Commercial Training Training on commercial activities

Training on commercial activities

1. Commercial Functions

2. Import through LCA (Letter of Authorization) Form Import through LC opening with your Bank Import on Special Cases Import Direct export Indirect Export (i.e. B2B) Export Submission of import/Export documents Payment of import liability and collection of export proceed Banking Scope of Commercial Activities

3. - Regulatory documentation - Facilities set-up with bank - Documentation for import confirmation (LC open) - Custom clearance - C & F payments Import - Acceptance of documentation - Payment instruction to bank Documentation 01 C&F activities 02 Payment procedure 03

4. Import process ( Cont …) Regulatory requirement - IRC (Commercial/ Industrial - ERC - Trade licence - TIN and BIN - Fire license - Factory license (if applicable) - Membership Certification Facilities agreement with Bank - Forecasted financial statements - Declaration of business - Submission of regulatory documents - Authorization of documents signatory - Secretarial Documents - Other bank specific requirements (If any)

5. Bank Confirmation Import process ( Cont …) Import documentation - Duly completed LCA form - Proforma Invoice (PI) - Catalogue for machinery import - H.S code - Insurance cover note - Ensure required margin for LC/TT - BIDA permission if IRC is not obtained. - - Obtain LC opening confirmation letter from Bank - Confirm the LC document number - Confirm the BB LC reference number - Obtain swift copy to ensure the margin deduction - Obtain voucher from bank on deductions. - Send the LC documents to the supplier.

6. C&F payment Import process ( Cont …) Custom clearance Arrange the below documents for bank endorsement - PI - Commercial Invoice (CI) - Packing list -LCA form - Swift Copy - Country of origin - Bill of lading (BL/AWB) - Machine Catelog - Authorization letter (C&F) - Marine note B. Ensure customs clearance and obtain Bill of Entry (B/E) - C&F agent will provide several documents related to the import of goods along with their invoice: - Truck Challan - Port clearance - Customs payment docs -B/E - Invoice - Endorsed documents - Demurrage charge documents

7. Payment through Bank Import process ( Cont …) Payment process Suppliers will provide several documents in confirmation of the supply of goods. - PI - CI -Packing List - COO - Bill of Lading/ Air-way bill - Delivery challan (few cases) - - Acceptance of documents - Maturity date confirmation - Payment within 7 working days of documents received - Discrepancy charge

8. Export Export: An international trade where the produced goods/service is rendered in a different country or provide to consume in a different country. Direct Export : Export to a foreign country. Indirect export : Export to another loca l supplier who will export the goods to a foreign country.

9. Pre-export Exporting Goods Goods readiness and documentation Documents for C&F agents/ Courier etc. Customs clearance Document forwarding Bank to bank document forwarding Receipt of bank certificate Payment Communicating with the buyer PI generation Order placement and acceptance Export

10. Size/ quality and other specifications of the product Mode of dispatch (Sea/air/train) Communicating with the buyer Commercial Invoice Export manifesto Bill of exchange Delivery challan Packing list Pre-shipment certificate Beneficiary’s certificate Country of origin Documents for C&F agents Export invoice & Packing list Bill of lading or airway bill (BL/AWB) Customs clearance Pre-export

11. Exporting goods Goods readiness and documentation - Produce a sample for initial quality inspection (if any) - Packing of goods according to the Mode of dispatch - Expected delivery time any other requirements PI generation - Quote a unit price, quantity and total price for the goods. - Supplier’s details - Country of origin (if required by customer) - Sealed, signed and forward to the buyer Order placement - Customer will provide the LC/TT/FDD as agreed terms - Due diligence by the beneficiary bank - Receive of LC documents - Update on the dashboard of Bangladesh Bank

12. Payment procedure Documents forwarding - All the listed documents as on LC. - Customs documents, PI and CI (if no indication of documents in the LC. ) - Prepare and submit all the required documents to the beneficiary bank - Update on the Bangladesh Bank portal Bank to bank document forwardingg - Beneficiary bank will provide a set of documents to the issuer bank - In case of deferred LC - Documents Acceptance - Maturity date - Payment collection - Bank certificate on export proceed

13. Export process ( Cont …) Common Terms Billls discounting If the customer provide the acceptance to the LC documents, it can be discounted from Bank. Cash incentive Subject to bank audit and other rigorous compliance cash incentive can be obtained in addition to the export proceed. Ship to / Bill to Ship to - Destination of the goods/ Receiver address Bill to - Invoice address/ importer/ Payment provider. PRC Proceed Realization Certificate

14. Thank You