Commercial Activities in Garments
Commercial Activities in Garments
IN Order to know about the commercial activities at first we have to know that what is Letter of credit . A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services. The seller then seeks reimbursement (compensation paid to someone for damages or losses or money already spent etc. ) from the buyer or from the buyer's bank. The letter of credit also insures that all the agreed upon standards and quality of goods are met by the supplier.
Letters of credit are used primarily in international trade for large transactions between a supplier in one country and a customer in another. The most important things about Letters of credit is that almost all letters of credit are irrevocable, (i.e., cannot be canceled without the consent or Permission of the beneficiary, issuing bank, and confirming bank, if any.)
Master L/C :
Generally we know that the procedures of master L/C is :
Supplier )
BTB FLOWCHART
DHAKA BANK PRIME TEXTI LE LTD RUPALI BANK VAI MUNNA GARMENTS UBL DHAKA SUPPLIERS FABRICS BANK SUPPLIER LC ISSUING BANK/ NEGOTIATING BANK 2 ND BENEFICIARY/ EXPORTER TRANSFERRING BANK
ZXY Buying
SCB DHAKA
AMEX NEWYORK
JC PENNY
FIRST BENEFICIARY
ADVISING BANK
LC ISSUING BANK
BUYER/ APPLICANT
Purchase Order :
Also Known as PO . When we confirm the order from the buyer , buyer will give a PO to Supplier . And the most important things is For Single delivery (whole Garments) , Buyer gives Just single PO . But , if we request double or multiple delivery , then buyers will give multiple PO ( Each PO For Single Delivery) .
Trans Shipment:
Two ways Of Trans Shipment -------1. Sea (vessel ) and 2. Air way
Developing countries/territories enjoy preferential access to EU markets Least developed developing countries (LDDC) benefit from zero duty on import into the EU for all products of Chapters 01- 97 with the exception of Chapter 93.
Special incentive arrangement for sustainable development and good governance - GSP+
1. Companies Trade License ( Given By City Corporation ) 2. Certificate Of Incorporation ( If The companies share is Joint or Joint venture Company Then It Is Needed ) Given By --- RJSC ( Registered Joint Stock Comapany ) 3. Memorandum Of Association (Given By --- RJSC ( Registered Joint Stock Comapany ) 4. TIN (Tax Identification Number) Certificate ----- NBR (National Board Of Revenue) 5. Banks Current Account 6. Membership Of BGMEA , BKMEA , DCCI , BGBA . 7. ERC ( Export Registration Certificate) ---- Office of the Controller Of Export & Import. 8. VRC (vat Registration Certificate) ---- Customs 9. EXP ( Export Permission) ---- Bank 10. UD ( Utilization Declaration) Form
***** Bond License : For Import Of Raw Materials ( Tax free) ***** Form C : If The Money that buyer gives to the correspondent Supplier crossed to 2,000 dollar , Then Form C Must BE filled up In order to occur any harmful activities against our laws But At present , Now the range is Up to 5,000 Dollar