Forwarding, Shipping and International Payment

  • Friday , Date 22/03/2019
  • Forwarding, Transportation and International Payment

    Nhat Huy Group is an import-export enterprises, so international logistics, transportation and international payment are an important and indispensable part to bring products to customers.

    Ms Nguyen Thanh Ngoc – Staff of Stone Department

    On November 16th, 2019, Nhat Huy Group organized a training for staff of business departments on forwarding, shipping and international payment. As a person who has extensive experience in the field of import and export, Ms. Nguyen Thanh Ngoc - Staff of Stone Department shared not only a lot of useful knowledge but also created opportunities for other offices exchanging experiences with each other. Through the training, the company hopes employees can understand more about the business and the issues that need attention in negotiating with customers.

    Forwarding services

    The delivery process includes the following main steps:

    • Prepare documents and goods

    • Contact the transport lines

    • Open customs declarations

    • Carry out quarantine procedures and quality inspection

    • Complete documents

    Ms Ngoc shares about import and export operations

    Ms. Ngoc said that when prepare documents and open customs declarations, people must be available to adapt to unexpected changes from authorities so as not to delay the transportation process.

    Ocean transportation

    Transportation through ocean are always the optimal way to transport bulky and long-lasting goods with low cost. Special attention should be paid to shipping standards especially for the size of a container so that cargo can be conveniently entered at the port.

    Some requirements in exporting:

    • Quality requirements and specifications

    • Requirements in the import market

    • Load requirements

    Ms Ngoc shares about import and export operations

    “I had an order when arrived at the port that exceeded the tonnage of 1 ton and was required to reduce that container load to proceed to unload. This had not only caused the company to lose more costs but also slowed down the progress of customers” - Ms. Ngoc shared about her experience. Therefore, it is important to ensure that import and export standards.

    International payments

    When conducting a payment, we need to pay attention to 2 main parts: International Trade Terms (INCOTERMS) and payment methods.

    INCOTERMS are essential provisions in international trade, detailing the responsibilities of sellers, buyers and the timing of risk transfer between buyers and sellers.

    Nhat Huy Group mainly uses Incoterms 2010 and concentrates on the terms of shipping or marine including:

    • FAS - Free Alongside Ship - delivered at the side of the ship

    • FOB - Free On Board - Delivered on board

    • CFR - Cost and Freight - Pay freight to the terminal

    • CIF - Cost, Insurance and Freight - Payment, insurance to the port

    About payment method:

    Telegraphic Transfer (T / T): The buyer will transfer his money through a domestic bank to the seller of part or all of the value of the shipment (depending on the foreign trade contract).

    Letter of credit (L / C): The buyer will sign with bank C.A.D a 2-part:

    Open a trust account with the buyer name for the beneficiary.

    Request for payment documents that the seller must present to the bank C.A.D

    Collection: The seller, after the delivery, will authorize the bank, asking the bank to collect the amount of goods from overseas buyers. Classification of collection:

    D / A: Document against Acceptance

    D / P: Document against Payment

    Ms Ngoc shares about import and export operations

    This is probably the part that has received the most attention and discussed when the sales staff had the opportunity to share their own practical experiences in the international payment process such as: “problems in sending documents”, “Customers pay late”, “The process of transporting incidents”,... Many problems have been raised by people and they are together looking for solutions.

    Mr. Nguyen Chan Chinh - Chairman of Nhat Huy Group shared: “After the winter will be spring”. Forwarding, transportation and international payment operations are still difficult, but with the professionalism and determination of employees in the company, we believe that all problems can be overcome.

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