Export garments from Bangladesh:
To export garments from Bangladesh, there are specific jobs in the Commercial Department. These commercial procedures and activities should be properly maintained; otherwise, shipments could not be made on time to the customer. These are the Basic Commercial activities/ operations, these step-by-step guidelines must be followed by Commercial guys & Merchandisers for Export Garments in Apparel Sector
06 BASIC STEPS TO EXPORT GARMENTS FROM BANGLADESH:
01. ORDER GENERATION STAGE:BELOW ARE THE FIRST STEPS TO EXPORT GARMENTS FROM BANGLADESH:
• Follow up to get the export L/C from the Buyer • Export L/C collection from advising Bank with authentication • Check the export L/C to see if there is any discrepancy or if it followed the UCPDC 600 • A pro forma invoice is to be collected from the supplier as per the buyer’s instructions or their agent if the order is on a CM basis. In the case of FOB, order suppliers should be selected by the garments unit, and the merchandiser will collect the pro forma invoice from the suppliers as per his consumption of the order.
02. BB L/C OPENING STAGE:
To open a BB L/C, one proposal should be prepared and the following documents should be submitted to the bank. (a) L/C application form duly filled up and signed by the account holder. (b) Proforma Invoice Duly attested by the L/C opener (c) Forwarding letter on letterhead pad. (d) An insurance cover note with pad money receipt. (e) EXP or L/C original copy. (f) LCA form [ Letter of Credit Authorization form] ] duly filled out and signed. (g) IMP form [ Import Permission from] ] duly filled out and signed.
i) DOCS CHECKING:
The bank will check up on the proposal, particularly the export L/C terms & conditions, and whether it is possible to open a BB L/C to execute the export order. Normally, the bank will check the export L/C Validity, B/L clause, reimbursement clause, & ICC 500 [ revision 1993] rules and regulations. After satisfaction with all respect, the bank will agree to open BB L/C
ii) BANK LIMIT:
If the L/C proposal exceeds the branch limit, the branch office will send the proposal to their head office for further approval or sanction.
iii) L/C OPEN :
After the proposal is approved by the bank, the BB L/C will be opened, and the bank will give the L/C number.
IV) BB L/C TRANSMISSION :
Bank officials will fill up the L/C telex format & sign it by two senior officers. After that, the L/C will be transmitted from the telex room by getting the correct test number from the respective officer of the bank.
V) NOTIFICATION TO BUYER / SUPPLIER:
The garment factory has to inform the suppliers as well as the buyer with full details of the BB L/C or a copy of the BB L/C to be sent.
03. U/D [UTILIZATION DECLARATION] STAGE:
To make readymade garments & export the same it is pertinent to import the
For raw materials, it is also necessary to obtain utilization permission from the customs authority, through BGMEA.
PROCESS FOLLOWED TO ISSUE U/D:
A) BGMEA recommendation preparation, export L/C copy, BB L/C copy, proforma invoice, order details, and correct consumption to be submitted to BGMEA with a prayer
B) Per Dozen Taka to be deposited by “ Pay Order “ in favor of BGMEA
C) BGMEA will approve the recommendation
D) Approved recommendation to be submitted to the customs authority with bank endorsement, and a photocopy of the export L/C. BB L/C proforma invoice duly attested by bank & one certificate from the bank regarding BB L/C opening against respective export L/C.
E) The Customs Authority will verify/inspect all the documents submitted by you with the bank ( if they feel like it). They will put up office notes for issuing U/D, and after being approved by the “ collector of customs,“ they will issue U/D.
04. IMPORT SHIPMENT FOLLOW-UP STAGE:
It is most important to communicate with the suppliers regarding the shipment of raw materials within the shipment validity of BB L/C or the fate of shipment for raw materials; shipping details are most important for making a smooth production schedule.
IMPORTED RAW MATERIALS CLEARANCE:
A) If the Original import document is received from Bank then the Documents to be endorsed
From Bank, after acceptance of “ Bill of exchange “ by the drawee [ BB L/C Opener ].
B) If original documents are not received through the Bank channel, you can endorse the copy documents from the bank against the letter of guarantee or indemnity. In that case after receipt of original documents “ Bill of Exchange “ is to be accepted by the drawee as per the undertaking submitted at the time of endorsement of the copy documents.
C) Below listed documents are to be sent to the C&F agent with the following documents for clearance of the cargo:
• Photocopy of export L/C attested by the bank. • BB L/C [ Origin ]. • Original U/D. • LCA Form duly endorsed by the bank. • Insurance cover note. • Duty bond & Risk bond duly signed. • Proforma invoice duly attested by the bank. • Commercial invoice duly endorsed by the bank. • Packing list & detailed packing list. • B/L [ Original ] duly endorsed by the bank. • Bank forwarding letter. • Authorization letter of Custom board.
D) CARGO CLEARANCE FOLLOW-UP:
For early clearance of the cargo from the port, the following information is to be collected from C & F agent or shipping agent, regarding the vessel position asunder.
a) Estimated time of departure. b) Estimated time of Arrival. c) Berthing date. d) Un-stuffing.
E) CUSTOM FORMALITIES:
C & F agent will submit all necessary documents to customs for the board. Board will examine the documents & will approve the same
Customs Inspector will examine the goods, and whether the goods were imported as per L /C, proforma invoice, and U / D, also will check the shipment date of the Export L / C.
After the inspection report, an assessment is to be done by the customs authority & thereafter, they will issue a delivery order.
C & F agent will deposit shipping agent dues to the shipping line to get the delivery order.
Showing the delivery order of the shipping line to the port authority, they will issue. Outpass an order for the cargo, and the C&F agent will take delivery of the goods and send them by transport to the factory.
05. DOCUMENTATION STAGE TO EXPORT GARMENTS FROM BANGLADESH:
Commercial the department will prepare the following export documents should be as per garments export L/C instructions to export garments from Bangladesh.
A) PREPARE EXPORT DOCUMENTS :
To negotiate the export documents with the Bank, the following documents are required :
1. Bank forwarding duly fill up & signed 2. Bill of exchange duly signed by the account holder. 3. Commercial Invoice duly signed. 4. Original B/L or F.C.R. or AWB or HAWB as per export L/C instruction. 5. Packing List. 6. Inspection Certificate. 7. Beneficiary’s Statement. 8. Certificate of Origin issued by the Metropolitan Chamber of Commerce 9. EXP. Duly passed by Customs authority. 10. Any other’s documents required by Buyer, mentioned in the export L/C.
Negotiation Bank will review the above documents to determine whether they are in accordance with the L/C. If they find everything in order or as per the export L/C, the bank will negotiate the documents and disburse the generated funds as per bank norms. If the negotiation bank finds any discrepancies in the documents, they will send them for collection, or they can negotiate under reserve at the request of the export, or they can seek permission or negotiation authority from the issuing bank to allow them to negotiate the documents despite the discrepancies. The bank issuing the L/C will notify the buyer of the situation. If the buyer accepts the discrepancies mentioned by the negotiating bank, the issuing bank will be authorized to negotiate the discrepant documents.
B) COLLECTION OF DOCUMENTS:
Normally, negotiating banks send the documents for collection for the following discrepancies : i) Late shipment ii) Late presentation. iii) The unit price differs between an L/C and a commercial invoice. iv) Over Draft. v) Any major discrepancy in the B/L vi) The name and address of the consignee differ between the L/C and other documents.
C) REALIZATION OF EXPORT PROCEEDS :
The negotiating bank will send the documents to the issuing bank by courier within 3 days from the date of submission. The commercial section will follow up on the matter with the buyer & inform the buyer of the courier number & date for the respective invoice and request the buyer to release the payment within 21 days from the date of dispatch of the documents.
D) B/B L/C PAYMENT:
Bills of back-to-back L/C must be paid after the realization of the export proceeds against the relative export L/C, without any delay, to save BB L/C’s overdue interest. Commercial officers will follow up on the matter, request the bank to make a BB L/C payment, and take the payment voucher.
06. DAILY COMMUNICATING/CORRESPONDING REGARDING EXPORT:
A commercial manager or commercial officer must communicate every day with the following organizations to follow up on the above-mentioned job and complete it satisfactorily.
01. Buying logistics department 02. Bank. 03. EPB. 04. BGMEA. 05. Custom. 06. C & F Agent. 07. Transport Company. 08. Shipping Lines. 09. Supplier for fab & accessories 10. Insurance Company
THESE ARE THE BASIC STEPS TO EXPORT GARMENTS FROM BANGLADESH.
Author with two decades of expertise in Clothing merchandise & Digital marketing in the world’s most renowned Apparel companies.