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  • Role of Banks in Import Export Buiness

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    Banks play an important role in import and export business by facilitating payments through letters of credit. To start an import business in Pakistan, one must register with the Export Promotion Bureau. Similarly, to export goods from Pakistan, one needs to register as an exporter. Letters of credit are a common mode of payment, where the seller's bank provides the bill of lading to the buyer's bank in exchange for payment after receiving goods. Key parties in a letter of credit transaction include the applicant, beneficiary, advising bank, and confirming bank.

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    Banks play an important role in import and export business by facilitating payments through letters of credit. To start an import business in Pakistan, one must register with the Export Promotion Bureau. Similarly, to export goods from Pakistan, one needs to register as an exporter. Letters of credit are a common mode of payment, where the seller's bank provides the bill of lading to the buyer's bank in exchange for payment after receiving goods. Key parties in a letter of credit transaction include the applicant, beneficiary, advising bank, and confirming bank.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    3K views13 pages

    Role of Banks in Import Export Buiness

    Uploaded by

    syedasiftanveer
    Banks play an important role in import and export business by facilitating payments through letters of credit. To start an import business in Pakistan, one must register with the Export Promotion Bureau. Similarly, to export goods from Pakistan, one needs to register as an exporter. Letters of credit are a common mode of payment, where the seller's bank provides the bill of lading to the buyer's bank in exchange for payment after receiving goods. Key parties in a letter of credit transaction include the applicant, beneficiary, advising bank, and confirming bank.

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    of 13

    ROLE OF BANKS IN

    IMPORT EXPORT
    BUSINESS
    ??What is Import

    ??What is Export
    How to start an Import
    Export Business??
    For Import Business
    No person can import goods into Pakistan unless he
    is registered with the Export Promotion Bureau,
    under the Registration (Importers and Exporters)
    Order, 1993 or exempted from the provisions of
    the said Order
    How to start an Import
    Export Business??
    For Export Business
    Under the Registration (Importers and Exporters)
    Order, 1993, as amended from time to time, no
    person can export any goods from Pakistan unless
    he is duly registered as an exporter with the
    Export Promotion Bureau.
    Régulations for Import Export
    Business
    • Import Trade Control
    • Modes of payments for imports. 
    – Letter of credit
    – Registration of contract
    – Clean Remittance
    • Prohibition to open Letters of Credit for
    Import from Certain Countries
    • Import of Unlawful object
    How Letter of
    Credit works??
    Lets do some healthy
    Exercise
    Parties Involved in Import
    Export Business
    • Advising Bank
    • Applicant (Importer/ Buyer)
    • Beneficiary (Exporter/ Seller)
    • Confirming Bank
    Seller’s Bank Buyers’s Bank

    Seller Buyer

    Carrier

    After a contract is concluded between buyer and seller,


    .buyer's bank supplies a letter of credit to seller
    Seller’s Bank Buyers’s Bank

    Seller Buyer

    Carrier

    Seller consigns the goods to a carrier in exchange for a bill


    of lading
    Seller’s Bank Buyers’s Bank

    Seller Buyer

    Carrier

    Seller provides bill of lading to bank in exchange for


    payment. Seller's bank exchanges bill of lading for payment
    from buyer's bank. Buyer's bank exchanges bill of lading for
    payment from the buyer.
    Seller’s Bank
    Buyers’s Bank

    Seller Buyer

    Carrier

    Buyer provides bill of lading to carrier and takes delivery of


    goods.
    Thank You !

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