Import procedure In Bangladesh

Import procedure In Bangladesh:

Here is below discussion regarding goods import procedures:

What is Import?

Import means goods & services purchased from foreign sources. These imports may be used for consumption. Whatever we use imports represent the purchase of goods & services that not even produced but insufficient in a country.

 Who can Import?

The person or organization that has Import Registration Certificates can import or be an importer. The Chief Controller of Import & Export issues this certificate, As per Import policy there are five categories of the importer in our country. They are

• Commercial Importer
• Industrial importer
• Lease financing importer
• Government sector
• Consumers for own consumption

What goods & services can Import?

The goods & services what is allowed in Import policy can import.

Import Procedures:

After obtaining IRC (Import Registration Certificate) the importer can import the permissible items as per the policy of the govt. by opening Letter of Credit. The Letter of credit is a written undertaking by a Bank (Issuing bank) given to the seller (beneficiary) at the request, and on the instructions of the buyer (applicant/importer) of pay at sight or at a determinable future date a stated sum of money within the prescribed time against stipulated document.

To open Letter of Credit, there are some formalities to be observed by the importer. A part of these formalities is LC the authorization form must be registered where necessary. After registration of LCA form, the importer has to submit the following documents with his application for opening L/C to his Bank

• Prescribed L/C opening application & agreement,
• Minimum 3 copies of indent for goods issued by an indentor having valid indenting registration
• Certificate or 'Proforma invoice' issued by the supplier,
• Insurance cover note with a premium paid receipt
• One set IMP form
• Other documents as per stipulated in L/C application & agreement.

Required Documents scrutinize by the bank before opening L/C:

• The signature of the importer is genuine,
• The value & the descriptions of the items proposed to be imported are covered by LCA, also
• Permitted in Import policy& the contract with the supplier (exporter)
• None of the clauses proposed to be incorporated in the L/C contravenes the existing Exchange
• Control Regulation.
• The importer is entitled to import the items
• The Marine insurance ‘’Cover note’’ mention the items proposed to be imported, the port of
• Shipment, the port of destination & mode of shipment
• Signatures of both the importer& the foreign supplier or latter's local agent appears on the
• Contract
• The Indentors registration number has been quoted in the L/C Application form
• The last date of shipment requested to be mentioned in the L/C within the date prescribed by the licensing authority

After issuing L/C the first two copies of the L/C will be sent to Advising /Notifying Bank After authentication of the L/C the Advising Bank will advise the beneficiary (exporter) if unconfirmed credit, by sending the original L/C to him. After receiving the original L/C the exporter will ship the goods as per terms & conditions of the L/C & receive the required transport document from the proper authority. The exporter will prepare & collect the other document as stipulated in the L/C & submits all the document in at least more than 03 sets to his bank within the specific time period mentioned on L/C

The substantive documents required need to submit by the exporter to his  Bank:

• Original L/C
• Bill of Exchange,
• Transport document
• Commercial invoice
• Insurance policy
• Certificate of Origin
• Other documents (If specified in L/C)

The exporter Bank will examine the documents with original LC & if does not find any discrepancies in the documents he will pay to the exporter. Exporter the bank also is known as negotiating bank. On the same day the negotiating bank sends two sets of documents to LC Issuing Bank & claim his reimbursement to the Reimbursing Bank mentioned in the LC.

The negotiating bank has to perform three duties on the same day

• Make payment to the exporter
• Claim reimbursement from the Reimbursing Bank
• Sends at least two sets of documents by separate mail to the Issuing Bank.

After receiving the documents from the negotiating bank, the Issuing bank will examine the documents in terms of the L/C copy, If there are no discrepancies found  the issuing bank will record all the particulars of the documents in 'Inward Foreign Bills register" & convert the foreign currency into Taka at B.C. rate, it is called Lodgment of import bills

Conclusion:

In the import procedure importer Banks plays a vital role. It issues L/C undertakes the exporter for payment in some specific terms & conditions. If the Exporter exports the goods in stipulated period & submit the required documents as per L/C's instruction without any discrepancies, he will get his payment. This bank is playing a substantial role in 'Import Mechanism & giving utility services to his people.

On the other hand Bank deals with documents only not with the imported merchandises. If the importer or the exporter is dishonest Bank may incur a loss. So the Bank should very careful in selecting the importer & exporter