Import – Export (Control) Act – 1950 (sub section 1 of section 3)
- Import Policy Order
- Export Policy
- Foreign Exchange Regulation Act (FERA)-1947
- Guidelines for Foreign Exchange Transactions (GFET): Vol – I & Vol – II
- Directives of NBR
- Customs Act – 1969
- Pre-shipment Inspection (PSI) Order – 1999
International Rules of ICC
- UCP–Version 1.1
- Incoterms 2000
Main Features of Import Policy Order (IPO):
- Who can import-
- Any Person having Import Registration Certificate (IRC)
- Any Person exempted from having IRC
- How IRC is obtained-
- How IRC is renewed-
- List of banned, restricted & permissible items-
- How import can be done:
- With LC & LCA
- Without LC but against LCA
- Without LC & LCA (Import permit or Clearance permit)
Main contents of Import Policy Order (IPO):
- Banned items
- Restricted items
- Permissible items
- Restriction of shipment
-Prior to opening of LC
-Expiry of the LC
- Country of Origin (‘CO’ should be mentioned in package/goods)
- Harmonized commodity description & coding System (H.S. code- Discussed in next slide)
- Carrying of goods by Bangladesh Flag Vessels
- Pre-shipment inspection
- Special conditions for food items
- Insurance cover note.
H. S. Code
- Customs Co-operation Council (CCC) was established in the year 1950 and started its operation on 26th January 1953. Presently it is known as World Customs Organization. Its Head Office is at Brussels, Belgium.
- Harmonized description of commodity & coding system (H.S. code) was adopted by CCC. Under this coding system Main Head of a commodity is coded by 4 digits and subhead is coded by 6 digits. Respective country may increase the numbers of digits according to their need but in no case they can alter the 6 digits of WCO (CCC).
Main features of Export Policy:
- Diversify and liberate the export sectors of the country
- Adopting easier export strategy
- Pre-shipment credit facility & incentives
- Entre-pot and Re-export
- Export without LC
Main contents of GFET : (Vol – I Import: )
- IRC & exemption
- Supplier’s credit report
- Requirement of Bond License for BTB LC
- Advance payment against LC
- Reporting of Bill of Entry
- Requirement of Insurance Policy
Main contents of GFET :Vol – I
- ERC & Exemption
- How to prepare transport document (BL, AWB, TR etc)
- Certifying EXP
- Reporting of Export proceeds within 120 days
- Reporting of EXP
i. Inward remittance:
- How to accept different types of inward remittance
- Wage earners’ remittance
- Buying House/ Agent commission
- Indentor’s commission
- Advance payment against export
- Foreign investor’s fund
- Reporting of C form
ii. Outward Remittance:
- Import payment
- Traveling quota
- Student expense
- Medical expense
- Expenses of attending Seminar, Workshop
- Reporting of IMP and TM form
International Rules of ICC:
- eUCP–Version 1.1
What is ICC:
Foundation : In 1919
Objectives : To serve world business by promoting trade and investment, open markets for goods and services, and the free flow of capital.
Membership : ICC groups thousands of member companies of every size in over 130 countries.
- Setting rules and standards.
- Arbitration under the rules – ICC International Court of Arbitration.
- Uniform rules for trade financing – UCPDC, URC, URR, URDG, Incoterms etc.
- Promotion of Trade & Services globally.
Different types of FC accounts:
- Private FC account
- RFCD, NFCD account
- Convertible, Non-convertible account
- NRT account
- Exporter’s Retention Quota A/c (ERQ)
Important Sections of Foreign Exchange Regulation Act-1947 (FERA):
- State is the owner of Foreign Currency
(Sections: 3, 4, 9, 10)
- Authorised Dealers : (Section – 3)
Bangladesh Bank has authority to authorize any person as AD.
Restriction on dealing in FC: (Section – 4)
No person, other than an AD, is allowed to deal in FC except B Bank’s special permission.
Power to call for information: (Section – 19)
The Government or Bangladesh Bank has power to authorize anybody to call for information/books/documents from any person.
Penalty and procedures: Section – 23)
Whoever Contravenes, attempts to contravene, shall be tried by a Tribunal constituted by Section 23A.
Acquisition of Foreign Exchange by Government: (Section – 9)
Government can acquire any or all FC in the country.
Import finances are:
- -Opening of LC
What is LC:
Required papers/ Documents:
- LC application duly filled in and signed by the applicant
- LCA form duly filled in and signed by the applicant
- Proforma Invoice or Indent duly accepted by the importer
- Insurance cover note with money receipt
- Valid IRC, TIN & VAT registration Certificate
- IMP form duly filled in and signed by the applicant
- Rate fluctuation undertaking
- Others (when necessary)