1. How many categories of goods & commodities under import policy?

  Ans. Goods & merchandise are divided into four categories. These are:

• List of banned items for import.
• List of restricted items which may be imported under fulfillment of certain terms & conditions.
• Foot Note: This list contains further conditions with regards to import of items on banned list and the conditional list.
• Freely importable items: Unless otherwise stated all items which are not banned to import or restricted under certain terms & conditions.

  Note: For import of banned or conditional items, ‘No objection’ certificate to be obtained from Ministry of Industry/concern sponsor ministry/department or both for import by public sector agencies.  

1. Which organization/institution does not required to be registered with CCI&E to import?

  Ans. In case of following organization/institutions, registration is not required with CCI&E:

• Government departments.
• Local bodies & statutory authorities.
• Recognized Educational institutions.
• Hospital.
• Import of goods which does not required remittances of foreign exchange.
• Reading materials & medicines for personal use within permissible limit given in the policy in force.

1. What are the procedure to import by Government Departments?

  Ans. Ministries & Government departments may import goods against specific allocation given to them by Ministry of finance & subject to clearance from foreign Exchange Department of Bangladesh Bank. No LCAF, IMP or clearance permit are required for their imports.  

1. How many digit in ITC code?

  Ans. Minimum 8(Eight) digit number to be contained as per ITC code to be included in LCAF, LC & other documents.

1. What are the restriction on resource of goods and use of career?

Ans. Imports from Israel as well as goods produced in Israel are prohibited. Import can not be made through Israel flag vessel. Exports to and import from Serbia & Montenegro are also prohibited.

1. Write down the source of fund to be used for import?

Ans. Following are the source for import:

• Bangladesh’s own foreign exchange reserve.
• FC account of overseas Bangladeshis.
• Foreign Aid (Commodity, Aid, Grant etc.)
• Commodity exchange – Barter & special trade agreement.

1. What is the significance of LCAF?

Ans. LCAF issued by the importers Bank. LCAF is like proxy of import license. It means that no separate Import license is not required from the Import Trade Control Authority.

1. In which cases LCAF or LC is not required?

  Ans. LCAF or LC is not required in following cases except permit or clearance permit:

• Import of Books, periodicals, magazines, journals, scientific and laboratory equipments against UNESCO coupons.
• New and old plant and machinery less than 12 years old.
• New & old cars not more than 4 years old.
• Steel & wooden passenger or cargo vessel of all descriptions either new or not more than 15 years old. Ocean going vessels up to 20 years old.
• New as well as old sea fishing vessels and trawlers not more than 20 years old.
• Goods importable under baggage rules.
• Import of samples and advertising materials or specific to certain financial limits as mentioned in the import policy.
• Import of capital machinery contribution to the share of capital of foreign partners under joint venture industries.

1. In which cases IRC is not required to import?

Ans. In order to import capital machineries and initial spares to set up a new industry, IRC is not required to open L/C.

1. What are the documents required to submit with LCAF?

  Ans. Following documents are to be submit with LCAF:

• LC application form duly signed by the importer.
• IMP form
• Copy of Proforma Invoice/Indent duly accepted by the Importer.
• Valid IRC with copy of challan evidencing last renewal of IRC.
• Income Tax Return Declaration.
• Insurance cover note.
• Undertakings required by the bank to open the L/C (if any).

1. What are the Time limit of shipment?

  Ans. In case of capital machinery, import shall have to be made within 17 months & for other goods, shipment shall have to be made within 9 months from the date of issuing LCAF. For import under foreign aid, import shall be made as per specified time limit mentioned in the L/C.

1. When LCAF required registration? Which copies of LCAF required to submit to CCI&E?

  Ans. Normally LCAF not required registration but if the L/C opening bank intends to buy foreign exchange from Bangladesh Bank, than LCAF to be registered with the Registration unit. Registration with Bangladesh Bank is not required for L/C open under foreign aid or grant.   Authorized Dealers will have to submit 3^rd & 4^th copy of LCAF to the CCI&E.  

1. Write down the procedure to quote ITC number?

  Ans. The bank should take all precautions to quote correct ITC number (H.S. code) of the goods to be imported in LCAF & L/C. Failure to do so may lead the penalty by the Customs Authority.

1. What is the time limit for opening of L/C?

  Ans. Unless otherwise stated, L/C should be opened within 150 days from the date of issue or registration of LCAF.  

1. Write down the additional clause bank need to include in case of opening of L/C of scraped ship?

  Ans. While processing L/C for import of scraped ship, bank must ensure that the following clauses besides standard clauses must be incorporated in the L/C:

• Certificate abut ownership of the vessel and that the seller or his agent has legal right to transfer the vessel from the original register of the vessel.
• Evidence that the vessel is free from any charge & necessary non encumbrance certificate from the registering authority or the country of registration of the vessel has been obtained.
• That there is no maritime lien against the vessel. (Affidavit or other documents from the seller)
• Sellers confirmation that there is no order of attachment or injunction from any court of law against the vessel must be obtained.

1. In which cases credit report of the supplier is required?

  Ans. In case of Proforma Invoice submitted by the direct supplier, if the L/C value is for Tk. 2.00 lac, credit report of the supplier required to be obtained. In case of submitted indent by the local agent of foreign supplier, if the L/C value is for Tk. 5.00 lac & above, credit report of the indenter or foreign supplier to be obtained.

1. What do you mean by endorsement on LCAF?

  Ans. When the L/C is opened, its particulars must be endorsed on the back of the exchange control copy of the LCAF under the stamp and signature of the authorized official of the Bank. The taka equivalent of the L/C opened must be endorsed on the LCAF at the ruling BC selling rate (spot) but if a forward exchange cover is provided the conversion should be made at the actual forward rate.

1. What are the major documents called for under a L/C?

  Ans. 1). Signed commercial invoice in duplicate, certifying the country of origin of the goods, description, quality, quantity, grade & unit price, the LCA form number and indenters registration number with Bangladesh Bank.   2). Bill of Exchange or Draft. The Draft must bear the notation “Drawn under issuing Bank L/C No. … Dt…. & thereof endorsed by the negotiating bank.   3). Full set of “clean shipped on Board” ocean B/L endorsed to the order of the bank showing freight prepaid.   4). Insurance policy number & date.   5). Compliance certificate of other terms and conditions, if any.   6) PSI Certificate. (If required)  

1. What is the due time to submit Bill of Entry? Why Bill of Entry to be matched with IMP form?

  Ans. Bill of entry to be submitted within 4 months from the date of expiry of L/C. If the importer fails to do so the concerned importer promptly report the same to the area Exchange Control Office of Bangladesh Bank for further necessary action against the defaulting importer.   When the importer submit the exchange control copy of the Bill of Entry/Customs Certified Invoice, its particulars should be matched and checked with those in the IMP form and invoice to see that the merchandise for which remittance was made had been duly received in Bangladesh.  

1. What are the documents required to obtain IRC from the office of CCI&E?

  Ans. Initially:   i). Income Tax Return Certificate.