Ans:-
01. Letter of credit:-
Letter of Credit is a definite undertaking given by the issuing bank at the request of the applicant to honor a complying presentation.
02. BTB L/C:
Back to Back Letter of Credit is essentially a secondary or ancillary credit opened by a bank on behalf of the beneficiary of the original credit in favor of a supplier located inside or outside the original beneficiary’s country. The bank may open Back to Back L/C against export L/C (Master L/C) received by export oriented industrial unit operating under the bonded warehouse system subject to observation of domestic value addition requirement (stated in term of permissible limit of CFR value of imported input as percentage of FOB export value of output) prescribed by the ministry of a commerce from time to time
03.EDF:
Export Development Fund administered by Bangladesh Bank. EDF is intended to facilitate access to financing in foreign exchange for input procurements by manufacturer-exporters. Authorized Dealers (AD) banks can borrow US Dollar funds from the EDF against their foreign currency loans to manufacturer- exporters for input
04. Bill of Entry:
A documents issued by the customs evidencing the arrival of goods into the country..
05. LCA Form:
Letter of Credit Authorization Form used by the AD Branch for opening import L/C.
06. H.S. Code:
07. ERQ A/C:
Merchandise exporters are entitled to maintain a foreign exchange retention facility in a particular FC Account known as Exporter’s Retention Quota ( ERQ) Account. Exporters of Ready Made Garments made of importer fabrics for allowed for the retention quota of 10 % of the repatriated FOB value and Exporters of computer software and data entry/processing services may retain 50 % of their export earning repatriated in foreign exchange in ERQ Accounts. Deem Export can also avail this facility.
08. FOB:
Free on Board means’ that the seller delivers when the goods
pass the ship’s rail at the named port of shipment. This means that the buyer
has to bear all costs and risk of loss of or damaged to the goods from that
port.
09 .CFR:
‘Cost and Freight’ means that the seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the cost and freight necessary to bring the goods to the named port of shipment. But the risk of loss of or damaged to the goods as well as any additional cost due to event occurring after the time of delivery, are transferred from the seller to the buyers.
10. CIF :
The Cost, Insurance and Freight’ means that the seller has the same obligation as under CFR but with the addition that he has to procure marine insurance against the buyer’s risk of loss of or damaged to the goods during the carriage. The seller contracts for insurance and pay the insurance premium.
11. Commercial Invoice :
Commercial Invoice is a document prepared by the exporter and addressed to the importer containing full description of the goods shipped, its quality, quantity, weight, unit price, total price, terms of sale, shipping marks, LCAF NO., L/C NO., Name of the Vessel, Bill of lading no. etc.
12. Packing List :
Packing List is a documents prepared by the supplier showing item by item the contents of the goods, full description of the goods, the gross and net weight etc. This helps in identifying the content of specified package and this may facilitate assessment by the customs.
13. Certificate of Origin:
A Certificate of Origin is a statement that declares the place of actual manufacture or growth of the goods. A country may place restriction on import from certain countries or preferential treatment may be accorded in tariff for imports from certain countries. For both these purposes, Certificate of Origin becomes necessary.
14. Bill of Lading:
A Bill of Lading is a document issued by the shipping company or its agent, acknowledging the receipt of goods for carriage which are deliverable to the consignee in the same condition as were received.
15. Bill of exchange:
The bill of exchange or Draft is the most important and the most widely used instrument in the International Trade by which sellers can obtain payment from their buyers for the invoiced value of the goods.
16. Insurance Policy:
Insurance Policy is taken out to protect the consignee against any loss that may be incurred in respect of the merchandises exposed to the perils of the sea/road/air while in transit on sea/air/road from the port shipment to the port of destination. This Insurance policy or cover note may cover all risks or any particular risk incurred.
17. LC Margin:
The Advance against import kept with the AD at the time of opening import L/C.
18. Credit Report :
Before establishing of import Letter of Credit against import of goods and before execution of Export L/C, Credit Report of Foreign Supplier and Foreign buyer as to their means, standing market reputation, financial strength and weakness, must be obtained as per Bangladesh Bank’s Guidelines for Foreign Exchange Transactions (Para 23 (b), Chapter Seven of Volume-I
19. IRC :
Import Registration Certificate issued by the Office of Chief Controller of Import & Export (CCI&E) without which no import can be executed. If the IRC is regular, it will be renewed every year by the nominated bank subject to deposit the required renewal fee vide Treasury Challan
20. ERC :
Export Registration Certificate issued by the Office of Chief Controller of Import & Export (CCI&E) without which no export can be executed. The ERC is to be renewed by Office of CCI&E subject to deposit of renewal fee vide Treasury Challan.