What are the maximum period of export credit now?


Ans. The time limit to repay the export credit has been extended from 180 days to 270 days in case of export of frozen foods, tea and leather.


What is the present limit of export credit? 

Ans. Now bank can extend export credit facility up to 90% of Export L/C value to an exporter.


What is the procedure to allow export credit to a first time applicant?

 Ans. In order to encourage new comers in export sector, commercial banks will consider their proposal with priority basis. The C.C. limit of the exporters will be considered on the basis of their export performance of preceding year. This will not be subject to any general credit squeeze measure. 



What procedure & precaution to be followed for export on consignment/delivery sale?

  Ans. As per exchange control regulation act only non traditional items can be send on consignment basis. Export of goods on consignment sale basis require prior permission from exchange control authorities. In case of sale on consignment basis the exporter must have sufficient knowledge regarding financial status of the agent. The exporter signs an agreement with the import to act as agent.


Write down different payment terms of export?

Ans. i). Advance payment.

ii). Cash against Document (CAD).

iii). Consignment Sale.

iv). Document against acceptance (D/A).

v). Document against payment (D/P)

vi). Documentary usance bill.

vii). Letter of Credit.



What is the prescribed period for receiving payment against export?

Ans. The period prescribed by Bangladesh Bank for receiving payment of export proceed is four months. If receipt of export proceed is delayed beyond this period without any special or general Authorization from Bangladesh Bank, the authorized dealer would be penalized under Foreign Exchange Regulation Act 1947.



Which organizations are exempted from registration with CCI&E?

Ans.  i). Government Departments.

ii). Recognized Educational institutions.

iii). Hospitals.

iv). Statutory bodies or local authorities.



What are the documents required for shipment of goods?

  Ans. i). EXP form in quadruplicate duly signed by the exporter & certified by the banker with seal.

ii). Copy of ERC, L/C & firm contract.

iii). Freight certificate in case of CFR contract.

iv). Railway Receipt/Barge Receipt/Steamer Receipt evidencing dispatch of goods from up country to the port of shipment.

v). Shipping instruction. vi). Insurance policy to cover the transit risk.            



what are the documents required to obtain ERC from the office of CCI&E?

Ans. i). Nationality & asset certificate of the proprietor/Director.

ii). Registered partnership deed in case of partnership firm.

iii). Memorandum & Articles of Association with Certificate of Incorporation in case of a limited company.

iv). Bank Certificate.

v). Income Tax return certificate.

vi). Copy of valid Trade License.

vii). Copy of Rent Receipt of the business premises.

viii). Membership certificate  of a Trade Association.

ix). Affidavit from 1st class Magistrate.

x). Any other certificate as required in the policy.



Which points need to be borne while making a contract?

  Ans. i). Description of the commodity.

ii). Quantity of the commodity.

iii). Price of the commodity.

iv). Shipment.

v). Insurance & marks.

vi). Inspection.

vii). Arbitration.



What precautions bank should follow prior certification of EXP form?

  Ans. Before certification of EXP form, bank have to take following precautions:   i). Arrangement has been made for realization of export proceeds within the stipulated time.  

ii). Arrangement has been made for receipt of title of goods like B/L or Airway Bill etc. by the bank on shipment of the goods.

iii). An undertaking to be obtained from the exporter to the effect that he will be personally liable for repatriation of export proceeds.

iv). Bank have to ensure that the foreign buyer is bonafide one & credentials.   v). Bank have to made necessary queries regarding business relationship between exporter & importer.

  vi). Goods are permissible for exports and the destination is not blacklisted by the Government.   vii). Special care should be taken for shipment by charter party.



What are steps for negotiation of export documents?

Ans. On receipt of export documents, bank should ensure that the documents are prima facie correct & in accordance with the terms of the credit. Than for negotiation following steps to be followed:  

i). Preparation of checklist.

ii). Lodgment of documents.

iii). Preparation of negotiation letter.

iv). Preparation of accounting entries.

v). Dispatch of documents to foreign correspondents. On proper scrutiny bank have to prepare an offering letter & necessary approval to be obtained from the competent authority for negotiation.   Full particulars of the documents should be entered in the FDBP register. These should also be recorded in the party wise export ledger. Details of negotiation should than be endorsed on the back of the original export L/C.   FDBP rubber stamp with FDBP serial number should be affixed to all the pages of each document including EXP form.

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