( BTB LC)
Adnan Zaber Mahmud
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
Main Features of Import Policy:
Who can import• Any Person having Import Registration Certificate
• 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
Main contents of Import Policy
Restriction of shipment
-Prior to opening of LC
-Expiry of the LC
Country of Origin (‘CO’ should be mentioned in
Harmonized commodity description & coding system
Carrying of goods by Bangladesh Flag Vessels
Special conditions for food items
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
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)
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.
1. Valid IRC, ERC.
2. Valid Trade License from recognized Trade
3. TIN & Income Tax payment certificate.
4. VAT registration certificate.
5. Valid Bonded Ware House license (foreign
6. Other formalities with concern regulatory
1.Receiving Export/Master LC duly advised/
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
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
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.
Dr. Customer’s liability on BTB L/C
Cr. Banker’s liability on BTB L/C
(Applicable rate: B.C Selling rate)
Commission & others
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.
(Only CM portion is purchased)
Dr. FDBP/FBP Account (@ OD sight
Cr. CD A/C
Cr. Packing Credit/ Others Loan A/C
Cr. Income A/C Com
Cr. S/D Tax
After realization of Export
Dr. General A/C ID, HO (CM portion- TT
Clean & rest portion-OD Sight )
Cr. FC Held ( @ OD Sight
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