EXPORT FLOW CHART

HSBC, China

Agricultural Bank of China

AIBL, Uttara Branch, Dhaka

Community Textile, China

Citi N.A. NYThey will add their confirmation to the LC

Citi N.A. DhakaThe issuing bank will seek add confirmation from their correspondent on the LC.

Pro-Forma Invoice: The parties set some specification and terms for foreign trade. Or they will sign a contract t deal. Or they may collect “Indent” from the agent of the supplier called “Indent

or”. Some times the buyer nominates the supplier to supply fabrics and accessories required to prepare expected export items.

Advising Bank

Add Confirming Bank

Collecting Bank/ Negotiating Bank

Presentation of required documents as per terms of LC to the supplier’s bank with “Bill of Exchange”:Bill of LadingCommercial InvoicePacking ListCertificate of OriginBeneficiaries CertificateOther Certificates as per terms of L/C.

The bank issues a usance period LC (for the period of 90, 120, 150, 180 days) called BTB L/C and forwards it to the advising bank through SWIFT and asked them to advice.

The bank advised the LC without any engagement on their part and realizes Advising charge from the customer or as per arrangement.

When the documents submit before the bank, they will scrutiny the documents with the terms and conditions of LC. If they asked to collect the payment they will act as a “Collecting Bank”. If they asked to negotiate the document they will act as a “Negotiating Bank”.

When the issuing bank receives the documents they will asked the importer to release the document from the bank counter.

The supplier will ship the goods and collect Bill of LadingThe goods arrived at the

port and the importer will release the goods by submitting original shipping documents.

They will release original shipping doc. from the bank to release imported merchandize

Industrial Bank of China

Remitter Bank

They will debit issuing bank account and credit the fund to the remitting bank with the reference of collecting / negotiating bank by deducting their charges.

They will debit reimbursement bank account and credit the fund to the collecting or negotiating bank by mentioning reference no by deducting their charges.

Upon receipt of payment the collecting bank or negotiating bank will either credit the full proceeds to the customers account by charging their commissions or other applicable fees or adjust any liabilities their against with full justification.

When the issuing bank finds the document complied with the terms of LC they will convey maturity date to the collecting bank or negotiating bank within 05 banking days or discrepancy notice there on.

The importer or his C & F firm will release the goods from the destination port by paying the required duties as their custom rule.

ImporterK-Mart Corporation,

USA

Wells Fargo Mashreque Bank plc.

Standard CharteredDhaka

Bank of AmericaN.Y.

ABC Garments Ltd.When the exporter receives the LC from the Importer, they will take a look to the terms and conditions inserted.

Shell Bank, N.Y.

The bank issues an LC and forwards it to the advising bank through SWIFT and asked them to advice.

The parties set some specification and terms for delivery of goods on the basis of Contract or Letter of Credit. Some cases “Buying House” (the buyer’s agent) is dealing with the exporters regarding establishment of contract and they are ensuring regulatory compliance of the exporters relating facilities to export the goods by complying international standards.

Apply to open LC, as per banks policy.

L/C issuing bank Advising BankL/C issuing

Bank

Reimbursement Bank Collecting Bank / Negotiating BankRemitter Bank

Collecting Bank/ Negotiating Bank

The bank advised the LC without any engagement on their part and realizes Advising charge from the customer or as per arrangement.

Submit the Contract/LC to his bank for lien the same and allow them to open BTB LC

Apply to open LC for import raw materials as per banks policy.TINVATInsurance PolicyLCALC AgreementIMP FormProforma invoice etc.

When the documents submit before the bank, they will scrutiny the documents with the terms and conditions of LC. If they asked to collect the payment they will act as a “Collecting Bank”. If they asked to negotiate the document they will act as a “Negotiating Bank”.

When the issuing bank receives the documents they will asked the importer to release the document from the bank counter.

The supplier will ship the goods and collect Bill of Lading

The goods arrived at the port and the importer will release the goods by submitting original shipping documents.

They will release original shipping doc. from the bank to release imported merchandize

The issuing bank will release the payment within 05 working days through their correspondent bank a/c as per collecting bank’s instruction.

They will debit issuing bank account and credit the fund to the remitting bank with the reference of collecting /negotiating bank by deducting their charges.

They will debit reimbursement bank account and credit the fund to the collecting or negotiating bank by mentioning reference no by deducting their charges. Upon receipt of payment the exporters bank will kept proportionate reserve for payment of BTB LCs and will adjust liabilities (if any) or credit to the CD a/c.

The BTB L/C issuing bank will release the payment from the repatriated export proceeds within the maturity date through their correspondent bank a/c as per collecting bank’s instruction.

The importer or his C & F firm will release the goods from the destination port by paying the required duties as their custom rule.

EXPORT FLOW CHART