Chapter 3:

Contract Performance
 PROCEDURES TO PERFORM EXPORT CONTRACTS

1. Asking for export license 2. Checking payment

4. Carriage and insurance 3. Preparing goods

5. Customs procedures 6. Making delivery

8. Dealing with claims 7. Payment procedures

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 1. Export license application
• Subject to the government’s import-export controls in the certain period
of time.
• Legal basis: Law on Foreign Trade Management and Decree
No.69/2018/NĐ-CP.
• 2 kinds of licenses for exported goods: export licenses and automatic
export licenses.
• Goods under specific management: Certificate of exportability required
(e.g rice)
 2. Checking payment
• Inform buyers of delivery.
• Check obligations of preparation relating to payments.
• In case payment is made by L/C, what should exporters do?

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 L/C checking 40A: FORM OF
DOCUMENTARY CREDIT
20: DOCUMENTARY
CREDIT NUMBER
50: APPLICANT
31C: DATE AND PLACE 59: BENEFICIARY
OF ISSUE

31D: DATE AND PLACE

OF EXPIRY 32B: CURRENCY
CODE, AMOUNT

39A: PERCENTAGE CREDIT

AMOUNT TOLERANCE

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 45A:
41D: AVAILABLE DESCRIPTION OF
WITH … BY … GOODS AND/OR
42C: DRAFT AT … SERVICES
42D: DRAWEE

43P: PARTIAL SHIPMENTS

44T: TRANSSHIPMENT
44A: LOADING ON BOARD/
DISPATCH / TAKING IN CHARGE
AT/FROM…
44B:FOR TRANSPOTATION TO:
44C: LATEST DATE OF SHIPMENT

46A: DOCUMENTS
REQUIRED

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 71B: CHARGES

48: PERIOD FOR

PRESENTATION

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46A:
DOCUMENTS
REQUIRED
 Time span with LC

Validity of L/C, delivery time and payment time

LC Delivery LC
min. 21 working days
opening date expiry

-L/C advice. - Documents receiving.

-L/C keeping at advising bank. - Prepare payment docs,

-Goods preparation and delivery. - Keeping docs at advising bank

- Reserved time. - Sending docs to opening bank/

negotiation bank.
- Reserved time.

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 Time span with LC
* At sight LC

LC Payment LC
opening date expiry

*Deferred LC

LC B/E presentation Payment LC Payment

opening and acceptance date expiry date

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 3. Goods preparation
3.1. Packing: safe, economic, artful.
• Outer packing

Drum Barrel
Box
Crate

Case Bag Bale Roll

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 3. Goods preparation
3.1. Packing: safe, economic, artful.
❖ Inner packing

Wood shaving
Tarpauline
Cardboard

Oil, Gease
Foil PP, PVC Waste paper
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 3. Goods preparation
3.2. Marking
• Purpose
Info relating to contract, special instructions.

Fragile Use no hooks This way up Keep away

from sunlight

Keep away Do not

from water Flameable destroy barrier Tear off here
 3. Goods preparation
3.3. Goods checking and inspection
• Why?
- Conformity with contract.
- Subject to regulations of export/import country.
• Who inspect?
• Validity of certificates?

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 Conformity with contract

Certificate of quantity

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 Conformity with contract

Certificate of quality

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Sanitary certification

Health certificate

20
 Quarantine

Phytosanitary certificate

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 3. Goods preparation
3.3. Goods checking and inspection
❖ Procedures

Doc application On-site inspection

Supervising Issuance of
goods delivery temporary certificate

Issuance of
official certificate
 4. Carriage & Insurance
4.1. Contract of carriage
• Liner term -> liner B/L
• Voyage charter -> Charter party B/L
4.2. Contract for insurance
• Insurance clause
• Amount insured
• Form of insurance contract
+ Open policy / voyage policy
+ Insurance certificate / insurance policy
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Insurance request

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 5. EXPORT CUSTOMS CLEARANCE

2. Get the 3. Carry out

1. Customs
classification
declaration and export customs
result of customs
submission procedure
inspection

4. Pay customs 5. Clear the

duties goods
 FORMS OF CUSTOMS DECLARATION

E-CUSTOMS OR
E-CUSTOMS PAPER-BASED
(Art 25.2 Decree
08/2015/ND-CP)
 Booking Note/ Booking confirmation: Name of the vessel, port of
discharge

Sales Contract

Commercial Invoice
DOCUMENTS
PREPARED FOR Packing List
EXPORT CUSTOMS
DECLARANCE Equipment Interchange Receipt (EIR): container No., seal No.

Additional documents: Certificate of Quality, Certificate of Analysis,

Insurance policy, fumigation, phytosanitary certificate

Export Licence
 DOCUMENTS SUBMITTED FOR EXPORT
CUSTOMS CLEARANCE

1/ Electronic Customs Declaration Form

2/ Export license (if applicable)
3/ Certificate of exportability (if applicable)
4/ Certificate of inspection (health, fumigation, phytosanitary)
(if applicable)
5/ Commercial invoice
6/ List of woods used (if applicable)
(Circular No. 27/2018/BNNPTNT)
7/ Entrusted export contract (if applicable)
 CLASSIFICATION OF CUSTOMS INSPECTION
Art.26-Decree 08, Decree 59; Art.19-Circular 38,Circular 39

GREEN LANE: consignment cleared, subject to

neither document review nor on-site customs
inspection

YELLOW LANE: Subject to Customs’ document

review

RED LANE: Subject to both Customs’ document

review and on-site customs inspection
 6. Making delivery

• By sea – not in container (Bulk cargo)

1. Cargo list

2. Cargo plan

6. Exchange MR for BL
Consigner Carrier

3. Ask for
date, time of
delivery

Port authority 30
 6. Making delivery
• By sea – in containers (FCL)
1. Cargo list

2. Booking note
3. Give order to deliver cont and seal
Carrier’s
6. B/L issuing
agent
Consigner

4. Goods packing,
customs procedures,
deliver containers

Container yard - CY
 6. Making delivery
• By sea – in containers (LCL)
1. Cargo list
2. Booking note
4. House B/L issuing
Consolidator
Consigner

Container freight station - CFS

 6. Making delivery

• By air
✓ Booking.
✓ Deliver the goods and conduct procedures.
✓ Receive AWB (MAWB/HAWB).
✓ Advise consignee.

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 7. Payment procedures

• Preparing the documents as stated in the contract

or L/C.
• Presenting full set of documents to advising bank
within the given period of time to get payment.

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 8. Dealing with claims

• Cases
• Solutions
• Documents
+ Letter of complaint.
+ Relevant docs: Contract, B/L, Tally sheet, Report on
Receipt of cargo (ROROC), Certificate of short-landed cargo
(CSC), Cargo outturn Report (COR), Survey Record, Customs
Inspection Report.
+ Damage calculation.
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COR
(Cargo Outturn Report)
CSC
(Certificate of Shortlanded
Cargo)
ROROC
(Report On Receipt Of Cargo)
 DISCUSSION
• On 6 December 2020, Australian buyer order a consignment via a
purchase order
• On December 2020, the Vietnamese seller confirmed the order via the
proforma invoice

DISCUSS STEPS TO PERFORM THE CONTRACT FOR

EXPORTING WOODEN FURNITURE BY SEA AT THE
VIETNAMESE ENTERPRISE
 2.PROCEDURES TO IMPORT

Licence application Remind delivery

Transport arrangement Preparations for payent

Insurance Payment procedures

Taking delivery Customs procedures

Checking imported goods Complaints and solutions

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