IMPORT BILLS: LODGEMENT & RETIREMENT:

Write down the first steps on receipt of import documents?

Ans. On receipt of import documents, bank have to ensure following measures:  

i). Full set of original shipping documents has been received as stipulated in the credit.

ii). Documents have been within the exporters country on or before the expiry of the credit. The Bill of lading/Air Transport Bill/Railway Receipt/Post parcel receipt not later than date of expiry of L/C.

iii). The amount drawn does not exceed the amount of credit.

iv). The credit has not been amended or subject to any notations or special instructions which might alter the value or character of the credit.

What are the basic documents accompanied with import documents?

  Ans. i). Bill of Exchange

ii). Invoice

iii). Bill of Lading

iv). Insurance Documents.

v). Certificate of Origin.

vi). Inspection Certificate.

vii). Any other documents.

What are the steps of lodgment?

Ans. On checking of import documents, if the documents found in order & accepted by the client than bank will go through following steps for lodgment:   i). Intimation should be given to the party in time.

ii). Conversion of foreign currency in BDT currency.

iii). Entry in PAD Register, along with PAD number.

iv).  Entry in L/C opening Register by rounding the L/C number with date.

v). Relative LCAF to be endorsed showing the utilization of credit amount. The utilized amount also to be noted in the L/C Register.

vi). IMP forms duly signed by the importer are to be filled in. vii). Passing of vouchers:   * Reversal of contra liability vouchers i.e. Bankers liability for L/C ………Dr.                                                            

Customers liability for L/C……..Cr.

• Debit PAD (At B.C. selling rate)
• Credit H.O. ID
• Credit I/A, Exchange earnings.

What do you mean by Retirement? What are the steps of Retirement?

Ans. Retirement means removal on receipt of full payment of the bills from the customer or liability transfer to the Trust Receipt if it is approved by the concern authority. Steps of retirement(without TR facility) are as follows:

  i). Calculation of Interest.

ii). Determination of other charged.

iii). Passing of vouchers.

iv). Entry in to the Register.

v). After retirement, document along with custom purpose copy of LCAF to be delivered to the importer giving following endorsement.

• • Draft/Bill of Exchange is to be endorsed as “Received Payment”
  • The invoice value is to be certified as “Certified USD… converted @ ….Dt. …. Tk……”
  • The bill of lading/Transport document is to be endorsed for taking delivery of goods as “please deliver to ……….. or to the order of M/S………..”