Course: SCM 450

Section: 01
Group: 04
Summer 2020
Date of Submission: 26th September, 2020

Submitted To

Submitted By
Name ID
Amrin Azmine Sara 1711306630
Mahin Rahman Tisha 1712636630
Marjana Hossain Jeba 1712109030
Md. Abu Bakar Siddike 1530596030
Nur Mohammad 1621445030
Safayat Ahmed 1712263030
Zawad Bin Mahbub 1711573030

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Acknowledgement

Successfully completion of any type of project requires help from a number of persons. It is always a
pleasure to remind these fine people for their sincere guidance and selfless help.
First of all, we would like to express our gratitude to Almighty Allah for enabling us to complete the
report on “Procurement and Sourcing of Auto Museum Ltd from Abroad”.
After that we want to convey our sincere gratitude to our academic instructor Md. Mofassel Hossain
(MOF), Lecturer of Department of Management, North South University. Without his kind direction
and proper guidance this study would have been a little success. In every phase of this report his
supervision and guidance sharped this report to be completed perfectly.
Moreover, a heartfelt thanks to Md. Rafsan Rafi Mozumder, the owner of Auto Revolutionary Ltd for
providing all the information related to the import process of Harrier cars and the support he gave to
us.
At the end, a heartiest thanks to all groupmate- Amrin Azmine Sara, Safayat Ahmed, Zawad Bin
Mahbub, Md. Abu Bakar Siddike, Mahin Rahman Tisha, Marjana Hossain Jeba and Nur Mohammad
for our contribution to complete this project on time.

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Executive Summary
Global sourcing and procurement, quite a popular term in today’s competitive and evolving business
world, is the buying process of business where materials and products are being sourced over the
country’s boundaries to gain competitive edge. Our Company, Auto Museum Limited, a renowned
dealer in the automobile market. We import numerous brands and a range of luxuries cars to meet
the compelling demand of our customers. This report shows the complete overview of the global
sourcing and procurement process of Auto Museum Limited in a relevant manner.

The report is based on primary data, where a virtual interview session was held with industry expert,
Revolutionary Limited and rendered information on several aspects of the automobile industry
regarding importing cars from abroad. Along that, the aid of second data and findings from various
articles, journals, websites of Auto Revolutionary and other online sources is also taken.

The report gives brief information as precisely as possible about the background of Auto Museum
Limited, how we do Sourcing planning, market research, solicitation process, managing vendors to
facilitate the centralized procurement process. Along with that, following sustainability factors by
taking supplier diversification, ethical and social responsibility concerns, and green procurement into
consideration. Also, financial outlook particularly banking involvement for foreign transactions and
governmental compliance to import is broadly discussed here.

All things considered, the group members put our most effort to analyze and solicit appropriate
information making the report more informative. Besides, the resemblance of the class lessons and
learnings is being tried to implement with the real business scenario.

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Acknowledgement 2
Executive Summary 3
● Introduction: 5
a) Business Background: 5
b) Objective and scope of the study 6
c) Methodology 6
d) Limitations 6
1. Planning for Global Procurement and Sourcing Functions 7
a) Market Research 7
b) Solicitation 7
c) Consolidation 8
d) Technological Advancement 9
e) Vendor Management 9
2. Sustainability Concerns 10
a) Supplier Diversity 10
d) Green Procurement 11
2. Landed Cost Analysis 13
3. Letter of Credit 16
4. CONCLUSION 18
5. Reference 19

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 ● Introduction
Auto Museum Ltd inaugurated in 2017. From the very beginning we import the highest quality vehicles
from Japan, Germany & UK. We have a widespread collection of both the Brand New and Recondition
cars in our showrooms. All our three showrooms are located in the most important commercial center
and managed by a team of smart, efficient and qualified workforce. The brand and range of Vehicles
we deal in are mostly Toyota which is the choice of majority users and the most popular brand in this
Country. We also deal in other reputed Brands like Mazda, Honda, Mitsubishi, Hyundai, Nissan, BMW,
Lexus, Mercedes Benz, Audi, Volkswagen, Jaguar, Hummer, Cadillac, Land Rover, Massarati etc. Auto
Museum imports Sedans, luxury Saloon cars, wagon, SUV and MPV etc. We are proud to be one of the
country dealers of Mitsuoka Motor co ltd in Bangladesh.

a) Business Background
Primarily the name of the company was a sole proprietorship company namely M/S Auto Museum.
After two years of successful operation We became incorporated under the Companies Act 1994. We
are also one of the members of Bangladesh Reconditioned Vehicles Importers and Dealers Association
(BARVIDA). BARVIDA is the only National Trade Organization for reconditioned vehicles importers.
BARVIDA is also a Member of the Federation of Bangladesh Chambers of Commerce and Industry
(FBCCI). With over three years’ worth of history in sales and distribution of nearly every kind of
imported Japanese recondition vehicles with quality after sales service, our company has made a
significant impact in the market. It's very inspiring for us that in the journey of three years we are
competing with big importers.
We import our quality vehicles from world famous company Cross Continent Corporation. Who buys
the best quality, good condition and high graded cars from all reputed auctions of Japan.
Apart from this we are planning to set up a hybrid car service center in our country which will also be
the first ever ISO certified hybrid car service center in our country.
our annual import volume in terms of quantity is over 70 vehicles of different models. Latitude of our
business is increasing on a daily basis and we became an icon in the recondition car business in
Bangladesh. We have built up a social circle of solid business communication in Bangladesh. Apart
from this we are also known for our customer satisfaction and transparent dealings.

❖ Mission:
Holding the position of trendsetter in luxury car business
❖ Vision:
In diversified vehicle market segments, we set out our vision as a pioneer that reacts to all rising
consumer needs.

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 b) Objective and scope of the study
❏ How to start importing business in Bangladesh
❏ Learning the import process of reconditioned vehicles
❏ How to choose a supplier
❏ How a trading transaction can be done via banking channel
❏ How to deal with customs department
❏ How to analyze landed cost

c) Methodology
In order to finish this report, we collect all our necessary information from Auto Revolution
Bangladesh. They provide us with a brief idea about the industry. We arranged three extensive online
knowledge sharing sessions on google meets. Their honorable Managing Director & CEO Md. Rafsan
Rafi Mozumder joined those sessions and shared his valuable knowledge and insights with us.

d) Limitations
● Reconditioned car importers facing major pull back due to the boost of local assembly
backed by the government.
● Due to sales drop reconditioned car importers in trouble
● Recondition car market is also going through an unstable situation as the government
introduced discriminatory policies between the brand new and recondition car import.

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 1. Planning for Global Procurement and Sourcing
Functions

a) Market Research
In market research, we give more effort to identify accurate suppliers. We do not depend on the third-
party researcher. We conduct our souring process through our higher executive and employees
because it gives us more reliable information. When we make a supplier list, then we try to contact
them through email. We also have a market research team. This team always tries to collect car price,
demand, and which reconditioned branded cars have most consumer demand. Through this research
we set our pricing strategy, advertising strategy, import strategy, distribution centers, supplier’s
selection, etc. We always evaluate our car's price and compare it with our respective competitors to
set a perfect price for our new, existing, and loyal customers. We always try to put effort into market
research to find the exact demand. We are utilizing the internet and other online platforms for our
market research.

b) Solicitation
Solicitation Process
Solicitation is the process of seeking information, proposals, and quotations from suppliers through verbal,
written or electronic documents (Supply Chain Resource Cooperative, 2011). Preparation of solicitation
documents covers the process of assembling and formalizing the information and documentation
necessary for potential suppliers to prepare responsive and easily comparable offers (UN Procurement
Practitioner's Handbook, 2012). Auto Museum Limited is one of the biggest suppliers of Toyota Harrier
cars in Bangladesh. We import Harrier cars from Japan. As a result, we have to make explicit and thorough
solicitation documents of various Japanese suppliers who export Toyota Harrier cars. To do this task we
follow the United Nations Procurement Practitioner’s guideline. The important steps of our solicitation
process are depicted below through a flow chart.

Selection of Clarifications/ Amendments

solicitation offer to solicitation
documents conferences documents

Preparation of Issuance of
content for silicitation
solicitation document
document

Finalisation of Approval of
solicitation solicitation
documents document
Figure: Steps of Solicitation process (UN Procurement Practitioner's Handbook, 2012)

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Solicitation Method
Various methods of solicitation can be used like- request for quotation, request for proposal, request
for information, invitation to tender and so on for procurement based on circumstances. We use
request for proposal (RFP) as a solicitation method. The product (Harrier) is commercially available
but price is not the only consideration. So, we have to evaluate other factors like- grade of car, new
or recondition, miles run, production year, legal documents and so on. As a result, Request for
proposal (RFP) is the best method for us. Important steps of request for proposal (RFP) are mentioned
below through a graph.

Develope Involve Send RFP to Ensure RFP

Set goals to etailed and senior multiple pre- provides all
be achieved realistic mananageme qualified required
timeline nt in decision suppliers informations
making

c) Consolidation
We centralized all our sourcing and procurement departments to connect all lead segments quickly
and easily. For this reason, we can gain some benefits like-
Saving Cost- We procure our all products centrally and with a big amount to take the lower-price
advantage.
Reduce Lead Time- We give orders to the supplier at a single time rather than multiple times. So, it
reduces and saves our lead time and brings the products at a time.
Maintain Strong Relationship with Supplier- We always keep contracts with our valuable suppliers
and exchange information to maintain a strong relationship with our suppliers. It is also beneficial for
our business.
Lower Acquiring and Transaction Cost- We centrally operate all our big transactions and orders. As a
result, we can monitor all the transactions accurately which reduce accruing and transaction costs.
Store Data in Online- We store every data in our online secure database system and when needed,
we permit our suppliers to access some information from this database for business purposes.
Reduce Risk- We have fewer reliable suppliers in our business to reduce risk and maintain our profit
margin.

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 d) Technological Advancement
Our higher authority can perform the entire whole procurement process. Advanced technology can
make Auto Museum Limited 's procurement process quicker, more reliable, and more effective.
a) We use technology like a rating system. We give our suppliers rating according to its products'
quality and service in the E-Sourcing process. So, we can easily find out our respective suppliers.
b) We use an advanced tracking system to track our products quickly and depart facility from suppliers.
c) In the import process time, we use the HS code. This code is used to resemble the order that was
first and foremost assigned by the supplier. It can evaluate the proper order and incorrect shipment
that should be prevented.
d) We apply SWIFT to research, acquire, and assign to the bank of our suppliers the financial all deals
and details we need through Bangladesh Bank.

e) Vendor Management
Vendor management is the process that empowers an organization to take appropriate measures for
controlling cost, reducing potential risks related to vendors, ensuring excellent service deliverability
and deriving value from vendors in the long-run (Patowary & Doshi, 2018). It can seem simple when
the number of vendors is small, but the complexity ratchets up as the number of vendors and
purchases gets higher (Kissflow, 2019). Many large companies use different advanced software or
enterprise resource planning (ERP)- SAP, Oracle or Lotus to manage our large pool of vendors.
Auto Museum Limited is not that big in size and has a medium pool of vendors. As a result, we do not
have any ERP or sophisticated software to manage our vendors. Our vendor manager performs the
vendor management task manually and by using some simple and available software. The vendor
manager does all the analysis of the vendors like our agility, how quickly We respond, time needed,
capabilities, performance and all other important analysis. The steps we follow to manage our vendors
are shown below with a diagram.

Select Share Create a win-

vendors with Build trust information win
common goal and priorities agreement

Continuous Performance Look for

improvement evaluation long-term
relationship

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2. Sustainability Concerns

a) Supplier Diversity
The term supplier diversity is a strategy which is used in business. It’s a process which ensures that all
suppliers get right and co-equal opportunities within a supply chain.
⮚ The business diversity of the automobile industry helps to build a strong industry. Small
owners and suppliers can help each other fairly.
⮚ Small Firm owners can get fair chances and be successful as well. It creates supply chain
opportunities and it is applicable for us.
⮚ In that case, we want to build a wide supplier base network. We think these kinds of supplier
diversity helps to serve various kinds of customers. The network will be stronger.
⮚ From the interview of Auto-Revolution Bangladesh, we get to know that they don’t follow
supplier diversity within the networks. Whatever they can get, they utilize the opportunities.
In the future maybe, there is a chance to use supplier diversity to more powerful the business
strategy. Although we are trying to follow the supplier diversity within our network.

b) Ethics in Procurement and Sourcing

Ethics and procurement are related with each other. Ethics refers to accurate and right practice of the
profession. Supplier selection, term and agreement, contracts, rewarding all are included in
procurement. It’s essential to keep the words in business and provide services according to the
contract. Ethical behavior helps to go long run and maintain a good relationship with suppliers.
Different types of Unethical behavior ruin professionalism and unity. Different organizations give
ethical training to establish the business. Inspecting and auditing helps to identify ethical issues.

⮚ We in our company strictly try to maintain our ethical practices. Ethics depends on an
individual's morality. Suppose one customer books one model of car and another day is the
delivery date. The supplier may change the parts of the car and doesn’t give the same part as
the customer booked. The supplier received the money according to the model but didn’t give
the same parts as he was committed. It’s a matter of ethical issues and we strictly try to
maintain our ethical values with our valuable customers.
⮚ The sources of the materials also matter. Giving the right grade car to the customer helps to
maintain our ethics. If we cannot satisfy our customers with quality, the business won't be
competitive in the long run. Trusting each other is essential to maintain ethics.
⮚ Giving Ethical training can help to remove ethical problems. We have regular inspection and
auditing sessions. Automobile companies face ethical issues related to changing models,
grade, parts and other invisible minor changes but we believe serving and satisfying our
customers is our main concern. So, maintaining our standard and following all the ethical
aspects strictly is our responsive behavior towards our customers.

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 c) Social Responsibility in Procurement and Sourcing
Social responsibilities and Procurement are related with each other. When an individual's actions,
moral behaviors affect the supply chain. Procurement management is related with social activities
practices, policies, behaviors, duties, and actions. Social responsibility is related to ethics as well. For
practicing social responsibility, we should focus on few facts,
● Product safety
● Human right
● Respect each other in the working field.
● Environment.

We believe these can help us to reach our goals. Only technological support but not giving our best
performance in social responsibility don't bring any fruitful result. The focus should be on regular social
activity. Lack of practices of proper social behavior can be the barriers to reach the goal and question
for our sustainability.
⮚ Social responsibility affects the full procurement system and supply chain as well. Lack of
proper practices of social responsibility hampers the supply chain network. Social
responsibility practice starts from the sourcing and ends with the consumer. In this full process
every social activity is essential to stay long run in the market and make profit.
⮚ In procurement management systems, relationships with suppliers are also necessary to
practice social responsibility. Different policies, agreements, demands, actions depend on it.
Any party’s negative practice of social activities can hamper the overall images and reputation.
In the business unity, maintaining community is not just a word. Inappropriate manner or
activity doesn’t bring any good consequences.

d) Green Procurement
Sustainable procurement is following sustainable development values, such as the creation of a safe,
stable and just society, the promotion of good governance and environmental protection. In order to
make any decision about purchasing, sustainable procurement is an approach that considers
economic, environmental and social sustainability. We also follow sustainable procurement policy.
Green management practices (GMP) offer an organization additional information sources to improve
its business and environmental goals. The use of green management practices helps to enhance
corporate visibility, enhance performance, improve the environment, save money, meet social
commitments and reduce carbon emissions, etc. It is quite strict in terms of carbon emission, lethal
emission. We don’t purchase more than 5 years old cars. We only purchase the latest car which is not
more than 5 years old. We don’t need to use chemicals that cause harm to the environment. We make
environmentally conscious decisions while purchasing and also direct the suppliers to do the same.
The packing and carriage system reduce the causes of environment pollution. So, our purchasing
process falls under ‘’Green Purchasing’’. The Green Procurement Guidance addresses specific
environmental practices in areas such as controlling and reducing the environmental risks of harmful
substances and effective use of resources or electricity, as well as how we deal with our suppliers.
Moreover, the Basic Purchasing Agreement, which we conclude individually with every vendor,
ensures legal and regulatory enforcement by requiring that the suppliers "comply with the applicable
laws and regulations, directives and other guidelines.

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Cultural Considerations
It is critical to understand the outcome of the cultural environment on International Business. Because
international business comprises people from different cultures, every business. When we are
managing individuals from another culture, we may find that our strategic policies, correspondence,
and the executive’s styles are unique in relation to those to which we are acclimated. Understanding
the way of life of the individuals with whom we are managing is essential to fruitful business
associations and to achieving business targets. Some major factors of cultural consideration by Auto
Museum Limited is given below –
● Use of Language: As we purchase cars from Japan so understanding that languages and
different nuanced aspects of them are a concern. Since a lot of time the person sitting at the
other side of the table might not know English very well, that is why we studied and learned
those languages to get connected. We speak and use these languages carefully while talking,
meeting and dealing with them. Moreover, in our country there are differences in language
usage. our employees are trained to address the dealers in remote parts of the country
accordingly.
● Cultural Difference: Culture difference is an obvious issue. We study and learn and also travel
to understand our vendors’ native language and customs. And also, the local customs in our
country. We are very respectful in that way. In house training is done on a regular basis for
this.
● Religion: It is a very complex and sensitive issue. Our employees and management people are
trained to address our suppliers respectfully. We also maintain the holidays of religious
festivals. We send greetings and wishes according to the suppliers’ religion and are
sympathetic to the idea. In general, we follow a secular way to handle and behave according
to the situation demands.
● Education: Education difference is very low among our suppliers. Japan has a high literacy rate
so in those cases it is easy. But in Bangladesh, conducting with remote and local dealers and
vendors require a bit tighter approach since literacy is very low here.
● Use of Technology and Materials: Japan has extensive and proper use of material and
technological wealth and rural, urban disparity is almost nonexistent but Bangladesh doesn’t
have proper use of material & technological wealth and rural, urban disparity is very high.
● Market Potential: The market potential for reconditioned cars is huge in Bangladesh and to
meet the supplies Japan plays a strong supplier role which benefits all the parties and of
course us.

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 2. Landed Cost Analysis
The landed cost analysis is to calculate the total cost to accumulate, buying a product from a supplier
place till it is in the buyer’s hands (Anderson, 2016). This process includes the price of acquiring the
product, plus cost things like tax on the product, insurance for that, currency conversion, ordering
cost, shipment cost and handling fees. The landed cost is typically applied on internationally shipped
items. Here, the cost structure is presented in a brief view.

Product: Toyota Harrier, Model:2015, Grade:04(International: B), Type: SUV, 2000CC

The negotiation starts for any required recondition car from submitting an inquiry form to a Japanese
auto auction where it’s forwarded to a listed Auction agent. After depositing a bidding secured money
and agent bid for a target price. If the agent wins the auction for the car, the agent delivers the auction
sheet. After the confirmation, Pro-forma Invoice sends to the buyer where the actual price, terms of
shipment and other necessary information are stated.
Total Invoice Value: US $20,040
Actual Price: $20,000
Pre-export inspection: $150
Insurance free: $200

CNF Value: Actual Price of Freight Costs Insurance Cost = $21,890

Ordering Cost:
USD BDT
L/CAF/L/CA/IMP/TM 500
L/C Value $ 1,832,805.00
21,690.00
L/C Margin (5%) $
1,084.50
L/C Commission (15%) 274,920.75
Vat on Commission 41,238.11
(15%)
SWIFT Charge 2,000.00
Vat on SWIFT Charge 300.00

Total L.C Fee

2,151,763.86
The ordering cost includes all the costs associated with the bank and commission for opening a L.C in
order paying the supplier. Through opening a L.C the bank of buyer moves the payment to the seller’s
bank. We do all the transactions through our selected bank, City Bank Limited. L/C Application Form
duly signed by the importer, Proforma Invoice obtained from the foreign supplier and showing invoice
and request for swift transfer. The cost to confirm the supplier associated cost opening a L/C is given.
L/C fee: The time when a L.C is being processed to open, the contingency liability is passed to seller
account while keeping cash security from the client and other charges to facilitate the service

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Insurance Cost: The marine insurance, safeguards further contingencies during the shipment process.
The insurance premium is generally 1% of the purchasing price of the product which is $20040*1%=
$200 which is also paid through the bank.
Port and Custom Clearance
Once the shipment of the car reaches its destination port, the next step comes in, is customs
clearance. This involves paying the necessary import tax and duty (Bangladesh Customs,2020).
Number of necessary documents will be needed to ensure the whole procedure is smooth. The tax
rate for the imported Toyota Harrier will be implied, is given a breakdown of those accounts. The
amount has to be cleared at the customs of destined Chittagong port.
The import tax caL/Culation is 212.12% applicable on our specific imported model, 0.3% commission
on assessment value which is 5447.75tk to port agent and jetty landing, survey fee, Assessment fee,
labor charge, bank charge, Cargo unstuffing expense, Mise. Expenses altogether 20,000 tk. After being
paid all the amount, the shipment gets discharged from port.

Assessable Value 1,838,760.00

Rate(%
Item Taxes Tax Base Amount(TK)
)
Custom Duty
(CD) 1,838,760.00 25.00 459,690.00
Regulatory
Duty (RD) 1,838,760.00 3.00 55,162.80
Supplementary
Duty (SD) 2,353,612.80 100.00 2,353,612.80
Value Added
Tax (VAT) 4,707,225.60 15.00 706,083.84
Advance
Income Tax
(AIT) 1,838,760.00 5.00 91,938.00
Advance Tax
(AT) 4,707,225.60 5.00 235,361.28
Total Item
Taxes 212.20 3,901,848.72
Bill of Entry CaL/Culation
Total Invoice Value USD $20040
Exchange Rate 84.50
Total Other Cost
(Insurance + Freight) 1850.00
Total Assessable
Value 1,838,760.00

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Shipping Cost:
The income for the shipping method or terms we follow is FOB. This follows that the seller from Japan
is responsible for transportation of the product to the port of shipment, Port of Osaka and the cost of
loading which is attached to the product price (“What does FOB”,2019). The seller drives the risk to
the buyer of the product when the goods are loaded at the originating port. The shipping cost
comprises the insurance cost, custom inspection fee, international banking fee, Ground transport and
destination fee. The freight cost by sea transportation, Ro-Ro shipment cost is $1500, and other costs
including inspection fee, port warehouse fee for keeping the car until delivered. A third-party
transportation agency manages all the activities for international shipment. The shipment usually
takes 19-24 days to arrive

Inbound Logistics Cost:

After the successful rigorous compliance from the customs, the car gets its clearance from the port
office. The inbound logistics cost incurs the cost driving the vehicle itself from Chattogram port to
Dhaka where fuel cost, driver cost and other maintenance cost is associated. The cost usually takes
10,000 Tk for consideration.

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 3. Letter of Credit

Letter of credit is also referred to as L/C. L/C is very important for the import export process. As we
are working with reconditioned cars L/C plays a vital role in the overall import process. L/C is basically
a payment system. Including Bangladesh lots of other countries need to go through this process for
business purposes. L/C is known as a secured and trusted method in terms of payment for import
export procedure. Basically, it gives us a guarantee for payment in this method. This method is the
most trusted method from all other methods. Banks are directly involved in it. While doing import
export business, getting the money in hand is very uncertain. L/C payment method is the simplest way
for a local and international business to eliminate all the risk factors.
To create a L/C account at first, all the export and import related certificates and documents need to
be presented in the bank.

Bank generally take this following step before opening the L/C:
(1) Application: On the behalf of us, the bank will open L/C.
(2) Registration of the importer: Before opening the L/C in the Bank, the bank will verify that
if we are authentic importers or not.
(3) Approved Items: There are some factors regarding importing items. From those factors if
the items can be imported is a concern. Some items are banned and some items have
conditions in importing, so before importing we will have to assure that. As we’re importing
reconditioned cars so there should be mention about the car Grade.
(4) Current Market Situation: Its banks concern to verify marketability of those imported items
and the other factors. Like, price, availability and etc. We will have to mention the auction
validation and other price indications.
(5) Sufficient Security or margin: the tax margin and the prices of cars does not fluctuate
frequently still that should be mentioned.
(6) Restricted Country: Goods not to be imported from Israel. As we are importing from Japan
so that’s not a problem.
(7) Application procedure: We will approach to open the L/C in the Bank's given form, duly
stamped & signed, along with the following papers & documents.
I) Indent/proforma invoice
II) Insurance cover note with money receipt.
III) L/CAF duly filled in & signed.
IV) Membership certificate from chamber of commerce/Trade Association.
V) Tax payment certificate/declaration.
VI) IMP & TM form signed by the importer
VII) Charge documents.
VIII)IRC, Pass book, Trade license, Membership certificate & VAT registration certificate
in case of new client.
IX) Export L/C in case of Back to Back L/C.

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From the Import trade control this are some following information about our L/C:
1) L/C Number: Our L/C number is 0885 20 01 0001.
2) Place & Date of Issue: We have issued our L/C from Dhaka Bangladesh in 20. February 2020.
3) Shipment date: Our last shipment date is February 19, 2021. After that our L/C will expire and
we will have to renew that.
4) Applicant: M/S Auto Museum Limited
5) Beneficiary: Car from Japan Co. Limited.
6) Port of shipment & port of destination: From Tokyo, Japan to Chattogram, Dhaka.
7) Documents required:
o Trade License
o IRC (Import Registration Certificate)
o VAT Registration certificate
o TIN
o Bonded Warehouse License
o Declaration of income tax of previous year
o Credit report of the Supplier
o NOC from previous Bank
o Collateral security documents
o Other documents/papers directed by Bangladesh Bank/CCI&E/Related office of
Bangladesh Govt.
8) Payment: All our transactions and payments will be handled through City bank online
payment.
9) Bill of lading: B/L is issued and endorsed in the City Bank.
10) Bill of exchange: Bill of Exchange is drawn on the respective Bank.
11) Special conditions: While handling the vehicles it is highly recommended to check special
conditions and act according to that.

Charges, Commissions and Fees

L/C Amendment commission Amendment of L/C
L/C Cancellation charges Cancellation of L/C
Discrepancy Charges Informing discrepancies
Acceptance commission Acceptance of deferred L/C
DD/PO commission Local payment
Stationery charges Opening Import L/C
IRC renewal fee Renewal of IRC
Other charges Any time
L/C opening commission Opening of L/C

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 4. CONCLUSION
The aim of this report is to know and implement the whole importation process of a particular product
in this report. Analyzing the procurement and sourcing process of different automobile companies,
we can conclude that our company AML has a Centralized procurement system through which we
source all of our vehicles from abroad. Apart from this we also operate our own service center for our
customers. We are also planning to set up a hybrid car service center in Bangladesh which will also be
the first ever ISO certified hybrid car service center in Bangladesh. Lastly, in the process of
procurement and sourcing from abroad the commitment and accountability of every single
stakeholder is the only way to avoid any illegal event as close supervision is not possible in this process.

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 5. Reference

Import L/C. (2010). Trade Finance. Retrieved from Pubali Bank Limited:
https://www.pubalibangla.com/Import-
L/C.asp?fbclid=IwAR1kEKonCGph2t_Dm_aPHzucjSIrD85A98m42p9vfACLdiEora878Cq4PSk
Import Trade (L/C) Full Procedure. (2020). Bankessentials. Retrieved from Bankessential blog post:
https://bankessentials.blogspot.com/2013/05/import-trade-L/C-full-procedure-
chapter.html?m=0
Kissflow. (2019, February 5). Procurement Cloud. Retrieved from Kissflow Web site:
https://kissflow.com/procurement-process/vendor-management/vendor-management-
process-guide/
Patowary, J., & Doshi, V. (2018, December 5). Supplier Management. Retrieved from ZYCUS Web
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Company Details are retrieved from http://www.automuseum.com.bd/about-us
National Trade Organization of Country's reconditioned vehicles importers details
information gathered from http://www.barvida.com.bd

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