Trade study cases 3 | Trade Process Analysis Database (TPAD)

Study cases

Case study basic information

Product:

Raw materials (Electronics)

Corridors and routes:

Through Bangkok Port

Process analysis:

Import to Thailand

Importing Country:

Thailand

Exporting country:

China

Procedure details

Procedure name:

Conclude contract and trade terms

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Actors & participants	-Importer, -Exporter/Representative
Input and criteria to enter or begin the business process	-Buyer and seller establish their contract and sale terms. -Seller provides products according to a Purchase Order
Activities and associated documentary requirements	1. An exporter issues a “Proforma Invoice” to confirm the price and sale terms for product purchase. 2. An importer confirms to buy the products by sending the exporter a “Purchase Order” 3. The exporter prepares to provide the products accordingly. Proforma Invoice, Purchase Order
Output criteria to exit the business process	-Exporter and Importer agree upon proforma invoice, purchase order, and trade terms
Activity diagram
Number of documents required	2
Average time required	1.00
Average cost	THB 0

Procedure name:

Request import quota and permission

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Country and procedure description	Request import quota and permission (Import to THA from CHN/Raw Materials)
Actors & participants	-Importer -Investor Club Association -Board of Investment (BOI)
Input and criteria to enter or begin the business process	-Before importing raw materials, the importer has to become a member of Board of Investment (BOI) with a Promotion Certificate and also get approval of the production formula from the BOI.
Activities and associated documentary requirements	1. To obtain an exemption from the import duty on raw materials, the importer submits a request in a form of a diskette to the Investor Club Association, together with other relevant documents, namely a Request for Import Duty Exemption on Raw Materials, a copy of the import Invoice, a copy of the Promotion Certificate and a copy of the Import Declaration in case a bank guarantee or the BOI membership right reservation for import duty exemption is being used for release of raw materials. Additionally, copies of the A/L and B/L are necessary for the first request for raw materials release. 2.The Investor Club Association checks the submitted data using the Raw Material Tracking System (RMTS). If the information is incorrect, the forms are returned to the importer for modification. 3. If the information is correct, the Investor Club Association prints a report and an approval letter for raw material release, which are then given for signature to the BOI authority stationed at the Investor Club Association. 4.The Investor Club Association makes two sets of signed approval letters: one to be returned to the importer and the other to be kept as evidence by the Investor Club Association. When the electronic devices produced using these imported raw materials are exported, the exporter has to inform the inventory cut-off to the BOI to ensure that the imported raw materials are really used for manufacturing electronic products that will be exported. Documents: Request for Import Duty Exemption on Raw Materials, copy of import invoice, copy of Promotion Certificate (In case of request for raw materials release for the first time), copies of A/L & B/L (In case of request for raw materials release for the first time), Import Declaration (In case of using bank guarantee for release of raw materials or using the right reservation)
Output criteria to exit the business process	-Permission obtained for raw materials release by BOI
Activity diagram
Number of documents required	6
Average time required	1.00
Average cost	TB 1,170

Procedure name:

Arrange berthing

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Country and procedure description	Arrange Berthing (Import to THA from CHN/Raw Materials)
Actors & participants	-Importer -Shipping Agent -Royal Thai Customs Dept. -Port Authority of Thailand (PAT), -Pilot Station, -Marine Promotion Bureau
Activities and associated documentary requirements	1.To be allocated a berthing slot, the shipping agent has to submit the ship schedule, ship particulars, ship profile, Application for Vessel to Enter the Port Area, Inward Container List, and Cargo Manifest to Port Authority of Thailand (PAT). The pre-condition for this process is that the importer has already received the timetable of vessel berthing. In case of online submission, the documents should be submitted six hours before the vessel enters port, while paper documents should be submitted three hours in advance. 2.The shipping agent must also submit an Application for Services to the PAT to request for tug and other related services. Meanwhile, the shipping agent submits to the Marine Transport Bureau the Notification of Vessel Berthing (within 24 hours of berthing) via the computer system, the Notification of vessel to enter the port city, Ship Particulars, Ship’s Document, Crew List, Last Port Clearance (Original), CLC Certificate (only if oil tanks are loaded with weight exceeding 200 tons) and Certificate of Fitness (only if dangerous goods, LNP/LPG, or chemical substances have been loaded) 3.The shipping agent then submits a Pilot Requirement Form to the pilot station so that it will assign an authority to pilot vessels to berth. Upon completion, the pilot authority will issue the Entering or Sailing or Shifting document to confirm the pilot operation. To enter the city where the port is located, the shipping agent submits the Notification of vessel entry into the port city, Cargo Manifest, and Vessel berthing at port to the Royal Thai Customs Department. 4.The shipping agent then submits a Pilot Requirement Form to the pilot station so that it will assign an authority to pilot vessels to berth. Upon completion, the pilot authority will issue the Entering or Sailing or Shifting document to confirm the pilot operation. 5. To enter the city where the port is located, the shipping agent submits the Notification of vessel entry into the port city, Cargo Manifest, and Vessel berthing at port to the Royal Thai Customs Department. Documents: Ship Schedule, Ship Particular, Ship Profile, Notification of vessel berthing, Notification of vessel entering port city, Crew List, Last Port Clearance (Original), CLC Certificate (In case of loading oil tanks with weight exceeding 200 tons), Certificate of Fitness (In case of loading dangerous goods, LNP/ LPG, or chemical substances), Pilot Requirement Form, document of “Entering or Sailing or Shifting”, Application for Vessel Entering the Port Area, Inward Container List Cargo Manifest, Application for tug and other related services
Output criteria to exit the business process	-Shipping vessel is allowed to be unloaded at port
Activity diagram
Number of documents required	16
Average time required	0.75

Procedure name:

Unload goods from vessel

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Country and procedure description	Unload goods from vessel (Import to THA from CHN/Raw material)
Related rules, laws & regulations	- The transfer of goods onto the vessel will be done by the shipping agent while the transfer of goods already unloaded from the vessel will be done by the PAT. - In case of Less than Container Load (LCL) containers, the shipping agent must ask for permission from the PAT and the Customs Department to open the containers. With approval of customs, the PAT and the shipping agent arrange for authorities to open the containers and make records onto Tally Sheets, which will be exchanged between the PAT and the shipping agent for evidence. The goods can then be transferred right away without being moved to the PAT’s warehouse.
Actors & participants	- Shipping agent - Government agencies - Customs department - Port authority
Input and criteria to enter or begin the business process	Vessel entered the port
Activities and associated documentary requirements	1. Shipping agent sends the data of inward container list and cargo manifest via EDI system to the Customs Dept. and Port Authority of Thailand (PAT) 2. Shipping agent submits a Notification of goods transfer and loading containers to PAT for laying plan for goods transfer and storage 3. PAT provides tools/equipments for goods transfer 4. PAT inspects goods as per their container types and hazard and arranges the goods containers in the provided area. After that PAT records goods transfer and storage information and then issues the Discharged Report (Tally Sheet) together with the report of port use and services
Output criteria to exit the business process	Goods containers are transferred to the yard
Activity diagram
Number of documents required	4
Average time required	0.25

Procedure name:

Finalize custom declaration

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Country and procedure description	Finalize custom declaration (Import to THA from CHN/Raw material)
Related rules, laws & regulations	If an import declaration submitted through the paperless system needs some amendments, the importer has to be fined as per the Customs’ requirements.
Actors & participants	-Importer/ Representative - Government Agency - Customs Dept. (Computer System)
Input and criteria to enter or begin the business process	- Importer registers to the e-Customs (paperless) system to become an e-Customs formality performer - In case of assigning a customs broker as a representative, he/she has to get permit from the Customs Dept. to become an e-Customs formality performer.
Activities and associated documentary requirements	1. Importer submits documents to request for exemption on import duties/taxes as follows: - Invoice - Packing List - Import Declaration 2. Customs Dept. checks and verifies documents and duties. If those documents found incorrect, the importer has to resubmit them. 3. Customs Dept. issues declaration number and confirm import duties to the importer. 4. Importer receives the import declaration number and prints out the declaration. Meanwhile, if any duties and taxes, they must be paid to the Customs Dept.
Output criteria to exit the business process	Importer received the import declaration and paid the duties
Activity diagram
Number of documents required	4
Average time required	1.00

Procedure name:

Inspect goods at check point by customs

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Country and procedure description	Customs inspect goods at check point (Import to THA from CHN/Raw material)
Related rules, laws & regulations	Wharf Receipt from PAT in this process is considered an incomplete document.
Actors & participants	- Importer or representative - Shipping agent - Port Authority - Haulage
Input and criteria to enter or begin the business process	Goods passed customs clearance
Activities and associated documentary requirements	1. Importer pays the shipment cost to the shipping agent and submits an original and copy of bill of lading to the shipping agent 2. Shipping agent issues a delivery order and other related documents for the importer/representative as follows: - Delivery Order - Request for Opening Goods Containers - Request for Release of Goods Containers from Customs Custody 3. Importer submits these documents to the port - Delivery Order - Request for Opening Goods Containers - Request for Release of Goods Containers from Customs Custody 4. PAT checks documents against EDI system. If incorrect, documents are returned to the importer for re-submission 5. Importer pay the service fee to PAT 6. PAT issues the following documents for the importer - Wharf Receipt - Payment receipt - Delivery Container Slip 7. Importer sends the Delivery Container Slip to the haulage service so that the containers are taken to the inspection point. 8. Importer submits the following documents to PAT: - Wharf Receipt - Delivery Order - Request for Opening Goods Containers - Request for Release of Goods Containers from Customs Custody - Delivery Container Slip 9. PAT signs all those documents and arranges containers for the haulage to take them for Customs’ inspection
Output criteria to exit the business process	Goods containers are ready for inspection and release by Customs Dept.
Activity diagram
Average time required	0.50

Procedure name:

Obtain release order

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Actors & participants	- Importer - Investor Club Association - BOI
Input and criteria to enter or begin the business process	- Importer is a member of BOI and has a Promotion Certificate - Importer gets approval of production formula from BOI
Activities and associated documentary requirements	1. Importer records data of the request for raw materials release onto a diskette and deliver it to the Investor Club Association together with other related documents as follows: -A Request for Import Duty Exemption on Raw Materials - A copy of import invoice - A copy of Promotion Certificate (In case of request for raw materials release for the first time) - Copies of A/L,B/L (In case of request for raw materials release for the first time) - A copy of Import Declaration (In case of using bank guarantee for release of raw materials or using the right reservation) 2. Importer submits the data diskette and documents at the Investor Club Association 3. The Investor Club Association checks data using the RMTS (Raw Material Tracking System) - If the data is incorrect, it’s returned to the importer for correction - If the data is correct, the Investor Club Association prints a report and the approval letter for raw material release. 4. The BOI authority stationed at the Investor Club Association signs the approval letter. 5. The Investor Club Association makes 2 sets of approval letters: - One is returned to the importer - The other is kept as evidence by the Investor Club Association
Output criteria to exit the business process	The importer receives the approval letter for raw material release.
Activity diagram
Number of documents required	6
Average time required	1.00

Procedure name:

Claim payment

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Actors & participants	- Importer/ Representative - Exporter/ Representative - Banks - Importer’s Bank (as L/C Issuing Bank) - Exporter’s Bank (as L/C Advising Bank)
Input and criteria to enter or begin the business process	Buyer and Seller agree upon sales contract and payment mode
Activities and associated documentary requirements	1. Importer/representative applies for Irrevocable Documentary Letter of Credit (L/C) with a bank that provides service to the importer, using the Proforma Invoice as attached document. 2. Importer’s bank checks documents and financial condition. 3. In case of no debt, the importer’s bank issues L/C with conditions specified by the importer in the application 4. The importer’s bank as L/C Issuing Bank sends L/C to the exporter’s bank. 5. The exporter’s bank as L/C Advising Bank informs exporter/representative to receive the original L/C so that the goods delivery and other operation are done accordingly as specified in the L/C 6. Exporter/representative pays the fee and receives the original L/C 7. Exporter/representative delivers goods to importer. 8. Exporter/representative prepares documents as specified in the L/C 9. Exporter/representative submits those prepared documents to receive the money from the L/C Advising Bank. 10. The L/C Advising Bank checks documents. 11. If those documents meet the conditions in L/C, the L/C Advising Bank sends them to the L/C Issuing Bank. 12. The L/C Issuing Bank checks documents 13. If those documents meet the conditions in L/C, the L/C Issuing Bank transfers the money to the L/C Advising Bank within 7 days and then informs the importer/ representative of its receiving those documents 14. The L/C Advising Bank transfers money to the exporter. 15. Importer/representative makes payment and receive documents. 16. Importer/representative takes the documents to run the customs clearance process. 17. If those documents don’t meet the conditions in L/C, the L/C Issuing Bank informs the importer and considers the payment approval. The bank will make payment only upon approval by importer/representative.
Number of documents required	9
Average time required	1.00

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