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Dhl Bangladesh Remittance Procedure
 

Dhl Bangladesh Remittance Procedure

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Bangladesh is one of the top recipient countries of remittance. This report contains the remittance process maintained by DHLB. This report was a prepared to obtain a better picture of the remittance ...

Bangladesh is one of the top recipient countries of remittance. This report contains the remittance process maintained by DHLB. This report was a prepared to obtain a better picture of the remittance process that is maintained by a large MNC which are frequently using the existing procedure. DHL is part of the world's leading postal and logistics Group, Deutsche Post DHL. DHL is present in over 220 countries and territories across the globe, making it the most international company in the world.

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    Dhl Bangladesh Remittance Procedure Dhl Bangladesh Remittance Procedure Presentation Transcript

    • Presentation On: A Comprehensive Study of the Remittance Process Maintained by DHL Worldwide Express (BD) Pvt. Ltd. Exam Roll: 100262
    • Overview: DHL is part of the world's leading postal and logistics Group, Deutsche Post DHL. The postal service for Germany The logistics company for the world Present in: 220+ countries and territories. No. of Employee: 285000+. Operation Started in Bangladesh: 10th May, 1979. DHL started with only 5 staffs, only one baby taxi and one delivery van. Now, There are 49 vehicles running from 5 stations to serve DHL’s customers need timely. A team of 450+ dedicated employees are ensuring world class service in Bangladesh. DHL connects Bangladesh with the world via average weekly 120 commercial flight. DHL wants to be “The Logistics Company for the World”. DHL| Page 2
    • Overview: Organizations of DHL: DHL Express: Transport goods and documents reliably and on time from door-to-door. DHL Global Forwarding, Freight: Takes care of customers logistics needs. DHL Supply Chain: Offers contract logistics, providing warehousing, solution to corporate information and communication management. DHL Global Mail: Customized solution for personal mails and B2C parcels. Optional Services: a. Shipment Insurance, b. Packaging, c. GOGREEN Carbon Neutral, d. Non-Standard Shipments, e. Dangerous Goods, f. Remote Area Delivery, g. Payment and Billing Options, h. Import Express. Corporate Responsibilities: With “Living Responsibility” as their motto DHL focus on environmental protection (GoGreen), disaster management (GoHelp) and education (GoTeach). DHL| Page 3
    • Inward Remittance: Bangladesh Bank permits banks in Bangladesh to establish drawing arrangements with foreign banks and Exchange houses for facilitating remittance by Bangladeshi nationals living abroad. Persons willing to remit their earnings through official channels can buy either Taka draft or US dollar draft from these foreign banks and Exchange houses having drawing arrangements with different banks in Bangladesh. Bangladeshi nationals living abroad can send Foreign Exchange very easily and directly to their own bank accounts maintained in Bangladesh or to their nominated person's / relative's bank accounts in Bangladesh. Now it takes maximum of 3 days to receive inward remittance. Purchasing of foreign currency in any form, purchase of M.T, T.T, Draft, Travelers cheque, bill of exchange, currency notes is known as inward remittance. Two forms as prescribed by Bangladesh Bank are used for the purchase of foreign currencies. These are: i. Exp Form, ii. Form C. DHL| Page 4
    • Inward Remittance: Necessity: B2B services provides nearly 95% of DHLB’s revenue. In many cases, DHLB conducts business with another business organization which is a local agent of a multinational business organization. This local agent sometimes does not have the authority to provide payment to DHL Bangladesh. So the Head offices of many local agents make their due payments to DHL Bangladesh via wire transfer resulting in inward remittance. There are monthly 12-14 remittance received. About 5-10% percentages of total revenues earned is via Inward Remittance. Inward Remittances Withdrawal Process: 1. Mr. Hossain Asgar Shahriar, Management Accountant at DHL Worldwide Express (BD) Put Ltd. communicates with Citibank NA every seven days to find the exact remittance amount DHLB has received. 2. He then fills up the C-Form to withdraw the amount. 3. The filled up C-Form is sent to Citibank NA. The Bank credits the amount to DHLB’s account immediately after they receive the C-Form from DHLB. 4. Citibank NA deducts 10% of the remittance amount as ATI. DHL| Page 5
    • Inward Remittance: Factors delaying the Inward Remittance: • Value Date & • Submission of the C-Form. Quality of the Inward Remittance Process: DHL maintains the fastest remittance facilitating procedure. DHL mainly focuses on the following segments:  Marinating a sound communication with its customers who are sending remittance. Marinating a good relationship with its banks. Periodically checking about its inward remittances. DHL is Very Satisfied with the Inward Remittance procedure DHL| Page 6
    • Outward Remittance The term outward remittance include not only remittance i.e. sale of foreign currency by TT, MT, Drafts, travelers cheques but also includes payment against imports into Bangladesh & local currency credited to Nonresident taka account of foreign banks or convertible taka account. Two forms are used for outward remittance of foreign currency. These are: IMP Form & T.M. Form. Necessity: DHLB has a revenue sharing agreement with its head office. Every month they follow rigorous procedure to calculate their surplus earnings. After the calculation they send the amount owed to their mother company via T.M form. DHL| Page 7
    • Outward Remittance According to Bangladesh Bank: A foreign courier service company/its agent shall submit to the AD monthly statements for the purpose of remittance of surplus earnings to Head Office/Principal abroad. The monthly statement, certified by a registered chartered accountant and its supporting documents should contain information relating to each collection in Bangladesh against outward dispatches; volume/weight of the documents/parcels dispatched, mode of dispatch, office abroad (with name of city and country) through which documents/parcels have been delivered, amount of commission and the amount payable to the principal on account of charges. The surplus earnings shall be determined by deducting from gross collections (i) the local agent's commission for handling inward and outward documents/parcels (ii) taxes payable on gross collections as applicable and (iii) audit fees and other expenses. DHL| Page 8
    • Calculation of Surplus Earnings of DHLB DHL| Page 9
    • Outward Remittance The following files are sent to Citibank NA for the processing of the outward remittances: 1) Forwarding letter for outward remittance, 2) Filled up T/M form, 3) One copy fund transfer letter, 4) Audit report of A. Qasem & Co. Chartered Accountants, 5) Invoice of DHL International GmbH: Number 9018532, Date. (Month), Year, 6) Letter of Undertaking, 7) Tax payment certificate & Challan, 8) Statement of Inbound Consignment, 9) Statement of Destination wise weight, revenue and commission & 10)Air freight (A/F) charge bill. Factors delaying the Outward Remittance:  Value Date File Verification, Dollar Availability. DHL| Page 10
    • Recommendation  Instead of calling every seven days to their bank to know the amount of remittance they received, DHLB should call every 3 days. This way the received amount will be available to them early.  If possible DHLB can maintain a FC account. It will quicken both the inward and outward remittance process.  Better communication with the customers is another key to improving the process. They could be either encouraged or discouraged for remittance payment according to the needs of DHLB. For example: DHLB could encourage inward remittance just before their revenue sharing. This way the received dollar amount is not converted twice instead it could be used to make payment of the amount due for the outward remittance.  Better communication with Citibank NA can help set a proper value date and know the availability of dollars in the market. DHL| Page 11
    • DHL| Page 12
    • Any Question? DHL| Page 13