Export Procedure in Bangaldesh

7/31/2019 Export Procedure in Bangaldesh

1/26

Click to edit Master subtitle style

6/21/12

WELCOMETO OUR

PRESENTATIO

N


2/26


6/21/12

Export Import Condition of

Bangladesh


3/26

6/21/12

The economic interactionamong different nations

involving the exchange ofgoods and services, that is,

exports and imports.

International trade


4/26

6/21/12

erspec ve onInternational Trade

Education

Intellectual Properties

Textile Service

trade related investments


5/26

6/21/12

ang a es ra e:Growth

Fiscal

Year

Total

Export

Total

Import

Foreign

Remitta

nceEarnings

2007-

2008

$14.11b $25.205b $8.9b

2008-

2009

$15.56b $22.00b+$9.68b

2009- $17.6b N/A $10.87b


6/26

6/21/12

Exports of Bangladeshduring last five years


7/26


8/26

6/21/12

product fromBangladesh

1. Agricultural crops and cropproducts

2. Readymade garments 3. Raw Jute & Jute products

4. Ship Building

5. Medicine

6. Fresh Vegetable

8. Handicraft product


9/26

6/21/12

Export PolicyObjectives of the export

policyTo export optimal products in

maximum countries.

Encouraging female labor in exportoriented production. Increasingproductivity.

Ensuring availability of raw materialsfor producing export products.

Proper utilization of e-commerce.

Provide support to each and every


10/26

6/21/12

General Provisionsfor Export

Control of Export of Products

Export Prohibited Products

Products under ConditionalExport

ExportableProducts Export opportunities without

L/C


11/26

6/21/12

pec a eve opmenSectors

crushed and finished leatherproduction;

frozen fish production and processing;

handicrafts;

electric and electronic products;

fresh flower and foliage;

jute and jute products; hand-woven textiles from hilly areas

(pahari taat bostro);

uncut diamond;


12/26

6/21/12

General Export Facilities

Export Promotion Fund

Funding for Export

Export Credit Exemption from Insurance Premium

Incentives for Export of Non-

traditional Industrial Products

Bond Facilities for Export OrientedIndustries


13/26

6/21/12

ro uc - pec c xporFacilities

Readymade Garments Industry Handicrafts Made from Bamboo,

Cane and Coconut Fibre

Tea Industry Jute Industry

Leather Industry

Export of Services

Other Sectors


14/26

6/21/12

Export Procedure, Issuance andDisposal of EXP Form,Negotiation of Export Bill,

Collection of Export Bill,Handling of DiscrepantDocuments under Documentary

Credit, Dispute Settlement,Exchange Rate used inNegotiation and Collection,Realization of Export Proceeds,Non realization of Export

Export Procedure


15/26

6/21/12

Methods of Payment

Cash in Advance

Letters of Credit

Documentary Collection

Sight/Time Drafts aka D/P, D/A

Open Account

LC


16/26


6/21/12

Cash in Advance

- Exporter has no risk of non-payment or non-acceptance- Importer has risk that exporter will not ship the goods as ordered- Used occasionally for small amounts, new customers, one-timesales

Goods

Exporter Importer


17/26

6/21/12

Letters of Credit

Exporter isassured payment

provided terms ofL/C are met

Importer isassured terms ofL/C have beenmet before she isrequired to pay

Used for larger

Protects the interests of both theImporter and the Exporter

L /

C


18/26


6/21/12

Documentary CollectionsExporter routes documents through

banking channels, where they are held

for payment or acceptanceExporter Exporters I mporters

Importer

Bank Bank

Less costly than a L/C and avoidstying up Importers line of credit

Average of 2 - 4 weeks for exporter to

Goods

Go

ods


19/26


20/26

6/21/12

OPENING & OPERATION OF LETTEROF CREDIT

1. Importer andExporter enterinto a sales

agreement

2. Importerapplies for aletter of credit

with theIssuing Bank

Exporter

Importer

Agreement

Importer

Application

Issuing Bank


21/26

6/21/12

3. Issuing Bankadvises the letterof credit to U.S.

Bank, usually viaSWIFT

4.U.S. Bankauthenticatesthe L/C and

advises L/C toBeneficiary


SWIF

T

L / C

Letter of

CreditU.S.

Ban

k

IssuingBank

IssuingBank

Beneficiary

L / C


22/26

6/21/12


5. Exporterprepares thedocuments and

ships thegoods

6.Exporter sendsshippingdocuments to

U.S. Bank forexaminationGoods Import

er

Goods

Exporter

Documents

FBM

Exporter

U.S.

Bank


23/26

6/21/12


7. Assuming cleandocuments, U.S. Bankpays exporter bydebiting Issuing Banks

account or uponreceipt of funds froma separate reimbursingbank. Documents sentto Issuing Bank.

8. Issuing Bankexaminesdocuments &

delivers toimporter againstpayment.Importer takespossession ofgoods bypresenting

documents.

Doc

s

Issuing

Bank

Exporter

U.S.

Ba

nk

Importer

IssuingBank

Doc

sImporter

Good

s

Doc

s


24/26

6/21/12

Benefits of Letters ofCredit

Paymentprotection

Reliance onissuing bankscredit ratherthan buyers

Rapid, localsource ofrepayment, if

payable at a

To the Importer Documentaryevidence thatthe ordered

goods havebeen shippedon time

Assurance thatnecessaryclearance

documents will

To the Exporter


25/26


26/26


6/21/12

Thank you all

Export Procedure in Bangaldesh

Documents

Transcript of Export Procedure in Bangaldesh