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LODGEMENT & RETIREMENT of IMPORT BILL

LODGMENT & RETIREMENT OF INPORT BILLS

What lodgment IS?

On receipt of the documents from the Negotiating Bank, the L/C Issuing Bank will make entry
the particulars of the documents in the “Inward Foreign Bills Register” and prepare the voucher
by converting the foreign currency into Bangladesh Taka. This stage is known as Lodgement of
Import Bills.

The full set of documents, which are submitted by the exporter to his bank, as per terms, and
conditions of the L/C is known as ‘Shipping Documents’

The L/C Issuing Bank may receive these shipping documents from Negotiating bank in two
ways;
1. Negotiated Documents, or
2. Documents on collection basis.

1. Negotiated Documents
The documents which are already been negotiated i.e. the exporter’s bank (this bank is
known as Negotiating Bank) has made payment to the exporter against the documents
submitted by him may be termed as ‘Negotiated Documents’ are free from discrepancies.
The L/C Issuing bank must scrutinize and confirm that there is no discrepancy in the
documents.

2. Documents on collection basis

The shipping documents, which are not negotiable, by the exporter’s bank due to some
discrepancies, will be sent to L/C issuing Bank on collection basis. The collecting bank will
mention the discrepancies on their forwarding schedule. On receiving the documents, the
L/C Issuing bank will further scrutinize the documents with the L/C and inform the importer
regarding discrepancies found in the documents. If these are acceptable to the importer
and or permissible with the existing Exchange Control Regulation, the documents will be
lodged and L/C Issuing Bank will send the payment instruction to the collecting bank.

Scrutiny of Documents:
The L/C Issuing Bank, being received the documents from the Negotiating Bank will scrutinize
the documents with the respective L/C terms and conditions. The bank should check whether
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the required information provided in the documents and are all right. Then the bank should cross
check the information provided in various documents.

Suggested Checklist for examination of documents:

01. Forwarding schedule of Negotiating Bank

E aThat it is addressed to your bank
n aThat it has a current date
s aThat it relates to the L/C number referenced
u aThat the documents enumerated are attached
r
aThat the value of the documents and the value mentioned in the cover letter are the
e
same
:
aThat the payment instructions are clear & understood
aWhether any discrepancy (ies) has been noted & whether payment, acceptance, or
negotiation was effected against an indemnity or under reserve.

02. Bill of exchange (Draft)

Ensure:
aThat the bears the correct L/C reference numbers
aThat it has a current date
aThat the signature and/of name of the drawer corresponds with the name of the
Beneficiary
aThat it is drawn on the correct drawee
aThat the amount in figures & words corresponds
aThat the tenor is as required by the L/C
aThat the name of the payee is Nominated Bank
aThat if requires an endorsement it is properly endorsed
aThat there is no restricted endorsement
aThat it contains any necessary clauses as required by L/C
aThat the amount drawn for does not exceed the balance available in the L/C
aThat the value of the drat and the invoices corresponds
aThat it is drawn “without recourse” unless authorized by the L/C

03. The Invoice.

Ensure:
aThat it issued by the beneficiary of the L/C
aThat the Applicant (the buyer) is identical as the invoiced party, unless otherwise stated
in the L/C
aThat it not titled “Pro-forma invoice” or “Provisional Invoice”

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aThat the description of the goods corresponds with the merchandise description in the
L/C
aThat no additional detrimental description of the goods appears that may question their
condition or value
aThat the details of the goods, prices, and terms as mentioned in the L/C are included in
the invoice
aThat any other information supplied in the invoice, such as marks, numbers,
transportation information, etc. it is consistence with that of the other documents
aThat the currency of the invoice same as the L/C
aThat the value of the invoice corresponds with that of the draft
aThat the value of the invoice does no exceed the available balance of the L/C
aThat the invoice covers the complete shipment as required by the L/C (if no part
shipments are allowed)
aThat if required by the L/C, the invoice be signed, notarized, legalized, certified, etc.
aThat the information relative to the shipment, packaging, weight, freight charges or
other related transport charges corresponds with that appearing on the other documents
aThat the correct number of original(s) and copy (ies) is presented.

04. Transport Document.

Ensure:
aThat the date of transport document within the date of shipment as per L/C
aThat the full sets of original is issued & presented
aThat the it is not a forwarder’s transport document unless it is authorized in the L/C
under UCP 600
aThat the name of the consignee is as required in the L/C
aThat if the transfer document requires endorsement it is appropriately endorsed
aThat it bears the of the shipper or his agent
aThat the name & address, if any, of the notifying party is as required in the L/C
aThat the description of the good generally corresponds to the description of the goods
as stated in the L/C, and the marks and numbers as well as other specifications, if any,
are identical to those appearing on other documents
aThat the indication of ‘freight prepaid’ or ‘freight collect’ costs, as required by the terms
of the L/C
aThat there are no clauses on the transport document that may render “foul” or “unclean”
(UCP600 )
aThat all other condition stipulated in the appropriate transport articles of UCP 600 are
compiled with

05. Inspection Certificate

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Ensure:
aThat the inspection firm nominated in the L/C, if any, issued the certificate
aThat the is signed
aThat the complies with the inspection requirements of the L/C
aThat it contains no detrimental statement as to the goods, specifications, quality,
packing, etc. unless authorized by the L/C.

06. Insurance Document

Ensure:
aThat the policy/ certificate/declaration/ cover note, as required by the L/C
aThat the full set of insurance document issued is presented
aThat the issued & signed by the insurance company or underwriter or their agents, and
the assured, if so required by the insurance document
aThat the date of issuance or date from which cover is effective at the latest from the
date of loading on board or dispatch or taking in charge of goods, as the case may be
aThat the value of the goods insured is as required by L/C or as defined in UCP 600
aThat the goods description corresponds with that of the invoice
aThat it covers the merchandise from the designated port of embarkation or point of
taking in charge to port of discharge or point of delivery
aThat it covers the specified risks as stated in the L/C and that the risks are clearly
defined
aThat the marks and numbers, etc. correspond with those of the transfer document
aThat if the assured named is other then the confirming bank, issuing bank or buyer, it
bears the appropriate endorsement
aThat all other information appearing on document is consistent with that of other
documents
aThat if any alteration is noted in the document it is properly authenticated.

07. Other documents.

a) Certificate of Origin
Ensure:
aThat it is a unique document and not combined with any other document
aThat is signed, notarized, legalized, and visaed as required by L/C
aThat the data on it is consistent with that of other documents
aThat the country of origin is specified, and that it meets the requirement of the L/C
b) Weight list / Certificate
Ensure:
aThat it is a unique document and not combined with any other document
aThat it is signed if a certificate is called for or as otherwise stated in the L/C
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aThat the data on it is consistent with other documents

c) Packing List
Ensure:
aThat it is a unique document and not combined with any other document
aThat it corresponds with requirement of the L/C. A detail packing list requires a listing of
the contents of each package, carton, etc. and other relevant information
aThat the data on it is consistent with that of other documents

d)Other Miscellaneous Documents

UCP 600
--When documents other then transport documents, insurance documents and
commercial invoices are called for, the Credit should stipulate by who such documents are
to be issued and their wording or data content. If the credit does not so stipulate, bank will
accept such documents as presented, provided that their data content is not inconsistent
with any other stipulated document presented
--It should be noted that when L/C requires a document to be issued as a “certificate”, the
document must be signed.

Lodgement of Document.
q If on scrutiny, the documents are found in order, lodge them.
q If any discrepancy is noticed or there is any deviation from the terms and conditions of
L/C the same should be noticed immediately to the importer for his written instructions
as to whether he will accept the document or not. Simultaneously issue a “Notice of
Discrepancy” to the Negotiating bank within 5(Five) working days from the following
date of receipt the documents, the nature of discrepancies, asking them to refund the
amount together with interest from the date of negotiation to the date of refund the
same. If the Negotiating bank is to get reimbursement from another bank abroad, also
advise immediately the reimbursing not to accept reimbursement claim of Negotiating
bank until further instruction.
q Particulars of the documents to be entered in the separate page or separate ‘Inward
Foreign Bills Register’ under the head ”Foreign Bills Under Reserve”
q If importer refuses to accept the documents with the discrepancies, intimate the
Negotiating bank immediately regarding non-acceptance of documents. At the same
time the Negotiating Bank that the bank is holding the documents on collection basis at
their risk & responsibilities.

Procedure of Lodgement:
Ø After scrutinization, if it found in order, the officer concerned will brand a rubber stamp
“Checked & found correct” which will be followed by his initial.

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Ø Amount in foreign currency to be converted into Bangladesh Taka with exchange rate (B.C.
Selling rate) prevailing on the date of lodgment.
Ø Particulars of the documents to be entered into the “Inward Foreign Bills Register” FEX-B-8.
This Register is maintained currency wise and the bill number to be inserted in all the pages
of the shipping documents.

Vouching ( for Sight L/C);

a) Lodgment Voucher (FEF-26, in a set of 11 vouchers)

Dr. = PAD A/C (Payment against Document)
(Bill amt. + Negotiation commission (if any))
Cr. = SBG A/C (FCMD, HO)
Cr. = Exchange A/C

b) Liability Voucher (FEF-20)

Liability voucher to be reversed which was originated at the time of opening L/C.
Dr. = Acceptance for constituents A/C for L/C
Cr. = Constituents Liability for L/C

c) FET Schedule ( in set of 10voucher)

FET schedule to be prepared since the transaction with Head Office has been made.
1st five copies of FET Schedule along with the 1st four copies of lodgment vouchers to
be sent to HO, Dhaka.

Vouching ( for Deferred L/C);

a) Acceptance Voucher
Dr. FBC( Foreign Bills Collection) A/C
Cr. FBL (Foreign Bills Lodged) A/C

b) L/C Liability Reverse Voucher

Dr. Acceptance for constituents A/C for L/C
Cr. Constituents Liability for L/C

Send the Acceptance letter.

c) Lodgment Voucher (FEF-26, in a set of 11 vouchers)
Dr. PAD A/C (Payment against Document)(Bill amt. + Negotiation commission (if any)
Cr. = SBG A/C (FCMD, HO)
Cr. = Exchange A/C

d) Liability Voucher (FEF-20)

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Dr. FBL A/C

Cr. FBC A/C

FET Schedule ( in set of 10voucher)

Recording:

Ø Particulars of liability voucher to be entered in the L/C Liability and Margin Ledger FEx-B-3
Ø Particulars of FET to be entered in FET Register (Katcha Register) before sending it to Head
Office, Dhaka. One copy of FET Schedule to be sent to Reconciliation Division, H.O.
Ø One copy of Lodgment voucher to be sent to importer and he will be asked to retire the
documents immediately.

Retirement of Documents

On receipt of the copy of lodgment voucher from the bank, the importer will deposit the required
amount and take delivery the Shipping Documents. This stage is known as Retirement of Import
Bills.
Ø Before retirement of import bills, the L/C opening bank will calculate the charges which are to
be realized and prepare the retirement voucher;
Cr. = PAD A/C
Cr. = Interest A/C
Cr. = P & T charges Recovered A/C
Cr. = Stationery A/C
Dr. = Marginal Deposit A/C (against the concerned import L/C)
Dr. = Importer’s C.A/C.
Ø Particulars of amount realized from the importer to be entered into the ‘Inward Foreign Bills
Register’ FEX-B-8
Ø Particulars of Margin Voucher to be entered into L/C Liability and Margin Ledger (FEX-B-3).
Ø Documents to be handed over to the importer on proper acknowledgement after certification
& endorsement (where necessary) of the documents.

Certification of Invoice:
Invoice to be certified a follows because the Custom Authority will impose Custom Duty on
the certified amount.
“Certify that the invoice amount is US$_____________ equivalent to BDTK______________
@ TK________ per US$ 1.00 (one)

Manager/Authorized Officer
Endorsement on bill of exchange:
“Received Payment”
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For Sonali Bank, Ltd……..Br.

Manager/Authorized Officer
Endorsement on Bill of Lading:
“Please deliver to the order of M/S ____________(name of the Importer)

For Sonali Bank Ltd,……..Br.

Manager/Authorized Officer

Monthly Returns:
On the last working day of the month, returns of Bills lodged during the month through IMP form
to be sent to Exchange Control Dept. of B. Bank.
Disposal of IMP form

Original = From L/C opening Bank to B. Bank after lodgment of

documents
Duplicate = To be filed by the L/C opening bank with Exchange control
copy of Bill of Entry submitted by the importer after
clearance the goods from the custom authority
Triplicate = Office copy of L/C opening Bank
Quadruplicate = From L/C opening bank to B. Bank if the importer does
not retire the documents

Posted 7th November 2012 by Unknown

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