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Biplab Babu
Kazi Md. Zahir Sadi
Tanmay Biswas
Md. Shaheduzzaman
Md. Abdullah Al Mamun
Naim Islam
BiplobBabuManagement
SN20121105023Studies

BangabandhuSheikhMujiburRahman
Science&TechnologyUniversity
Export-Import Documentation
and Export-Import Financing.
 Documentation is the function of receiving,
matching, reviewing, and preparing all the
paperwork necessary to effect the shipment of
cargo. This includes bills of lading, dock
receipts, export declarations, manifests etc.
 Conveying information- Documentation is a key
means of conveying information from one person
or company to another
Eternal proof of actions- It serves as permanent
proof of tasks and actions undertaken throughout
the export process.
Business purposes- Documentation is not only
required for ones own business purposes but also
ones business partner
 Satisfy the customs authorities- Satisfy the
customs authorities in both countries and to
facilitate the transportation of and payment for
goods sold.
Shared with the parties -Documentation is that
copies can be made and shared with the parties
involved in the export process
Export Documentation
 Export documentation refers to the bill of lading, or
shipping document, the commercial invoice
reflecting the transaction between the buyer and
the seller, the packing list that shows the goods are
actually being sent and, occasionally, some other
supporting documentation.
 Export documents are used as an evidence
of shipment and title of goods
It keeps shipment and delivery on schedule
It describes cargo
It is helpful for of customs clearance.
 To indicate the ownership of goods for
collection purposes or in the event of dispute
To obtain payment.
Transportation of the goods.
 Name: Kazi Md. Zahir Sadi
SN: 20121205037
Semester-I, Year-IV
Dept. of Management Studies
Bangabandhu Sheikh Mujibur Rahman Science &
Technology University.
 DOCUMENTS USED IN EXPORT Presentation
PROCEDURE AND PREPARATION Topic
Export Documents
International Purchase Order
International Commercial Invoice
Packing List
Irrevocable Letter of Credit L/C
CMR Document
Bill of Lading B/L
Air Waybill AWB
Multimodal Bill of Lading FBL
Certificate of Origin
Inspection Certificate
International Purchase Order

International transactions are based on

the buyers purchase order. Issuance of a
international purchase order is normally
preceded by an exchange of information
between exporter and importer with
respect to the price, quality and quantity
of products, etc.
International Commercial
Invoice
The International Commercial Invoice is the main
document of export documentation because contains all
the information about the international sale.
Packing List
The Packing List is a more detailed version of the
commercial invoice but without price
information.
Irrevocable Letter of Credit

In an Irrevocable Letter of Credit L/C the importers bank agrees

to the exporter (called the beneficiary) that the exporter will
get paid if it can prove it has shipped the proper goods by
providing the corresponding documents required by the letter of
credit.
CMR Document

The CMR transport document is an international

consignment note used by drivers, operators and
forwarders alike that governs the responsibilities and
liabilities of the parties to a contract for the carriage of
goods by road internationally.
Bill of Lading
A Bill of Lading B/L is a document issued by the
agent of a carrier to a shipper, signed by the
captain, agent, or owner of a vessel, furnishing
written evidence regarding receipt of the goods
(cargo), the conditions on which transportation is
made (contract of carriage), and the engagement
to deliver goods at the prescribed port of
destination to the lawful holder of the bill of
lading.
Air Waybill

An Air Waybill is a non-negotiable

transport document covering
transport of cargo from airport to
airport.
MULTIMODAL BILL OF
LADING
A Multimodal Bill of Lading is an international transport
document covering two or more modes of transport, such as
shipping by road and by sea.
Certificate of Origin
The Certificate of Origin certifies the country in which
the goods originated or in which the preponderance of
manufacturing or value was added. It also constitutes a
declaration by the exporter. Virtually every country in
the world considers the origin of imported goods when
determining what duty will be assessed on the goods.
Inspection Certificate
The Inspection Certificate for pre shipment inspection is a document
issued by an authority indicating that goods have been inspected
(typically according to a set of industry, customer, government, or
carrier specifications) prior to shipment and the results of the
inspection.
Tanmay Biswas
SN20121105013
ManagementStudies

BangabandhuSheikhMujiburRahmanScience&
TechnologyUniversity
Oxford University Press 2012. All rights reserved. E-Business
 Import Documentation

In general import documentation refers to Indent,

Certificate of Inspection, Bill of Entry, Letter of Credit,
Bill of Sight, Bill of Lading or Airway Bill, Dock
Challan, Dock Warrant or some other supporting
documentation.
Documents required in import

(i) Indent
(ii) Certificate of Inspection
(iii) Bill of Entry
(iv) Letter of Credit
(v) Bill of Sight
(vi) Bill of Lading or Airway Bill
(vii) Dock Challan
(viii) Dock Warrant.
(i) Indent:
An indent is an order placed by an importer to the
exporter for the supply of certain goods. It is usually
prepared in duplicate or triplicate .

(a) Quantity of goods to be imported

(b) Quality of goods
(c) Method of forwarding the goods
(d) Nature of packing
(e) Mode of setting payment
(f) Price to be charged
(g) Sale of delivery
(ii) Certificate of Inspection:

Inspection report or report of findings is required by some

importers and/or importing countries. The export-trader
uses such a report in the inspection of goods purchased
from a manufacturer. The export-manufacturer also uses
such are port in the inspection of its own productions.
(iii) Bill of Entry:

A bill of entry is a formal declaration describing goods which are

being imported.
(a) Name and address of the importer
(b) Name of the ship
(c) Package number
(d) Marks on the package
e) Description of goods
(f) Quantity and value of goods
(g) Name, address and country of the exporter
(h) Port of destination
(i) Custom duty payable
(iv) Letter of Credit:

A letter of credit is an undertaking by the issuer (usually

importers bank) that the bills of exchange drawn by the
foreign dealer on the importer will be honoured on
presentation up to a specified amount.
(v) Bill of Sight:

Thebill of sight contains only the information possessed

by the importer along-with a remark that he is not in a
position to give complete information about the goods.
(vi) Bill of Lading or Airway Bill:
Bill of Lading is a negotiable multi modal transport
document issued by the Shipping Line certifying
carriage of the said cargo under the specific invoice on
behalf of the importer depending upon the terms of sale.

Air way Bill is the negotiable transport document issued

by an Airline or a Freight Forwarder who consolidates
the airfreight cargo.
(vii) Dock Challan:

It is a form to be filled by the importer or his clearing

agent in the dock for payment of dock charges. Dock
charges are paid when all the formalities of the customs
are completed
(viii) Dock Warrant:

This is document issued by Warehouse keepers to the

persons who have deposited the goods with them.
(ix) Fumigation Certificate

In order to ensure safety against spread of harmful virus

importer insist on fumigation certificate where the cargo
includes plants & weeds. Unless his certificate is provided
the cargo will not be allowed to enter into their countries.
MD.SHAHEDUZZAMAN
SN:20121205044
MANAGEMENT STUDIES
BSMRSTU
Problems in preparing and processing
of documents of foreign trade
The Role of Banks in International
Trade
Problems in preparing and processing of
documents of foreign trade

Supply of wrong information by importer or exporter

Corruption in every stage of processing
Time consuming
Dependency on middle organization
The Role of Banks in International Trade
The Role of Central Banks in
International Trade
Currency Issue and Distribution in International Trade:
---- Ensures the regular supply of currency .
Debt Management of International Trade:
---- Manages its domestic and external debt in conjunction with the ministry
of finance.
External Debt of International Trade:
--- Cooperates with other agencies to manage the countrys external debt.
Foreign Exchange Management
--- Monitors the use of scarce foreign exchange resources to ensure that
foreign exchange disbursement and utilization are in line with economic priorities
and within the foreign exchange budget.
 Role of Commercial Banks in
International Business

Significance

Foreign Branch Banking

Trade Financing

Foreign Exchange
 ABOUT MYSELF :
Name : Md. Abdullah Al Mamun.
SN : 20121205038
Year-IV Semester-I

Dept. of Management Studies
BSMRSTU
 Definition of Import Financing
Loan given to the importer to provide liquidity for buying
with sight payment to the exporter . The term of financing
can vary based on the type of products imported and the
requirements of the importer.
 Advantages for the Importer by
Getting Import Financing
1. Obtain liquidity to pay for imports.
2. The importer can receive better conditions for the
purchase based on sight payment.
3.The importer can get financing based on the type of the
products imported, with adequate costs.
 Import financing
Import financing may be categorized into two categories
1. Pre-shipment financing
2. Post-shipment financing
Pre-shipment financing includes :-
Letter of Credit (LC):- LC is a financing techniques for the importer
under which banks agrees to make payment on behalf of the importer.
If the buyer is unable to make payment on the purchase, the bank will
cover the full or remaining amount of the purchase.
 Post-shipment financing includes

(a)Payment against document (PAD)

An arrangement under which someone
can collect imported goods after paying
for them at a bank and showing proof of
having paid.
(b) Loan against import (LIM)
Banks extends credit facility to the
importer for retirement and clearance of
the consignment known as loan against
imported merchandise (LIM).
 CONTINUED.
(c) Loan against trust receipt (LTR):- Loan against
Trust Receipt provided to the client when the documents
covering an import shipment are given without payment.
Under this system, the client will hold the goods of their
sale proceeds in trust for the bank, until the loan allowed
against the Trust Receipt is fully paid.
 Name: Naim Islam
SN: 20121105004
Semester-I, Year-IV
Dept. of Management Studies
Bangabandhu Sheikh Mujibur Rahman Science &
Technology University.
 Export financing
It is way of financing where a bank or a
financial institution may provide credit both at
pre-shipment and post-shipment stages.
Export Financing has two stages
1. pre- shipment export financing
2. Post Shipment Credit

pre- shipment export financing

It is working capital finance provided by
commercial banks to the exporter prior to shipment of
goods.
 Pre-shipment credit takes the following forms:
1) Export Cash Credit (Hypothecation)
2) Export Cash Credit (Pledge)
3) Export Cash Credit against Trust Receipt.
4) Packing Credit.
5) Back-to-Back letter of Credit.
6) Credit against Red-clause letter of Credit .
1. Export Cash Credit (Hypothecation)
Credit is sanctioned against hypothecation of the raw materials or
finished goods intended for export.

2. Export Cash Credit (Pledge)

It is allowed against a pledge of exportable goods or raw
materials. Cash credit facilities are extended against a letter of
pledge and other pledge documents.

3. Export Credit against Trust Receipt

Exporter executes a stamped export trust receipt in favor of the
bank, wherein a declaration is made that goods purchased with
financial assistance of bank are held by him in trust for the bank.
4. Packing Credit
It is allowed the exporter to purchase of raw materials, cost of
processing to finished goods, packing of goods.

5. Back-to-Back Letter of Credit

The bank finances export by opening a letter of credit on
behalf of the exporter who has received a LC from the
overseas buyer.

6. Advance against a Red-clause Letter of Credit

Under a Red clause letter of credit, the opening bank
authorizes the advising bank to make an advance to the
beneficiary prior to shipment to enable him to procure and
store the exportable goods.
 Post Shipment Credit
Post shipment credit refers to the credit
facilities extended to the exporters by the banks
after shipment of the goods against export
documents.

It has three stages:

1. Negotiation of documents under L/C
2. Purchase of DP & DA bills
3. Advance against Bills for collection.
1. Negotiation of documents under L/C
After the goods are shipped, the exporter submits the
concerned documents to the negotiating bank for
negotiation.

2. Purchase of DP & DA bills

Banks purchase the DP (Documents against Payment)
and DA (Documents against Acceptance) bills operated
under the payment method of documentary collection.

3. Advance against Bills for collection.

Banks generally accept export bills for collection .
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