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Foreign Exchange Transactions- Export Check List

1) A/D Branches shall ensure proper checking of the Export L/C and shall
ascertain genuineness of the issuance of the Export L/C.A/D branch shall ensure that there exists arrangement for authentication of SWIFT L/C.
2) A/D Branch shall also ensure that there is no ambiguity in the LC
terms, it meets all exchange control formalities and reimbursement
instruction is clear and proper.
3) If L/C received by transfer by the first beneficiary, the A/D branch should be satisfied, whether the transfer has been properly effected by the first beneficiary. AD branch shall not entertain any Export L/C if the same is being delivered by the customer himself to the counter of the Bank
4) Entry made in the L/C advising Register.
5) Advising charges recovered.
6) Back to Back L/C properly advised/opened.
7) Valid bonded warehouse license.
8) Valid registration with CCI & E.
9) Validity of the Master L/C.
10) Value added portion of FOB.
11) Usance period of the L/C.
12) Usance interest rate.
13) Update amendments of Master L/C
14) Pre-shipment inspection condition
15) Effective watch on imported raw material and export manufacturing performance. 17) Delay/non realization of export proceed.
18) Overdue unrealized Export Bill exceeding 4 months.
19) Discount against export Bill.
20) Advance remittance of export bill and completion of its formalities
21) Short shipment.
22) Verification of export proceed realization certificate
23) Realization of overdue interest on export value.
24) Application of exchange rate on realized export bill.
25) Export failure and its reporting to NBR/ Bangladesh Bank.
26) Credit Report on Foreign Buyer.
27) Verification of Authorized Signature of shipping companies officials.
28) Proper Examination of Export Documents (i) B/L/AWB (ii)Commercial invoice (iii) Bill of Exchange (iv) Packing list (v) Certificate of Origin
(vi) Pre-shipment Inspection Certificate (vii) other required documents.
29) EXP signed by the Exporter/ Legal authorized person.
30) Exporter’s registration with CCI & E
31) Proper issuance of EXP and certification of EXP form
32) EXP properly filled.
33) Maintenance Export performance register/FBPAR register properly
34) Dispatch of export documents.
35) Collection of EXP in time.
36) Submission of duplicate EXP to Bangladesh Bank within 14 days of shipment.
37) Payment of Back to Back Letter of Credit/ IFBC liability in maturity
38) Non-payment of Accepted Bills against Import/Export.
39) Reporting of outstanding overdue export bill to respective authority.
40) EPZ exports.
41) Proper Disposal of Export proceeds under Export Processing Zone.

Export Letter of Credit Scrutiny

Scrutiny of Export LC for considering of opening of BB L/Cs is a vital
function. At the time of scrutiny of export L/C the following points to be
observed very carefully:
I. Issuing Bank: L/C Issuing Bank should be a reputed one. Help of reference book may be taken L/C must be authenticated by the2. Advising bank. At present, authentication required to be verified also.
3. Applicant/Buyer Credit report to be obtained. Credit report should be acceptable.
4. Shipment & Negotiation: Must be reasonable in comparison with the
shipment schedule of proposed BB L/C
5. Mode of Shipment: In case of specific nomination of carrier, reasonable care to be taken. 6. Bill of Lading Clause: Bill of lading of Transport document is called the “title to the goods”. So, B/L or Transport Documents must be drawn or endorsed strictly as per our exchange regulations.
7. Reimbursement clause: LC must bear specific Reimbursement Clause. T.T Reimbursement is preferable.
8. Transfer LC: LC must be Transferable. Transfer must be authenticated by the nominated bank. Transfer authenticated to be verified. Third country transfer L/C should be avoided. In case of transfer made by buying house, their creditability and performance also to be checked.

Defective Clauses in Export Letter of Credit

1. Export L/C issuing bank is not a reputed one.
2. Advising bank has advised the credit without authentication.
3. Port of destination is absent in the credit.
4. For shipment of goods specific shipping line is nominated with the clause “shippers load and count is not acceptable is incorporated”
5. Nomination of vessel of shipping line by subsequent amendment.
6. B/L to blank endorse, or shipping line by subsequent amendment.
7. Specific reimbursement clause is not mentioned in the credit.
8. UCP reference is absent in the credit.
9. Shipment date and presentation period of documents to the bank is insufficient.
10. Original documents including B/L to be sent to buyer or nominated agent.
11. FCR or HBL or HAWB consigned to applicant or buyer.
12. LC shall expire at the counter of the issuing bank.
13. Negotiation is restricted to some other bank.



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