Shipping Process in Singapore - Maritime Business Project Report

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Added on  2022/09/08

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This report examines the shipping process in Singapore, focusing on the case of CET Express Pte Ltd, a company specializing in importing dried grocery products. The report delves into the import documentation required, including customs entry documents, custom bonds, legal importing undertakings, import declarations, import licenses, product importation insurance, and inspection certificates. It provides a breakdown of import costs for various goods, such as green beans, wheat flour, soya beans, and whisky. Furthermore, the report offers detailed storage recommendations for each product type, highlighting optimal conditions to maintain product quality and extend shelf life. The analysis includes references to relevant regulations and industry practices, providing a comprehensive overview of the import and shipping procedures in Singapore.
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Running Head: Shipping Process in Singapore 1
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Efficient, smooth and a compliance-oriented importing and shipping processes require personnel
with highly specialized skills and knowledge. In most firms, the same group of personnel are
involved in the shipping and overall importing procedures. CET Express Pte Ltd requires a large
number of people involved in the importation process due to the large volumes of shipments it
handles, (Thai & Jie 2018). With inhouse handling of processes that in most cases are outsourced
from processes brokers, consultants, and freight forwarders, the company faces a potential of
growth. With the increase in the functions at CET Express Pte Ltd, the firm requires specialties
which will help narrow the scope of functionalities of the personnel.
The custom Act, the Goods and Service Tax and the regulations of the imports and exports Act
regulate the importation of the goods in the country. The Goods and Service Tax regulates the
goods imported for internal consumption in the country, (Lam 2016). The rate imposed on the
goods is 7% of the overall price of the consignment. This price includes, insurance paid, cost of
the product, and the freight value. The goods charged include; automobiles, liquors, tobacco and
petroleum products. For CET to participate in the importation process, it requires import
certification and permits, (Van Thai & Yeo, 2015). The authorities require the importers to
adhere to the following documentation:
Customs entry documents
It is specified by the customs authority in the country. It is the responsibility of the CET Express
Pte Ltd to prepare the document.
Custom bond
The document is authorized for specific products that the company may find the need to claim
the importing benefits from the government.
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Shipping Process in Singapore 3
Legal importing undertaking
It is a document that may be used by the firm to apply for the government’s benefits or be given
a green light to import specific products.
Imports custom declarations
When they are required, the company is required to obtain goods declaration forms in
accordance with the regulations of the government
Import license
The company can obtain the documentation from the customs authorities or from the relevant
government agencies
Product importation insurance certification
The firm needs to obtain an insurance certificate for the goods being imported from a
government authorized insurance firm
Inspection certificates
If it is applicable, the firm should demand the sellers of the products through the local customs to
inspect the products being imported by using an internally recognized inspection firm.
Importation cost breakdown
Item No of units Cost per unit Total cost
Green beans Two 40 feet
containers
$180 2 x 180 = $360
Wheat flour One 20 feet container $120 1 x 120 = $120
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Soya beans Three 40 feet
container
$ 180 3 x 180 = $540
Whisky One 20 feet container $120 1 x 120 = $120
Permit cost Several containers to
be cleared
$50 7 x 50 = $350
Total cost $1490
Storage recommendations
Whiskey
Proper whiskey storage is essential for the preservation of quality. Storing conditions and
methods generally have an impact on the overall taste, aroma and highly affect the character of
each bottle stored in the warehouse. Thus, it is important to ensure that the whiskey is properly
stored in a genuine cellar. Cellar storage is important due; the overall room temperature is kept
constant at 16 – 20-degree centigrade, the warehouse is kept dark and the sunlight is let in at the
bare minimum, (Whitney, Ghirmai, & Muller, 2017). In the absentia of the cellar, it is important
to store the whiskey in the shelves that are not directly opposite to the window and the bottle
should be fully covered by opaque materials mostly wood which will protect the liquor from the
effects of direct sunlight
Wheat flour
Wheat flour is kept well in a sealed container stored in a cool dry and dark warehouse. Most of
the packets used in the packaging of the wheat flour are effective in ensuring its long life as long
as the packaging is not opened or cut. The shelf life of the wheat flour is significantly shortening
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when the packaging is broken. Refrigeration of the wheat flour is one of the best alternatives that
increases its shelf life. It is advised that the refrigeration compartment is filled up to eliminate
air. The flour should not be refrigerated in its original packet as it is porous which can make the
flour absorb foreign odors and moisture, (Masague, 2015).
Soya beans
The temperature of the soya beans grains highly affects their storage life. At a temperature of 18
degrees centigrade, the grain life of the stored soya beans is 63 days on average. While the grains
stored at the temperature of 40 degrees centigrade have a storage lasting life of 142 days,
(Kurmanov, Tolysbayev, & Abilmazhinov, 2015, September). For proper storage and increasing
the lasting life of the grains, it is recommended that the firm limits the temperature at the
warehouse to be at 36 degrees centigrade throughout the storage period, (Marchetti, & O'connor,
2016).
Green beans
In order to elongate the storage life of green beans, it is important to store unwashed pods of the
beans placed in the plastic bags and stored in the refrigerator. This significantly pushes the,
store's life of the beans to seven days, (Whitney, Wilkinson, & Muller, 2018). In most instances,
it is recommended that the green beans are frozen to reduce its inactivity after steaming the beans
for approximately three minutes.
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References
Kurmanov, N., Tolysbayev, B., & Abilmazhinov, Y. (2015, September). The limiting storage life
of perishables during joint transportation. In CBU International Conference Proceedings
(Vol. 3, pp. 499-505).
Lam, J. S. L. (2016). Strategy of a transhipment hub: the case of port of Singapore. In Dynamic
shipping and port development in the globalized economy (pp. 12-38). Palgrave
Macmillan, London.
Marchetti, J. L., & O'connor, R. (2016). U.S. Patent No. 9,415,921. Washington, DC: U.S. Patent
and Trademark Office.
Masague, M. L. (2015). U.S. Patent No. 9,061,789. Washington, DC: U.S. Patent and Trademark
Office.
Thai, V., & Jie, F. (2018). The impact of total quality management and supply chain integration
on firm performance of container shipping companies in Singapore. Asia Pacific Journal
of Marketing and Logistics, 30(3), 605-626.
Whitney, S. E., Ghirmai, S., & Muller, R. (2017). U.S. Patent No. 9,845,489. Washington, DC:
U.S. Patent and Trademark Office.
Whitney, S. E., Wilkinson, S., & Muller, R. (2018). U.S. Patent No. 9,999,217. Washington, DC:
U.S. Patent and Trademark Office.
Van Thai, V., & Yeo, G. T. (2015). Perceived competencies required for container shipping
logisticians in Singapore and South Korea. The International Journal of Logistics
Management.
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