Export Procedure & Formalities

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Export Procedure & Formalities Export Trends
Motivational Package Offered by Govt. to the Exporter

Export Procedure & Formalities

Export Procedure, Issuance and Disposal of EXP Form, Negotiation of Export Bill, Collection of Export Bill, Handling of Discrepant Documents under Documentary Credit, Dispute Settlement, Exchange Rate used in Negotiation and Collection, Realization of Export Proceeds, Non realization of Export Proceeds within 4 Months, Export without LC.

Export means outflow of Goods and/or Services produced in one Country, which purchase by Government, Firms and Individuals of other Countries.

Registration of Exporter:
The Imports and Exports trade is regulated by the Import & Exports Control Act 1950. There are number of formalities an exporter has to comply before and after execution of Export, some of are as under: The intending Exporter has to Register with CCI&E and obtain Export Registration certificate [ERC]. The ERC number is to be used in all places relating to Exports

Procedure :
To secure Export Order the Exporters may contact local Chamber of Commerce for potential Buyers, The Export Promotion Bureau [EPB], Bangladesh Mission abroad and by direct contact with Foreign Buyer through correspondences [Letter/Fax/Email etc].

Receiving Letter of Credit/Contract :
After making contact with Foreign Buyers and reaching on agreed Price, Term and Conditions, the Exporters receive Letter of Credit/Contract.

Procurement and Shipment of Goods :
After receipt of LC/Contract the Exporter has to procure or Manufacture the contracted Goods and Ship the same

Preparation and Procurement of Export Documents :
After making shipment the Exporter has to prepare Documents i.e. Bill of Exchange, Commercial Invoice, Beneficiary’s Certificates and Procure some Documents i.e. Transport Documents, Certificate of Origin, Insurance Policy/Certificate, Inspection Certificate and other documents as required in the LC/Contract.

Submission of Documents to the Bank for Negotiation:
After preparation and collection of all documents as per LC/Contract terms the Exporter has to submit the Documents to the Bank for Negotiation/Payment.

Negotiation of Export Documents :
As per UCP 600, ‘Negotiation’ means the purchase by the ‘Nominated Bank’ of drafts [Drawn on a Bank other than the ‘Nominated Bank’] and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank .

Nominated Bank means the bank with which the credit is available or any bank in the case of a Credit available with any Bank].

Negotiation of Export Document is falls under the category of Post-Shipment Export Financing. Because such sort of financing is allowed to the exporter after executing the shipment of goods/service to meet the financial needs from that date to till receipt of export proceeds from the LC issuing/reimbursing bank

At the time of Export Bill Negotiation we should be carefully examine whether it is a Complying Presentation or not

Complying presentation means a presentation that is in-accordance with the term & conditions Of the credit, the applicable provisions of these rules & International Standard Banking Practice

Some Discrepancies are mentioned below for better understanding

Bill of exchange:
1. The Bill of exchange is drawn on the importer instead of...
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