SlideShare a Scribd company logo
LC Opening
Procedure

( BTB LC)
Adnan Zaber Mahmud
Lecturer
Southeast University
BTB FLOWCHART
DHAKA
BANK

SUPPLIERS
BANK

ZXY Buying

FIRST
BENEFICIARY

PRIME
TEXTI
LE LTD

FABRICS
SUPPLIER

SCB
DHAKA

ADVISING
BANK

RUPALI
BANK

LC ISSUING
BANK/
NEGOTIATING
BANK

VAI
MUNNA
GARMENTS

2 ND
BENEFICIARY/
EXPORTER

AMEX
NEWYORK

LC ISSUING
BANK

UBL
DHAKA

TRANSFERRING
BANK

JC PENNY

BUYER/
APPLICANT
Legal Framework:










Import – Export (Control) Act – 1950
(sub section 1 of section 3)

Import Policy Order

Export Policy Order
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) Act - 1999
International Rules of ICC

UCPDC–600

eUCP–Version 1.1

URC-522

URR-725

ISBP-681

Incoterms 2000
Main Features of Import Policy:












Who can import• Any Person having Import Registration Certificate
(IRC)
• Any Person exempted from having IRC
How IRC is obtainedHow IRC is renewedList of banned, restricted & permissible itemsHow 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)
Carrying of goods by Bangladesh Flag Vessels
Pre-shipment inspection
Special conditions for food items
CFR/FOB/CIF
Insurance cover note.
FEATURES of BTB









Back to Back LCs to be opened against
export LCs received by export orient
industries under the bonded warehouse
system.
Required value addition should be observed
(value addition is prescribed in IPO)
For Quota & Non-quota woven garments
Knitted/others (Qouta - price $60/Dozen)
Knitted/others (Non- qouta - price $60/Dozen)
Sweater

: 20%
: 15%
: 10%
: 20%
FEATURES










(BTB LC)

BTB LCs may be opened upto 180 days usance.
Sight LCs may be opened under EDF.
Inland BTB LCs denominated in FC may be opened
in favour of local manufacturer-cum-suppliers.
BTB LCs may be opened for import of necessary
inputs against inland BTB LCs.
Accepted (Usance) bills against BTB LCs should be
settled at maturity.
Cases of failure of export against related LCs should
be reported to NBR & Commissioner of Customs.
REQUIRED PAPERS

1. Valid IRC, ERC.
2. Valid Trade License from recognized Trade
Body.
3. TIN & Income Tax payment certificate.
4. VAT registration certificate.
5. Valid Bonded Ware House license (foreign
import).
6. Other formalities with concern regulatory
bodies.
PROCEDURES
1.Receiving Export/Master LC duly advised/
transferred.
2.Scrutiny of Master LC to find out if there is
any adverse clause in the LC, shipment &
expiry date, reimbursement clause etc.
3.Receiving application from the client in LC
Application Form along with PI duly accepted
by the importer.
4.Obtaining credit report of exporter ( upto Tk.
700,000 in case of PI and upto Tk. 1000,000
in case of indent)
5.Approval of proposal / office note for opening
BTB LC.
Contd…….
Procedures

Contd…….

6. Issuance of IMP, LCAF
7. Giving entries in LC Opening Register.
8. Vouching:Commissions, charges & Liability.
9. Transmission of LC.
10. Passing liability voucher.
11. Receiving of Shipping documents.
12. Lodgment of import bill, intimating discrepancy.
13. Intimation of maturity date in case of deferred
LC.
13. Making payment at sight for sight LC (EDF),
payment on due date for deferred LC.
14. IMP reporting to Bangladesh Bank.
15. Matching Bill of Entries.
ACCOUNTING
Liability Voucher:



Dr. Customer’s liability on BTB L/C
Cr. Banker’s liability on BTB L/C
(Applicable rate: B.C Selling rate)
Commission & others
charges:








Dr. Customers A/c: Commission + FCC +
Postal/ Telex + Misc.
Cr. Income A/c: Commission on L/C foreign
Cr. Income A/c. Postal/ Telex Recoveries
Cr. Income A/c: Miscellaneous earnings
(Handling charges, stationery, etc.)
Cr. Sundry Deposit A/c: FCC.
Export documents
purchase:








(Only CM portion is purchased)
Dr. FDBP/FBP Account (@ OD sight
export)
Cr. CD A/C
Cr. Packing Credit/ Others Loan A/C
Cr. Income A/C Com
Cr. S/D Tax
After realization of Export
Proceeds:





Dr. General A/C ID, HO (CM portion- TT
Clean & rest portion-OD Sight )
Cr. FC Held ( @ OD Sight
Export)
Cr. FBP A/C
Cr. I/A Exchange Earning
Payment of BTB:









(i) Reversal of acceptance liability:
Dr. Banker’s liability on BTB bills
Cr. Customer’s liability on BTB bills
 
(ii) Out of export proceeds settlement in FC:
Dr. Exporters F.C held A/c: Bill value with
usance interest (O.D sight export)
Cr. General A/c: On Nostro A/c( OD sight
export)
HOW TO OPEN LC

More Related Content

What's hot

Ppt of custom procedure 001
Ppt of custom procedure 001Ppt of custom procedure 001
Ppt of custom procedure 001
jayesh.kukadiya
 
Export import procedures, documentation & logistics
Export import procedures, documentation & logisticsExport import procedures, documentation & logistics
Export import procedures, documentation & logistics
Aditya Kumar
 
Letter Of Credit
Letter Of CreditLetter Of Credit
Letter Of Credit
Francis
 
Import procedure
Import procedureImport procedure
Import procedure
ajitha mukesh
 
Trade finance 01082914
Trade finance 01082914Trade finance 01082914
Trade finance 01082914
Saras Singh
 
Standard operating process in freight forwarding
Standard operating process in freight forwardingStandard operating process in freight forwarding
Standard operating process in freight forwarding
NITIN RAJAN
 
Import logistics and custom clearance hpm
Import logistics and custom clearance hpmImport logistics and custom clearance hpm
Import logistics and custom clearance hpm
Hpm India
 
Import export custom clearance process
Import export custom clearance processImport export custom clearance process
Import export custom clearance process
Arun Kumar Krishnan
 
Export import documentation
Export  import documentationExport  import documentation
Export import documentation
Delwin Arikatt
 
Import procedure and documentation
Import procedure and documentationImport procedure and documentation
Import procedure and documentation
Anupam Ashish
 
Letter of Credit
Letter of CreditLetter of Credit
Letter of Credit
Chhitiz Shrestha
 
Letters of credit
Letters of creditLetters of credit
Letters of credit
Faissal Alhawamdeh
 
Methods of payment in International trade
Methods of payment in International tradeMethods of payment in International trade
Methods of payment in International trade
Dr. Sneha Sharma
 
GST And Import - Export In India
GST And Import - Export In IndiaGST And Import - Export In India
GST And Import - Export In India
Abhishek Ghetiya
 
Export & Import - Procedure and Documentation
Export & Import - Procedure and DocumentationExport & Import - Procedure and Documentation
Export & Import - Procedure and Documentation
Sabarinath Suryaprakash
 
Valuations under customs
Valuations under customsValuations under customs
Valuations under customs
DVSResearchFoundatio
 
Custom clearance
Custom clearanceCustom clearance
Custom clearance
Dr. Sneha Sharma
 
Export
ExportExport
Export
VIVEK M S
 
Import and Import procedures
Import and Import proceduresImport and Import procedures
Import and Import procedures
Milind Pelagade
 
Terms of payment
Terms of paymentTerms of payment
Terms of payment
Delwin Arikatt
 

What's hot (20)

Ppt of custom procedure 001
Ppt of custom procedure 001Ppt of custom procedure 001
Ppt of custom procedure 001
 
Export import procedures, documentation & logistics
Export import procedures, documentation & logisticsExport import procedures, documentation & logistics
Export import procedures, documentation & logistics
 
Letter Of Credit
Letter Of CreditLetter Of Credit
Letter Of Credit
 
Import procedure
Import procedureImport procedure
Import procedure
 
Trade finance 01082914
Trade finance 01082914Trade finance 01082914
Trade finance 01082914
 
Standard operating process in freight forwarding
Standard operating process in freight forwardingStandard operating process in freight forwarding
Standard operating process in freight forwarding
 
Import logistics and custom clearance hpm
Import logistics and custom clearance hpmImport logistics and custom clearance hpm
Import logistics and custom clearance hpm
 
Import export custom clearance process
Import export custom clearance processImport export custom clearance process
Import export custom clearance process
 
Export import documentation
Export  import documentationExport  import documentation
Export import documentation
 
Import procedure and documentation
Import procedure and documentationImport procedure and documentation
Import procedure and documentation
 
Letter of Credit
Letter of CreditLetter of Credit
Letter of Credit
 
Letters of credit
Letters of creditLetters of credit
Letters of credit
 
Methods of payment in International trade
Methods of payment in International tradeMethods of payment in International trade
Methods of payment in International trade
 
GST And Import - Export In India
GST And Import - Export In IndiaGST And Import - Export In India
GST And Import - Export In India
 
Export & Import - Procedure and Documentation
Export & Import - Procedure and DocumentationExport & Import - Procedure and Documentation
Export & Import - Procedure and Documentation
 
Valuations under customs
Valuations under customsValuations under customs
Valuations under customs
 
Custom clearance
Custom clearanceCustom clearance
Custom clearance
 
Export
ExportExport
Export
 
Import and Import procedures
Import and Import proceduresImport and Import procedures
Import and Import procedures
 
Terms of payment
Terms of paymentTerms of payment
Terms of payment
 

Similar to HOW TO OPEN LC

Exim & ftp (1)
Exim & ftp (1)Exim & ftp (1)
Exim & ftp (1)
StudsPlanet.com
 
Exim & ftp (1)
Exim & ftp (1)Exim & ftp (1)
Exim & ftp (1)
Nits Kedia
 
Importers and customs broker’s accreditation in the Philippines
Importers and customs broker’s accreditation in the PhilippinesImporters and customs broker’s accreditation in the Philippines
Importers and customs broker’s accreditation in the Philippines
Michael Tede
 
Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...
Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...
Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...
sangamuniversity
 
Exchange trade control
Exchange trade controlExchange trade control
Exchange trade control
Akshay Samant
 
Exchange trade control
Exchange trade controlExchange trade control
Exchange trade control
Akshay Samant
 
RUSSIAN PETROLEUM PRODUCTS (SCO TURKONT) FOB/CIF 08.05.2015
RUSSIAN PETROLEUM  PRODUCTS (SCO TURKONT) FOB/CIF  08.05.2015RUSSIAN PETROLEUM  PRODUCTS (SCO TURKONT) FOB/CIF  08.05.2015
RUSSIAN PETROLEUM PRODUCTS (SCO TURKONT) FOB/CIF 08.05.2015
TURKONT OIL & GAS ENERGY TRADING
 
Doing business in canada part ii
Doing business in canada part iiDoing business in canada part ii
Doing business in canada part ii
DVSResearchFoundatio
 
Export finance
Export financeExport finance
Export finance
sarrahgh
 
Ftp 6, 8 and 9
Ftp 6, 8 and 9Ftp 6, 8 and 9
Ftp 6, 8 and 9
APOCALYPTOIST
 
Sco price list 2015 fob cif aswp turkont ltd
Sco price list 2015 fob cif aswp  turkont ltdSco price list 2015 fob cif aswp  turkont ltd
Sco price list 2015 fob cif aswp turkont ltd
Türkont Oil & Gas Ltd
 
Sco price list 2015 fob cif aswp turkont ltd
Sco price list 2015 fob cif aswp  turkont ltdSco price list 2015 fob cif aswp  turkont ltd
Sco price list 2015 fob cif aswp turkont ltd
Türkont Oil & Gas Ltd
 
Export procedure presentation
Export procedure presentationExport procedure presentation
Export procedure presentation
videshvepaar .com
 
Optitax's presentation on carotar [07 jan 2021]
Optitax's presentation on carotar [07 jan 2021]Optitax's presentation on carotar [07 jan 2021]
Optitax's presentation on carotar [07 jan 2021]
Nilesh Mahajan
 
Export procedure
Export procedureExport procedure
Export procedure
Jay Parekh
 
Export -Import Process.ppt
Export -Import Process.pptExport -Import Process.ppt
Export -Import Process.ppt
VikasDeswal12
 
Financing Of Exports
Financing Of ExportsFinancing Of Exports
Financing Of Exports
Venkatakrishnan Narayanan
 
Exports and Imports.pptx
Exports and Imports.pptxExports and Imports.pptx
Exports and Imports.pptx
VbsReddy2
 
Basics of International Trade Unit 1
Basics of International Trade Unit 1Basics of International Trade Unit 1
Basics of International Trade Unit 1
Asad Hameed
 
forex info nbi navin kummmmmmmmm RP20.ppt
forex info nbi navin kummmmmmmmm RP20.pptforex info nbi navin kummmmmmmmm RP20.ppt
forex info nbi navin kummmmmmmmm RP20.ppt
navin98491
 

Similar to HOW TO OPEN LC (20)

Exim & ftp (1)
Exim & ftp (1)Exim & ftp (1)
Exim & ftp (1)
 
Exim & ftp (1)
Exim & ftp (1)Exim & ftp (1)
Exim & ftp (1)
 
Importers and customs broker’s accreditation in the Philippines
Importers and customs broker’s accreditation in the PhilippinesImporters and customs broker’s accreditation in the Philippines
Importers and customs broker’s accreditation in the Philippines
 
Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...
Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...
Reserve Bank of India - RBI ForEx Workshop at Bhilwara - Topic Trade Regulati...
 
Exchange trade control
Exchange trade controlExchange trade control
Exchange trade control
 
Exchange trade control
Exchange trade controlExchange trade control
Exchange trade control
 
RUSSIAN PETROLEUM PRODUCTS (SCO TURKONT) FOB/CIF 08.05.2015
RUSSIAN PETROLEUM  PRODUCTS (SCO TURKONT) FOB/CIF  08.05.2015RUSSIAN PETROLEUM  PRODUCTS (SCO TURKONT) FOB/CIF  08.05.2015
RUSSIAN PETROLEUM PRODUCTS (SCO TURKONT) FOB/CIF 08.05.2015
 
Doing business in canada part ii
Doing business in canada part iiDoing business in canada part ii
Doing business in canada part ii
 
Export finance
Export financeExport finance
Export finance
 
Ftp 6, 8 and 9
Ftp 6, 8 and 9Ftp 6, 8 and 9
Ftp 6, 8 and 9
 
Sco price list 2015 fob cif aswp turkont ltd
Sco price list 2015 fob cif aswp  turkont ltdSco price list 2015 fob cif aswp  turkont ltd
Sco price list 2015 fob cif aswp turkont ltd
 
Sco price list 2015 fob cif aswp turkont ltd
Sco price list 2015 fob cif aswp  turkont ltdSco price list 2015 fob cif aswp  turkont ltd
Sco price list 2015 fob cif aswp turkont ltd
 
Export procedure presentation
Export procedure presentationExport procedure presentation
Export procedure presentation
 
Optitax's presentation on carotar [07 jan 2021]
Optitax's presentation on carotar [07 jan 2021]Optitax's presentation on carotar [07 jan 2021]
Optitax's presentation on carotar [07 jan 2021]
 
Export procedure
Export procedureExport procedure
Export procedure
 
Export -Import Process.ppt
Export -Import Process.pptExport -Import Process.ppt
Export -Import Process.ppt
 
Financing Of Exports
Financing Of ExportsFinancing Of Exports
Financing Of Exports
 
Exports and Imports.pptx
Exports and Imports.pptxExports and Imports.pptx
Exports and Imports.pptx
 
Basics of International Trade Unit 1
Basics of International Trade Unit 1Basics of International Trade Unit 1
Basics of International Trade Unit 1
 
forex info nbi navin kummmmmmmmm RP20.ppt
forex info nbi navin kummmmmmmmm RP20.pptforex info nbi navin kummmmmmmmm RP20.ppt
forex info nbi navin kummmmmmmmm RP20.ppt
 

More from Md. Mazadul Hasan Shishir

A note of textile terms and definitions
A note of textile terms and definitionsA note of textile terms and definitions
A note of textile terms and definitions
Md. Mazadul Hasan Shishir
 
Handbook of garments manufacturing technology
Handbook of garments manufacturing technologyHandbook of garments manufacturing technology
Handbook of garments manufacturing technology
Md. Mazadul Hasan Shishir
 
carbon fibre
carbon fibrecarbon fibre
Acrylic fiber
Acrylic fiber   Acrylic fiber
Elastomeric Fiber
Elastomeric Fiber Elastomeric Fiber
Elastomeric Fiber
Md. Mazadul Hasan Shishir
 
project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...
project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...
project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...
Md. Mazadul Hasan Shishir
 
Presentation of sayeed
Presentation of sayeedPresentation of sayeed
Presentation of sayeed
Md. Mazadul Hasan Shishir
 
PROJECT : REACTION MECHANISM OF REACTIVE DYES IN ON CELLULOSE FIBER.
PROJECT  : REACTION MECHANISM OF  REACTIVE DYES IN  ON CELLULOSE FIBER.PROJECT  : REACTION MECHANISM OF  REACTIVE DYES IN  ON CELLULOSE FIBER.
PROJECT : REACTION MECHANISM OF REACTIVE DYES IN ON CELLULOSE FIBER.
Md. Mazadul Hasan Shishir
 
INTERSTOFF APPARELS LTD
INTERSTOFF APPARELS LTDINTERSTOFF APPARELS LTD
INTERSTOFF APPARELS LTD
Md. Mazadul Hasan Shishir
 
INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD
INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD
INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD
Md. Mazadul Hasan Shishir
 
Apex weaving & finishing mills limited
Apex weaving & finishing mills limitedApex weaving & finishing mills limited
Apex weaving & finishing mills limited
Md. Mazadul Hasan Shishir
 
Industrial Attachment of GTA Sports Ltd.
Industrial Attachment of GTA Sports Ltd. Industrial Attachment of GTA Sports Ltd.
Industrial Attachment of GTA Sports Ltd.
Md. Mazadul Hasan Shishir
 
Reactive Dye
Reactive Dye Reactive Dye
Weaving
Weaving Weaving
Industrial attachment of urmi garments ltd
Industrial attachment of urmi garments ltdIndustrial attachment of urmi garments ltd
Industrial attachment of urmi garments ltd
Md. Mazadul Hasan Shishir
 
Industrial attachment of Sadma fashion wear ltd
Industrial attachment of Sadma fashion wear ltdIndustrial attachment of Sadma fashion wear ltd
Industrial attachment of Sadma fashion wear ltd
Md. Mazadul Hasan Shishir
 
Industrial attachment of mitali fasions ltd
Industrial attachment of mitali fasions ltdIndustrial attachment of mitali fasions ltd
Industrial attachment of mitali fasions ltd
Md. Mazadul Hasan Shishir
 
Industrial attachment of Olio apparels ltd (envoy group)
Industrial attachment of Olio apparels ltd (envoy group)Industrial attachment of Olio apparels ltd (envoy group)
Industrial attachment of Olio apparels ltd (envoy group)
Md. Mazadul Hasan Shishir
 
Industrial attachment of divine group of industries limited (dgi).
Industrial attachment of divine group of industries limited (dgi).Industrial attachment of divine group of industries limited (dgi).
Industrial attachment of divine group of industries limited (dgi).
Md. Mazadul Hasan Shishir
 
Apparel Merchandising
Apparel MerchandisingApparel Merchandising
Apparel Merchandising
Md. Mazadul Hasan Shishir
 

More from Md. Mazadul Hasan Shishir (20)

A note of textile terms and definitions
A note of textile terms and definitionsA note of textile terms and definitions
A note of textile terms and definitions
 
Handbook of garments manufacturing technology
Handbook of garments manufacturing technologyHandbook of garments manufacturing technology
Handbook of garments manufacturing technology
 
carbon fibre
carbon fibrecarbon fibre
carbon fibre
 
Acrylic fiber
Acrylic fiber   Acrylic fiber
Acrylic fiber
 
Elastomeric Fiber
Elastomeric Fiber Elastomeric Fiber
Elastomeric Fiber
 
project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...
project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...
project on Application of Disperse & Reactive Dyes In a P/C Blended Fabric of...
 
Presentation of sayeed
Presentation of sayeedPresentation of sayeed
Presentation of sayeed
 
PROJECT : REACTION MECHANISM OF REACTIVE DYES IN ON CELLULOSE FIBER.
PROJECT  : REACTION MECHANISM OF  REACTIVE DYES IN  ON CELLULOSE FIBER.PROJECT  : REACTION MECHANISM OF  REACTIVE DYES IN  ON CELLULOSE FIBER.
PROJECT : REACTION MECHANISM OF REACTIVE DYES IN ON CELLULOSE FIBER.
 
INTERSTOFF APPARELS LTD
INTERSTOFF APPARELS LTDINTERSTOFF APPARELS LTD
INTERSTOFF APPARELS LTD
 
INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD
INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD
INDUSTRIAL ATTACHMENT OF GTA SPORTS LTD
 
Apex weaving & finishing mills limited
Apex weaving & finishing mills limitedApex weaving & finishing mills limited
Apex weaving & finishing mills limited
 
Industrial Attachment of GTA Sports Ltd.
Industrial Attachment of GTA Sports Ltd. Industrial Attachment of GTA Sports Ltd.
Industrial Attachment of GTA Sports Ltd.
 
Reactive Dye
Reactive Dye Reactive Dye
Reactive Dye
 
Weaving
Weaving Weaving
Weaving
 
Industrial attachment of urmi garments ltd
Industrial attachment of urmi garments ltdIndustrial attachment of urmi garments ltd
Industrial attachment of urmi garments ltd
 
Industrial attachment of Sadma fashion wear ltd
Industrial attachment of Sadma fashion wear ltdIndustrial attachment of Sadma fashion wear ltd
Industrial attachment of Sadma fashion wear ltd
 
Industrial attachment of mitali fasions ltd
Industrial attachment of mitali fasions ltdIndustrial attachment of mitali fasions ltd
Industrial attachment of mitali fasions ltd
 
Industrial attachment of Olio apparels ltd (envoy group)
Industrial attachment of Olio apparels ltd (envoy group)Industrial attachment of Olio apparels ltd (envoy group)
Industrial attachment of Olio apparels ltd (envoy group)
 
Industrial attachment of divine group of industries limited (dgi).
Industrial attachment of divine group of industries limited (dgi).Industrial attachment of divine group of industries limited (dgi).
Industrial attachment of divine group of industries limited (dgi).
 
Apparel Merchandising
Apparel MerchandisingApparel Merchandising
Apparel Merchandising
 

Recently uploaded

Mail Server Configuration Using App passwords in Odoo 17
Mail Server Configuration Using App passwords in Odoo 17Mail Server Configuration Using App passwords in Odoo 17
Mail Server Configuration Using App passwords in Odoo 17
Celine George
 
Genetics Teaching Plan: Dr.Kshirsagar R.V.
Genetics Teaching Plan: Dr.Kshirsagar R.V.Genetics Teaching Plan: Dr.Kshirsagar R.V.
Genetics Teaching Plan: Dr.Kshirsagar R.V.
DrRavindrakshirsagar1
 
Allopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation PowerpointAllopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation Powerpoint
Julie Sarpy
 
RDBMS Lecture Notes Unit4 chapter12 VIEW
RDBMS Lecture Notes Unit4 chapter12 VIEWRDBMS Lecture Notes Unit4 chapter12 VIEW
RDBMS Lecture Notes Unit4 chapter12 VIEW
Murugan Solaiyappan
 
DepEd School Calendar 2024-2025 DO_s2024_008
DepEd School Calendar 2024-2025 DO_s2024_008DepEd School Calendar 2024-2025 DO_s2024_008
DepEd School Calendar 2024-2025 DO_s2024_008
Glenn Rivera
 
Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"
Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"
Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"
Dr. Nasir Mustafa
 
The Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdfThe Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdf
luzmilaglez334
 
1. Importance_of_reducing_postharvest_loss.pptx
1. Importance_of_reducing_postharvest_loss.pptx1. Importance_of_reducing_postharvest_loss.pptx
1. Importance_of_reducing_postharvest_loss.pptx
UmeshTimilsina1
 
How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17
Celine George
 
PRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdf
PRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdfPRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdf
PRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdf
nservice241
 
How to Manage Line Discount in Odoo 17 POS
How to Manage Line Discount in Odoo 17 POSHow to Manage Line Discount in Odoo 17 POS
How to Manage Line Discount in Odoo 17 POS
Celine George
 
Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...
Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...
Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...
National Information Standards Organization (NISO)
 
slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...
slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...
slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...
MANIVALANSR
 
Open Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdfOpen Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdf
Jessica Zairo
 
Imagination in Computer Science Research
Imagination in Computer Science ResearchImagination in Computer Science Research
Imagination in Computer Science Research
Abhik Roychoudhury
 
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 SlidesWhat is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
Celine George
 
BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...
BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...
BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...
Nguyen Thanh Tu Collection
 
Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025
Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025
Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025
ALBERTHISOLER1
 
Odoo 17 Events - Attendees List Scanning
Odoo 17 Events - Attendees List ScanningOdoo 17 Events - Attendees List Scanning
Odoo 17 Events - Attendees List Scanning
Celine George
 
How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17
Celine George
 

Recently uploaded (20)

Mail Server Configuration Using App passwords in Odoo 17
Mail Server Configuration Using App passwords in Odoo 17Mail Server Configuration Using App passwords in Odoo 17
Mail Server Configuration Using App passwords in Odoo 17
 
Genetics Teaching Plan: Dr.Kshirsagar R.V.
Genetics Teaching Plan: Dr.Kshirsagar R.V.Genetics Teaching Plan: Dr.Kshirsagar R.V.
Genetics Teaching Plan: Dr.Kshirsagar R.V.
 
Allopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation PowerpointAllopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation Powerpoint
 
RDBMS Lecture Notes Unit4 chapter12 VIEW
RDBMS Lecture Notes Unit4 chapter12 VIEWRDBMS Lecture Notes Unit4 chapter12 VIEW
RDBMS Lecture Notes Unit4 chapter12 VIEW
 
DepEd School Calendar 2024-2025 DO_s2024_008
DepEd School Calendar 2024-2025 DO_s2024_008DepEd School Calendar 2024-2025 DO_s2024_008
DepEd School Calendar 2024-2025 DO_s2024_008
 
Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"
Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"
Dr. Nasir Mustafa CERTIFICATE OF APPRECIATION "NEUROANATOMY"
 
The Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdfThe Cruelty of Animal Testing in the Industry.pdf
The Cruelty of Animal Testing in the Industry.pdf
 
1. Importance_of_reducing_postharvest_loss.pptx
1. Importance_of_reducing_postharvest_loss.pptx1. Importance_of_reducing_postharvest_loss.pptx
1. Importance_of_reducing_postharvest_loss.pptx
 
How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17
 
PRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdf
PRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdfPRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdf
PRESS RELEASE - UNIVERSITY OF GHANA, JULY 16, 2024.pdf
 
How to Manage Line Discount in Odoo 17 POS
How to Manage Line Discount in Odoo 17 POSHow to Manage Line Discount in Odoo 17 POS
How to Manage Line Discount in Odoo 17 POS
 
Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...
Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...
Lange and Roberts "DEIA in the Scholarly Landscape Session 5: DEIA in Peer Re...
 
slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...
slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...
slidesgo-mastering-the-art-of-listening-insights-from-robin-sharma-2024070718...
 
Open Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdfOpen Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdf
 
Imagination in Computer Science Research
Imagination in Computer Science ResearchImagination in Computer Science Research
Imagination in Computer Science Research
 
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 SlidesWhat is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
 
BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...
BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...
BỘ ĐỀ THI HỌC SINH GIỎI CÁC TỈNH MÔN TIẾNG ANH LỚP 9 NĂM HỌC 2023-2024 (CÓ FI...
 
Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025
Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025
Brigada Eskwela 2024 PowerPoint Update for SY 2024-2025
 
Odoo 17 Events - Attendees List Scanning
Odoo 17 Events - Attendees List ScanningOdoo 17 Events - Attendees List Scanning
Odoo 17 Events - Attendees List Scanning
 
How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17
 

HOW TO OPEN LC

  • 1. LC Opening Procedure ( BTB LC) Adnan Zaber Mahmud Lecturer Southeast University
  • 2. BTB FLOWCHART DHAKA BANK SUPPLIERS BANK ZXY Buying FIRST BENEFICIARY PRIME TEXTI LE LTD FABRICS SUPPLIER SCB DHAKA ADVISING BANK RUPALI BANK LC ISSUING BANK/ NEGOTIATING BANK VAI MUNNA GARMENTS 2 ND BENEFICIARY/ EXPORTER AMEX NEWYORK LC ISSUING BANK UBL DHAKA TRANSFERRING BANK JC PENNY BUYER/ APPLICANT
  • 3. Legal Framework:      Import – Export (Control) Act – 1950 (sub section 1 of section 3)  Import Policy Order  Export Policy Order 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) Act - 1999 International Rules of ICC  UCPDC–600  eUCP–Version 1.1  URC-522  URR-725  ISBP-681  Incoterms 2000
  • 4. Main Features of Import Policy:           Who can import• Any Person having Import Registration Certificate (IRC) • Any Person exempted from having IRC How IRC is obtainedHow IRC is renewedList of banned, restricted & permissible itemsHow import can be done: • With LC & LCA • Without LC but against LCA • Without LC & LCA (Import permit or Clearance permit)
  • 5. 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) Carrying of goods by Bangladesh Flag Vessels Pre-shipment inspection Special conditions for food items CFR/FOB/CIF Insurance cover note.
  • 6. FEATURES of BTB       Back to Back LCs to be opened against export LCs received by export orient industries under the bonded warehouse system. Required value addition should be observed (value addition is prescribed in IPO) For Quota & Non-quota woven garments Knitted/others (Qouta - price $60/Dozen) Knitted/others (Non- qouta - price $60/Dozen) Sweater : 20% : 15% : 10% : 20%
  • 7. FEATURES       (BTB LC) BTB LCs may be opened upto 180 days usance. Sight LCs may be opened under EDF. Inland BTB LCs denominated in FC may be opened in favour of local manufacturer-cum-suppliers. BTB LCs may be opened for import of necessary inputs against inland BTB LCs. Accepted (Usance) bills against BTB LCs should be settled at maturity. Cases of failure of export against related LCs should be reported to NBR & Commissioner of Customs.
  • 8. REQUIRED PAPERS 1. Valid IRC, ERC. 2. Valid Trade License from recognized Trade Body. 3. TIN & Income Tax payment certificate. 4. VAT registration certificate. 5. Valid Bonded Ware House license (foreign import). 6. Other formalities with concern regulatory bodies.
  • 9. PROCEDURES 1.Receiving Export/Master LC duly advised/ transferred. 2.Scrutiny of Master LC to find out if there is any adverse clause in the LC, shipment & expiry date, reimbursement clause etc. 3.Receiving application from the client in LC Application Form along with PI duly accepted by the importer. 4.Obtaining credit report of exporter ( upto Tk. 700,000 in case of PI and upto Tk. 1000,000 in case of indent) 5.Approval of proposal / office note for opening BTB LC. Contd…….
  • 10. Procedures Contd……. 6. Issuance of IMP, LCAF 7. Giving entries in LC Opening Register. 8. Vouching:Commissions, charges & Liability. 9. Transmission of LC. 10. Passing liability voucher. 11. Receiving of Shipping documents. 12. Lodgment of import bill, intimating discrepancy. 13. Intimation of maturity date in case of deferred LC. 13. Making payment at sight for sight LC (EDF), payment on due date for deferred LC. 14. IMP reporting to Bangladesh Bank. 15. Matching Bill of Entries.
  • 11. ACCOUNTING Liability Voucher:   Dr. Customer’s liability on BTB L/C Cr. Banker’s liability on BTB L/C (Applicable rate: B.C Selling rate)
  • 12. Commission & others charges:      Dr. Customers A/c: Commission + FCC + Postal/ Telex + Misc. Cr. Income A/c: Commission on L/C foreign Cr. Income A/c. Postal/ Telex Recoveries Cr. Income A/c: Miscellaneous earnings (Handling charges, stationery, etc.) Cr. Sundry Deposit A/c: FCC.
  • 13. Export documents purchase:       (Only CM portion is purchased) Dr. FDBP/FBP Account (@ OD sight export) Cr. CD A/C Cr. Packing Credit/ Others Loan A/C Cr. Income A/C Com Cr. S/D Tax
  • 14. After realization of Export Proceeds:    Dr. General A/C ID, HO (CM portion- TT Clean & rest portion-OD Sight ) Cr. FC Held ( @ OD Sight Export) Cr. FBP A/C Cr. I/A Exchange Earning
  • 15. Payment of BTB:        (i) Reversal of acceptance liability: Dr. Banker’s liability on BTB bills Cr. Customer’s liability on BTB bills   (ii) Out of export proceeds settlement in FC: Dr. Exporters F.C held A/c: Bill value with usance interest (O.D sight export) Cr. General A/c: On Nostro A/c( OD sight export)