Import Process Against Lc in Bangladesh Essay
Import section of any bank deals with L/C opening and post import financing i.e. LIM & LTR. Now the procedure from opening L/C to disbursement against L/C is given below.
APPLICATION FOR OPENING L/C:
At first, an importer will request banker to open L/C along with the following documents.
1. An application
2. Indent or Performa Invoice
3. Import Registration Certificate (IRC)
4. Taxpayer Identification Number (TIN)
5. Insurance cover note with money receipt
6. A bank account.
7. Membership of chamber of commerce
Indent or Performa Invoice:
Indent or Performa invoice is the sale contract between seller and buyer in import-export business. There is slight difference between indent …show more content…
Commercial Invoice issued by exporter is the accounting document by which the seller charges the goods to buyer.
Bill of lading:
A bill of lading is a document usually stipulated in a credit when exporter dispatches the goods. It is an evidence of a contract of carriage, is a receipt for the goods and is a document of title to goods. It also constitutes a document that is or may be, needed to support an insurance claim.
THE DOCUMENTS SENT TO THE ISSUING BANK THROUGH THE NEGOTIATING BANK:
The negotiating bank carefully checks the documents provided by the exporter against the credit, and if the documents meet all the requirement of the credit, the bank will pay, accept, or negotiate in accordance with the terms and conditions of the credit. Then the bank sends the documents to the L/C opening bank.
MAKING THE PAYMENT OF FOREIGN BILL THROUGH THE REIMBURSING BANK:
The L/C issuing