FUNCTIONS OF FOREIGN EXCHANGE DEPARTMENT:
L/C opening & L/C amendment
Sanctioning PAD, LIM, LTR, Packing Credit
Foreign Bill Purchase
Local Bill Purchase
Foreign Currency Account Maintaining
Foreign Currency Remitting
The Foreign Exchange Department of UCBL Local Office is divided into two broad sections:
1.Foreign Exchange Import
2.Foreign Exchange Export
Foreign Remittance is clubbed under Foreign Exchange Import Section. ORGANIZATIONAL STRUCTURE OF FOREIGN EXCHANGE DEPARTMENT:
According to the Imports and Exports control Act, 1950, no person can indent, import or export any goods into Bangladesh except some exemption. In order to be an importer one should obtain IRC (Import Registration Certificate) issued by controller of export and import. To import something the importer should open L/C.
The Following Chart Related With L/C and some Definitions:
1.Importer requests his bank to issue the L/C in terms of the arrangement with the seller 2.Issuing Bank is the importer’s bank which issue the L/C with the request of the importer 3.Advising bank is the Seller’s or Exporter’s bank and usually it is in the Exporter’s County. This bank is requested to advice the L/C to the beneficiary 4.Negotiating Bank is the bank where the exporter negotiates his documents. The Advising Bank may be the Negotiating Bank also. 5.Reimbursing Bank is nominated by the issuing bank to pay the certain amount of money if the Negotiating Bank demands. 6.Sometimes the issuing bank requests another bank to add confirmation to the L/C. This new bank is known as Confirming Bank.
Initial Requirements before Opening L/C by UCBL:
The L/C opener must be the client of the Bank; i,e. CD A/c must be maintained TIN (Tax Payer’s Identification Number) Certificate is required IRC must be valid
Trade License of Importer
After fulfilling the conditions accordingly the importer is allowed to submit an application for opening an L/C. The L/C application must be completed and signed by the authorized person on behalf of the importer containing the following essentials:
•Full name and address of the supplier or manufacturer or beneficiary •Brief description of goods keeping conformity to the LCA, License, Indent, Proforma Invoice etc. •The unit price, quantity, quality and origin of the goods •Mode of Shipment or Transport
•Last date of Shipment
•Port of Shipment and Destination
•Insurance Cover Note Numbers and Name of Insurance Company •Tenor of Draft (whether at sight or deferred)
•Arrangement is whether C&F or FOB
•Opening of L/C under Uniform Customs and Procedures of Documentary Credit publication no....