of goods as well as consulting services related to

the above services, including customs issues, finance, insurance, billing,
collecting vouchers related merchandise. "
So basically, freight forwarding is a combination of tasks related to the
process of transport to make the movement of goods from the shipper
(consignor) to your destination (consignee) .
1.1.2 .Freight forwarder
People usually understand

person who business delivery service or

forwarders businesses are forwarders. According FIATA, "freight forwarder is
person who handle to goods transported under trust contracts and act for the
benefit of the settlor. The forwarders also undertake all the work related to
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forwarders contracts as storage, intermediate storage, customs procedures, cargo
check. "
The forwarders may be the goods owner (when goods owner themselves
undertakes work theirs freight forwarding), shipowner (as shipowners on behalf
of goods owner perform forwarding services), the loading and unloading
company or warehouse, professional freight forwarder or any other person who
has business delivery services registered. Freight forwarder with professional
qualifications such as:
- Combine multiple modes of transportation together.

- Knowing fully utilized capacity, payload of transport tools thanks to the
service of delivery.
- Knowing combination of transport - forwarders - export and good contacts
with organizations involved in the process of transporting goods such as customs,
shipping agents, insurance, ports ...
- The forwarders also facilitate for import and export business activities
efficiently thanks to their delivery service. Thus, importers can use the
warehouse of the forwarders, thereby reducing the cost of storage. Besides, it
reduces the cost such as administrative, simple organizational structure ,
conditional to focuses on import and export business .
Although in different countries, the name of the freight forwarder may be
different, but all have a common name in international transactions as
"international freight forwarder" , and do a similar service, which is delivery
service.
Currently, Vietnam forwarders undertake other tasks related to packaging,
cargo distribution, multi-modal transport. Consistent international general trend
of calling them is the logistics service providers so Vietnam has issued 2005
Trade Law which stipulates the responsibilities of the parties in the logistics
services activities .
1.2 Forwarding activities are part of Logistics operations

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The term logistics longstanding worldwide, firstly in the military sector, it

covers the problems of movements of military pay, force layout, design and
layout of warehouses, control of weapons, ... Star most appropriate for the
situation to target enemy victory. In the manufacturing business, Logistics refers
to minimizing costs, from the procurement of raw materials to the elaboration
and implementation of production planning and delivery. The objective of
logistics in manufacturing business is minimizing the costs incurred, while still
achieving the business goals outlined. In Vietnam, economic development more
slowly than other countries, especially compared to European and American
countries. So the concept of Logistics is quite new and we have just
implemented the part of the Logistics.
According to Trade Act 2005, Article 233 stipulates: "The logistics are
commercial activities whereby traders organize one or more work including
reception, transportation, storage, warehousing, customs procedures and other
paperwork, customer consulting, packaging, marking, delivery or other services
related to the goods as agreed with the customer for remuneration ".
To be more specific, the Government issued Decree No. 140/2007 / ND-CP
dated 05/09/2007 providing details about sorting logistics services. Accordingly,
the logistics services under the provisions of Article 233 of the Commercial Law
are classified as follows:
- The main logistics services, including:
+ Loading and unloading services, including container loading and
unloading operations
+ Services of warehousing and storage of goods, including warehouse
operations and materials handling equipment warehouse
+ Transport agency services, including the activities of customs procedures
and planning cargo handling
+ Other supplementary services, including the activities of receiving,
storing and managing information related to transportation and storage of goods
throughout the logistics chain; reprocess goods customer returns , inventory,
goods overdue, outmoded and redistribute such goods; leasing and hire purchase

of container.
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- Logistics services relating to transportation, including:
+ Maritime transport services
+ Inland waterways transport services
+ Air transport services
+ Rail transport services
+ Road transport services.
+ Pipeline transport services
- The other related logistics services, including:
+ Inspection and technical analysis services
+ Postal Services
+ Wholesale trade services
+ Retail trade services, including operational management of storage,
collection, aggregation, classification of goods, distribution and delivery
+The other support transport services
Currently, along with the development of production and circulation and the
movement of goods is becoming more rich and more complex. This sets new
requirements for forwarding service. Now, the person who business forwarding
service joined with manufacturers and trade intermediaries undertake such
additional phases: collecting goods and loading, assembly, packaging,
warehousing service provider goods, cargo storage, information processing ...

Thus, freight forwarding activities have gradually become operational
organization to manage the entire physical distribution chain and is part of the
chain "supply - demand". The freight forwarders become providers of logistics
services.
So, we can say that delivery service is a part of logistics services and
logistics services is high growth, finishing the forwarding service.
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1.3 Business conditions Logistics Service
As noted above, delivery service is a part of logistics services and logistics
services is the high development and perfection of forwarding service, so
Vietnam has issued the Commercial Law 2005 and Decree 140/2007 / ND-CP
which specifies trading conditions. Specifically for traders with logistics services
mainly as follows:
- As enterprises have registered legitimate business under Vietnam law.
- There are adequate facilities, equipment, tools ensuring safety standards,
technical and staff to meet the requirements.
- Foreign traders trading logistics services in addition to meeting the
conditions specified in paragraph 2 shall also comply with the following specific
conditions: Business case cargo-handling services, only established a joint
venture company in which the capital contribution ratio of the foreign investor
does not exceed 50%.
1.4 The service scope of forwarders
1.4.1 Representation for exporters

The forwarders with the specific agreement will help their customers
(exporters) all of the following:
-Transport route selection.
-Order / rental locations to packing as required by the carrier.
-Delivery of goods and grant relevant documents
-Look at the conditions of the letter of credit (L / C) and other documents of
government legislation related to water transport of exporters goods, importing
countries, including the countries transport (transit) line goods, as well as prepare
the necessary documents.
-Packing of goods
-Advice to exporters on the importance of cargo insurance

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-Preparing goods warehouse storage, weighing the goods
-Transport of goods at the port, perform the procedure on fees in customs
supervision area, port authorities, and deliver the goods to the carrier.
-Get B / L from the carrier, then delivered to the exporters.
-Subscribe to the transport of goods to the port of destination by contacting
the carrier or its agent overseas forwarders.
-Notes for loss, damage to goods
-Help the exporters in the complaint for damages, loss or damage of goods.
1.4.2 Representation of the Importer
-Subscribe to the transport of goods in cases where the importer is

responsible for shipping costs.
-Receive and examine all documents relating to the transport of goods.
-Receiving goods from the carrier.
-Preparation of documents and pay the fee for customs supervision, as well
as other related fees.
-Preparing transport warehouse
-Deliver the goods to the importer.
-Help importer in the complaint for damages or loss of goods.
1.4.3. Other services
In addition to the above services, the forwarders also provide other services
as requested by the customer as consolidation service, advising customers on
new markets, competitive situation, the export strategy, the consistent delivery
conditions ..
1.5. Powers and duties of forwarders
-Be entitled to remuneration and other reasonable income.
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-Fully implement their obligations under the contract.
- The process of implementation of the contract, if there is good reason for
the benefit of the customer, can be done with client's instructions but must
immediately inform the client.
-After signing the contract, if the circumstances occur that can lead to
failure to perform the whole or part of the customer's instructions, they must
immediately inform customers know to ask for further instructions.

-In case the contract is not agreed on a specific period fulfill the obligations
to customers, forwarders must perform their duties in a reasonable period.
1.6. The liability of the forwarders
1.6.1. When forwarders are the agent of goods owner
Depending on the function of the forwarders, the forwarders should fully
implement their obligations under the contract signed and shall be responsible
for:
-Delivery but wrong instruction
-Shortcomings in the purchase insurance for the goods despite instructions.
-Shortcomings in the customs procedures
-Transporting commodities to the wrong place
-Delivery for non-recipients
-Delivery without the collecting money from the consignee
-Re-export not follow the necessary procedures or non-refundable tax
1.6.2. When forwarders are carriers
As a carrier, freight forwarder acts as an independent contractor,
responsible for providing the services that customers demand. He shall be
responsible for the acts and faults of the carrier, the freight forwarder that he
hired others to perform transportation contracts as if the acts and omissions of
his.
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The forwarders acts as the carrier not only in case he himself transported
commodities by means of its own transport (perfoming Carrier)but also in his

case, by issuing their transport documents or another ,commit responsibility of
the carrier.When the forwarders provide services relating to transport, packaging,
storage, or distribution declared classified, the forwarders ..... will be responsible
as the carrier if the forwarders perform services and people by means of his or
forwarders person has committed explicitly or implied is their responsibility as a
carrier.
When acting as the carrier, the business conditions are often not applied
standards which apply international conventions or the rules by the International
Chamber of Commerce issued.However, the forwarders is not responsible for
any loss or damage of goods arising from the following circumstances:
-Due to the fault of the customer
-Customers packed and marked mismatch
-Because of the nature of goods
-Due to war, strikes
-Due to force majeure circumstances.
Also freight forwarder not responsible for loss of profits as customers are
entitled, for delays or forwarders to the wrong address and not his fault.
1.7. The relationship of the forwarders with stakeholders
Freight forwarder is a recipient of goods owner mandate to take care of the
transportation of goods from one place to another, but in the process of cargo
going through a lot of stages, subject to inspection and control by lots authorities.
Therefore, the forwarders must also undertake work related to a lot of parties.
First is the relationship with the customer, be it the consignor or consignee
of many different economic sectors, bringing many different nationalities. This
relationship is controlled by a trust contract forwarders. Relations with the
Government and the authorities representing the government such as the Ministry
of Trade, Customs, Inspection, Agency for foreign exchange management,
quarantine, health, ...

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The relationship with the carrier and the carrier's agent: there may be
shipowners, brokers, or any other transportation business, the relationship is
governed by a contract to provide services .
Additionally, the forwarders also has business relationships with banks,
insurers.

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Chap II : The current status of the freight forwarding process
of FCL cargoes at DuyenHaiRoad Transport Co.,Ltd
2.1 Introdcution of the company
2.1.1 General information
Vietnamese name: CÔNG TY CỔ PHẦN VẬN TẢI ĐA PHƯƠNG THỨC
DUYÊN HẢI
English name: DUYEN HAI MULTIMODAL TRANSPORT JOINT
STOCK COMPANY

Abbreviation: TASA DUYENHAI
Stock code: TCO
Headquarters: 189 Dinh Vu route, HaiAn District, HaiPhong.
Phone / Fax: + 84-31-3978895
Email:
Website: www.tasaduyenhai.com
Charter capital: 140.300.000.000 VND
Bank: Joint Stock Commercial Bank for Investment and Development of
Vietnam (BIDV bank)
Account Number: VND 32310000006968
2.1.2 Personnel
Board of Directors
Chairman: Mr. Bui Chi Hung
Member of the Board: Mr. Le Thai Cuong
Member of the Board: Ms. Hoang Thi Ngoc Lan
Member of the Board: Ms. Vu ThiPhu
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Member of the Board: Ms. Dao Kim Phuong
Member of the Board: Mr. Hoang Anh Dung
Member of the Board: Mr. Le Hoai Nam
Directorate: consist of 3 member: General Manager and 2 Deputy General
Managers
General Manager: Mr. Hoang Anh Dung

Deputy General Manager of Storage Division: Mr. Le Thai Cuong - manage
and control business activities at the storage
Deputy General Manager of Finance-Interior division: Ms. Hoang Thi Ngoc
Lan - manage and control activities of finance and interior
Chief Accountant: Ms. Nguyen Thu Thuy
2.1.3 The process of formation and development
- In 1997: Establishment of Coastal Transport Co., Ltd. operates in the field
of transportation and warehousing.
- In 2003: The Ministry of Finance decided to recognize social venues in
Thuy Van, Vietnamese prime city, PhuTho province of Coastal Transport Ltd. HaiPhong is a customs procedure outside the gate, subject to the control,
inspection, supervision and management of the Customs Department in Hanoi.
Was GDC recognition decisions warehouse in Dong Hai, Hai district, HaiPhong
is located adjacent to kilometer 200 Highway 5 of Coastal Transport Co., Ltd. is
an export commodity inspection outside the gate.
- In 2004: General Department of Customs decided to recognize additional
checkpoints for goods exported outside the gate of Coastal Transport Co., Ltd. is
a checkpoint imported goods outside gate.
In 2007: The Ministry of Finance decision making in social recognition
sites Thuy Van, Vietnam Tri City, PhuTho province of Coastal Transport Ltd. Location HaiPhong customs procedures at inland ports PhuTho province.

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- In 2008: Establish an additional member companies in Hanoi Transport
Company Limited Multimodal Coast Hanoi with initial charter capital is

500,000,000. Currently the company's charter capital is 2.52 billion.
- On 09/2011: Be GDC decision Establishing checkpoints and commodity
focused collection retail locations domestically (CFS) by Minh Thanh Container
Co., Ltd. is owner in MLS 189 Dinh Vu, Hai 2 East Ward, HaiAn district,
HaiPhong area of 21.000m2
- On 01/2011: completed the acquisition of ownership of Container Minh
Thanh Company Limited with 75.83% ownership percentage. Established more
affiliates Fashion Company Limited Coastal Cosmetics with a charter capital of
VND 999 million and increased capital to 128.7 billion dong.
- In 2012: On 08 May 02, 2012: Stock Exchange of Ho Chi Minh City
listing decision to share Transport Corporation multimodal Coastal listed on the
Ho Chi Minh City Stock Exchange.
- On 27 May 02 2012: Shares Corporation multi-modal transportation Coast
official trading on the Ho Chi Minh City Stock Exchange with stock code TCO.
- In 2013: To the Board of Management of HaiPhong Economic Zone
Investment Certificate for the Project "Warehousing and Logistics Services" in
MP Dinh Vu industrial zone, HaiAn district, HaiPhong. Land area use is
expected to 20,000 square meters with a total investment estimated at 62 billion
dong.
- In 2014: Department of Natural Resources and Environment of HaiPhong
city certificate of land use rights with an area of 23,500 square meters at 189
route Dinh Vu, Hai 2 East Ward, Hai An district, Hai Chamber, the land lease
term is 50 years for manufacturing Co., Ltd. and Coastal trade.
2.1.4 Functions
a. Functions of TASA DuyenHai
- Road transportation, such as: cargo transportation by truck, container.
- Warehousing and storage facilities
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- Repairing machinery and equipment, such as: repair and maintenance
service of machinery and equipment (not including maritime vessels, aircraft or
vehicles and other transport equipment)
- Other support services related to transportation, such as: Clearance
Services; Multimodal transport (excluding air transport business and general
aviation business); Logistics services; Shipping agency services
- Trading in real estate (including office rental, factory)
- Coastal and Ocean transportation
- Freight railroad
- Rental of machinery, equipment and other tangible items, rental of
machinery, equipment and cargo handling, container
- Rental of motor vehicles
b. Introduction about DuyenHai Road Transport Co., LTD (TASA
TRANSPORT)
Address: No. 189 route Dinh Vu, HaiAn District, HaiPhong City
Phone: 0313.769759 Fax: 031.3741732
Website: www.tasaduyenhai.com
Capital: 10.8 billion VND (DuyenHai Multimodal Transport JSC owns
99.35% of charter capital).
Certificate of Business Registration number: 0200663942 by Department of
Planning and Investment of Haiphong first time on 21/03/2006, registered 7th
changes on 22/05/2014.
c. Major business activities of TASA TRANSPORT
- Transport of goods by road (cars, containers);
- Warehousing and storage of goods;

-Loading and unloading of goods;
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- Wholesale of automobiles and other motor vehicles;
- Repair of machinery and equipment;
- Maintenance and repair of automobiles and other motor vehicles;
- Rental of motor vehicles;
- Rental of machinery, equipment and cargo handling, container leasing...
2.1.5. The company's organizational structure

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General Meeting of
Shareholders
Board of Management
Supervisory Board

Board of Director


Accounting
Department

Logistics Business
Centre

Logistics Service
Center

Central Office

Security Team

Warehouse
Management
Centre

Logistics
HaiPhong

TASACO
DuyenHai

PhuTho
Management
Centre

Logistics HaNoi


TASACO
Management
Centre

Logistics PhuTho

MinhThanh
Management
Centre

Fowarder

TASA TRADING

TASA
MinhThanh

Forwarder
TASA
PhuTho

nhThanh
TASTASA
TRANSPORT

ATASA
HaNoi
TRANSPORT

TASAFACO


Figure 1: Organizational structure

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a. General Meeting of Shareholders is the highest authority of the Company,
has the right to decide all activities of the company and can elect and dismiss the
Board of Management and the Supervisory Board.
b. Board of Management is the highest governing organization of the
Company is responsible for:
- Report to the General Meeting of Shareholders about business situation,
profits, dividends, financial settlement reports, method development and
production business operations plan of the Company
- Decide organizational structure, operational regulations of the Company
- Appoint, dismiss and supervise the activities of the Board of Directors
- Propose amendments and supplements to the Charter of the Company
- Decided to convene the General Meeting of Shareholders
- Company Board of Management currently has 05 members, including the
Chairman, and four members.
c. Supervisory Board
Elected by General Meeting of Shareholders, on behalf of shareholders to
control all business operations and run of the Company.
d. Board of Directors
The Board of Directors consists of three members: General Director and

two Deputy Directors.
General Director has responsible for all business operations of the
Company prior law.
Deputy Director – Management of Warehouse
Assisting the General Director in the direction and implementation of
production plans, warehouse operators and decide other issues related to
production and business activities of company warehouse. Perform signing of
economic contracts warehouse.

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Deputy General Manager - Financial Management
Responsible for the management and run tasks related to the financial sector
of the parent company and its subsidiaries. Manage, supervise and examine the
financial situation of the company members. Responsible directly to the General
Director and Board of Management regarding the financial data and controlling
the costs related to the financial sector of the company.
e. Accounting Department
Tracking the operational aspects of business and manage books honestly
and fully on the use of assets, capital and materials in the production process.
Financial reporting about the implementation of business plans of the Company.
f. Education levels of staff
Department


Number

Education
University College Vocational

Director

1

1

0

0

Business Department

10

10

0

0

Accounting Department

6


4

2

0

Export and Import Department

20

11

8

1

Custom procedures
Department

5

2

2

1

Source: Business Department

Table 1 :Education levels of staff


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2.2 The process of import and export FCL goods
2.2.1 The process of import FCL goods
2.2.1.1 Overall process

Prepare documents
required to import
shipment

After ship arrives, take
delivery order from
Shipping Line

Carry out procedures of
customs clearance of
shipments

Receive shipment at port
and transport to
importer

Figure 2: The overall process of import FCL goods


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Recommendations to improve the freight forwarding services for FCL
cargoes at DuyenHai Road Transport Co., Ltd
2.2.1.2: Prepare documents required to import shipment
Prepare documents
required

Forwarder will check
the legitimacy

Register the electric
customs declaration

Waiting for ramification

Figure 3: The steps to prepare documents required to import shipment
TASA DuyenHai Company will request consignee necessary documents
to carry out procedure to import the shipment:
- Electric customs declaration
- Original Bill of Lading (B/L)
- Sale Contract
- Commercial Invoice
- Packing list
- Other related document

After receiving all required documents, forwarder will check the
legitimacy. For example, whether the contract number on B/L or commercial
invoice is correct or not; packing list is adequate or not in order to avoid
unexpected mistakes which can lead to the obstacles during clearing customs.
Then forwarder will register the electric customs declaration based on the content
of documents above; if any irrational point founded, they will contact to importer

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