Transcripts
1. Introduction of Import Export course for Beginner: Hi everyone. My name is Vi. I have over ten years of experience in the
import export industry, working directly with
international partners. Most recently, I was a
key account manager at a seafood export company with annual sales of hundreds
million US dollar. I understand how confusing
it can be at the beginning, not knowing where to start when learning about import export. In this course, you'll learn
the step by step process of handling an import export
shipment from start to finish. We'll explain essential
English terms used in the import export
industry to help you feel confident when communicating with international customers. You'll also understand the
roles of shipping lines, freight forwarders,
and the types of containers used in logistics. We'll walk you through key costs in an import export transaction. Including ocean
freight, local charges, and how to avoid
unexpected expenses. Whether you want to
start a export business, get a job in
international logistics, or just understand
global trade better, this course is for you.
Let's get started.
2. Import-export shipment procedure (step by step): We'll start with Chapter one, overview of import and export. Lesson one, the process of an
import and export shipment. In this section, we
will primarily focus on the process of an import and export shipment
transported by sea. In Country A, there
will be a seller, also known as the exporter. In Country B, there
will be a buyer, also known as the importer. The seller will sign a sales
contract with the buyer. In this contract, it will be
stipulated that the seller will produce and deliver
goods to the buyer. Conversely, the buyer will
need to make a deposit if required and pay for
the goods to the seller. On both sides of the ocean,
there will be ports. VOL, port of loading
bill of lading, also known as the
export port and pod, port of discharge, also
known as the import port. The vessel will be provided by the shipping
line to transport container goods from the export
port to the import port. Near the port on land, there will be customs
departments for the exporting country and also
for the importing country IcaurmsT perform the tasks of supervising import
and export goods, combating smuggling
and managing taxes. In small companies
that do not handle customs procedures or booking vessels directly
with shipping lines, there will be the involvement of forwarding companies denoted
as FEW, one and two, specializing in
providing services, including booking vessel, customs declaration
and domestic trucking. Once the goods are ready, the vessel booking will begin. At this point, the sender is
referred to as the shipper, and the receiver is
called the consigner. The goods will be transported
to the port, trucked, and customs procedures
will be carried out either directly or
through a forwarder. After that, the goods
will be loaded onto the ship and transported from the export port to
the import port. The ship can travel
directly or transit through another vessel before
reaching the import port. When the goods arrive
at the import port, they will undergo import
customs clearance and be transported to the
customer's warehouse, possibly through a
forwarder company too. Additionally, there
will be the role of two banks or the banks of the exporter and the importer to carry out payment
transactions such as TT, LC and TP so that the money will transfer from
the buyer through the bank. To cellular. In
this import export, you will learn in detail about these components as
well as the steps involved. Thank
you for listening.
3. 30 common english terms in Import and export: Lesson two, 30 common English
terms in import and export. In this lesson, I will share
with you the terms that are frequently used in the
field of import and export. Once you grasp these terms, you can confidently work
with clients as well as related departments in your
import and export industry. Okay, let's get straight
to the main part. Here there is a table that includes columns such
as the English column, column full terms, which means the complete term written in English and finally, the V or the meaning,
if you will. Now, the first three terms were already mentioned in
Lesson one of Chapter one. I will reiterate here, for example, shipper
means the sender. Consigne means the receiver. Forwarder is also known as a
freight forwarding company. In some logistics companies, they abbreviate it to
FVW for forwarding. Alright. Then term
number four is FCL. Also known as full container
load. Full container load. In contrast to full
container load, it will be LCL less
than container load, which means partial load
or less than a container. I will open the illustration
for you to see. All right? The image on the screen, you can see on the left side
of the screen that is blog. This entire container belongs to one shipper. It's all red. Can you see that? This means the goods fill up an
entire container. On the contrary, on the
right side, we have LCL. It will combine or gather
goods from different shippers. For example, this red color represents one shipper
then the blue color. This dark blue color
represents another shipper, and these three brown blocks
are from another shipper, and the two tall blocks are
from yet another shipper. This means LCL goods do not fill an entire container. All right. Is that clear? Let's continue
with term number six, which is CY, container yard, also known as more,
the container yard. I will show you an image of a container yard to help
you visualize it better. Here on the screen
is a container yard. It's the place where containers are gathered for
transporting goods. Usually before exporting as
described in Lesson one, goods are transported from
the exporter's location, from the factory to the yard. So where will the container be concentrated when
transported to the yard? It will be concentrated in this container yard,
also known as CY. There will be many
containers arranged in a certain way.
Relatively neatly. Containers are stacked
on top of each other, but the port will manage the position of
these containers. For example, they
manage the position of each container and
what goods it contains. Now let's return to
our list of terms. Number seven is VFS, also known as container
freight station, which in Vietnamese can be roughly translated
as a warehouse for handling less than
container load LCL cargo. What does it look
like? On the screen, you can see a warehouse
for handling LCL cargo. There will also be a
warehouse at the origin, meaning at the export
port and Dan CFS, meaning the warehouse
at the import port. There are two types. If
it's at the export port, this warehouse is used
for consolidating cargo. Here, you can see a truck carrying these yellow
colored goods, bringing them to this warehouse. Then there will be other trucks from different shippers carrying green colored goods
to this warehouse and black colored goods
to this warehouse. And the purpose
of this warehouse is to consolidate
such loose cargo. It will gather enough to form a container on the
right side here, to consolidate it into
a container so it can be transported or
loaded onto a ship. Section below is
the warehouse for consolidating loose
cargo at the port. Which is the destination port? Here, it does not perform the task of
consolidating goods, but rather the task of
distributing loose cargo. At this point, when the container goods arrive
at the import port, they will come as
a whole unit like this and will be delivered
to this warehouse. The task of this
warehouse is to divide the goods into smaller parts
for those who need them, for example, a small business
might only take a portion. Only the yellow goods and another small business might
only take the black parts. This warehouse will
sort and divide these goods according to the specific needs of
each small business, especially in cases where these shipments are
loose cargo date, rather than full
container loads. Next, we have Pol Port of bill of lading is
the port of loading. This terms was already
mentioned in Lesson one, P D. Port of discharge means
the port of discharge. O or F, often called ocean freight refers
to C freight charges. Corresponding to
this ocean freight, you will also know two
terms prepay and collect. Prepay, means the C freight
charges are paid in advance and collect the C freight
charges are paid later. When we get to the lesson
on the bill of lading, you will delve deeper
into this part. All right. Let's continue. Number 11 is TT, transit time. You might confuse this with the term TT transit in
the payment section. But here it is limited to the term we use in
logistics, right? We often use the term
TT as transit time, which means transportation time. All right? Next is frequency, abbreviated as FRC,
which refers to the frequency of the shipping
schedule, for example, one. That ship has one trip per week, then the frequency
is one per week, or if the ship has a frequency
of two trips per week, it will be two
frequencies per week. Next is line, also
known as shipping line. In some places, they just
abbreviate it as line, meaning the shipping company. Booking is essentially
reserving a spot on that ship. I will open a sample
for you to see. Now, on the screen, there is a booking from
the shipping company one. On the left side, you
will see this logo. This is the shipping line one. In this booking, it will have complete information
about the first thing, which is the shipper
and forwarder, which is the company MS Kip. All right. It will also
have booking number. This number is used
for us. We use it for the contract as well. Alright. It will also include the estimated sailing
date on Tau December 30, and the port the port of Bill of Lading is the
KaimePort in Barria Vong tau. Port of discharge is the import port in
Vancouver, Canada. Then it also includes information about
the equipment type, which is the type of container. Here it's high cube,
refrigerated high cube. When we get to the
container section, well understand
these terms better. And here it will also have
the estimated weight, which is the weight
of the cargo. Here it is 27.5 tons. That's it. That's all there is. Booking section. Moving on. Local charge. Local charge refers to the
local fees at the port. Then the term ETD stands for
estimated time of departure, meaning the expected
time of shipment. The expected time of shipment means when
the ship will depart, not when our goods
leave the factory. Our goods are loaded
onto the ship and the day that ship leaves the export port is what
is referred to as ETD. Then ETA is the estimated
time of arrival, which means the expected
time of arrival. On this booking, you will
see a section for ETD, which is the expected
departure date and ETA, which is
the arrival date. I will go back to the booking
to make it easier for you. Where is the ETD located? The ETD is here on December 30. Now, where is the ETA? ETA is when the ship
is expected to arrive, which is on January 29. There the ETA is located
next is the closing time, also known as the cut off time. Which is the deadline?
If you work in customs, you often hear about what time or which day the cutoff is. That is the closing time.
Usually, the cutoff time is the deadline by which your
goods must be at the port. Typically, this is two to three
days before the ATD date. Let's open the booking again. You will see this
at the cut off dot. It's the document cutoff time. The document cutoff is
on December 27 at 10:00. And what is the port cut off? The port cutoff is on
December 28 at 9:00. So the documents are different. The port is for the goods, and the arrival notice is the notification
of goods arrival. Do stands for delivery order, which means the
delivery instruction. Free time refers to the
free storage period. Meaning during this time, you won't need to pay
for storage fees. Contract means contract. Commercial invoice is the
commercial invoice, everyone. Payment term is payment terms. Delivery wa incoterms
means the delivery terms. PI means performing invoice. Performer invoice,
this word is a bit strange to translate
into Vietnamese. But when I looked it
up, you'll see that people still use the term
Hua Jon Bancheo Li online. In fact, this performing invoice is quite similar to a contract. Everyone. It's not
much different. It just replaces
the word contract with performing invoice. On this performing invoice, it will have
complete information about the total value
of that shipment. Usually, in smaller companies, they use the performing
invoice as a contract itself. In larger companies, they use the performing invoice to
execute payment orders. For example, when they issue LC, the bank will require
in some countries that a performing invoice
must be provided. Now, LC stands for
letter of credit, which means a credit
letter, everyone. We will have a separate
lesson on this credit letter. Here in this second lesson, we are just focusing
on the terminology. In the most general way, then we will delve into the details in the
subsequent lessons. Shipping documents refer to
export documents everyone. Bill of lading is
a bill of lading. Specifically, this bill of
lading refers to a CY bill. CO, also known as
certificate of origin, it is a certification
of the origin of goods. We will have a separate
lesson on CO to help you understand more about
the different types of CO and their uses. Alright, so we have covered the 30 most common
English terms in the import export industry.
Thank you for listening.
4. Everything you should know about Shipping Lines, Forwarders, and Containers: Welcome everyone
to Lesson three, shipping line, forwarder
and container. In this lesson, we will distinguish between what
is shipping line and the forwarder the top 25 most famous shipping
lines in the world. Next, we will learn
about containers. What types of
containers are there. Then, what are the
container sizes? We will learn how to read
the symbols on a container, and what container
transportation means. Let's start today's
lesson right away. The first part is about
shipping lines, forwarders. How do we distinguish
between these two entities? On the left side,
you can see that. It's the shipping line. Owns and manages
the Cardo ships, and the main role of
the shipping line is to transport goods
via sea routes. So why about the forward? The forwarder does not own ships or cargo
transportation vehicles, but it has good
relationships with shipping companies
and shipping lines. Therefore, they can rent
space on shipping lines, to sell services to clients. Their main role is to act
as an intermediary between the shipper and the carriers providing transportation
services. Besides transportation,
they also offer other services
such as consulting, trucking, customs
clearance, and, of course, sea freight as well. When they do this, they
receive information from the shipper and then
book with the shipping line. Next, we will explore the top 25 largest shipping
lines in the world. On your screen, you
will see four columns. The first column is
the serial number. The second is the name
of the shipping line. The third is the Country GOR, the head office of
that shipping line, and finally, the logo. So when you see these
shipping line logos on a shipping document
or on a ship, you can identify.
Which shipping line? It is from top to bottom. They are arranged by
market capitalization. For example, the largest company among the shipping
lines is Mersk. Some Vietnamese companies
often refer to it as SMAC, but the correct pronunciation is Mersk as it is a shipping
line from Denmark. Currently, they have offices in all countries
around the world. The logo is the full
name of the company. The second is MSC, which is a shipping shipping
company from Switzerland. The logo looks like this. The third is CMA CGM, which is a shipping line
company from France. It has a logo with two, also the company's name with two marks above and
below in red, like this. The fourth is Costco, which is a company from China. The fifth is Hapag loid. It is a C, a shipping
line from Germany. The sixth is one which is a
shipping line from Japan. This one has a very
distinctive color which is pink and it
looks quite cute. Then number seven is evergreen, which is from Taiwan. Number eight is HMM, a shipping line
from South Korea. Actually, HMM is an abbreviation for Hange merchant, Marine, the full term, this down here, the ninth company, this
Yang Ming from Taiwan. The Kenth company
is Sim from Israel. In fact, each shipping line is strong in a specific route. There are some routes
where this shipping line offers very good
prices and conversely, on other routes,
different shipping lines offer better prices. Continuing on number 11 is the shipping line
BL from Singapore. Number 12 is one
high from Taiwan. Number 13 is UASC from NA
United Arab Emirates UAE. Number 14 is SITC from China. Number 15 is TS
nine from Taiwan. Number 16 is the shipping
line, CNCL from China. Number 17 is the shipping line, KNTC from South Korea. Number 18 is Sinoca
also from South Korea. Number 19 is Fresco from Russia. Number 20 is the shipping
line, APL from Singapore. Next, number 21 is the shipping
line and YK from Japan. Number 22 is the shipping
line MOL also from Japan. Fd Dong hin Shipping
Company from Korea. Number 24 is the shipping line, OOCL from Hong Kong. This shipping line has a rather distinctive logo
with a flower in the middle. And finally, number 25 is the shipping line Nan
sung from South Korea. Then there are other shipping
lines not mentioned here, but when you can go
online and search, for example, when you
check the freight, you can find out if they are a shipping line or a
forwarder by knowing that. If they are not a shipping line, they are a forwarder. Usually, the shipping lines you search for most of the ones, we've shared here our
major shipping lines, and you should choose
these major lines because they are safer compared to
smaller ones, Gad said, it doesn't mean that
smaller shipping lines don't have their advantages because smaller shipping lines have certain routes
where they are strong. However, in terms of safety, major shipping lines have better systems and they
provide better services. In the next section, we
will explore containers. Let's see what types of
containers there are. First, is DC also known
as dry container. Some units or places still refer to it as GP
GR general purpose. This DC or GP container is also called a dry container
or a regular container. On the screen, that
is a dry container. Why do they call it
a dry container? It's because it carries dry
goods at normal temperature, so it's called a dry container. Next, HC, also
known as high cube. In Vietnamese, we call it a tall container
or high container. Because there is only a
40 foot high container, only 40 C, there is no
20 HC high container. 20 here means 20 feet and
40 here means 40 feet. On the left side,
you can see that the high container
and the image in the middle next to it
is a regular container, so we can look and compare the high container has the same width as the
regular container. It only differs in
height everyone. A regular 40 foot
container is 7.5 feet tall while a high 40 foot
container is 9.5 feet tall. On the right side, there's
a comparison image between this red high container and the regular gray container. In reality, there will be a difference like this everyone. The reason people use high
containers is so they can load more goods and
stack palettes higher. Besides that, there are other special containers
commonly used. For example, to
transport frozen goods, we use RF or
refrigerator containers, which are refrigerated
containers. These containers are used to transport goods that
need to be kept cold. As you can see below, a refrigerated
container will have a cooling unit here
and a generator here. The purpose is to provide cold air and lower the
internal temperature. Typically, the minimum
temperature required for a refrigerated container
is -18 degrees Celsius. One feature of this Coga
is that you can see the cold air will move
to all positions inside. When closing the container, they move a space at the top
so that the cold air can circulate from the front to
the back of the container. Then the fourth type of
container is the flexi tank, and ISO tank, which
are containers specifically used for
transporting liquids or gases. On the left side, you
can see the flexi tank, which has a tank here and the
ISO tank which doesn't have four sides enclosed but is open like this with
a tank in the middle. As for the flexi tank, it has a bag in the middle a bag used to
transport gases or liquids. Next, another type of container is the
open top container. This is a type of container
where the top is open, also known as an
open top container. This container is specifically
used for goods that can withstand rain and wind and are taller than regular
container sizes. For example, wheels like these can't fit into
a regular container, so they have to be placed
in an open top container, also known as OT. Then there's another type of container called the stack rack, this container, this used to transport oversize
and heavy goods. For example, on the
right side here, you can see a
concrete mixing tank, which is very bulky, then heavy. Regular containers won't suffice and they have to use
this stack rack. In the next section, we will
discuss container sizes, focusing mainly on the
three common types, the 20 foot container, the 40 foot container, and the 40 foot high container, high cube container to make
it easier to remember, you can convert feet to meters. Why is it easy to remember feet? Because it's directly reflected in the name of the container. For example, a 20 foot container means the container
is 20 feet long. Then 1 ft is equal
to 0.304 8 meters. So when you multiply
20 by 0.3 048, the length of a
20 foot container is approximately 6 meters. To make it thio remember, just remember it's
about 6 meters. Continuing with the width, it is about eight feet, and the height is
about 8.6 feet. If we convert these 2 meters, it becomes 6 meters by
2.4 meters by 2.6 meters. Next is the 40 foot container. The length of this container is 40 feet measured by its length. And when converted to meters, it's about 12 meters. The width will also be the
same as the 20 foot container, which is about eight
feet or 2.4 meters, and the height is also
8.6 feet or 2.6 meters. As for the high container, its length and width
are exactly the same as the regular
40 foot container. However, the height will
increase by one more foot. Normally, a regular
container is 2.6 meters and the high container
increases to 2.9 meters. Is that clear? All right, here we have an
additional concept called TU Gua 20 feet equivalent unit. It is the standard
measurement unit in container shipping. In maritime or
container transport, they specify that a 20
foot container equals one TU and a 40 foot
container equals two TUS. The purpose of this
is so that when shipping companies or
holders talk about TEU, you know whether it's
a 20 foot container or a 40 foot container. Speaking of storage dimensions, we will move on to
the next section, which is understanding
the symbols. On a container on the screen, you can see that
there are 12 pipes. This is a container, and they
are showing the front side, the typical front
of a container. We will go from top to bottom. Number one here is
the container number. It consists of four letters and six digits to form
a container number. What is the purpose of
this container number? The purpose is similar to
an identification number. For example, just like each
person has an ID number, a container has
something similar. It also has a number to distinguish one
container from another. That's all there
is to it, folks. Now, number two here, the separate number
seven is right here. That is the check digit. According to International
Conventions, there is a method to calculate
and verify this number. The formula is quite complex, so we won't delve deeply
into this check digit. Part three, all this
container tight code. This means that by looking here, we can know what type
of container it is. All right. The first letter indicates the
container's length. The number two here represents
the container's length. The number two means
20 feet folks, if it's the number four here, then it would be 40 feet. Okay. The next letter is
still the number two. It represents the
converted height. For example, the number two
here corresponds to 8.6 feet and the number five
corresponds to 9.6 feet. So when you see the
number two here, you know it's a
standard container. And when you see
the number five, you know it's a high
container, right? Next is the type of container. Here, it's the letter
G. The letter G is the symbol for general purpose more commonly known as standard. If instead of the letter G, it's the letter R here, then it would be a
refrigerated container referred to as refer. If it's the letter U, it would be an open
top container, which is a container with
an open top and finally, if it's the letter P, then it's a ten container. Continuing, the last digit
is usually zero GR one. If it's zero, then this container can be
opened at one or both ends. As for the number one, it means there is
a vent at the top. In this example,
it's the number one, meaning the container
has a vent at the top. Let's continue. Number four. Here, you can
see the letters NGwWnW. This refers to the
total weight of the cargo and the
container itself. Here on the first
line at the top, you can see they
wrote 30.4 G Kg H, which means the total weight of the cargo and the
container, shell, the maximum weight of the cargo inside the container and the outer shell
of the container. The maximum is 30 tons 0.400
dv kilograms. All right. From this kilogram number, we can convert it
to the row below, which is pounds. LBS means pounds. For countries like the
United States, Canada, and some South
American countries, they use pounds as the
unit instead of kilograms. So here they just convert it. One, pound is equal
to 0.454 kilograms. All right. Moving
on. Number five. Section number five, tear tear means the weight of the
packaging, everyone. So here, tacking the anti
packaging, this green one here, the entire container
will weigh two point, 180 kilos, which is
about two and one tons. Converted to pounds, it's
about 4.8 thousand pounds. Then continuing, NFT is
the max load capacity. Here, because the
formula is very simple, you take the maximum
total weight of the cargo and
the shell 30.48, then subtract this tear number, which is the weight
of the shell, and you'll get the
maximum total weight of cargo you can load. So take 30.48 -2.18, and it will be 28.3, meaning the maximum
total weight of cargo we can load is 28 tons, three. Then below, we similarly
convert it to pounds. But in reality, we can never actually load this
maximum everyone. Usually we will load less because some ports or
some countries have regulations that that
maximum total weight of the container carrying goods
that can be transported in. That locality or port must not exceed a certain
number of tons. Therefore, most of the time, we will not load to the maximum because if we load
to this maximum, it will become unsafe. It won't be safe anymore folks and the risk the risk will be very high because the container cannot withstand such a heavy, overly heavy total weight. All right, the seventh
item here is CU, also known as cubic folks. As for volume, the volume is
33 points per cubic meter, or they will convert
it to cubic feet here, 1.17 cubic feet. All right. It's just
the volume, folks. Number eight, gear the symbol. Dx represents the owner
of this container, Shell, which is a
company named text. All right, number nine
is a triangular sign. It is the safety and repair
guide for this container. Number ten has a logo here. This logo is the logo of the organization
inspecting the container, like for us humans, for example, during the COVID times, we needed something called
a COVID passport. The container is similar. It also needs
periodic inspections, and it will have
certification to be able to travel to
different countries. All right, number 11 is the CSC, which is the approval
certificate for the container, and it records information
about production, the production date
of the container, inspection dates
of the container, and some other related
information. Here. And number 12 here is
the spot where we attach the seal or what we call the lead seal folks.
We attach it here. What is this lead seal for? The purpose is to
seal the container. For example, when our
goods are inside, we use the lead seal to seal it, preventing others from opening it to avoid situations like losing goods or having them altered or swapped
inside our container. Then the final part is the
container transport truck. So usually we use
this type of truck, which consists of two parts. The first part is
the tractor unit. This part here. And the second
part is the semi trailer. This semi trailer can be
attached and detached from the tractor unit and uses
its own license plate. That means the tractor unit will have its own license plate, and the semi trailer will have its own license plate, as well. And in cases where there is
a shortage of tractor units, when we pull the
semi trailer down the port from the
port operation unit, we pull the empty container down to the factory
to load goods. Then this tractor unit
can be detached right at the semi trailer to turn around and transport another
semi trailer down. This means the
connection between the tractor unit and the semi
trailer is very flexible. You can completely
detach or attach it, use a different semi
trailer to attach to this tractor unit or use
a different tractor unit, to attach to this semi trailer. It can be done completely. So we have finished lesson number three,
exploring shipping lines, forwarders, basic
information about containers as well as
specialized types of containers. Thank you for taking
the time to watch, and we hope you found
the information useful in today's lesson.
5. Breakdown the costs in an Import Export Shipment: Welcome to Lesson four costs incurred for an import
export shipment. In this lesson, let's explore the basic costs of an import
export shipment together. From here, it will help
you calculate the price of a shipment and be able to
quote prices to customers. At the same time,
from these costs, we can also calculate
the profit of an import export shipment
when we sell to customers. Okay. On the screen, you can see that is
the process diagram of an export type that we
learned in the first lesson, spanning from the seller, the seller, the exporter to the final buyer,
what costs arise. In total, we will have two
main costs at both ends, including the cost
at the export end, from the seller exporter
to the export port. The two cost is at
the import end, from the pod, which is the import port to
the buyer or importer. And there is a cost in between from the export port
to the import port, which is the ocean freight, also known as sea
freight charges. Now, let's explore what the
export end costs include. The export costs, of course, must include the cost of goods. This is the capital cost
of the goods which may be produced by the exporter, or if it's a trading company, then it's the cost price at
which we purchase, right? Next, there is trucking. Trucking means that after the goods are handled
by the seller, right? And after the buyer and seller have agreed on the
contract plan, then we will produce
and have the goods, then we will start
booking the ship. Once the ship is booked, we will proceed to take the empty container from the port. After that, we transport the empty container back
to the seller's warehouse. What do we do that for
to load the goods. So the first cost is
the trucking cost, which is for taking
the empty container from the port to the warehouse. Then at the seller's warehouse, we will load and unload
the goods onto the truck. There will be a fee
for loading and unloading goods at the
shippers warehouse. Next, we will have the cost of transporting the container
from the factory. We transport it to
the port everyone. Here, transporting the
container from the factory, back to the port at the CY Yard. C Y stands for container yard. We have already learned this
in the previous lesson. It is the container yard. Then at this export port, we will have additional
customs procedure fees. At the same time, the exporter will have to pay export taxes. These export taxes, usually for most
export products in Vi, the tax fees will be zero, except for national resources that the government does
not encourage exporting, they will impose taxes on those. But for most products, the export tax is zero. You can delve deeper into
this in the tax lesson. Next, there will be local charges incurred
at the Pol port. What does this local
charge include? It includes THC, THC, CIC, SEL fee, dog fee, text fee, and handling fee. The details of these fees will be covered in
the next lesson. In this lesson, you just need to understand that there will
be a local track fee. Next, the ocean frame is
the Sea freight charge. The sea freight charge depends
on the delivery terms. Whether the seller
or the buyer will pay will be covered in the
lesson on delivery terms, which is the lesson
on incoterms. Moving on, we have
the import costs. The import costs include
firstly the local charge. Also known as local
charges at the pod port, which is the import port. It includes THC, CAC, due sanitation, handling,
and lifting fees. These costs are called local
charges at the import port. Next, once the goods
arrive at the import port, we need to carry out the
import customs procedures. This is where the import
customs procedures take place. After that, additional
taxes will arise, including import tax, VAT, and special consumption tax. For products subject to
special consumption tax, only then do we need
to pay this fee? In most cases, we will pay
the import tax and VAT. Then we will incur pre transportation fees from the port to the
container warehouse. That is after we complete
the customs procedures, the container will
be at the port, and we will need to transport it to the buyer's warehouse. Then at the buyer's warehouse, there will be a storage fee. This means that once the goods arrive, we will unload them. After that, there
will be a fee for returning the empty
container back to the port. That means after the goods are unloaded from the container, the empty container will
be returned to the port. And there will be an
additional fee called the cleaning and repair fee for the container if applicable. The cleaning and repair
of the container, if needed, is included here. Additionally, there
will be another fee. This is called DEM debt
or Demag Detention. This fee Demag refers to
storing goods at the yard. And Detention. Refers to storing goods
at the warehouse. In cases where
shipping companies provide us with free time, which is the period we
can use the container, storing it at the warehouse or yard for a certain
number of days. And if we exceed this
but free time limit, the port or the shipping
company will charge us a fee. This is where the demurrage
or debt fee arises if you exceed the
free time period. All right. So we have just
completed the lesson on the costs associated with a
type of import export goods. I hope that you will
grasp the basic costs, and we will delve into the details in the
upcoming lessons.
6. How to read the Freight Quotation and Local Charges: Welcome to Lesson five, shipping fees and Local Charges. In this lesson, we will understand how the shipping
fee quotation works, n. What local charges include, specifically the fees at both the departure
and arrival ports. As shared in the
previous lesson, each shipping company or forwarder will have
its own strengths. For example, shipping companies in China are strong
in routes to China. Or shipping companies in Taiwan, like Yen Ming or TSL are
strong in the Taiwan Route. And other shipping companies
such as Merc Line or MSC, are strong in European
and American routes, for instance, in our
shipping fee quotation, it will consist of a
total of two main parts. The first part is ocean freight, also known as sea
freight charges. And the P two will
include local charges. For those companies that have been in the business
for a long time, they will already know
the local charges, which are local surcharges, and they will know exactly
how much is charged. And these local
charges usually do not vary too much between
different shipping lines. Now, I will provide a specific
example of ocean freight. On the screen, you can see on the left side that is the
sea freight quotation. Go in to Amberg Germany. Germany is in Europe,
and you can see here 29505550 HPL valid
until January 31. The word TH you, your
stands for Thursday, which is the fifth
day of the week. Then transit 27. With free time for them
for that includes blood, and we will explore
the meaning of each piece of information
line by line. First, 29 50 to 5,550. Gear means they are quoting according to the
companies freight rates, 40 means the freight rate
for a two foot container is $2,950 per two foot container. And for a 40 foot container, it will be $5,550 per
40 foot container. Here, it is being shipped
with the carrier HPL, and rate this freight
rate will have validity. The schedule is valid
until January 31. The year isn't specified, but since we're
studying in 2024, well, assume this is
January 31, 2024. Typically, the freight rate
sheet is updated monthly. This means that they want quote prices too far in advance, only within a range
of 15 to 30 days. Some shipping lines
will start quoting from the first of the month while others will quote from
the 15th of the month. Next, the word Thursday means the two fifth
day of the week. This ship has a weekly
departure every Thursday. Transit 27 days. Transit means the
time it takes to transport from Vi to the
port of Hamburg in Germany, which is 27 days. Free time, as mentioned
in the lesson on English terminology
used in import export, refers to the period allowed for storage and warehousing
without incurring fees. For example, here it might state four nights plus four days, four nights means four
days of warehousing, while four days means
four days of storage. That is a total of four days of warehousing and four
days of storage. Now this is because we're using an example for
refrigerated containers, so they will include
the term include blood. Blood here refers to the
electricity supply fee. For refrigerated containers,
there is an electricity fee, whereas for dry containers, this electricity fee is
not needed. All right. That's the first example of
ocean freight to Europe. Let's read another example
going to Taichung, Taiwan, which means
Taiwan everyone, 450 for the vehicle 550 Ts
line valid until January 31. Here, similar to
the first example, 450 here is the freight rate
for a 20 foot container, two, and 550 is the freight
rate for a 40 foot container. So you can see that
the freight rate for a 40 foot container
is not always double that of a
two foot container. In this case, the freight rate
for a 40 foot container is just slightly higher than that of a 20 foot container, too. Here, the shipping line
being mentioned is TS line, and this price list is valid until January 31,
just like before. In this slide, there is
one trip each week on Thursday with TH
indicating Thursday, which means every Thursday and the journey
takes three days. They also offer a free time
of four nights and five days, which means four days of yard storage and five days
of warehouse storage. Some shipping lines will
offer a term called Combine, for example, they
provide nine days of free time combined,
which means they will. Add the demurrage and detention together, totaling nine days. It doesn't necessarily
have to be four days of demurrage and
five days of detention. You can choose three
days of demurrage and six days of detention depending on the shipping
lines regulations. The next part is
about local charges, which we will look
into later to see what fees are included at
the port of departure. We have that THC terminal
handling charge, which is the handling
surcharge at the port. The reason for this
fee is that when your container goes
out to the port, it will use the port services. For example, on the screen, you can see the yellow cranes and the spreaders used to lift. Arrange containers in
the container yard. They will use forklifts,
reach stackers, to lift up and down, and forklifts to load
and unload goods. For example, in the case where your goods need
to be inspected, you will have to open
the container and then unload a few boxes
to check the goods. This will require the use of forklifts to
unload the goods. And when moving the
container within the port, you will also need to use a reach stacker for internal transportation
within the port. These services incur a
terminal handling charge, which is an additional fee for handling goods at the port. Is this term applicable at both the departure
and arrival ports? In the moment, we will look at the local charges at
the arrival port, which also include this fee. Next, the second fee is the seal fee is essentially
the fee for sealing. The guides, once
you have finished, you pack the goods
in the container, and then we use a seal, often referred to as
a seal to secure it. The purpose is to lock the container door
and prevent theft. Similar to sealing,
it's to ensure. There are no changes
or losses of goods in the container. All right. The third fee is the Doc fee, also known as the
documentation fee. In large companies,
there will be a department dedicated to
handling documentation. As for smaller companies, they will hire
forwarding companies, forwarding units to handle
this documentation for them. So it's also called the
documentation fee TLX fee, the TLX fee, if applicable in cases where
we use it or a bill, surrender, there will be
an additional Lax fee. This is referred to as the electronic delivery
fee, everyone. And we will discuss this part in more detail in the Bill of
Lading section. All right. Additionally, it may
include other fees. For example, charge
declaration charge. MS or ENS fees are the additional fees
for cargo declaration. Then which stands for container imbalance charge is the additional fee for
container imbalance. That is for imbalance. Why is there an imbalance? For example, for instance, if there is a large
amount of goods being exported from
Vi to Qingdao, China. And when there are many exports
like that, in contrast, there isn't much cargo
to export from in Dao back to VY leading to a
shortage of containers. This means there will be a
lack of empty containers in Vi and that's when the
fee called Container imbalance charge
comes into play. At that point, they have to bring empty containers
from Ching Dao. They transport them on
ships without cargo, meaning the ships carry only empty containers,
i to Vietnam. So there are empty containers available to load goods
for further export. That's when this
surcharge arises. Continuing on well move to the section on surcharges
at the destination port. Now, similar to the surcharges
at the departure port, the local charges at
the departure port, there will also be fees
at the destination port. HC, is terminal handling charge, which is the handling
fee at the port. The fee two is the due fee
or the delivery order fee, which in English is
called delivery order. We will also study this in detail in the Bill
of Lading lesson. All right. Regarding
the cleaning fee, why is there this fee? After unloading the goods
at the consignee warehouse, once the unloading is complete, you have to return the empty
container back to the port, and the empty container, after the goods have been
unloaded, might not be clean. During the transportation
and unloading process, some of the goods might
spill inside the container, causing the container
floor to become dirty. The shipping company has to
clean it, and when they do, they will charge this fee then
there's the handling fee. This fee is usually charged
by forwarding companies. For example, they
might charge for customs declaration fees or fees for going to the port to inspect goods, among other things. They still consider
these as handling fees, and sometimes the
profit margin of the forwarding companies is also included in
this handling fee. Similar to the fees at the departure port,
at the arrival port, we will also have other
fees such as the CIC, which is the container
and balance charge, as I explained in the
departure section. Additionally, there will be
demurrage and detention fees, which I mentioned earlier. When you rent a container
and it arrives at the port, if you don't handle or complete customs procedures in time, and the container stays
at the port for too long or after completing
customs procedures, you take the container to
the customer's warehouse and don't unload it within
the designated free time. This will incur demurrage
and detention fees. On the screen is an example of local charges to help you
visualize it more easily. You can see that the
first one is THC, which stands for terminal
handling charge term. Here we will present
the RH container, which is a high
reefer container, a 40 foot high reefer. So one, THC fee for this 40 foot refer container is approximately $265
per container, too. Then for a 20 foot container, it's only $170 per
20 foot container. This is the handling
surcharge at the port. For this local charge, when they quote you,
they want include VAT. After completing the service, they will issue an invoice
and add an additional 10%. This price only includes VAT. Next is the fee. Or
sometimes in certain places, they will translate it as
origin documentation fee, which is the fee for
the original documents. This is calculated per unit, meaning per shipment, and
it will be around $50. What do they do for this fee? It includes preparing
the documents for you, preparing the forms
needed for you. The shipping company generates and issues the
documents for you. Sometimes the folder units might also prepare the invoice
or packing list for you, including all related documents, and they will add
it to this fee. This fee can sometimes fluctuate depending
on the company. Different companies
offer different quotes. Next is the super fee. The super fee is the
fee for maintenance. As we learned earlier, it
falls around $12 per unit too. All right, the surcharge here is also listed
as a surcharge. Declaration cargo, which is the cargo
Declaration surcharge. In certain special countries, they require us to declare
the cargo before we export it or before the
ship arrives at their port. This surcharge is approximately
$45 per shipment. And here finally is
the Lax release fee. The LAX release is the
electronic delivery fee. This fee is also
$45 per shipment. Then we have the DEM debt fee. This is for storage
and yard fees, and they usually charge
us on a daily basis. For example, the
shipping company might give us for
nights, for days, which means four
days of storage at the yard and four days of
storage at the warehouse. If we store it longer than
this time, for example, if the goods arrive and our documentation is
incomplete and we can't declare customs in time and our container stays at
the port for too long, exceeding the allowed time, longer than the shipping
company permits. For example, currently, the shipping company
allows four days, but if we take longer than that, say it takes us until the fifth or sixth day to complete, then
we have to pay two. For the extra days,
the container stays at the yard exceeding
the free time, the shipping company will charge this fee
on a daily basis. Some shipping companies charge several tens of dollars per day, while other shipping companies
charge up to $100 per day. It depends. All right, so we've finished the lesson on shipping rates and
local charges.