SCM450 LC and TTI

Section- 1, Group-7
Submitted to- Md. Mofassel Hossain
Lecturer, North South University
Name ID
Ahnaf Nurul Azim 1811977630

Akib Zabed 1812088030

Salim Sadman Mozumder 1812516030

Md. Rafiur Rahman Rahi 1812822630

Fariha Mehzabin Noshin 1821468030

A. M. Abrar Uddin Abir 19119050030

 SCM450

Letter of Credit

Foreign Exchange Branch

L/C No.12345678

Date : 12/04/2021

Application and Agreement for Irrevocable Letter of Credit

I/We would request you to please open an irrevocable Letter of Credit through your correspondent
by o Mail/Air Mail o Wire in full o Wire in brief, details by mail, Airmail as follows:
Beneficiary’s Name : Address : 72, SHANTINAGAR, DHAKA-1217
MODERN IMPORTS LTD.

By order of and for account of: Address : Do

SALIM SADMAN

LC amount: USD 650,000 o At sight: o CFR o FOB 0 By Negotiation

0 By Acceptance
In words : Six Hundred Fifty o Days Usance o CIF o
0 By Payment
Thousand Dollars Only
For Shipment of: 1000 PIECES ONE PLUS PHONE Country of Origin
SMARTPHONE CATEGORY CHINA
(Please specify commodity only. Omit details as to grade, quality, price etc.)

Documents required as Indicated by CHECK (X)

0 Commercial Invoice in Sextuplicate 0
Special Customs Invoice in Dyplicate
0 Packing List in Sextuplicate
Certificate of Origin Issued by
XINYOUGHAI CO
0 Pre-shipment Inspection Certificate Issued by MF CORPORATION
0 Other Documents N/A
(Specify the name of the Issuer)
0 Full set of clean "Shiped on Board" Ocean Bill of Lading/Airway Bill/Truck Receipt/other documents relating to
shipments drawn or endorsed to the order of Shahjalal Islami Bank Limited showing freight pre-paid/freight to
pay marked notify us and your Bank.
0 Shipment from CHINA to BANGLADESH by AIR

Name and Address of the Insurance Company

NATIONAL LIFE INSURANCE CO.
KAWRAN BAZAR, DHAKA
Part shipment 0 Allowed O Prohibited Transhipment O Allowed O Prohibited
Last date of Shipment: Date of Expiry: Time period for presentation of
26/4/2021 26/4/2021 Documents 10 days

Other terms and conditions, if any

The Security Agreement on the reverse is hereby unconditionally acceptable to the undersigned and made
applicable to this application and the Letter of Credit
Helal uddin Salim Sadman 14200054321
Signature of Guarantor (if any) Signature of Applicant (s) Account No.
BANK USE FOR ONLY

LC Amount Margin Signed by

 SCM450

TTI Calculation

Total Tax Incidence (TTI) for OnePlus phone

Description H.S. Quantity Price Per Total

CODE Unit Amount

Telephone sets, including Telephones for 8517.12.11 1000 $650 $650,000

cellular network or for other wireless

networks, such as voice, image or other data

including apparatus for (such as local or wide

area network) other than transmission or

reception apparatus…

The above harmonize system code as

mentioned for the items: smartphone

Brand: OnePlus

OnePlus, product place of origin China, SRO-ref: Cellular (mobile/fixed) set display 4.5” up to

(8GB ROM + 1GB RAM).

Port of lading: Any port of China, by air.

Port of discharge: Dhaka Hazrat Shahjalal Airport.

Transshipment: Allowed.
 SCM450

All the frightening charges of the goods will be taken care and the liabilities by the beneficiary

company before entering Bangladesh ground. No third-party involvement allowed.

Total amount in BDT (650,000$ * 85 BDT)

= 55,250,000 BDT.

Duty Calculation of importing OnePlus Phone

Duty structure of Synthetic materials (Cellular/ Smart Phone) or HS code: (8517.12.11)

according to the Bangladesh customs:

CD (Custom Duty) 25%

RD (Regulatory Duty) 3%

SD (Supplementary Duty) 0%

VAT (Value Added Tax) 15%

AIT (Advance Income Tax) 2%

ATV (Advance Trade VAT) 5%

Now,

• AV or Assessable Value is 55,250,000 BDT.

• CD= AV*10% = (55,250,000 * 10%)

= 5525000 BDT.

• SD=(AV+CD+RD) *0% = 0 BDT.

 SCM450

• RD= AV*3% = (55,250,000 * 3%)

= 1657500 BDT.

• VAT=(AV+CD+RD+SD) *15%= (55,250,000 + 5525000 + 1657500 + 0) *15%

= 62,432,500 BDT.

• AIT= (AV*2%) = (55,250,000*2%)

= 1,105,000 BDT.

• ATV= (AV+CD+RD+SD) *5%= (55,250,000+5525000+1657500+0) *5%

= 3,121,625 BDT.

Therefore, TTI (Total Tax Incidence)

=(CD+RD+SD+VAT+AIT+AT)

= (5525000 + 1657500 + 0 + 62,432,500 + 1,105,000 + 3,121,625

= 73,841,625 BDT.

So, the TTI for 1000 OnePlus phone is 73,841,625 BDT.