Overall Export-Import
procedure and documentation
Source: Bangladesh Foreign Trade Institute
Bangladesh
Customs
Definition
“Import & Export” means respectively
bringing into and taking out of the provinces
by sea, land or air. [Section 2 (C) of Import &
Export Control Act, 1950.]
Bangladesh
Customs
Types of Import
• Import for Home Consumption;
• Importation for Bonded Warehouse;
• Temporary Importation for re-exportation;
• Importation for Entre-port
• Importation on returnable basis;
• Importation for Personal use &
• Import for Back to Back LC
Bangladesh
Customs
Import & Export Related Laws
• The Import Export (Control) Act, 1950; [Act No.
XXXIX of 1950]
• Import Policy Order (IPO);
• Export Policy;
• The Customs Act, 1969; [ Act No. IV of 1969]
• Foreign Exchange Regulation Act, 1947; [ Act No. VII
of 1947]
• Importers, Exporters & Indentors (Registration)
Order, 1981
Bangladesh
Customs
IPO (Import Policy Order)
• SRO (Statutory Regulatory Order)
• Every 03 (Three) Years;
• 2015-2018 (Existing);
• 2019-2022 (Coming)
Bangladesh
Customs
Import Restrictions
• List of Controlled goods (Part-A of Annex-1)
• List of Prohibited goods (Part-B of Annex-1)
• Conditional Import
• All other goods are importable freely.
Bangladesh
Customs
Importation Procedure
• Through LC
• Against LCA
• Through IP/CP (Import Permit/ Clearance Permit)
• Againist Deferred Payment basis
• Against Direct Payment-abroad (Only for
Bangladeshi expatriate)
Bangladesh
Customs
Letter of Credit (L/C)
• LCA – Letter of Credit Authorization;
• LC
• Master L/C;
• Back to Back LC (BBL/C)
Bangladesh
Customs
General Conditions for L/C Opening
• Mandatory of using HS Code;
• PSI (Pre Shipment Inspection);
• Import at competitive rate;
• Import by mentioning CO (Country of Origin);
• BIN;
• eTIN;
Bangladesh
Customs
Source of Finance
• Cash Foreign exchange;
• FC accounts;
• External economic aid;
• Barter and Special Trading Arrangement (STA)
Required Documents for L/C
• LCA Form;
• Proforma invoice (PI);
• Insurance cover;
• Membership Certificate of Chamber of Commerce/
Membership Certificate of Association;
• TIN;
• IRC;
• BIN;
• Insurance Cover Note (To cover the loss or damage);
• Other Documents (If necessary) such as: Lubrication Oil-
BERC, Pharmaceuticals raw materials- Drug administration
Bangladesh
Customs
Price
• FOB- Free on Board;
• CFR- Cost & Freight;
• CIF- Cost Insurance & Freight;
• FOC- Free of Cost
Bangladesh
Customs
Bill of Entry Form
Bangladesh
Customs
Customs Declaration: Bill of Entry
Required Shipping Documents
• LCA;
• LC;
• PI;
• Invoice;
• Packing List;
• Bill of Lading;
• Bill of Exchange &
Bangladesh
• Certificate of Country of Origin
Customs
Transportation Documents
• B/L (Bill of Lading) for sea Cargo;
• Airway Bill for Air Cargo;
• Truck Receipt for Land Cargo
• Railway Receipt for Railway
• Waybill
Bangladesh
Customs
Bill of Lading
Journey of Bill of Entry
• Submission of B/E in Customs Computer system ie:
ASYCUDA world by C&F or Self;
• Physical examination;
• Assessment & Payment;
• Release Order;
• Payment of Port Charges, Shipping Agent Charges,
• Clearance of Good
Bangladesh
Customs
Calculation of Duty Taxes
• CD (%): 0, 1, 5, 10, 15, 25;
• RD (%): 3, 5, 10, 20, 30
• SD (%): 10, 20, 30, 45, 60, 100, 150, 200, 250, 300, 350, 500
• VAT (%): 15;
• AT (%): 5;
• AIT (%): 5;
• Cumulative Calculation;
• TTI (Total Tax Incidence);
• SRO benefit (CPC) Customs Procedure Code
Bangladesh
Customs
Definition
• Import:-
Means bringing in
goods or services into
the port of a country.
The buyer of such
goods and services is
referred to an
"importer.“
What do they mean?
1. A Manufacturer cum Exporter
2. A ship as a carrier of goods for export
3. An Importer or a Buyer
Shipment of Goods from Exporter to Importer
Risk
Cost
IMPORT PROCESS
UNDERSTAND
REGISTER AS AN NEGOTIATE TERMS FORMALITIES OF
IMPORTER OF IMPORT IMPORT
COMPLETE FOR IMPORT UNDERSTAND
CUSTOMS OBTAIN DOCUMENTATION
FORMALITIES DOCUMENTS AND INCOTERMS
INCOTERMS
• The Incoterms rules or International Commercial
terms are a series of pre-defined commercial terms
published by the International Chamber of
Commerce (ICC) widely used in international
commercial transactions. It defines-
– The contract of trade; and
– Responsibilities and liabilities between the buyer
and the seller.
INCOTERMS
• These terms make-
– International trade easier;
– Help traders to understand the responsibilities
and;
– Rights of the buyers and sellers.
INCOTERMS
• SOME OF THE TERMS ARE-
• EXW – Ex Works (named place of delivery)
• FCA – Free Carrier (named place of delivery)
• CPT - Carriage Paid To (named place of destination)
• CIP – Carriage and Insurance Paid to (named place of
destination)
• DAT – Delivered at Terminal (named terminal at port or place
of destination)
• DAP – Delivered at Place (named place of destination)
• DDP – Delivered Duty Paid (named place of destination)
A typical international transaction
Tools used to aid transactions
• Letters of Credit (LOC)
# A guarantee from the bank on behalf of an importer to the
exporter assuring payment when exporter presents evidence
of export/ documents.
• Draft (Bill of Exchange)
# Written order from an exporter, telling an importer to pay
a specified amount of money at a specified time.
• Bill of Lading
# Issued to exporter, by carrier (Vessel). Serves as a receipt,
contract and document of title.
Tools used to aid transaction
• Air Waybill
Issued to an exporter/shipper by an airline. Serves as
receipt, contract and document of title.
• Pro Forma Invoice
Exporter’s formal quotation: description of the merchandise,
price, delivery time, method of shipment, ports of exit and
entry, and terms of sale, etc.
Letter of credit
• Issued by a bank at the request of the importer
• Bank pays a specified sum to a beneficiary, normally
the exporter/shipper, on presentation of particular,
specified documents
• Fee paid by importer for letter of credit
Current Process at Chittagong Custom House
1
• Submission of E Manifest – Shipping Agent/Airline
2
• Sub. & Reg. of B/E by filling in SAD online – C&FA
3
• Sub. & Reg. of B/E from offices of C&FA
4
• Sub. & Reg. of B/E from DTI of CHs/LCSs
5
• Examination of goods – Customs/ C&FA/ Port
6
• Assessment of goods – Customs
7
• Payment – Sonali Bank
8
• Speed Bank – Customs (Mannual Payment: Cash/Pay Order
9
• Release/ Delivery of goods – Port/ Customs
Declaration and Clearance of Import
Goods
Manifest Submission Submission of B/E
Risk Assessment
(using AW)
Physical Examination Document Check
OK for OK for
assessment assessment
Assessment to duties
and taxes
Duty Payment Issuance of Exit Note &
Physical Delivery
Manifest Submission
Shipping
Agent
submits AW matches the
complete e- manifest Yes
manifest in information
AW
Auto Manifest
No Registered on AW
Documents Required
1. Bill of Entry
2. Bill of Lading/Airwaybill
3. Letter of Credit Authorization Form
4. Letter of Credit
5. Insurance Cover Note
6. Insurance policy
7. Invoice
8. Packing List
9. Certificate of Origin
10. Certificate from OGA, if required
Sections of the Customs Act related to
submission of Import General Manifest
• Section-42: Arrival of conveyance
• Section-43: Delivery/Submission of import manifest
in respect of a vessel
• Section-44: Delivery/Submission of import manifest
in respect of a conveyance other than a vessel
• Section-45: Signature and amendment of manifest
• Section-46: Duty of a person receiving manifest
• Section-47: Bulk not to be broken until manifest, etc.
delivered and vessel entered inwards
Sections of the Customs Act related to
submission of Bill of Entry, etc.
• Section-79: Entry for home consumption or warehousing
• Section-79A: Acceptance of electronically transmitted bills of
entry
• Section-79B: Access to Customs computer system
• Section-79C: Registered users
• Section-79D: Registered users to be allocated unique user
identifier
Customs Procedures
• (17) “Customs Procedures” means any of
the following procedures-
• a) Clearance for home consumption;
• b) Temporary Importation;
• c) Inward Processing;
• d) Outward Processing;
Customs Procedures
• e) Customs Warehousing;
• f) Transit;
• g) Transshipment,
• h) Stores
• i) Export.
Customs Clearance Procedures
Name of Events followed for clearance Name of Events followed for
Custom of imported goods Custom clearance of imported
House House goods
Custom A. Submission of Manifest by Custom A. Submission of
House Shipping Agent; House Manifest by Shipping
Chittagong B. Sub. & Reg. of B/E by C&FA Dhaka Agent
1. Examination of Documents, B. Sub. & Reg. of Bill of
Yellow lane Entry by C&FA
(Customs Officers); 1. Sub. & Reg. of B/E
2. Examination of goods from DTI;
(Customs Officers); 2. Examination of
3. Assessment of goods goods;
(Customs Officers); 3. Assessment of
4. Payment of duties & taxes goods;
(Sonali Bank); 4. Payment of duties &
5. Speed Bank(Customs taxes;
Officer); 5. Speed Bank;
6. Chittagong Port Authority; 6. Delivery of goods.
7. Exit gate.
ICD 1. Submission of Manifest by Benapole A. SAD Preparation (at
Custom Shipping Agent Custom the office of Clearing &
House 2. Sub. & Reg. of B/E by C&FA House Forwarding Office).
1. Manifest(AW);
3. BOL verificat
4. Physical Examination of goods [Link] of Custom House
(Examination Officer); 3. Examination;
5. Physical Examination (AC, 4. Assessment;
examination); 5. Payment of duties &
6. Document check (ARO taxes;
assessment); 6. Sonali Bank
7. Document check(RO); 7. Land Port Authority;
8. Document check(AC 8. Shed Exit;
assessment); 9. Land Port Authority;
9. Payment(Sonali Bank); 10. Exit Gate(Customs
10. Goods Exit. Officer).
MODES OF PAYMENT
• In order to complete export process, payment of the
exported goods have to be received by the exporter. An
exporter can receive the export proceeds as-
ADVANCE PAYMENT
PAYMENT AGAINST DOCUMENTARY BILLS
PAYMENT AGAINST DOCUMENTARY BILLS UNDER LETTER OF CREDIT
Types of Export
• Direct Export
• Deemed Export
• Export Cum Import;
Bangladesh
Customs
Conditions of Deemed Export
• International Tender
• Foreign Exchange
• Contract/Agreement
Bangladesh
Customs
Export Documents
• Sales Contract/ Export Contract/ Purchase Orer
• Bill of Lading for export/Air way bill/ Truck Bill/ Car Pass;
• Insurance Policy/ Insurance Covernote;
• Exp Form from Commercial Bank (AD Branch);
• Packing List;
• Certificate of Origin;
• BIN;
• Commercial Invoice;
• TIN;
• ERC;
• Bill of Export/ Shipping Bill
Bangladesh
Customs