1. What is the limit of Cizium-137 for different items?

• Acceptable limits of radioactivity for milk powder, milk food and milk products is 95 bq of CS-137 per kilogram and that for other food items is 50bq of CS-137 per kilogram. The level of CS-137 in an item shall be calculated in the state it reaches the port without being liquefied, concentrated or processed. In case of local items, the level of CS-137 in an item shall be calculated in the state it is marketed. The highest acceptable limit of radioactivity levels may be revised by the government from time to time.

2. Can you import any second hand /recondition capital machinery, Generator, ship, Car….. How much old

• Second-hand/ reconditioned capital machineries & generators or generating set used in industry shall be importable without any price limit but a certificate from a surveyor enlisted, nominated or appointed by National Board of Revenue to the effect that each machine has at least 10 (ten) years economic life except generators or generating sets, must be submitted along with Bill of Lading.
• In case of import of generators or generating sets, certificates containing age not more than 5 (five) years of the equipments from the appropriate authority of exporting country
• Import under Pay-As-You-Earn-Scheme in the following cases only on the basis of clearance of the Bangladesh Bank:

(i) New or not exceeding ten years old plant and machinery of permissible specification;

(ii) New or not exceeding five-year-old motor cars;

(iii) Cargo or passenger vessel of steel or wooden bodies, including refrigerated     vessel of any capacity either new or not exceeding fifteen years old: Provided that in case of ocean going old ships, not exceeding twenty-five years old shall be importable;

(iv) Import of plant and machinery for export-oriented industrial units with the clearance of the competent sanctioning authority, wherever necessary;

(v) Trawlers and other fishing vessels, either new or not exceeding twenty   five years old: Provided that for import under this scheme the sanctioning authority of such import shall forward a copy of sanction letter to the Chief Controller and the importer shall apply to the CCI&E along with necessary papers for prior permission

3. From when you will get permission to import Gas cylinder

• Importable with clearance certificate from the Chief Inspector of Explosives.

4. What is ERQ quota for service exporter

• 5%

5. What is the name of official currency of IMF

• SDR (Special Drawing Rights)

6. What is SDR

• One unit SDR equal to the weighted average of US Dollar, Euro, Pound-sterling and Japanese Yen

7. About different types of LC

• Revolving Letter of credit
• Transferable Letter of credit
• Back-to-back Letter of credit
• Red Clause Letter of credit
• Standby Letter of credit

8. What is clean LC

• A LC in which the beneficiary neither need nor submit documents for his export.

9. What is single & multimodal transport documents

• Single Modal Transport Document –this type of transport document is normally applicable to a carriage of goods only by one mode (such as air, rail, waterway etc.).
• Multimodal /Combined Transport Document-The Multimodal Transport document is applicable for the carriage of goods by more than one mode of transports. This document may indicate either dispatch or taking in charge of the goods or loading on board as the case may be. Transshipment is normally allowed for multimodal transport document

10. What is transshipment

• Transfer of a shipment from one carrier, or more commonly, from one vessel to another whereas in transit.
• Transshipments are usually made (1) where there is no direct air, land, or sea link between the consignor’s and consignee’s countries, (2) where the intended port of entry is blocked, or (3) to hide the identity of the port or country of origin.
• Because transshipment exposes the shipment to a higher probability of damage or loss, some purchase orders or letters of credit specifically prohibit Also spelled as transhipment.

11. What of Noting & Protesting

• When a bill or negotiable instrument is dishonored, the holder presents the bill to Notary Public for noting, which is nothing but the fact of dishonor of the bill etc. as recorded by Notary public who usually presents the same bill/instrument to the drawee/acceptor for acceptance/payment. If it is again dishonored, the notary Public notes down in the register the date of such dishonor and reason thereof, if any, given by drawee/acceptor for doing so. The holder may gat such dishonor noted by Notary public on the bill or upon a paper attached to it. This is called noting.
• The Notary Public after noting the fact of dishonor in his register, issues a formal certificate in this matter to the holder and this certificate is known as ‘Protest’ which acts as an evidence of dishonor of a bill in the court of Law.

12. Type of Shipping documents

• Transport Documents
• Commercial Invoice
• Insurance Documents
• Other Documents

13. What is insurance documents

• The insurance document is a contract between the insurer and the insured whereby former in consideration of the payment of premium from the latter agrees to indemnify the later against loss incurred in respect of goods exposed to the particular peril insured against.

14. Type of Institute clauses (Insurance)

• A policy becomes a complete set of documents only when appropriate clauses are attached. Three alternatives sets of clauses, covering different types of perils are available for attachment. These are

ICC (A) – Maximum coverage and Premium

ICC (B)

ICC (C) -Minimum coverage and Premium

• ICC (A) covers all risks excluding war, SRCC, inherent vice, wear and tear, will full mistake.

15. What is the meaning of DEDO

• Duty Exemption and Drawback Office

16. How can we determine cross rate

• A cross rate may be defined as an exchange rate that is calculated from two other rates.
• If both currencies involved in the cross transaction are quoted in the same form divide the spot rate of one currency by the spot rate of other currency.
• If one currency is quoted in one form and the other currency is quoted in another form, multiply the spot rate.
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17. Explain about different types of Foreign Exchange accounts

• Nostro Account-Our account with you (SJIBL A/C with HSBC NY A/C, SJIBL A/C with Wells Fargo NY A/C)
• Vostro Account-Your account with us (HSBC NY A/C with SJIBL A/C, Wells Fargo NY A/C with SJIBL A/C)
• Loro Account-Their account with them (HSBC NY A/C with Wells Fargo NY A/C)

18. Explain about different types of Foreign Currency accounts

• CUSTOMER FC A/C OF THE BANK
• Private Foreign Currency Account:
  1. FC A/C for Non-Resident Bangladesh (Bangladesh Nationals residing in abroad)
  2. FC A/C for Foreign Nationals (Residing abroad or in Bangladesh)
  3. FC A/C for Foreign Firms (Registered in abroad and operating in Bangladesh or abroad)
  4. FC A/C for Diplomatic Bonded Warehouse
  5. FC A/C for local & joint venture contracting firms (Temporary)
  6. FC A/C for resident Bangladesh nationals working with Foreign Firms/International bodies
  7. FC A/C for Initial Public Offerings (IPO) (Temporary)
• Non-resident Foreign Currency Deposit (NFCD) Account
• Resident Foreign Currency Deposit (RFCD) Account
• Exporter’s Retention Quota (ERQ) Account
• FC A/C for EPZ Companies.

·       ASSET A/C OF THE BANK

1)          FC Cash Holding (FC in Hand A/C)

19. What is FEX Risk

Value of a currency changes frequently

Affects firms engaged in international trade transactions

Assets, liabilities and cash flows are affected through in exchange rates

Possibility of unfavorable changes (Risk)

20. What is CHIPS

• Clearing House Inter-bank payment System in New York

21. What is Maturity

• Schedule for payment of usance or deferred bill. The date on which a bill of exchange, promissory note falls due for payment.

22. What is Off-shore banking.

• The banking reflects dealing the foreign customer with the foreign currency.

23. What is SWAP

• Definition: simultaneous purchase and sale of a fixed amount of one currency against another for different value dates
• Involves a spot and a reversing forward FX; if spot is a purchase, forward is a sale and vice-versa
• Example: 3-month USD/JPY swap

Buy USD/JPY spot and sell USD/JPY 3-month forward

• Value dates may be two different forward dates, i.e., a forward swap

24. What does UCPDC say regarding LC & Contract

·       Credits v. Contracts

A credit by its nature is a separate transaction from the sale or other contract on which it may be based. Banks are in no way concerned with or bound by such contract, even if any reference whatsoever to it is included in the credit. Consequently, the undertaking of a bank to honor, to negotiate or to fulfill any other obligation under the credit is not subject to claims or defenses by the applicant resulting from its relationships with the issuing bank or the beneficiary.

• A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank.
• An issuing bank should discourage any attempt by the applicant to include, as an integral part of the credit, copies of the underlying contract, proforma invoice and the like. (Article-4)

25. What specific requirements are to be observed by issuing bank in regard to “Other documents” while opening LC by issuing bank

• By whom “other documents” are to be issued and their data contents should be stipulated in the credit, otherwise, banks will accept the documents as presented if its contents appear to fulfill the function of the required document.
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26. Which bank is ultimately responsible for Payment and any loss of interest

• Issuing Bank

27. What is the liability of a bank in regard to absolute genuineness or falsified of documents, Mail dispatch of documents and Act of God?

• A bank assumes no liability or responsibility for the consequences arising out of delay, loss in transit, mutilation or other errors arising in the transmission of any messages or delivery of letters or documents, when such messages, letters or documents are transmitted or sent according to the requirements stated in the credit, or when the bank may have taken the initiative in the choice of the delivery service in the absence of such instructions in the credit. (Airticle-35)
• If a nominated bank determines that a presentation is complying and forwards the documents to the issuing bank or confirming bank, whether or not the nominated bank has honoured or negotiated, an issuing bank or confirming bank must honour or negotiate, or reimburse that nominated bank, even when the documents have been lost in transit between the nominated bank and the issuing bank or confirming bank, or between the confirming bank and the issuing bank. A bank assumes no liability or responsibility for errors in translation or interpretation of technical terms and may transmit credit terms without translating them. (Airticle-35)
• A bank assumes no liability or responsibility for the consequences arising out of the interruption of its business by Acts of God, riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control. (Airticle-36)

28. What are the different forms through which a document may be authenticated?

• Unless a document indicates otherwise, a bank will also accept a document as original if it:

1. appears to be written, typed, perforated or stamped by the document issuer’s hand; or
2. appears to be on the document issuer’s original stationery; or

iii.         states that it is original, unless the statement appears not to apply to the document presented.

• If a credit requires presentation of copies of documents, presentation of either originals or copies is permitted.
• If a credit requires presentation of multiple documents by using terms such as “in duplicate”, “in two fold” or “in two copies”, this will be satisfied by the presentation of at least one original and the remaining number in copies, except when the document itself indicates otherwise. (Article-17)