Bank will earn us from reimbursing bank from the

Bank will earn US$ from reimbursing bank from the foreign and bank is also
earning commission from that.
If the payment make overdue, on that time branch of the concerned bank will earn
interest from that amount.
4.3.2.8. Back To Back L/C (BTB L/C):
Back To Back L/C Opens:
It is a secondary letter of credit opened by the advising bank in favor of a
domestic/foreign supplier on behalf of the beneficiary original foreign L/C. As the
original letter of credit of bank by import letter, it is called Back-to-Back L/C. The
second L/C is opened on the strength of the original L/C for a smaller amount.
Back To Back L/C (Foreign):
When the B-To-B L/C is opened in a foreign country supplier it is called B-To-B
L/C (Foreign). It is generally payable within 120 days at site.
Back L/C (Local);
When the Back-to-Back L/C is opened for local purchase of materials, it is called
Back-to-Back L/C (Local). It is generally payable within 90 days at site.
Back To Back L/C Export Development Fund (EOF):
EOF provided by the ADB to Bangladesh Bank for export promotion of Third-
World-Country like Bangladesh. When the bank is not in a position to support the
amount of B-to-B L/C then they apply for loans to the Bangladesh Bank for B-To-

B (EOF).
4.3.2.9. Procedures for Back To Back L/C:
Exporter should make application for Back to Back LAC
Export L/C or Master L/C under is lien
Opening of Back to Back L/C
Terms and conditions for Back to Back L/C
That the customer has credit line facility
That L/C is issued as per UCPDC 500
That on the Export L/C a negotiating clause is present
That there is no provision for blank endorsement of B/L
That payment clause is thereon the L/C issuing bank ensuring payment
Consideration for Back To Back L/C:
Whether client can manufacture within time period
The unit price of the finished pro-forma invoice should be considering while
allowing margin
Consider the expiry date and shipment date
Onside inspection whether manufacturing is carried out
Payment under Back To Back L/C:
Deferred payment is made in case of BTB L/C as 60, 90,120, 180 date of maturity
period. Payments will be given after realizing export proceeds from the L/C issuing
bank from the abroad.
4.3.2.10. Reporting of Bangladesh Bank:
At the end of the every month reporting of Bangladesh Bank is mandatory
regarding the whole month export operation, the procedures in this respect is as
follows —
To fill-up the E-2/P-2 schedule of S-l category. The whole month import amount,
quantity, goods category, country, currency, etc. all are mentioned. Respective IMP
forms are attached with the schedule to fill E-3/P-3 for all invisible payment.
Original IMP is forwarded to Bangladesh Bank with mentioning invoice value
Duplicate IMP is skipped with the bank along with the bill of entry.
4.3.2.11. Documentation for Export Purpose:
Following major documents are required for export purpose —
Commercial invoice
Certificate of Origin
Bill of lading
Quality Control Certificate

EXP. Form
Bill of Exchange  Weight List
Inspection Certificate
L/C copy
Other (if required)
Packing List
4.3.2.12. Procedure for collection of Export Bill: