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Import Mechanism

1. The document outlines the import mechanism process, requiring importers to have valid licenses, registrations, and membership certificates. 2. Importers must submit documents like purchase contracts, letter of credit applications, and insurance to their bank when requesting the opening of a letter of credit. 3. If documents are consistent, the bank will lodge the import bill; if discrepant, the bank will notify parties and importer may still accept documents. Payment is made upon delivery of goods if documents are accepted.

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Mohammad Asraf Ul Haque
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143 views

Import Mechanism

1. The document outlines the import mechanism process, requiring importers to have valid licenses, registrations, and membership certificates. 2. Importers must submit documents like purchase contracts, letter of credit applications, and insurance to their bank when requesting the opening of a letter of credit. 3. If documents are consistent, the bank will lodge the import bill; if discrepant, the bank will notify parties and importer may still accept documents. Payment is made upon delivery of goods if documents are accepted.

Uploaded by

Mohammad Asraf Ul Haque
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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MOHAMMAD ASRAF UL HAQUE UTTARA BANK LIMITED

IMPORT MECHANISM

Process a valid Trade License


Operating Genuine Trade
Maintaining an appropriate account with the Bank
Processing a TIN & VAT Registration Certificate concerning to Income Tax Payment
Possessing a valid membership Certificate from Chamber of Commerce/Trade Association
Possessing a valid Import Registration Certificate issued by CCI & E

Importer

Approaches to the Bank submitting following documents :


1. Purchase Contract with Foreign Supplier directly or through Agent. (Proforma Invoice/Indent)
2. Letter of Credit Authorization Form duly filled in and signed by the Importer. (LCA Form)
3. Letter of Credit Application Form duly filled in and signed by the Importer affixing requisite
adhesive Stamps.
4. IMP Form duly signed by the Importer.
5. Insurance Cover Note ( In case of C & F/FOB INCOTERM)

Opening/Issuance of Letter of Credit by the Importer’s Bank being satisfied with the papers/
documents of the Importer

Dispatch/Transmit the LC to the beneficiary through Issuing Bank’s correspondent in the


Beneficiary’s Country

On receipt of the LC and satisfied with the terms & conditions stipulated in the LC the Beneficiary
effects Shipment of the Goods.

Beneficiary submits Shipping Documents along with Bill of Exchange and other documents in
accordance with the terms and conditions of the credit to the Negotiating Bank/Collecting Bank.

On being satisfied after scrutinizing the shipping documents the Negotiating /Collecting Bank
dispatches the Documents to the Opening Bank for Collection and /or claims Reimbursement to the
Reimbursing Bank.

1
Opening Bank receives the Import/Shipping documents and Scrutinizes the same .
MOHAMMAD ASRAF UL HAQUE UTTARA BANK LIMITED

On scrutinizing the documents the Opening Bank finds them:-

Consistent with the LC Discrepant

Lodge the Import Bill Creating Bill of Exchange/ 1. Instruct the Reimbursing Bank not to honor Reimbursement Claim.
PAD account 2. Inform Negotiating Bank about Discrepancies.
3. Inform Opener about Discrepancies.

Ask the Importer to take delivery of the Import


documents for release of goods,

Importer accepts the Importer does not


documents despite accept the discrepan
discrepancies documents

Importer
retires the Bills Approaches for post
paying Bank’s Import Negotiating Bank
dues agrees to accept
documents on
collection basis or no

Bank sanctions post Import Finance


by way of LIM/LTR
If No If Ye

Importer does not respond

Returns the documents to the


Negotiating Bank

Bank clears goods through its


approved C & F agent by
creating forced LIM eith HO
approval.

Deliver the documents to the


Importer of goods

2 Collect Proceeds from Importer


and Pays negotiating Bank

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