INSTRUCTIONS THE PROCESS OF IMPORTING GOODS BY SEA FOR GOODS OWNERS
Importing goods by sea means the method which is applicable to all types of goods and from all countries. However, this is the most complicated method of transportation. In this article, MDCT Logistics will instruct good owners about the process of importing commodities by sea.
THE IMPORTING PROCESS BY SEA
After signing a commercial contract with the supplier, the buyer needs to take the next steps to proceed the import and taking the goods.
1. Booking a ship
When importing commodities by sea according to conditions form E and F in Incoterms, the consignee needs to book a ship. Shipping lines are usually necessary a week to arrange spaces so the shipper should contact them to book early. At the same time, to avoid delays, the owner also needs to notify the supplier about the departure date so that they can pack and carry it to the port within the specified time.
Necessary information when booking a ship:
- Port of lading: The place where the commodities are loaded on the ship
- Port of transhipping: If the owner and shipping line agree on the method of transshipments instead of going directly.
- Port of discharge: The place where the commodities are transported to
- Commodities information: Name, weight, size,...
- Time of packing: The time when commodities are available to transport.
- Estimated to Departure
After receiving the booking information, the owner needs to check all information. If having mistakes, the owner needs to require the shipping line to edit the booking.
2. Following the packing process
Buyer need to require the supplier or forwarder who you use outsource import-export service to update packing progress. If the packing process is slow, the shipment can be miss the transportation schedule with the shipping line or incurred additional costs.
In addition, buyer also need to require images of empty containers. Because containers are the property of the shipping line, images of empty containers before packing commodities will be proof that they are not damaged. For frozen commodities, images of the temperature table are required.
3. Receiving and checking relevant documents
Depending on the type of commodities and the exporting country, a shipment needs different documents. Buyer need to require their partners to send the draft in order to check them before they are released officially. If having a mini mistake in relevant documents, the goods can face issues with the customs office, prolong the time or even not get through clearance.
4. Receiving arrival notice
At least 1 day before the commodities arrive at the port of discharge, the shipping line will issue an Arrival Notice to notify the estimated arrival. Owner will arrange transportation and relevant documents to go to the customs office for import procedures and pick up the commodities. Required documents to get a delivery order include: introduction letter, original invoice, and power of attorney (if the consignee is not the owner).
5. Registration of documents and certifications to the customs office
Depending on the type of commodities, HS code,... according to the regulations of the state, owner need to register and receive the relevant documents. These documents will be checked by customs during shipment clearance.
6. Customs clearance
Required documents for customs declaration include:
- Commercial contract
- Commercial invoice
- Packing list
- Bill of lading
- Certificate of original (if any)
- Import license (if any)
The opening of the customs declaration will be done on the electronic customs declaration system. In order to declare, the importer needs an account and digital signature to log in and send the declaration. Importers must pay attention to the HS code of the commodities to ensure that the right type of commodities is imported and the correct tax rate is applied. The application of the wrong code can result in administrative penalties and be attributed to tax fraud or cause businesses to pay higher tax rates than usual.
7. Picking up commodities
After commodities are completely cleared, consignees will bring the Delivery Order to pick up commodities from the port or container freight station with the separate goods and carry them to their warehouse. The costs of services which are incurred while the commodities are waiting at the port are very expensive, so owner should pay attention to performing the operations of receiving commodities as soon as possible.
8. Unloading and returning empty containers
When commodities arrive the warehouse, buyer need to check the seal, and the condition of containers to ensure that the commodities and containers are intact and undamaged. After unloading the commodities, containers will be transported back to the port. At this step, the import of commodities has been completed.
The process of importing commodities by sea has many important documents and records. Buyer need to store them for comparison and complaints if problems arise, including: customs records, registration records of duty-free commodities, records of consideration for tax reduction, tax refund, transport documents, the packing list, technical documents of commodities, accounting documents…
Above is the entire process of importing a sea shipment to Vietnam. In the process of performing the above steps, there will be incurred other factors that require the professionalism and flexibility of handling by import-export staff. At MDCT Logistics, the staff all have good knowledge of import and export and experience in handling many shipments. Therefore, buyer can rest assured when outsourcing the services of MDCT Logistics in the process of importing goods.
