356 Payment against Documents PAD Banks deal in documents and not in goods If

356 payment against documents pad banks deal in

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3.5.6: Payment against Documents (PAD):Banks deal in documents and not in goods. If the shipping document against the L/C is in order then the L/C opening bank must have to payment to the foreign bank within 3 days or 72 hours according as Uniform Customs and Practice for Documentary Credit (UCPDC) 500 of revision If the shipping documents have any discrepancy, then the L/C opening bank informed to the negotiating bank within 7. Otherwise, the shipping documents have not discrepancy. If the importer have not adequate funds in the bank account then the bank payment to the foreign bank against the shipping documents.3.6(B) EXPORT:Export L/C is issued by a foreign bank favoring Bangladeshi exports through our banks having correspondent relationship with them.ABL provides different services to the exporter of Bangladesh. To get export facility the party must have following requirements-Current deposit (CD)ERC (Export registration certificate MortgageTIN Number.Insurance policy.back to back- (75% of export L/C)Cash credit-90% in (FDBP)Packing credit (PC) - 90% of export L/CExport advance & loan facility is sanctioned by head office. According to the prospect of party they take the loan decision (TK. In millions)Content 2007 2008 2009 2010 2011Export 46234.6 55790.42 76465.62 76240.77 95359.45(Source: Annual Report of ABL 2014-2015)3.6.1: Service Provided by Bank against Export L/C:
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A. Advising of export L/C:The advising bank getting the import L/C sent by the issuing bank located abroad will advise the L/C to the beneficiary without any engagement or responsibly on their part. It will see the following only:Authenticity of L/C (Test agreed in case of Telex L/C and signature verified in case airMerchandise specified in the L.C is permissible and clauses incorporated in the L/C are not against country’s regulations.B. Add Confirmation of Export L/C:Bank may add additional confirmation to export L/Cwhere there is specific instruction from the L/C issuing bank to do so. Additional confirmation of L/C gives the seller a double assurance of payment. Bank’s requirement of adding confirmation:i.Issuing Bank should be a reputed bank.ii.Credit line/ Arrangement with the L/C issuing bank.iii.L/C clause is to be acceptable to confirming bankiv.Approval from the competent authority for adding confirmation of export L/Cv.Confirmation charges are to be recovered as per rules.C. Negotiating of Export L/C:Documents / papers to be submitted by exporter to bank fornegotiation/ collection against export L/C. The exporters submit the documents to bank asper requirement of bank. List of export documents is as follows:Bill of exchangeBill of LadingPacking ListCertificate of OriginInspection Certificate. Insurance DocumentWeight ListAny other documents as per L/C 3.6.2: ERC (Export registration certificate):Bank must scrutinize all the documents stipulated in the credit with reasonable care to ascertain whether they confirm with the terms of the credit, the bank may negotiate and pay the value of export bill to the exporter at:
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