Tiếng ViệtImport and export can be understood in the basic sense as the activity of buying – selling or exchanging goods on the international market. This is also an important area, profoundly affecting the economic, political, social development and strength of a country.
1. The concept of import and export
Export – import is the international trade or exchange of goods. This operation will include 2 main components, import (import) and export (export) where:
Import: is the activity of importing goods from other countries into their own country to meet domestic consumption needs. But before goods can be imported into the country and distributed, the importer must provide full information according to Clause 1, Article 29 of Decree 08/2015/ND-CP, including:
Name of goods or products.
Code, quantity.
Weight, volume.
Variety, quality.
Origin, customs value of the goods.
Check and compare the conformity between actual goods and customs dossiers.
Export: In contrast to import, export is the act of bringing domestic goods to exchange or trade with other countries to meet the needs of consumers in the international market. In Vietnam, the products that our country is strong in exporting such as: Agricultural products, aquatic products, handicrafts, ….
And those are the basic concepts of import and export that you need to know.
In addition, you can also refer to the concept of import and export as stated in the Commercial Law of Vietnam. Accordingly:
“Import and export are activities of buying, selling or exchanging goods between Vietnamese traders and foreign traders. The purchase, sale or exchange of goods must be based on and based on clear contracts, including activities of temporary import for re-export and temporary export for re-import and border-gate transfer of goods.”
2. The role of import and export activities
As mentioned above, import and export activities can greatly determine the economic, political, social development and strength of a country.
Reason:
Import-export activities create favorable conditions for goods to be circulated on a larger market, helping to meet all needs of consumers, opening up opportunities for cross-border trade and cooperation between countries. neighboring countries, promoting the common economy of countries inside and outside the region.
Next, import and export activities also affect and directly affect a country’s trade balance, knowledge, information, technology, and finance. Deep and wide impact on many different industries in the world economy.
Finally, import and export activities create links between countries, open up many new job opportunities, and promote economic transformation towards industrialization and modernization.
3. Frequently asked questions in import and export
3.1. What is the average time for customs clearance for 1 export shipment?
Reply:
The average clearance time for exports in 2022 is 2 hours 43 minutes 9 seconds, down more than 17 minutes compared to 2021.
3.2. What types of goods take a long time to import?
Reply:
Specifically, the average clearance time for imported shipments in 2022 is 36 hours 14 minutes 32 seconds, compared to 2021, the time for import shipments to be cleared by nearly 19 minutes.
For goods on the list of State Quality Inspection by specialized sectors (such as food, children’s toys, cosmetics, …) the time for customs clearance of goods may be longer.
For goods that take a long time to import, Sinovitrans will have solutions to help preserve goods for customers while waiting for inspection results, in order to minimize other fees such as storage fees. containers, storage fees,…
3.3. How does an export shipment work?
Reply:
Predetermine the date of packing goods into the container with the logistics service provider
Charter ships and provide shipment information (Contract, Commercial invoice, Packing list)
Check and close the goods
Declare to import and export customs
Shipping lines issue B/L (also known as bill of lading).
Double check B/L and documents.
The shipping unit sends all documents to the buyer (importer) to complete the procedures from abroad and import goods.
3.4. What is the process for an import shipment?
Reply:
Importer checks import documents (via email)
Receive the original documents and declare to the customs.
Receive import tax payment notice.
Contact shipping lines to receive Delivery Order (D.O).
Go to the port to submit the original dossiers and documents to the import-export customs.
Do the procedures for inspection and clearance of shipments with customs, pay money, deliver and receive goods with the port business.
Send vehicles with suitable load to pick up goods and bring them to the warehouse.
If the enterprise does not fully understand the entire import-export process, it can hire and cooperate with units, businesses or partners to provide logistics services. These units will help the importer complete the necessary procedures to clear a shipment.
3.5. What are the costs when importing by sea and VAT?
Reply:
The costs that the importer of goods must pay for each import condition:
EXW (Factory Price):
– Trucking costs (inland transportation from the seller’s yard to the container yard)
– Export customs declaration costs.
– Local charges for export (THC, Bill fee, Telex fee, Seal fee, VGM, Manifest, EBS, Lift on/off…)
– Sea freight (Ocean freight)
– Local charges imported first (THC, CIC, Cleaning fee, DEM, Storage, D/O fee, Lift on/off…)
– Import customs declaration costs.
– Domestic shipping fee from container yard to importer’s warehouse.
Free on Board (FOB):
– Cost of transporting goods to the port
– Goods export tax and export clearance tax.
– Note, the FOB price will not include the cost of sea freight and the cost of buying insurance for shipping by sea.
Product cost, insurance, freight (CIF):
– This cost will include the product price
– Sea freight freight
– Insurance fees
– Except for the insurance fee, the CIF fee is similar to the CFR fee (cost, freight)
Cases exempt from import and export tax:
+ Goods temporarily imported for re-export and vice versa for participation in fairs, exhibitions, product introduction, professional machinery, equipment and tools in service of work within a certain period of time. In this case, the enterprise must ensure that the bags are consumed domestically.
+ Moveable property of Vietnamese or foreign organizations and individuals brought into Vietnam, or brought abroad according to regulations.
+ Goods imported for processing for foreign parties or goods exported from Vietnam for processing.
+ Plant varieties and livestock breeds permitted to be imported for implementation of investment projects in the fields of agriculture, forestry and fishery.
3.6. What is official import and export?
Reply:
Official import – export means the purchase, sale and exchange of goods between Vietnamese traders and foreign traders. The purchase, sale and exchange of goods is required to comply with the contracts between the buyer and the seller, the contract must comply with international regulations and practices.
Requirements for goods in official import and export:
– Goods must be on the list of goods permitted for import and export according to the regulations of the importing country.
– Goods must be carefully censored for quality, food safety and hygiene before being transported.
– Traders must disclose the origin and origin of goods to the customs authority.
– Inspected and supervised by specialized authorities – customs offices.
– Before goods are allowed to be imported and distributed domestically, traders must complete all import and export customs procedures and pay taxes in full as prescribed by law.
4. English words in import and export industry
4.1. Basic English vocabulary in import and export industry
Exporter: export unit
Export: export
Import: import
Importer: import unit
Sole Agent: exclusive agent
Exclusive distributor: exclusive distributor
Customer: customer
Consumer: the end consumer
Consumption: to consume
Manufacturer: factory
Supplier: supplier
End user = consumer
Producer: producer
Trader: commercial intermediary
Commission based agent: intermediary agent (receiving commission)
OEM: original equipment manufacturer: original equipment manufacturer
ODM: original design manufacturer: custom design and manufacture
Entrusted export/import: entrusted import and export
Brokerage: act as an intermediary (broker-intermediate)
Intermediary = broker
Export/import license: export/import license
Customs declaration: customs declaration
Customs clearance: customs clearance
Customs declaration form: Customs declaration
Tax(tariff/duty): tax
Export-import process: import and export process
Export-import procedures: import and export procedures
Export/import policy: export/import policy (3 levels)
Processing: machining operations
Temporary import/re-export: temporary import-re-export
Temporary export/re-import: temporary export-re-import
Processing zone: export processing zone
GST: goods and service tax: value added tax (foreign party)
VAT: value added tax: value added tax
Special consumption tax: special consumption tax
General Department: General Department
Department: Department
Sub-department: branch
Customs: customs
4.2. Customs English Vocabulary
Bill of lading: Bill of lading (a detailed list of goods on board the cargo ship)
C&F. (cost & freight): includes the price of the goods and freight but does not include insurance
C.I.F. (cost, insurance & freight): including the price of the goods, insurance and freight
Cargo: Cargo (shipped by ship or plane)
Certificate of origin: Certificate of origin of goods
Container: Large container (container)
Container port (container port); to Containerize
Customs: Import duties; custom
Customs declaration form: customs declaration
Declare: Declare goods (for tax payment)
F.a.s. (free alongside ship): Includes the cost of transportation to the port but does not include the cost of loading the goods on board.
F.o.b. (free on board): The seller is responsible until the goods have been loaded on board
Freight: Goods are transported
Irrevocable: Irrevocable; unalterable – irrevocable letter of credit
Letter of credit (L/C): Letter of Credit (the form in which the Bank commits on behalf of the Importer to the Exporter/Supplier of goods to pay within the specified time when the Exporter/Supplier issue the goods presenting documents in accordance with the provisions of the L/C opened by the Bank at the request of the importer)
Merchandise: Goods bought and sold
Packing list: Packing list (a document sent with goods to show that they have been inspected)
Pro forma invoice: Temporary invoice
Ship: Shipping (goods) by sea or by air; ship
Shipment (the sending of goods)
Shipping agent: Shipping agent
Waybill: Bill of Lading (provides information about goods being sent)
4.3. Some abbreviations in the import and export industry
Cost, Insurance and Freight (CIF): Freight, insurance and freight
Change of Destination (COD): Surcharge for change of destination
Delivered at Place (DAP): Delivered at destination
Delivered at Terminal (DAT): Delivered at Terminal
Delivered Duty Paid (DDP): Delivered Duty Paid
Delivery Order (D/O): Delivery Order
Destination Delivery Charge (DDC): Surcharge for delivery at the port of destination
Documents Against Acceptance (D/A): Accept payment, hand over deferred documents
Documents Against Payment (D/P): Payment to receive documents
Drafts (B/E): Bill of Exchange
Ex Work (EXW): Delivery at the factory
Federation Internationale Association de(FIATA): International Federation of Freight Forwarders
FIATA B/L (FBL): FIATA Bill of Lading
Forwarder’s Cargo Receipt (FCR): Forwarder’s Bill of Lading
Free Alongside Ship (FAS): Delivery of goods along the side of the ship
Free Carrier (FCA): Deliver the goods to the carrier
Free on Board (FOB): Deliver goods on board
Full container Load (FCL/FCL): The method of transporting even goods by container
Good Storage Practice (GPS): Good storage and logistics practice
Harmonized System Codes (HS Code): HS Codes
House Airway Bill (HAWB): House Bill of Lading
International Commercial Terms (Incoterms): International commercial terms and conditions
International Chamber of Commerce (ICC): International Chamber of Commerce
Less than container Load (LCL/LCL): Container shipping method
Letter of Credit (L/C): Letter of Credit
Long ton (LT): Ton (1016.46kg) in English system
Mail Transfer (M/T): Transfer money by mail by post
5. Conclusion
Above are the information and concepts of import and export activities. In case if your business is planning to export goods to other countries but lacks human resources, the team is not knowledgeable about import and export procedures, you can hire or cooperate with a supplier. provide logistics services.
Sinovitrans has more than 12 years of experience and has completed many large-scale logistics projects. Committed to bringing customers and partners the most accurate and effective Logistics solutions.
For more information, please contact:
Sinovitrans Logistics Co., Ltd
Ho Chi Minh Head Office: L001, Lot L, 1st Floor, Docklands Saigon, 99 Nguyen Thi Thap, Tan Phu Ward, District 7, HCMC
Hotline: (+84-28)-3873 1212
Email: Huangjunda.vn@sinotrans.com
Website: https://sinovitrans.com/