IMPORT FLOW CHART Importer ABC Traders, Uttara, Dhaka HSBC, NEW YORK Industrial Bank of China, Sheng Ju Branch, China Standard Chartered, China Advising Bank AIBL, Uttara, Dhaka The Issuing bank: Prior to open the LC they will judge the customer and will confirm the margin offered to open the LC. They will put all caution regarding the policies of the country. After confirmation they will issue LC by putting entry into the LC opening register. Exporter Shan Sue Corporation, China 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 issued an LC and forwards it to the advising bank through SWIFT and asked them to advice. They will also send all amendments in future through the same bank. 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. The bank will ensure the following documents: IRC is under the bank’s custody. TIN certificate VAT certificate Valid Trade License IMP, LCA Form and LC Agreement signed by the importer. Insurance Policy etc. Reimbursement Bank Collecting Bank / Negotiating Bank Remitter Bank The bank advised the LC without any engagement on their part and realizes Advising charge from the customer or as per their policy. They will also advise the add- confirmation message (if any). The exporter will prepare and submit all required documents as per terms of LC to his bank. The documents are- Bills of Lading Commercial Invoice Packing List Certificate of Origin Beneficiaries Certificate Other certificates as per LC terms and a claim draft. 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” and send the documents to the issuing bank. When the issuing bank receives the documents they will asked the importer to release the original document from the bank counter and accordingly the importer will release the import documents by pay all dues with the bank and bank will certify the import document. The supplier will ship the goods and collect Bill of Lading from the master of the ship The goods arrived at the port and the importer will release the goods by submitting original shipping documents. The issuing bank will release the payment within 05 working days through their correspondent bank a/c as per collecting bank’s instruction by quoting their reference no. 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. The importer or his C & F firm will release the goods from the destination port by paying the required duties as their custom rule. Citi Bank N.A. Add-Confirming Bank As per customer requirement arises from the exporters demand, the issuing bank will arrange to add third banks confirmation and request the bank to add their confirmation through the advising bank by quoting LC no. and value. Conveying Add- Confirmation message to the advising bank. Upon receipt of payment the exporters bank will adjust the liabilities there against (if any) and realize all charges due against the bill and rest amount will be credited to the beneficiaries CD account.

Import Cycle

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IMPORT FLOW CHART

ImporterABC Traders, Uttara, Dhaka

HSBC, NEW YORK Industrial Bank of China,Sheng Ju Branch, China

Standard Chartered, ChinaAdvising Bank

AIBL, Uttara, DhakaThe Issuing bank: Prior to open the LC they will judge the customer and will confirm the margin offered to open the LC. They will put all caution regarding the policies of the country. After confirmation they will issue LC by putting entry into the LC opening register.

ExporterShan Sue Corporation, China

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 issued an LC and forwards it to the advising bank through SWIFT and asked them to advice. They will also send all amendments in future through the same bank.

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. The bank will ensure the following documents:IRC is under the bank’s

custody.TIN certificateVAT certificateValid Trade LicenseIMP, LCA Form and LC

Agreement signed by the importer.

Insurance Policy etc.

Reimbursement Bank Collecting Bank / Negotiating BankRemitter Bank

The bank advised the LC without any engagement on their part and realizes Advising charge from the customer or as per their policy. They will also advise the add-confirmation message (if any).

The exporter will prepare and submit all required documents as per terms of LC to his bank. The documents are-Bills of LadingCommercial InvoicePacking ListCertificate of OriginBeneficiaries CertificateOther certificates as per

LC terms and a claim draft.

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” and send the documents to the issuing bank.

When the issuing bank receives the documents they will asked the importer to release the original document from the bank counter and accordingly the importer will release the import documents by pay all dues with the bank and bank will certify the import document.

The supplier will ship the goods and collect Bill of Lading from the master of the ship

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

The issuing bank will release the payment within 05 working days through their correspondent bank a/c as per collecting bank’s instruction by quoting their reference no.

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.

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

Citi Bank N.A.Add-Confirming Bank

As per customer requirement arises from the exporters demand, the issuing bank will arrange to add third banks confirmation and request the bank to add their confirmation through the advising bank by quoting LC no. and value.

Conveying Add-Confirmation message to the advising bank.

Upon receipt of payment the exporters bank will adjust the liabilities there against (if any) and realize all charges due against the bill and rest amount will be credited to the beneficiaries CD account.