What is Export:

Export means transporting or carrying away the goods and services one country
to another. Export trade starts from the receipt of an export order. There may be
a contract between the importer and the exporter by which both parties agreed to
the terms and conditions as per mentioned in the sales contract.
Moreover, export is an international commercial operation that covers all the
stages that an exporter must complete to be able to sell its goods or services
outside the borders of the country in which it carries out its activity.
Export trade is a rigorous process that requires a sound knowledge of the export
policy of Bangladesh and import rules and regulations of the importing country.
Exporter have to clear understanding, detail information and knowledge of goods
to be exported.
Price is also an important factor in export. That’s why, before starting an export
business an exporter must considered the price offered to the buyers. As the
selling price depends on sourcing price, exporters have to try to avoid
unnecessary middlemen who only add cost but no value.
Why Export:
The primary reason for export is to earn foreign currency. The foreign currency
not only brings profit for the exporter but also improves the economic growth and
development and job creation of the country. Exporter who exports their goods
are believed to be more reliable than their counterpart domestic traders assuming
that exporting company has survive the test in meeting international standards.
Free exchange of ideas and cultural knowledge opens up immense business and
trade opportunities for an exporter.
Export increase international exposure, competitiveness and efficiency to the
exporter and business.
Moreover, exporter can get some additional benefit from government like Bonded
warehouse facility, Duty Drawback facility, Cash Incentive, Concessionary rate
for export financing, Capacity building and technological support, Tax Holiday,
Concessionary Income Tax facility, Value Added Tax Exemption, recognition
like Commercially Important Person Export (CIP), and National Export Trophy.

Export Risk Management:

Price Risk:
Price is the most important factor in for doing export business. It is important for
the exporter to keep the prices down keeping in mind all export benefits and
expenses. However, there is no fixed formula for successful export pricing and it
will differ from exporter to exporter. Like any other business transaction, risk is
also associated with goods to be exported in an overseas market.
Credit Risk:
It is very difficult for an exporter to verify the creditworthiness and reputation of
a foreign importer or buyer. There is a risk of non-payment, late payment or even
a risk of fraud. That’s why it is very important for an exporter to determine the
creditworthiness of the foreign importer or buyer.
Standard and quality risk:
Exported goods may rejected by an importer due to not maintaining proper
specifications and for poor and substandard quality. It is always recommended to
properly check the goods to be exported. Sometimes buyer or importer raises the
quality issue just to put pressure on an exporter in order to try and negotiate a
lower price. So, it is better to allow an inspection procedure by an independent
inspection company before shipment. Such an inspection protects both the
importer and the exporter.
Inspection is normally done at the request of importer and the costs for the
inspection are borne by the importer or it may be negotiated that they be included
in the contract price.
Alternatively, it may be a good idea to ship one or two samples of the goods being
produced to the importer by an international courier company.
Transportation Risk:
Though goods shifted from one country to another, it faces many risks and
hazards. There will be a risk of theft, ship may be sink at sea, goods may damage
and possibly the goods not even arriving at all.
Logistic Management:
The exporter must understand all aspects of international logistics, specifically
goods transportation issues. In this regard exporter may have gathered basic
knowledge of Inco Terms published by International Chambers of Commerce
(ICC).
Legal Issues:
Trade related international laws and regulations change frequently. Therefore, it
is important for an exporter to drafts a sales contract in consultation with an expert
legal firm, to ensure the exporter’s interests.
Packaging and Labelling Requirements:
The basic role of packaging is to contain, protect and preserve a product as well
as aid in its handling and final presentation. Packaging also has a role in the
process of design, evaluation, and production of packages.
Labelling Requirements:
Like packaging, labelling should also be done with extra care. It is also important
for an exporter to be familiar with all kinds of sign and symbols and should also
maintain all the nationally and internationally standers while using these symbols.
Labelling should be in English, and words indicating country of origin should be
as large and as prominent as any other English wording on the package or label.
Labelling of a product also provides information like how to use, transport,
recycle, or dispose of the package or product. With pharmaceuticals, food,
medical, and chemical products, some types of information are required by
governments.
Details of Documentation:
Bill of Export or Shipping Bill:
Bill of Export or Shipping Bill is the main document required by the Customs
Authority for allowing shipment. A shipping bill is issued by the shipping agent
and represents some kind of certificate for all parties, included ship’s owner,
seller, buyer and some other parties. For each one represents a kind of certificate
document.
Commercial Invoice:
Issued by the exporter for the full realizable amount of goods as per trade term.
Customs Invoice:
Mainly needed for the countries like USA, Canada, etc. It is prepared on a special
form being presented by the Customs authorities of the importing country. It
facilitates entry of goods in the importing country at preferential tariff rate.
Export Packing List:
An export packing list is much more detailed and informative than a standard
domestic packing list. It includes:
• Itemization of the contents of each individual package.
• The type of package, such as a box, crate, drum or carton.
How to become an Exporter:
After collecting Export Registration Certificate (ERC) from Chief Controller of
Imports & Exports (CCI&E) an individual person, a firm, a company or an
artificial juridical person can be a potential Exporter.
Necessary Documents for getting Export Registration Certificate (ERC) as
suggested by office of the Chief Controller of Export & Import (CCI&E):
• Filled in prescribed Application Form by CCI&E
• Registration Fee for IRC and Value Added Tax on Registration Fee (Both
have to deposited in a Separate Specific Treasury Code) with Treasury
Challan
• Valid Trade License - City Corporation/Municipal Corporation/Union
Parishad are responsible for issuing Trade License for doing any business
• Incorporation Certificates from Registrar of Joint Stock Companies and
Firms (RJSC) with updated Form 12 for Registered Companies
• Membership Certificate of relevant Chamber or trade association (Like -
DCCI, MCCI, CCCI, BAPA, BGMEA, BTMA, BKMEA, BJSA, BJMA
etc.)
• Electronic Tax Identification Number (ETIN) and updated Income Tax
Certificate
• Up to date Income Tax Return Submission Acknowledgement Receipt
• National ID/Passport/ Birth Registration Certificate of Applicant /if
individual/ Firm/ company/Artificial Juridical Person
• Business Identification Number (BIN) (VAT)
• Bank Solvency Certificate from Authorised Bank
• Deed of Partnership approved by Register of Joint Stock Companies and
Firms (RJSC) or Sub-Registry office (For Partnership Firm)
• Export Permit (if for any Restricted, Prohibited or Special type of export
goods)
• Joint Venture Agreement (For local and Foreign Partner Joint venture
investment)
• Work Permit of the applicant (If applicant is Foreigner)
• Approval letter of Bangladesh Investment Development Authority (BIDA)
[Applicable only for 100% Foreign investment]
• Work Permit/ Authorization letter/ for foreign employee (Applicable for
100% Foreign Company)
• List of Employees (Name/ Designation/ Salary and Nationality) [For 100%
Foreign Companies]
Steps in Export/ Export Process:
• Collection of Export Registration Certificate (ERC) from CCI&E
• Selection of goods and services what would like to export
• Collection and analysis of data of export market for exportable goods
• Collection of perspective buyers or importers information
• Correspondence with buyers or importers
• Collecting samples, design, specifications and any other requirements of
goods from buyers
• Making samples as per buyer’s requirement
• Cost/Price analysis
• Price negotiation
• Confirmation of order
• Signing or arranging Sales contract with buyer
• Receiving Letter of Credit from buyer’s Issuing Bank
• Negotiation with Authorizing bank for Export Finance
• Sourcing raw materials
• Production of goods and services
• Quality control, quality assurance and completing required test and
inspection to collect necessary certificate as per buyer’s requirements and
importing country’s specific requirements like, Pre shipment inspection,
Health Certificate, Sanitary and Phyto-sanitary Certificate, Quarantine
Certificate, Veterinary Certificate, Radiation Certificate,
• Country of Origin Certificate, Rules of Origin Certificate (For preferential
tariff)
• Negotiation with Freight Forwarding Agent, Shipping Agent, Clearing and
Forwarding Agent (C&F) and other transport agent
• Preparation of Bill of Export/Shipping Bill and submit documents to
Customs Station
• Shipment of Goods at Free on Board (FOB) basis
• Send Export documents to Issuing Bank (Buyer’s Bank)
• Repatriation of sales proceeds
• Collection of Profit Realization Certificate (PRC) from authorizing bank

Export Cycle
Factors to be considered for Selection of Export Goods:
 • Having experience on relevant business of the goods and services
• Export opportunity and profitability
• Demand analysis of such goods at the sourcing country or perspective
export market
• Connection and orientation with perspective buyers
• Adequate business capital
• Availability of capital machineries and equipment
• Supply chain and availability of raw materials
• Value Chain and cost analysis
• Availability of labour
• Production line and capacity
• Relation with Bank
Where to Export:
• Information of importing country’s market size and existing suppliers and
buyers
• Market trends
• Consumer behaviour
• Quality requirements and quality control certification requirements
• Rate of tariffs and preferential tariff for market access (if any)
• Non-tariff barriers
• Economic or other Sanctions
• Correspondence with Buyers
• Description of goods
• Source of Raw-materials
• Unit price of the goods
Documents related to Export Goods Shipment:
• Sales Contact/Letter of Credit (L/C)
• Proforma Invoice
• Commercial Invoice
• Packing list
• EXP Form from Commercial Bank
• Certificate of Origin
• Rules of Origin Certificate/Preferential Tariff Certificate
(GSP/SAPTA/APTA/etc.)
• Health certificate, Sanitary & Phyto Sanitary Certificate, Radiation
certificate (If any)
• Bill of Export/Shipping Bill
• Airway Bill/Bill of Lading
• Insurance Policy
• Bill of Exchange
Components of a Sales contract:
• Contract Name, number and Subject
• Contract Date
• Total Pages
• Buyer’s name, address and contact detailed
• Seller’s name, address and contact detailed
 • Description of the goods and quantity of the goods
• Description of the goods quality and specifications of the goods
• Unit Price
• Total value of sales contract
• Payment procedure, terms and conditions of payment
• Shipment process and shipment date
• Information on Packing list
• Validity and Guarantee
• Scope of Arbitration
• Packaging requirements
• Terms and conditions of sales contract
• Delivery schedules
• Important clause of L/C
• Required Documents
• Negotiation Date
• Name of the port of loading & unloading
• Bill of lading clause
Explanation of various Documents:
Commercial Invoice:
A commercial invoice is prepared by the exporter giving description and price
of the goods, quantity shipped, quality, marks number of packages, name of
the buyer, L/C or contract numbers, grades, size, name of the vessel, the date
of shipment, number of Bills of Lading etc.
Packing List:
An export packing list is detailed information of goods and position of goods
in the container and at the package.
EXP Form:
EXP form is issued by the authorized dealer Bank which certifies in favour of
the concerned exporter stating that the exporter is authentic business entity
and has made arrangement with Bank for realization of export proceeds of the
goods declared on this form within four months from the date of shipment. In
this regard the bank undertake risk to ensure the repatriation of the export
proceeds against the shipment.
Components of EXP Form:
• Goods to be exported
• Country of destination
• Port of destination
• Quality
• Value
• Terms of sale (Firm Contract/LC or Consignment sale)
• Name & address of importer/consignee
• Name of carrying vessel
• Bill of Loading/Railway Receipt/Airway Bill/Truck Receipt/Post Parcel
Receipt
• Port of shipment/Post Office of dispatch; Land of Custom Post
• Shipment date
 • Name of the Exporter (in block letter) with address
• CCI & E’s Registration Number of the exporter and date
• Sector (Public or Private) under which the Exporter falls
Certificate of Origin:
A Certificate provided by Competent authority inside the exporting country
stating the origin of exporting goods. There are two types of Certificate like;
Country of Origin Certificate and Rules of Origin Certificate (Preferential and
Non-preferential)
Bill of Export/Shipping Bill:
Bill of Export/Shipping Bill is a document issued by the customs authority
which ensure the shipment of goods
Components of Bill of Export:
• Bill of Export Number
• Consignee/Exporter
• Consignor/Importer
• Declarant/Authorized Agent
• Country of export
• Country of origin
• Country of Destination
• Name of Carrier
• Currency
• Place of loading
• Letter of Credit Number
• Invoice Number
• EXP Number
• Packing list and description of goods
• Gross Weight of the goods
• Net Weight of the goods
• HS Code
Bill of Lading:
A bill of lading is a document of title to goods evidencing despatch of goods from
the exporting to the importing country. It is a contract between the owner of the
goods and the carrier.
Insurance Certificate or Cover Note:
An insurance certificate is used to assure the consignee that insurance will cover
the loss of or damage to the cargo during transit.
Bill of Exchange:
The bill of exchange is an order on the buyer to pay the stated amount at sight or
after a certain period of issuance.
Certificate of Inspection:
It is a type of document describing the condition of goods and confirming that
they have been inspected.
Health/ Veterinary/ Sanitary Certification:
Required for export of foodstuffs, marine products, hides, livestock etc.
Insurance Certificate:
An insurance certificate is used to assure the consignee that insurance will cover
the loss of, or damage to, the cargo during transit. Typically, marine insurance
coverage equal to 110% of the commercial invoice amount must be obtained for
export shipments. If you plan to export infrequently, you may be able to buy
insurance through your freight forwarder.
Inspection Certificate:
Inspection certificates often are required by foreign customs or businesses for
certain regulated products. These are typically related to agriculture, health or the
environment. Inspection certificates also may be required to ensure that vessels
or crates are free of contaminants before entering certain ports, or that the
products met the specifications outlined in a contract or purchase order.
Short Shipment Form:
It is an application to the customs authorities at port which advises short shipment
of goods and required for claiming the return.
Relevant Law, Act, Rules and Policy of Export:
1. Export Policy 2021-24
2. Import, Export Control Act 1950
3. The Importers, Exporters and Indentors (Registration) Order 1981
4. The Customs Act 1969
5. Foreign Exchange Regulation 1947
6. Foreign Exchange Circular
Necessary Export Documents:
As required by Buyer’s/Importers Bank as per terms and condition of Letter of
Credit or Sale Contract:
1. Proforma Invoice
2. Commercial Invoice
3. Packing List
4. Bill of Lading/ Airway Bill/ Delivery Challan/ Truck Receipt (As
applicable)
5. Bill of Export
6. Country of Origin Certificate
7. EXP Copy
8. Freight Certificate (if applicable)
9. Other Documents as per L/C and Sales Contract
Repatriation of Export Proceed:
1. Export proceed must repatriate within 120 days of export shipment;
2. After realization of Export Proceed, Bank report EXP copy and issue Profit
Realization Certificate (PRC) to Exporter

Necessary Documents for getting Export Permit (EP)

No Documents
1. Export permit 1. Invoice of exporting sample goods
for exporting 2. Packing list of the goods
Sample 3. Communication record/letter with concern
foreign buyer
4. Other necessary permission (if any)
2. Export cum 1. Invoice of exporting sample goods
Import permit 2. Packing list of the goods
3. Bank guarantee equivalate to the export value in
a non-Judicial stamp of Taka 300 only
 4. No objection Certificate/ Recommendation/
approval from concern department or agency/
ministry/ Division
3. Export permit 1. Invoice of exporting goods
for Personal 2. Packing list of the goods
Effects and 3. Copy of passport and visa of the applicant
House word 4. Work Permit (If any)
goods 5. Tax Clearance Certificate/ Acknowledge Receipt
of Income Tax Return (If applicable)
6. No objection Certificate
/Recommendation/Approval from concern
Department/Agency / Ministry/ Division (If
applicable)
4. Export permit 1. Shipping Documents of Replacement goods
for warranty 2. Invoice and Packing list
Replacement 3. No Objection Certificate (NOC) from Concern
Department/ Agency/ Ministry/Division
5. Export permit 1. Invoice of exporting sample goods
for gift and 2. Packing list
promotional 3. Purchase Voucher of the gifted goods
goods 4. Record of Communication with foreign buyer
5. NOC of Export Promotion Bureau
6. (If applicable)
6. Export permit 1. Invoice of exporting relief goods
for Relief 2. NOC from Concern Ministry/Division/
goods Department/agency
promotional 3. Purchase Voucher of the relief goods (If
goods applicable)
4. Communication Record with foreign
organization
7. Export Permit 1. Invoice, Packing list, Bill of Lading, Airway bill
for Frustrated of frustrated cargo
Cargo 2. Letter of Concern Port Authority
3. Communication Record of Foreign Party
4. Authorization letter of Local Exporter
8. Export permit 1. Invoice of the goods
for Empty 2. Packing list of the goods
Container/ 3. NOC from Department of Explosives or
cylinder approval from concern Ministry/ Division/
Agency
4. Documents of imported goods (Invoice/Packing
list/BL/ Airway bill)
9 Export Permit 1. Invoice of the good
for live Animal 2. Health Certificate from Department of live stock
3. Copy of Passport and Visa of the applicant.
10. Export Permit 1. Invoice of the goods
for Testing 2. Packing list of the goods
goods 3. Undertaken for Testing Report
 4. Communication Record with Concern foreign
Testing Organization
11. Export Permit 1. Export L/C or Contract
for Re-export 2. Invoice, Packing list, BL, Airway bill of
of 10% value imported goods.
Addition goods 3. Invoice of the re-exported goods
4. Packing list of the re-exported goods
5. Declaration of Value Addition with statements
6. NOC from Authorized Bank
12 Export Permit 1. Invoice, Packing list, Bill of Lading, Airway bill,
for Ontraport of the imported goods.
Export 2. Invoice of the outreport export goods
3. Packing list of the ontra port export goods.
4. NOC of concern Authorized Bank.
5. Contract with Foreign Buyer.
6. Copy of Back to Back Letter of Credit (L/C)
13. Export Permit 1. Copy of Export L/C or Sales Contract
for Re- 2. NOC from Customs Authority
exporting 3. NOC from Authorized Bank
wrong/ damage 4. Invoice, packing list, Bill of Lading, Airway bill,
Export goods Truck Receipt of importing (previously
exported)
5. Invoice and packing list of Re-exported goods
6. Communication record with Foreign Buyer

Fee for Export Registration Certificate (ERC) at CCI&E

(For getting new ERC and renewal of ERC)
Serial Name of Certificate Registration Renewal fee
No Fee for new for old ERC
ERC (Taka) (Taka)
1, Export Registration Certificate 10000/ 7000/
2. Export Registration Certificate 50000/ 25000/
For Indenting
3. Export Registration Certificate 10000/ 7000/
for Multinationals

Fee for Export Permit at CCI&E

Serial Name of Export Permit Fee/ Taka
No.
1. Export Permit for Frustrated Cargo 1000/
2. Export Permit for Sample Goods 1000/
3. Export Permit for Relief Goods 1000/
4. Export Permit for Gifted Goods 1000/
5. Export Permit for Replacement of Warranty 1000/
6. Export Permit for Live Animal 1000/
 7. Export Permit for Testing Goods, Import cum Export, 1000/
Time Extension of Export Permit and Correction of
Export Permit

Financial Code for depositing Fee for Export Registration Certificate and
renewal of Export Registration Certificate on behalf of CCI&E:
Code: 1/1731/0001/1801
Financial Code for depositing Value Added Tax (VAT) on Fee (15% of Fee) for
Export Registration Certificate and renewal of Export Registration Certificate on
behalf of CCI&E
Code: 1/1133/0010/0311
Rules and Regulations to be followed in Export of goods:(In accordance with
Export Policy 2021-24)
For exporting goods from Bangladesh there are some conditions in Export Policy
2021-24. Moreover, exporter have to be maintained and followed some other
condition, laws, rules & regulations concerning Foreign Currency Exchange
Regulations and Circular time to time issued by Bangladesh Bank;
Exporter have to be submitted some relevant documents under The Export Policy,
The Customs Act 1969 and Foreign Currency Regulations and relevant rules in
accordingly;
Control of Export of Goods:
The export of goods under The Export Policy 2021-24 will be controlled in the
following ways, such as:
Export Prohibited Goods:
Unless otherwise stated, goods prohibited under the Policy cannot be exported.
The list of export prohibited goods is given at Annex-1;
Conditional Export:
Goods which are exportable subject to fulfilling certain conditions can be
exported after fulfilling those conditions. The list of such goods is given at
Annex- 2;
Exportable Goods:
Unless otherwise stated, all goods except goods under prohibited as listed in
Annex-1 and the goods under conditional export as listed in Annex-2 shall be
exportable without any restrictions;
Rules and regulations as contained in The Export Policy 2021-24 shall not be
applicable to the following cases:
Stores, equipment or spare parts of out bound ships, vehicles or aircrafts and
goods declared as a part of kitchen or the accompanied baggage by the sailors or
the crew or the passengers of those ship, vehicles or aircrafts;
Export of samples subject to fulfilment of the following conditions:
1. All goods except those are not included in the prohibited list mentioned in
Annex 1;
2. A maximum of US$ 10,000 worth of goods per exporter annually (except
medicine) based on the FOB (free on board) price;
3. In case medicine following conditions have to be fulfilled for sending sample
as free of cost:
a) A registered exporter being a member of concern registered association can
send goods maximum worth of US$ 70,000 as sample, without export L/C (Letter
of Credit);
b) Medicine worth 10% of the total value of each L/C or a maximum of US
$15,000, whichever is smaller;
Sample excess of declaration:
If samples exceed than declared quantity, the customs authority shall detain the
excess quantity and may allow export of declared sample;
Power to relaxation of export control:
The government may issue permission for export of any prohibited goods as
mentioned in Annex-1 showing appropriate reason. Beside this, government may
issue authorization for export, export cum-import or re-export of any goods on
special consideration;
Power to control export:
For a reasonable ground and mentioning appropriate ground the government may
temporarily prohibited export of any goods which are not included in the products
list as mentioned in Annex-1
Entre-port and Re-export:
1. In case of Entre-port trade imported goods can be exported to a third country
at a price at least 5 percent higher than imported price, provided that there will be
no scope of further processing and changing whatsoever in the quality, quantity,
shape or any other aspect of export of an imported goods;
2. Further Provided that goods under entre-port trade shall not be brought out of
the port area.
3. If necessary, Entre-port export through another port, prior approval of Ministry
of Commerce is mandatory;
Imports for Entre-port Trade:
1. Goods for Entre-port trade have to be imported under confirm sales contract,
letter of credit, or back to back letter of credit establish by the buyer and under
“returnable basis” import permission issued by the Office of the Chief Controller
of Import and Export;
2. In case of Entre-port import the word ‘entre-port’ or ‘temporary import’ have
to be mentioned in the declaration of goods;
3. If the port of import and export are same, imported goods cannot be taken out
of the port or even in off-docks;
4. If the import and the export port are different, products have to be exported
within a specific period of time, upon transporting them to the export port on
approval from the Customs Authorities paying duty taxes under duty drawback
or providing a 100% bank guarantee;
5. Import price under “entre-port” refers to the CFR (Cost and Freight) price of
the imported product declared at the port of Bangladesh;
Re-Export:
1. Re-export means the export of an imported goods within a specific period of
time with a value addition of at least 10% of the imported price by changing either
quality or shape or both of the imported goods through further processing or
reprocessing locally;
2. Import price in this case shall refer to the CFR price of imported product
declared at the port of Bangladesh for re-export;
Clearance of goods returned after export due to defects or other reasons and
re-export thereof:
1. Due to defective or for any other reason if exported goods including readymade
garments and other goods exported under the bonded warehouse system have
return to Bangladesh, the Customs Authorities may release or allow re-export of
such goods on the basis of a certificate issued by the concerned lien banks;
2. In case of readymade garments and other goods made of locally produced raw
materials which have exported without the bonded warehouse license, if returned
due to defects, the relevant enterprises can receive such goods from the port by
providing an undertaking that such products shall be re-exported within one year;
3. If exporter failed to re-export according to the given undertaking, such products
can be sold in the local market after payment of VAT applicable at the local level
and adjustment of rebate taken thereof, on execution according to the existing
VAT Act (only in case of local fabrics) equivalent to the drawback received as
per Mushak-11;
4. Provided that, in the case of frozen shrimp and fish and other consumable
goods, appropriate quality control certificate has to be submitted from the
concerned quality control authority.
If the port of import and export are same, imported goods cannot be taken out of
the port or even in off-docks;
5. If the import and the export port are different, goods have to be exported within
a specific period of time, upon transporting them to the export port on approval
from the Customs Authorities paying duty taxes under duty drawback or
providing a 100% bank guarantee;
Import price under “entre-port” refers to the CFR (Cost and Freight) price of the
imported product declared at the port of Bangladesh;
Re-export of fabrics and other goods returned due to defects or other
reasons:
1. For the defective fabrics and other articles that the supplier/exporter intend to
ship back and for which no foreign currency has been remitted from Bangladesh,
the Customs Authorities may issue clearance permit for re-export on the basis of
a authorization issued by the lien banks;
2. For the defective fabrics and other articles that the supplier/exporter intend to
take back and for which foreign currency has already been remitted from
Bangladesh, the Customs Authorities may allow clearance for the re-export of
such goods on the basis of authorization issued by the concern lien banks, as
determined by mutual consent of both the buyer and seller and recorded in an
inventory, and on execution of TT or L/C at sight as proof of repatriation of the
foreign currency that had been paid for the goods so determined as defective, or
after replacement of same quantity of goods;
Unless otherwise stated, export shall be permitted against authorized Letter
of Credit (L/C) by the foreign buyers;
Export opportunities without L/C:
In addition to L/C, exporter may export on the basis of obtaining EXP (Export
Permit) from the bank against buying contract, agreement, purchase order or
advance payment; export of all goods will be permitted without L/C on
consignment basis in case of advance encashment. TT (Telegraphic Transfer) will
also be included under advance encashment;
Temporary Export for Re-import:
1. In the case of export cum import of machineries, equipment or cylinder abroad
for the purpose of repairing, re-filling or maintenance etc, a bank guarantee
equivalent to the value of the goods shall have to be submitted to the Customs
Authorities. Government, semi-autonomous and autonomous bodies, military and
police departments, shall have to obtain Export-cum-import permit from the
Chief Controller of Import & Export upon getting permission of the concern
Sponsoring Ministry;
2. The above mention provisions shall be applicable for industrial undertakings
if can furnish an undertaking on the basis of recommendation from the sponsoring
authority;
3. In case of turbines capable of producing electricity (with or without gearbox)
or of homogeneous machinery, Export-cum-Import Permit has to be obtained
from the Chief Controller of Import & Export in order to export the expired
turbines to the supplier company for replacement of turbines (with or without
gearbox) and other concern machinery and equipment imported as per conditions
of the LC clause signed with turbine producers or overhauling companies. In this
case, service charge/replacement expense can be paid in accordance with LC
clause signed with the overhauling companies;
For the purpose of repairing, replacing or only for refilling, imported
cylinder and ISO tank can be exported on a temporary basis.
Provided that, an indemnity bond shall have to be furnished with the Customs
Authorities at the time of-export stating that the goods so exported will be re-
imported after completion of the necessary works;
Export of Replacement goods:
Bangladeshi exporters shall be allowed to export replacement goods if any defect
is detected in the exported goods as per sales agreement. Provided that, the
exporter shall have to submit the following documents to the Customs
Authorities:
1. Copy of the Sales Agreement;
2. Letter from the buyer with description of the defective product; and
3. Any other conditions to be fulfilled as per Customs Act 1969;
Re-export of Frustrated Cargo:
A frustrated cargo can be re-exported in accordance with the rules and regulations
of the Customs Act, 1969;
Temporary Export cum Import:
In order to completion of work as per contract, the construction, engineering and
electrical companies shall be allowed to temporarily export-cum-import of
machinery and equipment under following conditions:
1. Necessary indemnity bond has to be furnished stating that the machinery shall
be ship back after the completion of the work;
2. Relevant copies of agreement and award have to be submitted to the customs
authorities;
Important Incoterms:
In international trade, importers and exporters must clearly identify how their
goods will get from point A to point B, who will pay for which portions of the
journey, and who is responsible if goods are damaged or lost along the way. This
is done through Incoterms, a standardized set of rules that help facilitate trade
between countries.
The 11 Incoterms define the amount of risk and liability buyers and sellers take
on during an international transaction, but choosing the best term to use isn't a
clear-cut decision. These Incoterms are as follows:
EXW (Ex Works) - insert place of delivery:
The seller fulfills its obligations by having the goods available for the buyer to
pick up at its premises or another named place (i.e. factory, warehouse, etc.) on a
date agreed upon by both parties or within an agreed-upon timeframe. The seller
needs to provide the buyer the information they need to take delivery of the goods
at that time.
With Ex Works, the buyer bears all risk and costs starting when the goods are
made available to the buyer at the seller’s location or other named place until the
products are delivered to its location. Seller has no obligation to load the goods
or clear them for export.
FCA (Free Carrier) - insert named place of delivery:
The seller is responsible for either making the goods available at its own premises
or at a named place. In either case, the seller is responsible for loading the goods
on the buyer's transport and is responsible for delivery to the port and export
clearance including security requirements. Risk transfers once the goods are
loaded on the buyer’s transport.
CPT (Carriage Paid To) - insert place of destination:
Seller clears the goods for export and delivers them to the carrier or another
person stipulated by the seller at a named place of shipment. Seller is responsible
for the international transportation costs associated with delivering goods to the
named foreign place of destination.
The transfer of risk, on the other hand, transfers from the seller to the buyer as
soon as the goods are delivered to the international carrier. That means the buyer
assumes the risk of loading the goods on the carrier and during the international
transport of the goods.
CIP (Carriage and Insurance Paid To) - insert place of destination:
Seller clears the goods for export and delivers them to the carrier or another
person stipulated by the seller at a named place of shipment, at which point risk
transfers to the buyer. Seller is responsible for the transportation costs associated
with delivering goods and procuring insurance coverage to the named place.
DAP (Delivered at Place) - insert named place of destination:
Seller clears the goods for export and bears all risks and costs associated with
delivering the goods to the named foreign destination not unloaded. DAP means
the buyer is responsible for all costs and risks associated with unloading the goods
and clearing customs to import the goods into the named country of destination.
The named place under this term can be a port, the buyer's location or any named
place that is agreed upon. In that regard, DAP provides a lot of flexibility to both
parties.
DPU (Delivered at Place Unloaded) - insert of place of destination:
Previously named Delivered at Terminal (DAT), this Incoterm has been renamed
Delivered at Place Unloaded (DPU) because the buyer and/or seller may want the
delivery of goods to occur somewhere other than a terminal. This term is often
used for consolidated containers with multiple consignees.
DPU is very similar to DAP except that the seller must pay for unlading the goods.
Like DAP, the seller clears the goods for export and bears all risks and costs
associated with delivering the goods to the named place, which can be a port or
other named location in the foreign destination. Buyer is responsible for all costs
and risks from this point forward including clearing the goods for import at the
named country of destination.
DDP (Delivered Duty Paid) - insert place of destination:
DDP Incoterms 2020 means the seller bears all risks and costs associated with
delivering the goods to the named place of destination ready for unloading and
cleared for import.
DDP is a risky term for the seller, because they may not be fully aware of the
import clearance procedures in the country of import or how to find a competent
local customs broker. The seller must also deal in a foreign currency, which
means they are responsible for the currency exchange and its associated risks. In
addition, not all countries allow for non-resident importers, which means the
seller must determine how to establish an importer of record.
Because of all these hurdles that the seller must overcome, DDP may also have
questionable value to importers, since they must depend on the seller to
successfully navigate these challenges.
FAS (Free Alongside Ship) - insert name of port of loading:
Seller clears the goods for export and delivers them when they are placed
alongside the vessel at the named port of shipment. Buyer assumes all risks/costs
for goods from this point forward. This is not a commonly used term except for
goods that may be difficult to load.
FOB (Free on Board) - insert named port of loading:
Seller clears the goods for export and delivers them when they are on board the
vessel at the named port of shipment. Buyer assumes all risks and costs for goods
from this moment forward.
CFR (Cost and Freight) - insert named port of destination:
Seller clears the goods for export and delivers them when they are on board the
vessel at the port of shipment. Seller bears the cost of freight to the named port
of destination. Buyer assumes all risks for the goods from the time the goods have
been delivered on board the vessel at the port of shipment.
This term sounds a lot like the Incoterm CPT, but it can only be used for sea and
inland waterway transport, and the buyer only assumes risk once the goods are
loaded on the vessel.
CIF (Cost Insurance and Freight) - insert named port of destination:
Seller clears the goods for export and delivers them when they are on board the
vessel at the port of shipment. Seller bears the cost of freight and insurance to the
named port of destination. The seller is required to purchase the minimum level
of insurance under Clause C of the Institute Cargo Clauses. This requirement is
unchanged from Incoterms 2010.
Buyer is responsible for all costs associated with unloading the goods at the
named port of destination and clearing goods for import. Risk passes from seller
to buyer once the goods are on board the vessel at the port of shipment.