Export and Import Procedure

-Md. Khairul Alam Chowdhury, FVP

Business Operations Division
Import Policy Order 2015-2018
Nine Chapters & four annexure
1st Chapter: Introduction
2nd Chapter: General rules for import
3rd Chapter: Import Fees
4th Chapter: Miscellaneous provisions
5th Chapter: General rules for industrial import
6th Chapter: Rules for commercial import
7th Chapter: Rules for public sector import
8th Chapter: Import Trade Control Committee
9th Chapter: Membership of CC&I
Annexure-1: List of controlled and restricted items
Annexure-2: Procedure for import on joint basis
Annexure-3: List of chemicals allowed for import
Annexure-4: List of CoC and Trade Associations
 General rules for import
All items except in the restricted list are allowed for
import
Import from/product of Israel and import in Israel
flag vessel is NOT allowed
Use of 8 digit HS Code is mandatory
Import at competitive rate
Docs required along with LCAF for opening LC:
Customer’s Application (CF-7), PI/Indent, Insurance
Cover Note, Certificate of Membership from Trade
Association, Renewed IRC, Declaration on payment of
income tax of last FY, proof of e-TIN and other docs
as required by the regulatory authority
Export Policy – 2015-2018
Target export income by 2021 is USD 60 billion
12 Highest Priority sectors
14 Special Development Sectors
There are some banned and restricted items for export
mentioned in Annexure-1 & 2
Incentive for the exporters:
ERQ
EDF
Back to Back LC
Loan with reduced interest rates
90% advance against Export LC/Contract
 Guidelines for Foreign
Exchange Transactions 2009
 Import
Import control:
Ministry of Commerce
Import Policy Order (IPO)
Dealing with known customer
 Import
LC Authorisation Form
Appropriate Incoterm
Use correct HS Code
Credit Report
Payment of discrepant documents
Bill of Entry
 Export

Registration of exporters with CCI&E

Declaration by the exporter to the Customs
Authority to be made in EXP Form
Opening & Operation of
Documentary Credit
 Payment Terms
There are four main payment/settlement terms:
1. Payment in advance
2. Documentary credits
3. Documentary collections
4. Open account
What is a Documentary Credit
A Documentary Credit is an irrevocable undertaking
issued by a bank whereby it undertakes to make
payment to a beneficiary, provided that the
documents stipulated in the documentary credit are
presented, and all of its terms and conditions are
complied with.
Structure of a basic DC transaction
 Notes to the figure
1. Contract is agreed between Buyer (Applicant) & Seller
(Beneficiary) indicating DC as a method of settlement
2. Applicant applies to its bank for DC
3. Issuing Bank issues DC and advises it through a bank
known as ‘Advising Bank’
4. Advising Bank advises the DC to Beneficiary
5. Beneficiary makes shipment of the goods
6. Beneficiary presents documents to the Advising Bank
also known as ‘Nominated Bank’
7. Advising Bank sends documents to the Issuing Bank
8. Issuing Bank determines that the documents comply,
debits the Applicant’s account, handover the
documents to the Applicant for taking delivery of the
goods & reimburses the Advising/Nominated Bank
9. The Nominated/Advising Bank effects settlement to
the Beneficiary
Types of Documentary Credit
Commercial documentary credit
Standby letter of credit
Characteristics of Documentary
Credits
Revocable documentary credit
Irrevocable documentary credit
Irrevocable confirmed documentary credit
Transferable documentary credit
Back-to-Back documentary credit
Clean documentary credit
Advance payment (red clause) documentary credit
Revolving documentary credit
Evergreen and annually renewable documentary credit
Risk of Documentary Credits
Risks faced by an applicant:
 Non-delivery of goods
 Short-shipment or shipment of inferior goods
 Goods received by applicant before documents received
by the issuing bank
 Loss or damage to goods in transit
 Foreign exchange risk
Risk faced by a beneficiary:
 Failure to comply with documentary credit conditions
 Failure of, or delays in payment from, the issuing bank
 Fraud
 Foreign exchange risk
Q&A
Thank You