Business

LC process for importing goods or parts

In order to import goods or parts from abroad, one must do LC through the bank. It is through this LC that suppliers import and export goods from one country to another. If you want to do LC, first of all you have to pay VAT of your company. Then you have to go to the bank and open an account in the name of the company. Then you have to collect the LCA form from the bank, fill it and submit it to the bank. Some information has to be provided in this form. LC process for importing goods or parts. Such as what product, how much price, what country will come from etc. This has been described in detail below.

Stage 1:

Company’s trade license, tin, VAT. IRC (Import Register: Certificate).

Stage 2:

Account of the company in any bank.

Stage 3:

Collect the indent of the product you will bring (Suppose you bring 15 tons of newsprint paper from Korea. Now the company you are bringing from will go to the Bangladesh representative of the company and fix the price and get a document. This is the indent. And if that company does not have a Bangladesh representative) You have to mail the company directly and bring the document with the price. Then it is called PI or Proforma Invoice. It contains the details of the product, price, port of shipment.

Stage 4:

Collect LCA (Letter of Credit Application) form from the bank, fill it as per indent / PI and submit it to the bank.

 

 

Step 5:

Submit LC margin. At first you have to deposit the whole money in the bank. Suppose the LC value is  20,000. You have to deposit 16 lakh rupees in the bank. However, if the business with the bank gradually increases, then the LC should be opened with 10-20% margin. You have to give some other documents along with the money.

 

 

Such as:

All papers of your company (Trade License, TIN, VRAT, IRC), 3/4 copies of Indent / PI. The bank will then give you a copy of the LC, along with the bank credit report of the supplier company, the insurance cover note (any insurance company will take the fee by showing the indent). Will send the original to the supplier abroad. LC process for importing goods or parts

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