Recommendations for improving yellow phosphorus inspection in dai viet inspection and service joint stock company

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MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING
VIETNAM MARITIME UNIVERSITY
STUDENT NAME: LUU PHUONG LINH
DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS
RECOMMENDATIONS FOR IMPROVING YELLOW
PHOSPHORUS INSPECTION IN DAI VIET INSPECTION
AND SERVICE JOINT STOCK COMPANY
HAI PHONG – 2015
MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING
VIETNAM MARITIME UNIVERSITY
STUDENT NAME: LUU PHUONG LINH
CLASS: GMA 02
DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS
RECOMMENDATIONS FOR IMPROVING YELLOW
PHOSPHORUS INSPECTION IN DAI VIET INSPECTION
AND SERVICE JOINT STOCK COMPANY
Supervisor: Pham Thi Yen
Division: Logistics
Faculty: Economics
HAI PHONG – 2015
Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
Preface
I declare that this report is my own unaided work. It has not been submitted before.
If violated, I am solely responsible for and bear the punishments of the Institution
and University.
Student Name and Signature
Luu Phuong Linh
Luu Phuong Linh – GMA 02 Page
Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
Acknowledgement
I have strived to complete this dissertation; however, it would not be performed
without the support and help from many individuals and organizations. I would like
to extend my sincere thanks to all of them. First and foremost, I would like to
express my sincere gratitude to my advisor – Pham Thi Yen for the continuous
support of my dissertation, for their patience, motivation, enthusiasm, and immense
knowledge. Their enthusiastic guidance helped me in all the time of thesis
implementation. I could not have imagined having a better advisors and mentors for
my study. Second, I would like to express my gratitude towards people of Dai Viet
Inspection and Service Joint Stock Company, especially Industrial Department for
their kind co-operation which helps me to finish this project. Finally, my thanks also
go to lecturers of Vietnam Maritime University, my friend and my family who
helped me completes this thesis.
Luu Phuong Linh – GMA 02 Page
Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
Table of contents
Preface..................................................................................................................................................i
Acknowledgement...............................................................................................................................ii
Table of contents................................................................................................................................iii
List of abbreviations............................................................................................................................v
List of tables.......................................................................................................................................vi
List of figures....................................................................................................................................vii
Introduction.........................................................................................................................................1
1. Necessity..................................................................................................................................1
2. Research object........................................................................................................................2
3. Research scope........................................................................................................................2
4. Research Methodology............................................................................................................2
5. Research finding......................................................................................................................2
6. The contents of the dissertation...............................................................................................3
Chapter 1: Literature review...............................................................................................................4
1.1 Introduction about Inspection..............................................................................................4
1.1.1 Definition about Inspection Service............................................................................4
1.1.2 Definition about Cargo Inspection Service.................................................................4
1.1.3 Categories of Inspection Service.................................................................................4
1.1.4 Role of cargo inspection service..................................................................................6
1.1.5 Inspectors.....................................................................................................................7
1.2 Inspection certificate...........................................................................................................8
1.2.1 Definition.....................................................................................................................8
1.2.2 Some general requirements of inspection certificate...................................................9
1.2.3 Legal validity of inspection certificate........................................................................9
1.2.4 General content of inspection certificate...................................................................10
1.3 Inspection contract.............................................................................................................11
1.3.1 Definition...................................................................................................................11
1.3.2 Classification.............................................................................................................11
1.4 The basic methods of cargo inspection.............................................................................12
1.4.1 Methods of specification and quality inspection.......................................................12
1.4.2 Methods of detailed quantity inspection....................................................................13
1.4.3 Methods of trade volumes inspection........................................................................13
1.4.4 Methods of inspection following draft survey...........................................................13
1.5 The general process of cargo inspection...........................................................................15
1.5.1 Receiving and examining inspection requirements...................................................15
1.5.2 Reviewing capabilities, technical and implementation conditions............................16
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
1.5.3 Accepting or rejecting the inspection........................................................................16
1.5.4 Offering inspection fees............................................................................................16
1.5.5 Implementing inspection operations..........................................................................16
1.5.6 Granting inspection certificate and recordkeeping....................................................17
Chapter 2: Evaluation about yellow phosphorus inspection at Dai Viet Inspection and Service Joint
Stock Company.................................................................................................................................18
2.1 Introduction about the Dai Viet Inspection and Service Joint Stock Company................18
2.1.1 General information about Dai Viet Inspection and Service Joint Stock Company. 18
2.1.2 Organizational Structure............................................................................................19
2.1.3 Personnel...................................................................................................................19
2.1.4 Overview about inspection services of Dai Viet Inspection and Service Joint Stock
Company 22
2.1.5 Results of business activities.....................................................................................25
2.2 Evaluation about yellow phosphorus inspection at Dai Viet Inspection And Service Joint
Stock Company.............................................................................................................................26
2.2.1 Characteristic of yellow phosphorus and inspection purpose...................................26
2.2.2 The necessary documents in yellow phosphorus inspection process........................27
2.2.3 Yellow phosphorus inspection process of Daivietcontrol.........................................29
2.2.4 Evaluation of yellow phosphorus inspection in Daivietcontrol................................39
Chapter 3: Recommendations for improving the yellow phosphorus at Dai Viet Inspection and
Service Joint Stock Company............................................................................................................46
3.1 Service quality...................................................................................................................46
3.2 Facilities and infrastructure...............................................................................................46
3.3 Customer policy.................................................................................................................47
3.4 Cooperative relations.........................................................................................................47
3.5 Personnel Source...............................................................................................................48
3.5.1 Recruitment...............................................................................................................48
3.5.2 Training.....................................................................................................................48
3.5.3 Job specialization and job rotation............................................................................49
3.5.4 Remuneration............................................................................................................50
Conclusion.........................................................................................................................................51
Reference...........................................................................................................................................52
Appendices........................................................................................................................................53
1. Inspection Order....................................................................................................................53
2. Survey report.........................................................................................................................53
3. Yellow phosphorus inspection guideline document..............................................................53
4. Final container record............................................................................................................53
5. Booking receipt notice...........................................................................................................53
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
List of abbreviations
API American Petroleum Institute
ASTM American Society for Testing and Materials
BoA Bureau of Accreditation
BVQI Bureau Veritas Quality International
Daivietcontrol Dai Viet Inspection and Service Joint Stock Company
FAD The Food and Drug Administration
ISO 9001 International Standard Organization 9001
L/C Letter of Credit
QUACERT Metrology and Quality – Vietnam Certification Centre
TCVN ISO/IEC General Standards for the operation of inspection
17020:2012 organizations
TCVN ISO/IEC General Requirements for the competence of testing and
17025:2005 calibration laboratories
VIAS Vietnam Inspection Accreditation Scheme
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
List of tables
Table 2.1: Positions and Responsibilities of all Departments in Company..............20
Table 2.2: Results of business activities...................................................................25
Table 2.3: Yellow phosphorus inspection process of Daivietcontrol.......................30
Table 2.4: Business Activities Result of Daivietcontrol from 2010 to 2014............40
Table 3.1: Job specialization.....................................................................................49
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
List of figures
Figure 1.1: Process of draft survey...........................................................................14
Figure 1.2: General process of cargo inspection.......................................................15
Figure 2.1: Organizational chart...............................................................................19
Figure 2.2: Maritime Inspection...............................................................................22
Figure 2.3: Machinery and necklaces survey............................................................22
Figure 2.4: Inspection of aquatic products................................................................23
Figure 2.5: Sampling.................................................................................................23
Figure 2.6: Inspection of general cargoes.................................................................24
Figure 2.7: Yellow phosphorus.................................................................................26
Figure 2.8: Phosphorus drum....................................................................................27
Figure 2.9: Yellow phosphorus inspection stages.....................................................29
Figure 2.10: Canon IXUS 160..................................................................................33
Figure 2.11: Litmus paper.........................................................................................33
Figure 2.12: Tape measure........................................................................................33
Figure 2.13: The ratio of expenses over revenue......................................................41
Figure 2.14: The rate of profit over revenue.............................................................42
Figure 2.15: The number inspection case.................................................................43
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
Introduction
1. Necessity
In the process of international economic integration, commercial contract increases
constantly, leading to the development requirements of goods assessment activities
in Vietnam.
Joining the World Trade Organization (WTO) and signing Free Trade Agreement
(FTA) of Vietnam are an opportunity to open Vietnamese market, expand
partnerships with other nations on the world. At that time, competition of
Vietnamese inspection market increasingly fierce, between domestic inspection
organizations, between domestic and foreign inspection organizations. Besides, the
development of science and technology led to the requirement for the higher
inspection service quality. There are huge problems of inspection organizations in
Vietnam in general, and of Dai Viet Inspection and Service Joint Stock Company in
particular. The higher inspection service quality and improving of inspection
process for competing are unsolvable problem of Dai Viet Inspection and Service
Joint Stock Company.
Furthermore, phosphorus is one of the important basic elements, which are widely
used in the chemical industry, as raw material of fertilizers, detergents and is used
in some other food industries… According to The Essential Chemical Industry -
online, yellow phosphorus is the most commercially important, accounting for 99%
of demand worldwide. Due to the important features of yellow phosphorus, yellow
phosphorus is a valuable commodity in the use in domestic and export.
Manufacturing phosphorus in Vietnam has been focused by state in in the
investment and development. Therefore, phosphorus inspection market is a potential
market, tending to develop similar manufacturing phosphorus.
From the above issues, I decided to research the subject: “Recommendations for
improving yellow phosphorus inspection in Dai Viet Inspection and Service Joint
Stock Company” with the desire to learn the yellow phosphorus inspection of the
Dai Viet Inspection and Service Joint-Stock Company, and give suggestions to
improve yellow phosphorus inspection for company development in competitive
inspection market.
2. Research object
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
Research object of this dissertation is the yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company.
3. Research scope
- Time: operating time of the Dai Viet Inspection and Service Joint Stock
Company from 2010 to 2014
- Space: Dai Viet Inspection and Service Joint Stock Company at Haiphong
4. Research Methodology
In order to perform this thesis, I used the scientific method as:
- The theoretical research method: this method gathers information through
reading, the document for purpose of finding the concepts and basic ideas of
theoretical basis.
- Graph method: using graph to describe the object, activity, and imagine the
relationship between elements in the process structure
- Mathematical methods: using statistics as a tool for handling data (handling of
quantitative information) to make the research results become accurate, and
reliable
- Methods of analysis and synthesis: review the results of practical activities in
the past to draw useful conclusions
5. Research finding
The dissertation systemized theoretical issues and practices concerning the
inspection service and yellow phosphorus inspection. Therefore, this dissertation
can be foundation for solutions to improve yellow phosphorus inspection for
company development.
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
6. The contents of the dissertation
Content of thesis consists of 3 chapters:
Chapter 1: Literature review
Chapter 2: Evaluation about yellow phosphorus inspection at Dai Viet Inspection
and Service Joint Stock Company
Chapter 3: Recommendations for improving the yellow phosphorus inspection at
Dai Viet Inspection and Service Joint Stock Company
During the completion of thesis, I have unavoidably mistakes, I request respectfully
that instructors and teachers in Council instruct and forgive.
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Recommendations for improving yellow phosphorus inspection in Dai Viet
Inspection and Service Joint Stock Company
Chapter 1: Literature review
1.1 Introduction about Inspection
1.1.1 Definition about Inspection Service
“General standards for the operation of inspection organizations – TCVN ISO/IEC
17020:2012” that is issued in 2012, according to Vietnam Standard, gave the
definition about inspection: “Inspection is considering product design, product,
process; and determines conformity with specific requirements or determines
conformity with the general requirements on the basis of expert assessment”
1.1.2 Definition about Cargo Inspection Service
Article 254 of the Commercial Law in 2005 contains provision: “Inspection services
are commercial activities, so traders perform a necessary work to determine the
actual condition of the goods, the results of service provisions and other
requirements of customers.”
This definition shows that commercial assessment is the operation of a third party to
assess the actual condition of the inspection object following the request of
organizations or individuals. The foundation of the inspection performance is
incorporating between the human element, facilities, technologies and methods.
Inspection not only contributes to limit risks in business, but also contributes to
manage the state agency in order to ensure a secure business environment for
investors
1.1.3 Categories of Inspection Service
The Categories of Inspection are revised from time to time. However, where the
existing classification descriptors do not cover the specific needs of an inspection
service, Bureau of Accreditation (BoA) issued “Categories of Inspection” (code:
AGI 02) in November 30th, 2011 in order to specify, classify categories of
inspection:
1.1.3.1 Classify by products
Agriculture products: A Process and/ or a product of farming, picking (for plants),
such as: grains, coffee, peppercorn, cotton, vegetables, roots, fruits, and other
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Inspection and Service Joint Stock Company
agriculture products. A Process and/ or a product of keeping and catching (for
animals), such as: domestic fowls, livestock.
Aquatic products: Keeping: shrimp, fish…; processing: preliminary treatment,
frozen….
Processed foods (except agriculture products, seafood): Products are produced for
man to eating and drinking.
Feed stuff: Materials, foods for domestic fowls, livestock and other feed stuffs.
Industrial equipment and machinery: Pressure equipment, Lifting and lifted
equipment, Industrial machinery, Construction equipment, Pipelines, Storage tanks,
other
Manufactured goods: Fabricated metal components and products, Molded polymers
and composites, Electrical and electronic products, Nano products, Textiles and
textile products, Refractories and ceramics, Timber products, Chemicals, Fertilizers,
other
Gas, petroleum and petroleum products (except chemicals, fertilizes)
Ores and minerals (except coal)
Coal
Vehicles: Non – motorized vehicles, Motorbike, Automobile, Specialized vehicles,
Spare – part
Building construction: Industrial buildings, Residential buildings, Structures,
Construction Materials
Environment: Soil and geotechnical, Vegetation, Hydrology, Biota, Atmosphere,
Noise and vibration, Built environment, Electromagnetic fields
1.1.3.2 Classify by range of inspection
Net quantity: Quantity, weight, draft survey…
Inspection of processes: Welding, Coatings, Packaging, Labelling, Cleanliness,
Process surveillance
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Inspection and Service Joint Stock Company
Marine: Hold Cleanliness Survey, Water Hose Test Survey, Sealing Plan, Damage,
Condition
1.1.4 Role of cargo inspection service
Cargo inspection service has important role in commercial operations and state
management, following synthesis of Vinacert Certify and Survey Joint Stock
Company (Vinacert Certify and Survey Joint Stock Company, 2013)
1.1.4.1 Inspections help facilitate commercial activities
For sellers: Using assessment results of a neutral third party to prove the contractual
performance obligations of sellers reduces costs in terms of time, travel costs…
Besides, inspection certificate is one of basis documents for paying goods of sellers.
For buyers: inspection certificate is the base to recognize correct and sufficient
goods, buyers do not have to check. Also, inspection certificate is evidence to claim
compensation if the cargo damage
For shipper and porters: Certificate approves that transport vehicles are eligible for
transport and they have the responsibility to limit losses in case of incidents.
For preservation places and conservator: inspection organizations prove that they
use standard warehouses/yards, monitor and confirm sufficient quantity and correct
types of goods during forwarding process
For insurance company: an independent organization – inspection organization
determines the extent, causes and responsibility for cargo damage as a basis for
compensation and complaints
For credit organizations: inspection certificate is the basis to transfer money to the
seller. Furthermore, inspection helps determine the correct value of the pledged
assets when credit lending, to ensure safety in the business.
1.1.4.2 Inspections serve effectively for the management of state
For customs offices: inspection of the number/volume, type and quality of goods…
is the basis for customs clearance, tax calculation, anti-smuggling/commercial
fraud…
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For goods quality control agency: Inspections help manage goods quality to in
order to prevent the import of bad goods, prohibited goods, scrap; prevent the
export of prohibited goods, shoddy and non-standard goods; control the process of
inland goods circulation
For environmental management agency: Inspections help identify the factors that
impact on the environment, do not enter the waste/hazardous substances. In the
industrialization process, inspection also helps governments and enterprises to
manage the quality and quantity of imported machinery, do not enter outdated
machinery.
Beside, valuation activity in inspection service help reduce damage to business
sides. In relation to the law, inspection helps determine the number/quantity,
quality, type, and price of goods/proper in order to service the investigation, the trial
related to the violation of law such as embezzlement, smuggling, commercial fraud,
and disputes on economic contracts
1.1.5 Inspectors
1.1.5.1 Definition
According to Collins English Dictionary - Complete and Unabridged 10th Edition,
publishing in 2012, inspector is a person who inspects or examines for compliance
with regulations, standards
Besides, following the definition of Consulting Surveyors New South Wales (NSW)
launched in 2014, inspector is a professional person, with academic qualifications,
technical expertise, and interpretative ability and management skills to practice the
discipline of surveying.
1.1.5.2 Standards for inspectors
Article 259 of the Commercial Law in 2005 contains provision on the standards for
commercial surveyors. Inspections must have below standards:
- Having a university or college degree consistent with the requirements of the
assessment field
- Having a professional certificate in the case of compulsory according to
regulations of the law
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Inspection and Service Joint Stock Company
- Having at least three years working in the goods/services assessment field
Basing on these standards, director of inspection organization recognizes surveyors
and has responsible before the law for his decisions.
1.1.5.3 Responsibility and obligations of inspectors
Decree No. 20/2006/Decree – Government on February 20th, 2006 of Government
guiding Commercial Law prescribed about responsibility and obligations of
inspectors such as:
a. Responsibility of inspectors:
- Inspectors have the right to require full information and document for
inspecting
- Inspectors have the right to reject any interference in the assessment leading to
discrepancy result
- Inspectors have the right to reject any assessment relating to their interests
b. Obligations of inspectors
- Inspectors have the obligation to perform independently inspection case
- Inspectors must be honest, objective, timely and accurate in assessment field
- Inspectors have the obligation to give a true assessment results in Survey
Report, must sign
- Inspectors must keep confidential inspection information, documents and
results following the requirement of customer
- Inspectors have responsible for the accuracy of the assessment results
1.2 Inspection certificate
1.2.1 Definition
According to Article 260, Provision I, Vietnam Commercial Law 2005, “Inspection
certificate is a document determining the actual condition of the goods or services
by content inspection following customers demand”
Inspection certificate is an objective evidence of a neutral organization with legal
status to verify the status of goods, the cause of the current condition of the goods.
This document notes the result of inspection and is important forensic evidence in
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Inspection and Service Joint Stock Company
resolving disputes, claims… Each inspection organization has separate inspection
certificate. Contents recorded in inspection certificate must objectively and
truthfully reflect about the actual condition of the goods. Inspection certificate gives
to people, organizations requesting inspection, or to the third party following a
written agreement of the person requesting inspection.
1.2.2 Some general requirements of inspection certificate
There are no specific requirements for inspection certificate because of each
inspection organization has different survey report. However, some general
requirements of inspection certificate are established and agreed between the
inspection organizations. Some requirements of inspection certificate are showed in
TCVN ISO/IEC 17020:2012:
The inspection certificate must ensure recognize inspection organization,
distinguish with other report. The inspection certificate must have inspection object,
time and place of the inspection and time grant the inspection certificate…
The inspection certificate must guarantee the truthfulness, accuracy objectivity and
legality about inspection result, consistent with the legitimate requirements of
customers.
Results in inspection certificate are outcomes of inspection process complied with
standard process and method and examined or approved by authority.
Inspection certificate must be signed by the authorized person, inspectors qualifying
under the provisions of law, and stamped
1.2.3 Legal validity of inspection certificate
Inspection certificate is only valid with inspected content at the place and time
interval that the inspection is took place. Legal validity of inspection certificate is
prescribed in Article 262, Provision I, Vietnam Commercial Law 2005, such as:
Inspection organizations are responsible for the accuracy of the results/conclusions
in certificate (including the trustee or the use of subcontractors).
Certificate has legal value for the party requiring inspection if they cannot prove
incorrect inspection results.
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Inspection and Service Joint Stock Company
When the parties do not assign the same inspection organization in the contract,
report is valid for the party requiring inspection, the other party is entitled to request
re-assessment when not agree with the inspection results. If report of re-inspection
results to differ from the initial report, it shall be handled as follows: in the case of
inspection company providing initial inspection certificate accept the results of re-
inspection report, the results of re-assessment certificate has legal value for all
parties. In the case of inspection company providing initial inspection certificate do
not recognize the results of the re-assessment certificate, the parties agree to choose
the other inspection company to reassess the second. The second verification result
is valid for all parties.
1.2.4 General content of inspection certificate
General requirement for content of inspection certificate is presented clearly and
scientifically; content of the record must ensure the honesty, objectivity, accuracy
and detail. The data in the inspection certificate must match the reality, not
contradictory when compared with the documents cited in the inspection certificate.
General inspection certificate includes three main parts (synthesized from the
inspection certificate of different inspection organizations) (Document is attached in
Appendix 1, part 1.3):
a. Number and date of inspection certificate
The number of inspection certificate: follow the regulation of each inspection
organization
Date of inspection certificate is the time that certificate recorded in the book,
especially, for export agricultural commodities.
b. Declaration part:
Applicant: the name of requirement customer. In addition, it may have name of
seller/shipper and buyer/consignee
Date and Place of inspection: stating clearly time and location that implement
inspection
Commodity: full name of cargo (follow the contract)
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Quantity: quantities and unit follow document
Weight (if have): net weight and gross weight
Shipping information (if have): name of carrier/vessel, port of loading, port of
discharge, port of transit.
c. Result of certificate
This section states clearly inspection results by category inspection requirements of
customers
Packing: Packaging material, way of packing, condition of packing
Quantity and condition of cargo: states clearly about inspection methods, inspection
rates and results
The findings of the inspectors: base on the current situation in the field and
specialized opinions about those goods, inspector records carefully results on this
part
1.3 Inspection contract
Definition and classification of contracts were generated by the Dai Viet Inspection
and Service Joint Stock Company in 2012 (Company D. V., 2015)
1.3.1 Definition
Inspection contract is a legally binding document signed between a neutral
inspection organization and an enterprise, requirement organizations. An inspection
organization undertakes the assessment following legal requirements of customer,
giving inspection certificate for customer. The inspection charge rates of
organization are public with each inspection types and goods types, the fees can be
agreed in the contract.
1.3.2 Classification
a. Short – term contract (for each individual case):
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