Foreign Trade (Antibiotic)

Ø  Export proceeds must be repatriated within …………..  Months from date of Shipment.

4

Ø  How many articles are in UCP-600?

39

Ø  Bill of entry will be overdue after

120 days

Ø  Maximum tenure of PAD

21 days

Ø  In case of industrial LCA shipment validity is ————— months.

17

Ø  Maximum tenor of a ULCBB is

180 days

Ø  Maximum permissible PC is

15% of FOB value

Ø  Annual travel quota for release of foreign currency in a calendar year is?

USD 12000

Ø  The ADs may obtain short term loans and overdrafts not exceeding ………. at a time from overseas correspondents at the going market rate to meet their short term needs.

7 days

Ø  Import of goods into Bangladesh is regulated by ……………. in terms of the Import and Export (Control) Act, 1950 through Import Policy Order (IPO) in force

The Ministry of Commerce

Ø  Import Policy Order (IPO) and Public Notices are issued from time to time by

      Office of the Chief Controller of Imports and Exports.

Ø  In case of import of items other than capital machinery and spares the LCAF remains valid for remittance for

12 Months

Ø  Bond License issued by

Customs

Ø  What is the responsibility of an advising Bank?

                        To confirm the authenticity of a LC

Ø  Bill of entry is the proof of

Payment complied with value of goods.

Ø  For examining documents concerned bank has maximum-

5 banking days

Ø  What is the name of the latest revision of incoterms

Incoterms 2010

Ø  How many types of Incoterms

11

Ø  Import & Export policy is issued by

Ministry of Commerce

Ø  What is the Time Limit for Shipment of Goods from LCAF issue date or registration date for any commercial items?

9 Months

Ø  Validity of IRC/ERC is

1 year

Ø  What is the initial amount for the persons other than non-resident Bangladeshis to open a NFCD A/c?

USD25000

Ø  ERQ stands For

Exporters’ Retention Quota

Ø  Minimum parties of L/C

4

Ø  Shipping Documents means?

All documents except DRAFT

Ø  In case of export, single customer exposure may be—————- of banks total capital.

50%

Ø  Commercial invoices must appear to be issued by the

Beneficiary

Ø  The AD will issue LCAFs in sets of …………… copies each.

5

Ø  Up-to what percentage an exporter can retain Foreign Currency in ERQ Account?

10%

Ø  How many methods are using in import trade?

4

Ø  What is the message type for using LC in Swift Operation

700 of 701

Ø  Packing Credit is a popular means of

Pre shipment export financing

Ø  What is the elaboration of URR

Uniform Rules for Reimbursement under documentary credit

Ø  For examining documents each bank have maximum

5 banking days

Ø  Issuing Bank’s liability is

Primary

Ø  For purchase of foreign currency for import payment, application must be made to AD in which of the following for?

IMP

Ø  How many sections are there in the Foreign Exchange Regulation Act?

27

Ø  Back to Back LC should be

Usance LC

Ø  Major RMG export from Bangladesh to

Europe

Ø  Which one is not included in funded credit?

LC

Ø  An incoming passenger can bring

    Upto US$. 5,000.00 without declaration

Ø  Which of the following belongs to pre-shipment credit?

Back to Back LC

Ø  Generally which bank makes initial payment to the exporter after receiving the documents?

The Negotiating Bank

Ø  L/C is an undertaking of making payment given by

Opening Bank to Consignor

Ø  What does ‘UPAS’ stand for

Usance Payment At Sight

Ø  FMJ Reporting: For

USD 5000 or more (Cash Carrying) (FOREX Related)

Ø  Exp Form

04 set

Ø  Travelling Quota for SAARC USD5000/- outside SAARC USD7000/-

Ø  When FMJ Form Required– to carry more than USD5000

Ø  Limit of EDF-20 million for single borrower

Ø  Post Import Finance= LBPD

Ø  BB L/C allowed up to 80% of Net FOB value (including PC)

Ø  Inco Terms published by –ICC (International Chamber of Commerce)

Ø  B2B L/C is Generally  -Usance L/C

Ø  Validity of LCAF-180 days from the date of  shipment

Ø  Retention Quata is 10% of Net FOB Value.

Ø  Global Private entitlement is US$12000/- during a Calendar year (USD5000/ within SAARC & Myanmar & US$ 7000/ to travel other Countries.

Ø  UPAS L/C can enjoy only manufacturer/Industrial Unit only (It is one kind of Refinancing and Tenor 180 days, they should have Bonded ware House License).

Ø  Forex Risk can avoid by- Hedging.

Ø  The Opposite of Hedging is Speculation.

Ø  Bill of Lading is-a Transport Documents/Title to the Goods/Quasi Negotiable Instruments.

Ø  Normal Grace Period for Bill of Lading is 03 days

Ø  Documentary collection is relatively risky for

Beneficiary

Ø  Which one of the following is most preferable to the exporter?

Cash in advance

Ø  Commercial Invoice is issued by

Beneficiary

Ø  In LC process the nominated bank is

Exporters choice

Ø  URR 735 is the regulatory framework for-

Reimbursement in LC operation

Ø  Charges of the advising bank is commonly beard by-

Exporter

Ø  Who are the main parties of a confirmed credit-?

Issuing Bank, Confirming bank, Beneficiary

Ø  Which one of the following is not party of documentary credit?

Confirming bank

Ø  What triggers settlement order documentary credit?

Presentation of complying documents by the beneficiary

Ø  An exchange rate is the price of-

a). Local currency in terms of foreign currency

b). Foreign currency in terms of Local currency

c). Other currency expressed in terms of another currency

d).  All of these

Ø  Which of the following exchange rate is applicable for LC-

OD Sight

Ø  A credit opened on the basis of an original credit in favour of another beneficiary is called-

Back to Back Credit

Ø  An exporter sells goods overseas on FOB and CIF Inco terms respectively. Who is responsible for the freight and other charges in each?

Importer (FOB)/Exporter (CIF)

Ø  Nominated bank is legally the agent of-

Exporter

Ø  Back to Back LC should be-

Usance LC

Ø  Who is responsible for issuing Bill of lading?

a). Shipping company

b). Shipping company agent

c). a & b

d) None of these

Ø  International banking includes-

a). Trade payment

b). Trade finance

c). Foreign Exchange

d). All of these

Ø  In documentary collection, exporters present documents to the counter of-

a). Issuing bank

b). Nominated bank

c). Negotiating bank

d). Remitting bank

Ø  LIM is a-

a). Post import financing technique

b). Pre import financing technique

c). Pre shipment financing

d). Post shipment financing to the exporter

Ø  Documentary collection is relatively risky for-

a). Exporter

b). Importer

c). Buyer

d). Beneficiary

Ø  Documents are in order in LC if documents are in accordance with

a). LC terms

b). UCP 600

c). ISBP 745

d). All of the above

Ø  In UCP 600 , Importer or Buyer is called as

Applicant

Ø  Which one is the most preferable to an importer?

Open Account/consignment sale

Ø  Which one of the following is a financing technique?

Back to Back LC

Ø  Of the following which one is the most popular type of LC in Bangladesh?

Transferable LC

Ø  Which one of the following is true

Documentary collection is guided by URC 522

Ø  Which of the following banks purchases/ discounts export bill under LC?

Nominated Bank

Ø  Which of the following is an ICC GUIDELINE?

a). FERA 1947

b). Import Policy

c). Export Policy

d). Incoterms 2010

Ø  Which of the following is the major foreign currency earner in the country?

RMG

Ø  LTR is an example of

Post Shipment finance

Ø  In the context of foreign exchange transactions, minimization of risk means

Hedging

Ø  Which of the following is an export financing technique?

Packing Credit

Ø  Most commonly used transport document in the country is

Bill of lading

Ø  The main service of the offshore banking units in the country is

UPAS LC Service

Ø  LCAF means

Letter of credit authorization form

Ø  According to EXP proceed needs to be realized with in

4 Months

Ø  Import policy order and export policy are published by

Ministry of Commerce

Ø  In Bangladesh LC can be issued by

Authorized dealer

Ø  Which of the following is true in regard to documentary credit?

a). Issuing bank can also be an advising bank

b). Issuing bank may negotiate

c). Nominated bank may honour

d). Presenter is responsible to negotiate documents

Ø  Foreign Exchange Regulation Act-1947

Ø  Import & Export Control Act 1950

Ø  The Bills of Lading Act-1856

Ø  Customs Act – 1969

Ø  PC (Packing  credit) facility is allowed to a customer, interest@ %

7

Ø  In case of foreign trade in Bangladesh which payment method is widely used:

Documentary Credit

Ø  Import policy is issued for-

3 Years

Ø  Before certifying EXP, AD should ensure that the exporter is registered with CCI&E.

True

Ø  In Import related transactions, Authorized Dealers buy foreign currency

False

Ø  Money changers can maintain FC account with Bangladesh Bank.

False

Ø  Who issues LC Authorization Form

Authorized Dealer(AD)

Ø  What is the responsibility of an advising Bank?

To confirm the authenticity of a LC

Ø  Which is not a currency as per FERA 1947?

Bill of Lading

Ø  Which kind of LC is generally opened under Export LC?

BBLC

Ø  What is the LC value for which credit report is mandatory for opening of LC against indent?

10Lac and above

Ø  Which of the following is not among the main/core parties of LC-

Advising Bank

Ø  As per CFR term, who covers the cost of main carriage-

Exporter

Ø  What is the opposite of EXW in terms of obligations from the exporter’s point of view?

DDP

Ø  Forex return statement represents

Total foreign Exchange transaction

Ø  Export business should be routed through-

AD

Ø  Back to back LC has…….parties

3

Ø  Who are the parties involved in performing custom formalities?

C & F Agent

Ø  FERA-1947 is applicable for

Bangladesh Citizens

Ø  How much FC in USD may be effected from ERQ Account as Advance payment for import purposes?

USD1000

Ø  What is the second highest export earning product of Bangladesh ?

Shrimp and Frozen food

Ø  Below which is the example of Demand loan.

PAD

Ø  Regulatory Frame work of International Trade-

UCPDC-600, URC-522, URR-725, INCOTERMS-2010

Ø  IRC & ERC issued by: CCI&E

Ø  Which risk  is mainly  managed by Treasury Division-

Liquidity, Exchange Rate, Interest Rate Risk

Ø  Which one is specifically used for RMG financing?

PC

INCOTERM:

EXW – Ex Works

FCA – Free Carrier (named place of delivery)

CPT – Carriage Paid To (named place of destination)

CIP – Carriage and Insurance Paid to (named place of destination)

DAT – Delivered at Terminal (named terminal at port or place of destination)

DAP – Delivered at Place (named place of destination,

DDP – Delivered Duty Paid (named place of destination)

FAS – Free alongside Ship (named port of shipment)

FOB – Free on Board (named port of shipment)

CFR – Cost and Freight (named port of destination)

CIF – Cost, Insurance and Freight (named port of destination)+

Abbreviation:

UCPDC: Uniform Custom and practices for documentary credit

URC    : Uniform Rules for Collection

URR    : Uniform Rules for Reimbursement

NFCD : Non Resident Foreign Currency Deposit A/c

SIBOR : Singapore Inter Bank Offered Rate

ACU    : Asian Clearing Union

AD      : Authorized Dealer

BOI     : Board of Investment

C&F    : Cost & Freight

CCI&E: Chief Controller of Import & Export

DIBOR : Dhaka Inter Bank Offered Rate

LIBOR: London Inter Bank Offered Rate

FDI     : Foreign Direct Investment

FERA  : Foreign Exchange Regulation Act

FMJ     : Form Money and Jewellery

FOB    : Free on Board

EDF    : Exporter Development Fund

ERC    : Export Registration Certificate

IRC: Import Registration Certificate

ICC      : International Chamber of Commerce

LBPD: Local bill purchased and discounted

FBPD: Foreign bill purchased and discounted

LCAF: Letter of credit authorization form

LIM     : Loan against Imported Merchandise

LIM     : Loan against Imported Merchandise

RFCD  : Resident Foreign Currency Deposit A/c

PSI      : Pre Shipment Inspection

Ø  NOSTRO A/c.

Our Account with you

Ø  Vostro A/c.

Your Account with us

Ø  OAP is allowed for maximum

Maximum 90 days

Ø  Possession of goods under LIM

Bank

PACKING CREDIT:

Ø  PC is an export financing

Ø  Tenure: 90 days or less.

Ø  Intt. Rate is 7%

Ø  Primary Security: Export LC

Ø  This is a demand loan

Ø  PC amount should not exceed 10% of outstanding ABP (against BTB L/C) at any point of time and total finance (including ABP) against an export L/C should not exceed 90% of the FOB value.

EDF: EDF came into being in 1989 to facilitate access to finance in foreign exchange for input procurements by manufacturers and exporters. Authorized dealer banks can borrow US dollar funds from the EDF against their foreign currency loans to the parties.

It is also a Back to Back L/C opened at sight basis against Export L/C. Payment at maturity is made primarily by the L/C issuing bank. And then, it is reimbursed by Bangladesh Bank upon submission of documents. It facilitates the exporter to procure goods from overseas sources at reduced price as payment is made at sight basis.

Ø  EDF liability has to be repaid within 06 months

Ø  This facility is allowed to meet Sight L/C or Sight BTB L/C payment for importing export inputs when export payment will be due later.

Ø  This is a funded facility.

Ø  Primary security: Export L/C documents/bills.

Ø  This is a demand loan

LIM: Loan against Imported Merchandise’. Facility allowed for retirement of shipping documents by adjustment of PAD liability and taking effective control/possession over the goods under pledge in godowns under Bank’s lock & key.

Ø  This is a post-import finance

Ø  Usually allowed to retire shipping documents of L/C.

Ø  Usually LIM amount equals the PAD liability. However, if Duty, VAT, other costs are financed by the Bank or importer provides further margin, the amount may vary.

Ø  Bank controls/possesses the imported goods. Goods are delivered to the importer upon proportionate payment.

Ø  Usually has the tenure of 30, 60, 90, 120, or 180 days but subject to Bangladesh Bank guidelines/directives.

Ø  Drawing is allowed once only, no further drawing is possible. Repayment in multiple phases is preferred.

Ø  Primary security: Pledge of imported goods.

Ø  This is a demand loan

LTR: Loan against Trust Receipt’. Facility allowed for retirement of shipping documents (so that the importer can release the goods imported through L/C) by adjustment of PAD liability, is known as LTR. The facility is allowed on trust with the arrangement that sale proceeds (of the goods) will be deposited to liquidate the loan account within the stipulated time.

Ø  This is a post-import finance.

Ø  Usually allowed to retire shipping documents of L/C.

Ø  Usually LTR amount equals the PAD liability. However, if Duty, VAT, other costs are financed by the Bank or importer provides further margin, the amount may vary.

Ø  Importer controls/possesses the imported goods.

Ø  Importer controls/possesses the imported goods

Ø  Usually has the tenure of 30, 60, 90, 120, or 180 days but subject to Bangladesh Bank guidelines/directives.

Ø  Drawing is allowed once only, no further drawing is possible. Repayment in multiple phases is preferred.

Ø  Primary security: Letter of Trust Receipt.

Ø  This is a demand loan

PAD: Payment Against Documents’. It is an interim advance connected with import through L/C. As the L/C issuing bank is bound to honor its commitment to pay for import bills when these are presented for payment, the issuing bank will lodge the in-order shipping documents to their book in by creating PAD as soon as they receive it.

Ø  It is a demand loan.

Ø  PAD could only be created against import L/C.

Ø  This is dependent on L/C. More than one PAD account may be created against a single L/C. However, aggregate amount of PAD created must not exceed the value of L/C ± tolerance, less margin, if any.

Ø  Maximum maturity of PAD account may be 21 (Twenty One) days.

Ø  PAD liability is generally liquidated against payments usually made by the customer either by cash from own sources or by availing post-import facilities such as LTR/LIM/Other facility(s).

Ø  The importer receives the documents only after adjustment of PAD.

Ø  Primary security: L/C related shipping documents

ACU:  ACU stands for Asian Clearing Union. The central of Banks of Bangladesh, Burma, India,Iran, Nepal, Pakistan & Srilanka under an agreement established the above clearing system for settling payments for current international transaction among the member countries on Multilateral basis. Under this mechanism all international monetary transaction between them excluding those covered by Aid/Loan/Credit shall be either in home currency or in the currency of the concerned member country or in AMU(Asian Monetary Unit), the approved currency unit of the mechanism, the value of which is equivalent to one SDR(Special Drawing Right) allocated by the IMF.

Ø  Which is the Primary Security for LC?

Shipping Documents

Ø  ETP stands for Effluent Treatment Plan