First copy Original is For Exchange Control Purposes which is used for opening

First copy original is for exchange control purposes

This preview shows page 94 - 96 out of 135 pages.

authorized dealers are issued in set of five (05) copies each. First copy (Original) is For Exchange Control Purposes, which is used for opening L/C and effecting remittance. Second copy (Duplicate) is For Customs Purposes, which is used for clearance of imported goods from custom authority. Third copy (Triplicate) is For Statistical Purposes. Fourth copy (Quadruplicate) is For CCI&E’s Purposes. Fifth copy (Quintuplicate) is For The Registration Unit of Bangladesh Bank. T HE L ETTER OF C REDIT A UTHORIZATION F ORM (LCAF) C ONTAINS THE F OLLOWING D ETAILS Name and address of the importer or opener. IRC no. and Year of Renewal. Amount of L/C applied for (both in figure and in word). Description of item(s) to be imported. Import Trade Certificate (ITC) Number / Harmonized System of Code (HS Code) Number. 5.11.4.7.3. T HE I MPORT P ERMITS (IMP) F ORM The IMP Form contains the followings – Name and address of the Authorized Dealer. General Banking & Foreign Exchange Div. of Mercantile Bank Ltd./Page 77 of 109
Image of page 94
Amount of remittance to be permitted (i.e., L/C amount). LCA Form number, date, value in Tk. Description of goods, quantity. Invoice value in foreign currency (i.e., L/C amount). Country of origin. Port of shipment. Name of steamer/airline (i.e., by road/by ship/by air etc.) Port of importation. Indentor’s name and address. Indentor’s registration number with CCI&E and Bangladesh Bank. Full name and address of the applicant. Registration number of the applicant with CCI&E. Type of LCAF i.e., Commercial or Industrial. 5.11.4.8. P REPARATION OF L/C BY B ANKER Bank’s officer prepares L/C when above-mentioned forms are to be submitted by customer or importer. Before preparing L/C, MBL officer scrutinizes the application giving emphasis to the following points- 1. L/C application is stamped (as per Govt. Stamp Rule) as it is a guarantee of payment; 2. All information mentioned in different columns have been furnished; 3. The items to be imported are eligible according to import entitlement; 4. If L/C is opened against indent, Bangladesh Bank’s permission, valid registration, authority to issue indent by are to be checked; 5. The terms and conditions stipulated in the L/C application are consistent with the Bangladesh Bank Foreign Exchange Guidelines, UCPDC 500 and Exchange Control & Import Trade Regulation etc; 6. The amount and description of merchandise are relevant to LCAF and Pro- forma Invoice/Indent/Purchase Order; 7. Survey Report or Certificate in case of old machinery; 8. Carrying vessel is not of Israel or Serbia, Montenegro, Iraq & Afghanistan; 9. Certificate declaring that the item is in operation not more than 5 years in case of car; 10. Radioactivity report in case of food item. Bank of the importer is called “L/C Issuing Bank”. Then issuing bank informs its corresponding bank, called “Advising Bank or Confirming Bank” located in exporter’s country to advise and the credit forward to the exporter and simultaneously officer makes L/C opening vouchers.
Image of page 95
Image of page 96

You've reached the end of your free preview.

Want to read all 135 pages?

  • Summer '19
  • Finance, Mercantile Bank, Foreign Exchange Div. of Mercantile Bank, Mercantile Bank Ltd./Page, Foreign Exchange Div.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes