TABLE OF CONTENT

I, Introduction....................................................................................................................3
1, General Information.................................................................................................... 3
1.1, Overview...............................................................................................................3
1.2, Company structure and office...............................................................................3
1.3, Product and market...............................................................................................3
1.4, Logo, slogan..........................................................................................................4
1.5, Mission, vision and target.....................................................................................4
2, Department...................................................................................................................5
2.1, Roles.....................................................................................................................5
2.2, Structure................................................................................................................6
2.3, Role of import in company, objective of project..................................................6

II, Import process...............................................................................................................7

1, Overview......................................................................................................................7
2, The steps of importing products..................................................................................7
2.1, Negotiate and sign contract...................................................................................8
2.2, Commercial invoice..............................................................................................9
2.3, Packing list..........................................................................................................10
2.4, Bill of lading.......................................................................................................11
2.5, Booking information...........................................................................................14
2.6, Certificate of origin.............................................................................................14
2.7, Product Self-declaration......................................................................................17
2.8, Import License....................................................................................................18
2.9, Customs declaration (Import) form....................................................................19
3, Advantages and Disadvantages of importing process...............................................21

III, Appendix....................................................................................................................23
1, Documentations needed for importing products........................................................23
2, Reference...................................................................................................................31

IV, Contribution Form....................................................................................................32

2
I, Introduction:
1, General Information

1.1, Overview

The Milk Your Day Joint Stock Company, which was established in 2022, is a brand in
the dairy industry of Vietnam. Processing milk is our major business. Importing 100%
dairy-derived pure fresh milk from New Zealand cows that have been meticulously cared
for and verified, management system, processing and packaging, to product distribution
to consumers, the company is focused on innovative management systems and integrated
production processes, all of which are synchronized by international standards.

1.2, Structure and Office

1.3, Contact information:

MYD - Milk Manufacturer

Headquarters: No 49 Pham Ngoc Thach Street, Ward 6, District 3, Ho Chi Minh City,
Viet Nam

3
MYD Factory’s Address: No 166 Nguyen Thai Hoc Street, Quang Trung Ward, Vinh
City, Nghe An Province, Viet Nam.
Phone: 1800505550
Fax: (84) 0 91002999
Email: [email protected]

1.4, Products and market:

Product: The company produces a lot of different items to suit all ages and fully satisfy
the needs of users. The company's typical products include:
- Fresh milk
- Milk powder for weaning
- Yogurt
Market:
According to statistics in 2021, the number of children in the Vietnamese market tends to
increase sharply. Baby milk market is a business market that many companies are
interested in. As a newly established company, Milk Your Day products are not yet
widely accessible to many customers. Therefore, in order for the product to easily reach
buyers, the company's current target is mainly children.

1.5, Mission, vision and target

* Vision:

- The objective will become a top manufacturer in this industry, incredibly competitive,
offering nutritional and health values to consumers and shareholders, and to become a
preferred firm with the capability to manage and quality of products that always matches
global standards.

- The Directors of Milk Your Day JSC's mission is to achieve top monetary performance
over a specified period of time by incorporating sustainability into business and
marketing strategies, leaving a bold impact on social and environmental issues. This is
what economists refer to as "performance improvements with a defined goal."

*Mission:

- Offer lactose essentials that are totally obtained, nutritiously guaranteed, and obtained
through internationally renowned sources.

- Prioritizing on long-term growth of the Vietnamese dairy sector, continually developing

and updating high-tech processes and equipment, and bringing new goods to the market
to broaden product offerings, ranging from ordinary milk to certified organic milk.

4
- Consistently put business interests of the client foremost, contribute to meeting the
demands of items, ensuring competitive pricing, maintaining ethical guidelines, and
according to Vietnamese legislation.

*Target:

- Create a company that provides the most healthy meals in Vietnam.

- Another of the year as well as finest sustainable products.

- Perhaps one Vietnam's most valued brands

- Representing Vietnam to become an enterprise with the largest export turnover of goods
to Europe in Southeast Asia.

- The first choices of consumers in Southeast Asia in particular and Asia in general.

LOGO:

2, Department:

2.1, Role

• Present status of livestock:

The livestock industry continues to play an important part in the national economy and is
critical to the socio-economic development of rural households. However, the livestock
industry makes a minor contribution to national nutrition. This has been related to the
indigenous breeds' poor production capacity, which are the backbone of our milk

5
production. This has resulted in a larger nutritional gap. Traditional cattle keepers'
attitudes are changing, which bodes well for dairy output in the future. Traditional stock
is gradually being upgraded by artificial insemination. In the near future, the number of
upgraded animals will be considerably expanded.

• Policy implications for the marketing of locally produced milk and dairy products:

The present attempts to restructure the economy through the liberalization program have
established the required economic climate for the cattle sector to flourish at a faster rate.
Milk production is likely to expand to a significant degree in the medium term as a result
of effective and efficient resource exploitation, necessitating the implementation of an
effective and extremely efficient processing and marketing system. The demand for milk
and milk products has surged dramatically as a result of the tourism industry's crises.
However, because of poor productivity and output, as well as the lack of well-organized
milk marketing networks, trade liberalization policies have provided a favorable climate
for the importation of evaporated milk and milk products to fulfill rising demand.

• Potential for milk production and future prospects

Genotype, management levels, population, and diet all influence milk output. Since the
traditional sub-sector relies exclusively on natural pasture as feed and management is
inadequate, seasonal fluctuation and degree of management continue to have a significant
impact on milk production trends. It's past time for extension and other support services
to be aimed at assisting commercial smallholder farmers. Disease prevention and control
services, as well as health centers, must be improved. By developing collecting and
refrigeration facilities, the milk market and marketing processes may be enhanced.

2.2, Structure of Import-Export Department

6
2.3, Role of import in company, objective of project:

Role of import in company:

• Fostering optimal conditions for the supply of input materials for domestic
manufacturing. To put it another way, import activities save costs and time while
also helping to eliminate domestic monopolies.
• Providing an abundance of products, sorts, specifications, designs, and quality of
commodities for the home market, as well as developing new demands for
society. As a result, a balance between domestic supply and demand is achieved,
ensuring balanced and stable development.
• Establishing a foundation for our country's expansion of connections with other
countries in the area and around the world.
Objective of Project:
In order to obtain a better understanding of how items are imported in practice, we
will investigate and analyze MYD Company's import process in this project.
Furthermore, we obtain an understanding of the import and export positions, as well as
knowledge of the paperwork required in import-export, allowing us to begin working on
some fundamental documents.

II. IMPORT PROCESS

1, Overview:
Seller (Exporter):
Fonterra is a global dairy nutrition company owned by 10,000 farmers and their families,
united by a fundamental belief in the power of dairy to make a difference. The co-
operative has built its expertise on the legacy of the thousands of farmers who’ve made
New Zealand a world leader in dairy. Today, Fonterra’s innovative consumer,
foodservice and ingredient solutions brands are known and loved in more than 100
countries. With 22,000 employees around the world, Fonterra is an equal opportunity
employer committed to attracting, developing and retaining a diverse group of talented
individuals and creating an inclusive culture that enables everyone to bring their best and
authentic selves to work every day.
Buyer (Importer):
Milk Your Day Company is a company that produces and distributes dairy products:
Fresh milk, Milk powder for weaning, Yogurt... Dairy products will be produced in line
and distributed domestically.
AVG Cargo (Logistics Service):
AVG Cargo - International Freight Logistic is a subsidiary of Asia Vacation Group - a
multinational company with over 15 years of experience leading the international travel,
aviation and transportation markets. AVG Cargo specializes in transporting orders from
Australia to Vietnam, from Vietnam to Australia and buying reputable Australian goods.
The company has a safety insurance policy, a commitment to a short transit time, and a
convenient and easy door to door service. Customers can track the process of transporting

7
goods through the website. In addition, they offer long-term services and allow services
to be tailored to meet the needs, timings, and budgets of senders and receivers.
Product:
Raw milk materials are imported from foreign farms to Vietnam to receive and check the
quality of milk, then it will be refrigerated, then preliminarily processed and processed
according to the process (depending on the processing method). for snr to produce fresh
milk, yogurt, powdered milk), and finally packing to start distribution.

2, The steps of importing products

2.1, Negotiate and contract

A contract of sale is an agreement between a seller and a buyer. The seller agrees to
deliver or sell something to a buyer for a set price that the buyer has agreed to pay. With
these contracts, the transfer of ownership happens when the buyer pays and the seller
delivers.The sale contract is very useful in providing more information and understanding
between the buyer and the seller, thereby minimizing disputes during the purchase and
sale process. In the event of a dispute, a sale contract can help reach an agreement that is
fair to both parties.
The contract was signed by the seller is FONTERRA CO., LTD and the buyer is The
Milk Your Day JSC . All the information of the buyer and seller such as name, address,
contact information, company representation also included.

2.1.1, Name of goods, Specification, quantity, price

Imported products are fresh milk ingredients and powdered milk ingredients imported
from New Zealand. The total volume is 10000 liters of raw milk material with the price
of 2 USD/liter and 2000 kg of whole milk powder at the price of 13 USD/kg

Incoterm: CPT
“Carriage Paid To” (CPT) means the seller delivers the goods at their expense to a
carrier or another person nominated by the seller.

In CPT, the seller assumes all risks, including loss, until the goods are in the care of the
nominated party. The carrier could be the person or entity responsible for the carriage (by
air, sea, road, etc.) of the goods or the person or entity enlisted to procure the
performance of the carriage.

In a CPT transaction, the seller must clear the goods for export and deliver them to a
carrier or appointed person at a mutually agreed-upon (between the seller and buyer)
destination. Also, the seller pays the freight charges to transport the goods to the specified
destination.

8
The risk of damage or loss to the goods is transferred from the seller to the buyer as soon
as the goods have been delivered to the carrier. The seller is responsible only for
arranging freight to the destination and not for ensuring the shipment of the goods during
transport.
The term CPT is typically used in conjunction with a destination. The goods will be
delivered to Vietnam, so CPT Vietnam means that the seller pays freight charges to
Vietnam.

2.1.2, Deliver
30 days after advance payment and confirmation of the seller, from Auckland airport,
New Zealand, the goods will be taken to Vinh International Airport, Vietnam. The
consignee is Milk Your Day JSC, Vietnam. Shipping is allowed

2.1.3, Payment and document required:

The buyer pays the seller 30% of the total amount by wire transfer (T/T) in advance, and
pays the rest after receiving the goods. The transaction will be made through the buyer's
bank: Vietcombank - Pham Ngoc Thach branch at Chau Khanh Nguyen Building, 63
Pham Ngoc Thach, Ward 6, District 3, City Ho Chi Minh City, Vietnam. Swift code:
BFTVVNVX
Document required:
The original Bill of Lading.
Commercial Invoice
Packing List
Product Self-declaration
Import License
Certificate of origin form D

2.1.4, Additional condition:

The contract needs to be fully signed by both the buyer and the seller, or the signature of
the representative of the company to come into effect.

2.2, Commercial voice

In international trade, the commercial invoice is one of the most crucial papers. It is a
legal document used as a contract and evidence of sale between a seller (exporter) and a
buyer (importer) in an international transaction. This commercial invoice will clearly and
completely state the following information: characteristics of the goods, cost, total value
of goods, delivery conditions, payment methods, shipping, etc. It must also contain the
conditions of the sale or transaction that both the buyer and the seller have agreed to for
the transaction to take place. Likewise, the currency on the invoice must match the
currency on the L/C.

The content of Commercial Invoice:

9
a, Information related to the transaction

Invoice number: INV 1034/2022

Invoice date: Dec, 26 2032
Total sale amount:
Currency: USD
Payment: T/T
The goods loaded in (01) 40’HC Container.

b, Information related to the exporter and importer

Exporter/seller information
Name: FONTERRA CO., LTD
Address: AUCKLAND, NEW ZEALAND
Phone: +64-9-374 9000

Importer/buyer information
Name: MILK YOUR DAY., JSC
Address: NO 49 PHAM NGOC THACH STREET, WARD 6, DISTRICT 3,
HO CHI MINH CITY, VIET NAM
Phone: 1800505550

c, Information related to the shipping of merchandise

Final destination: VINH CITY, VIET NAM

Clear description of goods (no. of packages, units, weight, and so on):

2.3, Packing list

2.3.1, Definition:
- The packing list is an important component in exports and imports documentation; it
lists the elements of the cargo in precision but does not normally contain the shipment's
worth.

2.3.2, Classification:
- Detailed packing list: including title and article information of products
- Neutral packing list: the main content does not mention about the seller
- Packing and Weight list: packaging and inventorying goods.
10
2.3.3, Function:
- Net weight, net weight including packing, wrapping, condition, amount, and
categorization of commodities are all used to inform net weight.
- From that the customer can calculate some of abundance:
+ Organize the warehouse
+ Transportation mode/vehicle configuration
+ Should things be dismantled by hand or by technique?
=> Packing list should be sent from seller to buyer for reviewing and checking the items.
2.3.4, Content:
- Information about both seller and customer
- Port (seaport, airport, ...)
- Information about transportation vehicle/ transport code
- Simple information about products (quantity, weight, volume...)
- Contract number
- Delivery conditions

11
2.4, Bill of Lading

The bill of lading is a required document to move a freight shipment. The bill of lading
(BOL) works as a receipt of freight services, a contract between a freight carrier and
shipper and a document of title. The bill of lading is a legally binding document
providing the driver and the carrier all the details needed to process the freight shipment
and invoice it correctly.

12
 A bill of lading is a legal document between the company that ships the items and the
carrier. The document accompanies the shipped items, and it serves as a receipt of
shipment when the items are delivered at the destination. If you're using warehouse
management, there are two ways to generate a bill of lading:
• Create the report manually, using the Bill of lading page.
• Generate the report from the Load planning workbench.
If you generate the bill of lading from the Load planning workbench, the load status must
be Shipped. If there's more than one shipment in the load, a bill of lading is created for
each shipment. After a bill of lading has been created you can make changes to it on the
Bill of lading page.

13
14
15
2.5, Booking confirmation

A booking confirmation is a document produced by the forwarder that confirms all of the
specifics of your booking except the actual shipping fees. The confirmed reservation
serves as a booking document that may be shared among the shipper, consignee, and
other stakeholders for quick access to the booking data, including the forwarder's contact
information. Cargo, shipper, consignee, freight service, any service add-ons, time, and
cargo information are all required.

2.6, Certificate of origin

A Certificate of Origin (C/O) is a significant international trade document that validates

that the products in a certain export cargo were completely obtained, produced,
manufactured, or processed in that country. They indicate the product's 'nationality' and
also function as an exporter declaration to meet customs or trade regulations.

The Milk Your Day Joint Stock Company has adopted C/O form D (a preferential C/O,
or "ordinary C/O," indicates that the goods are subject to preferential treatment under
FTA “free trade agreements”), which is used to export products to countries that offer
Common Effective Preferential Tariff (CEPT), including ASEAN countries.

Goods imported from New Zealand into another party to the AANZFTA Agreement that
claim originating status must have a certificate of origin issued by a certifying
organization in New Zealand to prove that they are eligible for preferential tariff
treatment.

Certification organizations can provide certificates of origin in relation to the AANZFTA

Agreement, allowing qualified New Zealand exports to claim preferential tariff treatment
when imported into another AANZFTA Agreement party.

New Zealand's certifying bodies are:

• New Zealand Chambers of Commerce Inc

16
• Trade Window Original Limited
• WiseTech Global Limited

17
18
2.7, Product Self-declaration

19
2.8, Import Licenses

Import licensing can be defined as administrative procedures requiring the submission of

an application or other documentation (other than those required for customs purposes) to
the relevant administrative body as a prior condition for importation of goods.

2.9, Customs declaration (Import) form

20
• Customs declaration is a document in which the goods owner or vehicle owner
must fully declare detailed information about the shipment or vehicle when
exporting or importing into or out of the Vietnamese territory.
• When a business needs to import or export its shipments, making a customs
declaration is one of the steps that must be taken.
• The customs declaration for goods must be filled out completely and submitted to
the General Department of Customs within the stipulated time. Besides, it is
necessary to pay import and export tax in full and on time.
• The customs declaration must comply with the sample customs declaration of the
General Department of Customs. Currently, there are two forms of customs
declaration: manual declaration and electronic declaration
• Customs declaration and file submission: The company receiving customs
declaration is responsible for declaring specific imported goods with the content of
quality, quantity, value, vehicle name, ... to calculate import and export tax

21
22
3. ADVANTAGES AND DISADVANTAGES
3.1, Advantages

• Better Profit
All individuals are looking for lots of profit in the business. To achieve such an objective,
all companies are regularly putting efforts and work hard by which they can make lots of
money. All companies want to choose the business opportunity where they can maximize
the profit-making rate and avail of several benefits. If we talk about the profit, then we
have to take a look on several factors such as - product or goods costing.

In case you pick the option of importing, then you have to choose a country where you
can get goods at lower manufacturing cost. It can be possible with lower wages, material
costs, and fees. All these things can help you in paying attention to various factors and
experience multiple benefits of choosing import business.

• Higher Quality
All customers are looking for quality products only. No one wants to spend their hard-
earned money on buying something with lower quality standards. Here, you have to be
choosy. In some cases, the actual region or base of some products is not your country.

23
The customers always may face quality issues with these types of products because of
improper production in your country.

You have to be careful and smart here. You can pick the option of importing these types
of products with high-quality standards and directly from the originated sources. It will
help you in serving the market with some top-quality products.

• Cut Down Manufacturing Cost

If we are talking about business and costing factors, then manufacturing plays the biggest
role. All companies try to figure out the best possible way by which they can easily cut
down the manufacturing cost and sell products with a good profit margin. The cost of
manufacturing a product depends on multiple factors such as
• Operation cost
• Wages
• Raw material costing
• Intermediate goods cost
Sometimes, you may get raw material in your country at higher prices as compared to
other countries. In these conditions, you need to be smart and try to import such items
quickly. In some cases, companies from other countries are selling intermediate goods at
lower prices. These types of goods can be used for producing a final product. Here, you
can save money on a specific processing channel as well. It is also a big reason for
choosing the option of importing things.

3.2, Disadvantages
• Currency Risk
All countries have to maintain their foreign exchange flow to regulate the currency and
its status in the world’s economy. In case a country starts importing things too much
higher as compared to the exports, then its currency starts facing issues. Here, the
currency rate starts declining in the international market, and other currencies start
holding a dominating position. All these things are not good for a developing or under-
developed nation. It can break a country’s economic backbone.

It is also the main reason that’s why governmental authorities of all countries are
promoting export more as compared to the imports. Here, you can say, importing goods
can be beneficial for a company from the business and profit point of view, but when it
comes to the country, then it does not.

• Foreign exchange risk

There is the danger that there will be a sudden large change in the currency exchange
rate. This may result in your suffering a loss if the peso falls in value. There are,

24
however, several ways of hedging your foreign exchange risks to lessen the impact of
currency fluctuations.

• Political risk
There are many scenarios where this may be a hindrance. For example, our government
may suddenly impose a stiff tariff on the goods you are importing. This will drive up
your costs unexpectedly. The worst case is if there is hostility between our country and
the foreign state. This may prevent you from doing business with them.

• Legal risk
This problem runs both ways. What may be legal or acceptable in your country may be a
criminal or civil offence in the foreign country. It is advisable to have someone
knowledgeable in that country to guide you.

III, APPENDIX
1, Documentations needed for importing products

25
26
27
28
29
30
31
2, Reference
http://www.eaglesfwd.com/chi-tiet-ban-tin/commercial-invoice-la-gi-tam-quan-trong-
cua-commercial-invoice.html
https://templatelab.com/certificate-of-origin/#google_vignette
https://aucklandchamber.co.nz/international-trade/certificates-of-origin/#apply
https://www.vtops.com/certificates/certificate-of-origin/
https://luatduonggia.vn/phong-xuat-nhap-khau-la-gi-quyen-han-chuc-nang-nhiem-vu/

32
https://www.investopedia.com/terms/c/carriage-paid-
cpt.asp#:~:text=Key%20Takeaways,delivery%20to%20the%20first%20carrier.
https://dathangtrungquoc.com.vn/bo-chung-tu-nhap-khau-va-quy-trinh-nhap-khau-hang-
hoa-88425.html
https://www.reviso.com/packing-
list/#:~:text=A%20packing%20list%20is%20a,parties%20handle%20the%20package%2
0accordingly.
https://www.container-transportation.com/packing-list-la-
gi.html#:~:text=%C4%90%C3%B3%20l%C3%A0%20phi%E1%BA%BFu%20%C4%9
1%C3%B3ng%20g%C3%B3i,%C4%91%C3%B3ng%20g%C3%B3i%20m%E1%BB%9
Bi%20s%C3%A1t%20ngh%C4%A9a
IV, CONTRIBUTION FORM

No. Student Name ID Evaluation

1 Nguyễn Song Hiếu Đan IELSIU20278 100%

2 Phan Châu Anh IELSIU20261 100%

3 Trần Song Hy IELSIU20318 100%

4 Nguyễn Bá Hiếu IELSIU20304 100%

33