Banking Articles

Required papers of a new importer for Import Registration Certificate (IRC).

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After submission of the application by the intending importers for IRC alongwith the papers in mentioned above (a) and deposit of requisite fees, on being satisfied the Chief Controller of Import & Export (CCI&E) issue IRC to the Industrial Consumers or Commercial importers with their half yearly/yearly entitlement mentioning item of commodities.

Requirements:
+ Application in a prescribed form.
+ Valid Trade license.
+ Membership certificate of the respective trade organization or Membership from the Chamber of Commerce & Industry.
+ Registered partnership deed/Memorandum and Articles of Association alongwith Certificate of Incorporation.
+ Two copies attested photograph of the applicant(s).

+ Regular Bank Account.
+ Affidavit from 1st class Magistarte.
+ Asset Certificate of the applicant(s).
+ Ownership deed or Lease deed of the office premises alongwith rent receipt.
+ Bank solvency certificate.
+ Tax Identificate Number (TIN) Certificate.
+ Money receipt of requisite fee.
+ Any other document as required.

INCOTERMS 2010 published by The International Chamber of Commerce (ICC).

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INCOTERMS mean International Commercial Terms. These terms prepared by "The International Chamber of Commerce (ICC)". First the INCOTERMS were published by the ICC in 1936. These terms are accepted and used throughout the world as simple and reliable terminology for avoiding misunderstanding between buyer and seller. The purpose of INCOTERMS is to provide a set of International rules for the interpretation of the important terms used in Foreign Trade Contracts i.e. Export & Import. It is a set of uniform rules codifying the interpretations of trade terms defining the rights and obligations of both the buyer and seller in an international transaction. It defines the commercial, legal and insurance responsibilities of the exporter & importer during an international trade. The INCOTERMS 2010 publication came in to effect on 1st January, 2011.

There are mainly 13 (thirteen) INCOTERMS. These are:

1. EXW = Ex Works

Seller’s duties: i. Only deliver the goods at his factory premises.
ii. If the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale.
Buyer’s duties: i. Take delivery of the goods at the seller’s factory.
ii. All cost & risk at his own.

2. FCA = Free Carrier

Seller’s duties: i. Deliver the goods at the named point into the custody of the carrier mentioned by the importer.
Buyer’s duties: i. Contract for the carriage and pay the freight.

A. FOR = Free on Rail

Seller’s duties: i. Responsibility up to loading the wagon.
Buyer’s duties: i. Pay the freight.
ii. Delivered the goods from Railway.

B. FOT = Free on Truck

Seller’s duties: i. Deliver the goods to the truck.
ii. Truck receipt prepared and advance copy despatch to the buyer.
iii. Pay loading cost according to the custom of the port not include in the freight.
Buyer’s duties: i. Nominate Carrier, Pay the freight, Pay un-loading cost.
ii. Freight paid upto destination point.
iii. Delivered the goods from the truck.

C. FOB Airport = Free on Board

Seller’s duties: i. Deliver the goods to the Air Carrier at the Air port of departure.
Buyer’s duties: i. Accept delivery of the goods at the Air port of departure.
ii. Pay the Air Freight.

3. FAS = Free Alongside Ship

Seller’s duties: i. Deliver the goods alongside the ship.
ii. Provide on “alongside” receipt.
Buyer’s duties: i. Contract for the carriage.
ii. Pay the freight.

4. FOB = Free on Board :

Seller’s duties: i. Deliver the goods on board.
ii. Provide a clean on board receipt.

Buyer’s duties: i. Accept delivery of the goods at the Airport of arrival.
ii. Pay the freight.

5. CFR = Cost & Freight :

Seller’s duties: i. Contract for the carriage.
ii. Pay the freight to the named destination.
iii. Deliver the goods on board.
iv. Pay loading costs.
v. Provide clean on board bill of lading.
vi. Pay unloading cost.

Buyer’s duties: i. Receive the goods at the port of destination.
ii. Pay the duty, sale tax, DSC & I.P. Fees etc.
iii. Pay the load conveyance/carrier charge upto buyers’ godown.

6. CIF = Cost Insurance and Freight :

Seller’s duties: i. Contract for the Carriage.
ii. Pay the freight to the port of destination.
iii. Contract for the insurance of the goods.
iv. Pay the insurance premium.
v. Provide clean on board Bill of lading and cargo insurance policy or certificate.
vi. Pay loading cost.
vii. Pay un-loading cost.

Buyer’s duties: i. Accept delivery and receive the goods as per B/L, invoice and insurance policy.
ii. Pay the duty & sale taxes etc.
iii. Pay the local carriage charges.

7. CPT = Freight Carriage paid to :

Seller’s duties: i. Contract for the carriage and pay the all freight to the final destination.
ii. Deliver the goods into the custody of the first carrier.
iii. Furnish to the buyer the usual transport documents.

Buyer’s duties: i. Accept delivery and receive the goods.
ii. From that named point pay local conveyance Charges upto his custody.

8. CIP = Freight Carriage and Insurance paid :

Seller’s duties: i. Contract for the carriage.
ii. Pay the freight to the named point of destination.
iii. Deliver the goods into the custody of the first carrier.
iv. Pay export taxes and fees.
v. Contract for insurance of the goods and pay the insurance premium.

Buyer’s duties: i. Take delivery of the goods.

9. DAF = Delivered at Frontier :

Seller’s duties: i. Deliver the goods upto custom border.
ii. Up to this point sellers will pay all freight.

Buyer’s duties: i. Take delivery of the goods from that point.
ii. Pay duty and other taxes.
iii. Pay for carriage.

10. DES = Delivered Es Ship :

Seller’s duties: i. Deliver the goods on board the ship at the port of destination.

Buyer’s duties: i. Take delivery of the goods from the ship at the port of destination.
ii. Pay un-loading costs.
iii. Pay duty and others taxes.

11. DEQ = Delivered Ex Quay :

Seller’s duties: i. Deliver the goods on the quay at the port of destination.
ii. Pay unloading costs.
iii. Pay duties, Taxes and other charges if required.Buyer’s duties: i. Take delivery of the goods from the quay at the port of destination.

12. DDU = Delivered Duty Unpaid :

Seller’s duties: The sellers has to bear the costs and risks involved in bringing the goods there to excluding duties, taxes and other official charges payable upon importation as well as the costs and risks of carrying out customs formalities.Buyer’s duties: The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time.

13. DDP = Delivered Duty Paid :

Seller’s duties: i. Deliver the goods to the named place.
ii. All freight paid by the seller.
iii. Pay the duty, Taxes & other charges.
iv. Clear the goods from the port of destination.

Buyer’s duties: i. Receive the goods at the named place of their godown.

Export Development Fund (EDF)

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As per request of Bangladesh Government to promote non-traditional manufactured items export business of Bangladesh, International Development Association (IDA) in 1989 arranged an Export Development Fund (EDF) primarily with US$ 31.2 million and the present balance of EDF is US$100.00 million.

Objectives for creating EDF and preconditions for avail EDF:

The objectives for creating Export Development Fund (EDF) and pre-conditions for avail EDF are as follows:

The main objectives of creating an Export Development Fund (EDF) at the Bangladesh Bank is assure a continued availability of foreign exchange to meet the import requirements of non-traditional manufactured items. This facility is available to the non-traditional exporters, particularly new exporters, exporters diversifying into higher value exports and exporters diversifying into new markets. An exporter identify above is eligible to avail of EDF facilities on the conditions stated below:

(i)    He must be an exporter of non-traditional manufacturing items.
(ii)    The value added of these products could be 20% except in the case of garments where it has to be 30% and above.
(iii)    The loan should be utilized in the case of importing raw-materials for manufacturing the exportable products.
(iv)    The exporter must have an Export L/C.
(v)    He must create a Back to Back L/C for importing raw materials.
(vi)    The period of loan is 180 days.
(vii)    The exporter can borrow as many times in a year on revolving basis.
(viii)    The interest rate of EDF is LIBOR + 1%.
(ix)    An exporter can borrow an amount not exceeding US$5,00,000/- in a single case, but outstanding should not be more than US$10,00,000/-
(x)    He has to have an Export Credit Insurance through Export Credit Guarantee Scheme (ECGS).

Purposes of EDF:

(i)    To make the payment of import bill against Back to Back sight L/Cs. For export of goods Bangladesh Bank arrange pre shipment credit by EDF.
(ii)    To increase the working capacity of Export administration and financial institutions.
(iii)    To encourage the motive of the foreign supplier. Foreign guarantee conferring institutions and foreign commercial banks who provide short time loan to the Bangladeshi exporters.

Modes of Export Finance in Islamic Banking.

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(i) Bai-Muajjal (Export): Under this arrangement a Credit is sanctioned against hypothecation of raw materials or finished goods intended for export. Such facility is allowed to first class exporters. As the bank has got no security in this case, except charge documents and lien of export L/C or contract, bank normally insists on the exporter in furnishing collateral security. The letter of hypothecation creates a charge against the merchandise in favour of the bank.

(ii) Bai-Murabaha (Export) : Such Credit facility is allowed against pledge of exportable goods or raw materials. In such cases, Lien of export L/C or Firm contract and Murabaha facilities are extended against pledge of goods to be stored in godown under Bank’s control by signing letter of pledge documents. The exporter surrenders the physical possession of the goods under bank’s effective control as security for payment of bank dues. In the event of failure of the exporter to honour his commitment, the bank can sell the pledge merchandise for recovery of the credit.

(iii) Murabaha Trust Receipt (Export): In this type, Credit limit is sanctioned against Trust Receipt and lien of export L/C or firm contract. In this mode the exportable goods remain in the custody of the exporter. He is required to execute a stamped Export Trust Receipt in favour 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. This type of Credit is granted when the exporter wants to utilize the Credit for processing, packing and rendering the goods in exportable condition and when it seems that exportable goods cannot be taken into bank’s custody. This facility is allowed only to the 1st class party of the bank and collateral security against this type of investment may be obtained.

(iv) Musharaka Pre-shipment (ECC): It is a type of investment provided by a bank to an exporter for purchase of raw materials, Cost of processing the same to finished goods against lien of specific L/C or firm contract. Collateral security may be obtained against this type of investment considering banker – customer relationship and reputation/track record of the exporter. This type of investment must be adjusted out of the export proceeds within 180 days.

(v) Musharaka Pre-shipment (PC): Investment allowed to a customer against specific L/C or firm contract for packing and despatching of goods to be exported is called Musharaka Pre-shipment (PC). This type of investment allowed against lien of export L/C or firm contract and collateral security may be obtained on the basis of Banker-Customer relationship. This type of investment must be adjusted from the export proceeds within 180 days.

(vi) Foreign Documentary Bill Purchased (FDBP): Payment made to a customer through purchase/negotiation of a Foreign Documentary Bill is FDBP. Temporary investment is adjustable from the proceeds of shipping/export documents.

(vii) Local Documentary Bill Purchased (LDBP): Payment made against documents representing sell of goods to export oriented industries that are deemed as exports and which are denominated in local currency/foreign currency is called LDBP. This temporary liability is adjustable from the proceeds of the bill.

(viii) Back to Back Letter of Credit (BTB L/C): Under the arrangement of Back to Back L/C, the bank finances export business by opening Letter of Credit on behalf of the exporter who has received export L/C from the Overseas buyer. To execute the export order, the exporter have to procure raw materials from outside or inside the country by making lien of the master export L/C. This type of financing is called Back to Back Letter of Credit. BTB L/C must not exceed 75% of the FOB value of the master export L/C and this type of investment to be adjusted from the export proceeds.

Bill of Exchange

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Bill of Exchange is one of the important negotiable instruments in the mercantile world and used as a vital document facilitating settlement of payments between buyer/importer and seller/exporter at home and abroad.

As per Section 5 of Negotiable Instrument Act, 1881 defines Bill of Exchange as, “A Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay on demand or at a fixed determinable future time a certain some of money only to, or to the order of a certain person or to bearer of the instrument.”

Essential characteristics of a Bill of Exchange:

(i)    It must be writing with date.
(ii)    It must contain an order to pay on demand or at fixed or determinable future time.
(iii)    The order must be on unconditional.
(iv)    It must be signed by the drawer.
(v)    The drawer, drawee and payee must be certain.
(vi)    The amount must be certain.
(vii)    It should be properly stamped.

Parties of a Bill of Exchange:
There are usually three parties of a Bill of Exchange. They are Drawer, Drawee and Payee. But sometimes additional two parties Acceptor and Endorser includes in a Bill of Exchange.

(i) Drawer: The maker of a Bill of Exchange (B/E) is called the drawer. The drawer is the person to whom debt is due. The drawer of a B/E by drawing it engages that on due presentment it shall be accepted and paid according to its tenor and if it is dishonoured, he shall compensate the holder or any endorser who is compelled to pay it.

(ii) Drawee: The person thereby directed to pay is called the drawee. He is to accept the B/E to make it a legal one and he is not liable until and unless he has accepted it.

(iii) Payee: The payee is the person or to whose order the amount of instrument is payable. When the payee is the same as the drawer and his rights and objections as payee are merged with his rights and obligations as drawer. But if the payee is a person other than the drawer, the payee has the right of recourse to the drawer until the bill is paid by the drawee.

(iv) Acceptor: After the drawee of a Bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts, and delivered the same, or given notice of such signing to the holder or to some person on his behalf, he is called the Acceptor.

(v) Endorser: The endorser is a person who endorses the Bill by signing his name usually on the back of it. He may be the payee or a subsequent endorser to whom the payee has assigned the bill. The endorser is liable to subsequent endorser or to any future holder of the bill and his obligations are the same as those of the drawer.

Specimen

(i) Specimen of Demand Bill of Exchange:

Tk.10,000/- Dhaka

28.8.2007

On demand pay to Mr. Karim or order a sum of Taka Ten thousand only, value received.

Mr. X Stamp

Address Sd/-Mr. Y

(ii) Specimen of Time Bill of Exchange:

Tk.10,000/- Dhaka

28.8.2007

Three months after date pay to Mr. Karim a sum of Taka Ten thousand only, Value received.

Mr. X Stamp

Address Sd/-Mr. Y

Classification of Bills:

(i)    Inland and Foreign bills
(ii)    Time and Demand bills
(iii)    Trade and accommodation bills
(iv)    Clean bill and Documentary bills
(v)    Domiciled bill
(vi)    Maturity/Due date of bill.

Inland bill: As per section 11 of N.I. Act, “A promissory note or bill of exchange or cheque drawn or made in Bangladesh and made payable in, or drawn upon any person resident in Bangladesh shall be deemed to be an inland instrument.

Foreign bill: As per section 12 of N.I. Act, “Any such instrument not so drawn, made or made payable shall be deemed to be a foreign instrument.” For example, a bill drawn in Bangladesh but accepted in England or vice versa is a foreign bill.

Time bill: A bill is said to be time bill which is payable at a determinable future time. It is also termed as Document against acceptance (D.A bill). Time bill also called Usance bill.

Demand bill: A bill is said to be demand bill which is payable on demand or at sight or on presentation and when no time for payment is specified in it. Demand bill also termed as Sight bill.

Trade bill: A bill drawn and accepted for a genuine trade transaction is termed as trade bill.

Accommodation bill: A bill drawn and accepted not for a genuine trade transaction but only to provide financial help to some party is termed as an accommodation bill.

Clean bill: A bill which has no documents attached is called clean bill.

Documentary bill: A bill which has documents attached is called Documentary bill.

Domicile Bill: A domicile bill is one which is payable at a place other than the acceptors usual residence or business place.

Maturity or Due date of bill: Maturity date is the date on which a Bill of Exchange is payable. In calculating the due date of a bill calendar months are reckoned.

Invoice

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Proforma Invoice

After negotiation over phone/fax/letter/e-mail or any other mode between exporter and importer offer directly issued by the exporter to importer is called Proforma Invoice. It includes the specifications of the product, price, quantity, delivery period and other terms of sale of a particular product.

Commercial Invoice
Invoice means a list of articles containing particulars and prices. There is no prescribed form of Commercial invoice. Each exporter designs his own Commercial invoice forms. Commercial invoice is a set of five papers or as desired by the importer which should bear the date, full address of exporter (beneficiary) and importer, currency, quantity and amount as per credit, description of the goods, name of the vessel/carrier, port of shipment, port of destination, shipping marks, L/C and Indent or Proforma invoice references, freight, Insurance, origin of goods etc. Normally exporter signed the copies of Commercial invoice. As per Article 18 a(iv) of UCP-600, Commercial invoice need not be signed by the exporter.

Consular Invoice
This is a special type of invoice which is required by some countries. It is a invoice made out in a specially printed form and is sworn as, being correct in all respect before the Consul of importing country stationed in the exporters country. A consular invoice may also contain a declaration about the place of origin of the goods. The consul of the importing country then certifies the invoice. The principal function of the consular invoice is to enable the authorities of the importing countries to have an accurate record of the types of merchandise shipped to that country, their quantity, grade and value, both for the purpose of fixing and for assessing import duties and for general statistical purposes. It helps in clearing of the goods through the customs of the importing country without undue delay. Any false declaration in the consular invoice involves heavy penalty.

Modes of Import financing by Islami Bank.

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(i) Import of goods by Letter of Credit: A Letter of Credit (L/C) is a conditional undertaking to the exporter (Seller) by a bank on behalf of his customer (Importer/buyer) to pay the bill amount, if all the terms & conditions of the L/C are fulfilled. By issuing a L/C, a bank undertakes the full responsibility of payment, if otherwise in order. Since bank takes the liability of payment against some percentage of margin from the importer, which may be in cash or collateral or both cash & collateral depending upon banker customer relationship – so it is an Import financing.

(ii) Murabaha Import Bill (MIB): Payment made by the bank against lodgement of transport documents of goods imported through L/C is called MIB. It is an interim investment for a maximum period of 21 days connected with import and is generally liquidated against payment usually made by the party for retirement of the documents for release of imported goods from the customs authority. In conventional banking this type of investment is called Payment Against Document (PAD).

(iii) Mudaraba Post Import (MPI): Normally importer pay the duty & sales tax of the impoted goods after arrival at the port. Due to shortage of fund or some other reasons, sometimes importer approach the L/C opener bank to assist him for retirement of the imported goods. In some cases importer do not come forward to retire the goods. In these cases the L/C opener bank themselves arrange to retire the goods by pledge in Godown under bank’s lock & key. This type of payment (forced loan) is called MPI. This is a temporary arrangement for a maximum period of 90 days. Within this time limit, the importer borrower will release the goods at a time or gradually after making payment to the bank. In traditional banking this type of investment is called LIM (Loan against Imported Merchandise) or LAM (Loan Against Merchandise)

(iv) Murabaha Trust Receipt (MTR): It is a type of investment allowed by a bank on trust to his experienced, reliable & reputed importer for retirement of shipping documents and release the imported goods. Under this arrangement the importer borrower will deposit the sale proceeds of imported goods which are under his control at a time or gradually within a maximum period of one year. In traditional banking this type of facility is called Trust Receipt (TR).

Transport document.

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Goods are carried from the Exporter (seller) to Importer (buyer) through various modes of transport, viz: Truck, Rail, Air, Ship etc. All these modes are separately at a glance is called Transport document. Transport documents issued by the freight forwarders. Unless otherwise authorized in the credit, banks will only accept a transport document issued by a freight forwarder if it appears on its face to indicate the name of the carrier duly authenticated by the freight forwarder.

Types of Transport document

(i)    Marine/Ocean bill of lading or simply Bill of Lading (BL) in case of goods delivered to a ship for carriage by sea.
(ii)    Air transport document/Airway bill (AWB) in case of air shipment of goods.
(iii)    Road, Rail or Inland Waterway Transport Document/Truck receipt (TR) in case of goods carried by Truck, Railway Receipt (RR) in case of goods carried by Rail and so on.
(iv)    Courier receipt and Postal receipt in case of shipment of goods by courier and by post respectively.

Contents of Transport document:

According to Guide to Documentary Credit Operations, an ICC publication, the transport document should contain the following information:

(i)    It must be issued by a named carrier or his agent.
(ii)    Description of goods consistent with that in the credit.
(iii)    Identifying shipping marks.
(iv)    The name of the carrying vessel ( in case of marine B/L) or the intended carrying vessel ( in case of multimodal transport document including sea transport)
(v)    An indication of dispatch or taking in charge or loading on board as the case may be.
(vi)    An indication of place of such dispatch or taking in charge or loading on board and the place of final destination.
(vii)    The name of shipper, consignee (if not made out ‘to order’) and the name & address of the notify party.
(viii)    Whether freight has been paid or still to be paid.
(ix)    Date of issuing the document
(x)    The number of originals if issued in more than one original.

Balance of Trade and Balance of payment.

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Balance of Trade refers to the net difference value of Export and Import of commodities from/into a country. The movement of goods or commodities between countries is known as the visible trade. Therefore balance of trade refers to the net balance of the visible trade of a country. When the value of the export goods exceed value of import goods for a given period of time, there is net gain of foreign exchange to the country and the balance of trade is said to be favourable or surplus or positive. If the value of import goods exceeds the value of export goods within a period then it is called negative or deficit or unfavourable.

Balance of Payment is a statement that contain details of all the international economic transactions both visible and invisible items of a country within a given period of time, usually a year. Here visible items includes export import of commodities/goods and visible items are shipping, banking, insurance, tourist, gift, interest on investment, technical know how, consultancy etc. The balance arrived at taking into account both the visible and invisible items in foreign trade is known as Balance of payment. Balance of payment includes Balance of trade and other invisible items of foreign trade. As in the case of Balance of trade, the total amounts payable and receivable do not balance and the balance of payments for a given period ends up in favourable/surplus/positive or unfavourable/deficit/negative.

Common major discrepancies those to be checked on receiving Export/Import documents.

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(i)    Claused (unclean) Bill of Lading
(ii)    Charter party B/L (unless stipulated in the L/C)
(iii)    Full set of B/L not presented
(iv)    On Board endorsement unsigned, undated, unauthenticated in B/L
(v)    Bill of Lading does not evidence whether freight is paid or not.
(vi)    Stale Bill of Lading/documents not presented in time.
(vii)    Goods shipped on deck (unless stipulated in L/C)
(viii)    Shipment effected from port other than that stipulated in the L/C.
(ix)    Weightment Certificate not presented.
(x)    Weight differ between documents.
(xi)    Third party B/L or short form Bill of Lading submitted.
(xii)    Late shipment
(xiii)    Short shipment
(xiv)    Shipping marks and numbers differ between documents
(xv)    Description of goods on invoice differs from that in L/C.
(xvi)    Documents inconsistent with each other.
(xvii)    Amounts in invoice and Bill of Exchange differ.
(xviii)    Unit price not mentioned in invoice and inadequate number of invoices.
(xix)    Certificate of Country of origin of the goods not submitted.
(xx)    Certificate notifying Insurance Company of shipment not presented.
(xxi)    L/C amount exceeded
(xxii)    L/C expired
(xxiii)    Packing list not submitted
(xxiv)    Inspection Certificate not submitted
(xxv)    Fumigation/Health Certificate (fit for human consumption) not submitted
(xxvi)    Bill of Exchange drawn on a wrong party
(xxvii)    Bill of Exchange payable on an indeterminable date
(xxviii)    Partshipment/transshipment effected by not covered by the terms of L/C
(xxix)    Notifying party differs or not as per L/C
(xxx)    Forwarder’s Cargo receipt not acceptable (unless provided in the L/C)
(xxxi)    Absence of documents called for in the credit.
(xxxii)    Absence of signatures where required, on documents printed.
(xxxiii)    Description of documents on collection schedule differs with documents presented.
(xxxiv)    Cuttings, alterations in documents not authenticated.
(xxxv)    Bill of Lading, Insurance documents or Bill of Exchange are not endorsed correctly.
(xxxvi)    LCA number or Indentors registration number not mentioned in the invoice.

Import Registration Certificate (IRC)

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Import Registration Certificate (IRC) is a certificate of license that is needed to be an importer in Bangladesh.

Requirements of a new importer for getting Import Registration Certificate (IRC):

(i)    Application in a prescribed form.
(ii)    Valid Trade license.
(iii)    Membership certificate of the respective trade organization or Membership from the Chamber of Commerce & Industry.
(iv)    Registered partnership deed/Memorandum and Articles of Association alongwith Certificate of Incorporation.
(v)    Two copies attested photograph of the applicant(s).
(vi)    Affidavit from 1st class Magistarte.
(vii)    Asset Certificate of the applicant(s).
(viii)    Ownership deed or Lease deed of the office premises alongwith rent receipt.
(ix)    Bank solvency certificate.
(x)    Tax Identificate Number (TIN) Certificate.
(xi)    Money receipt of requisite fee.
(xii)    Any other document as required.

After submission of the application by the intending importers for IRC alongwith the papers in mentioned above (a) and deposit of requisite fees, on being satisfied the Chief Controller of Import & Export (CCI&E) issue IRC to the Industrial Consumers or Commercial importers with their half yearly/yearly entitlement mentioning item of commodities.

Contents of an IRC:
(i)    Validity period & issue date mentioned
(ii)    Name of the importer mentioned
(iii)    Sometimes amount limited
(iv)    Sometimes item limited.

Exempted persons from Registration as an Importer:
In terms of the Importers, Exporters and Indentors (Registration order 1981), no person can import goods into Bangladesh unless registered with the CCI &E or exempted from the provision of the said order. Personal user needs no registration. They may import beyond USD5,000/- with the permission from CCI&E.

Persons exempted for registration:
(i)    Government departments
(ii)    Local authorities or Statutory bodies
(iii)    Recognized Educational institutions
(iv)    Hospitals
(v)    Imports of goods which does not involve remittance of foreign exchange
(vi)    Reading materials or medicine imported for personal use within permissible limit.
(vii)    Capital machineries & spare parts for new industry.

Bangladesh IMPORT POLICY ORDER 2009-2012.

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IMPORT POLICY ORDER

2009-2012

Ministry of Commerce

Government of the People’s Republic of Bangladesh

CONTENTS

Chapter	Subject
Chapter One	Beginning
Chapter Two	General Provisions for Import
Chapter Three	Provisions Regarding Import fees
Chapter Four	Miscellaneous Provisions
Chapter Five	General Provisions for Industrial Imports
Chapter Six	Provisions for Import by Commercial Importers
Chapter Seven	Import by Public Sector Importers
Chapter Eight	Import Trade Control (ITC) Committee
Chapter Nine	Compulsory Membership of recognised Chamber of Commerce and Industry and Trade Association.

(The Import Policy Order, 2009-2012 has been published both in Bengali and English Languages. If there is any inconsistency between the two versions the Bengali text will prevail)

(Published in Bangladesh Gazette Extra-ordinary dated 26^th January, 2010)

GOVERNMENT OF THE PEOPLE’S REPUBLIC OF BANGLADESH

MINISTRY OF COMMERCE

ORDER

Dated 08-10-1416 BS/21-01-2010 A.D

No.S.R.O. 22-LAW/2010- In exercise of the powers conferred by sub-section (1) of section 3 of the Imports and Exports (Control) Act, 1950 (Act No. XXXIX of 1950), the Government is pleased to make and issue the following order:

CHAPTER ONE

Beginning

1. Short Title, Application, Duration, etc.-(1) This Order may be called the Import Policy Order, 2009-2012.

(2) Unless otherwise specified, this Order shall apply to all imports into Bangladesh.

(3) It shall come into force immediately and shall remain in force up to 30^th June, 2012:

However, it will remain in force after the expiry of the validity until the new Import Policy Order is issued.

(4) Notwithstanding anything contained in sub-para 1(3) it will remain in force after the expiry of the validity mentioned in the said para until the new import policy order is issued.

Furthermore, notwithstanding anything contained in the Import Policy, any notification, circular or order issued time to time by the government regarding import under Finance Act or any other law which does not contradict this import policy, shall have preference.

2. Definitions. - In this order, unless there is anything repugnant to the subject or context----

(1) ‘Entre-port Trade’ means such trade in case of which imported goods could be exported to a third country after minimum value addition at 5% without changing quality, quantity or shape and without allowing the said goods to be brought out side the port area but can be carried, with the permission of the Ministry of Commerce, from one port to another port for the purpose of exports.

(2) “Act” means, The Imports and Exports (Control) Act, 1950 (Act No. XXXIX of 1950) ;

(3) “Importer” means the ‘Importer’ as defined in article 2(f) of Importers, Exporters and Indentors (Registration) Order,1981;

(4) “Import Control Authority” means the Chief Controller of Imports and Exports and includes any other authorized officer to issue licenses, permits or registration certificates as per the relevant provisions of Import and Exports (Control) Act, 1950 (XXXIX of 1950);

(5) “Basis of Imports” means percentage, rate or formula adopted for determining the share of a registered importer;

(6) “Import value” means C&F or CFR value of imported goods for entre-port trade or re-export ;

(7)“Indentor” means a person or group of persons, institution, body or organization registered as an indentor according to article 2(g) of the Importers, Exporters and Indentors (Registration) Order,1981;

(8) H.S. Code Number, means the H.S. Code comprising eight or more digits as

mentioned in the First Schedule of the Customs Act pertaining to classification of

commodities;

(9) “L/C” means letter of credit opened for the purpose of import under this Order;

(10) “L/C Authorization Form (LCA)” means the form prescribed for authorization of opening of L/C;

(11) “Clearing and Forwarding Agent (C&F Agent)” ”Freight Forwarder (FF)” means a person or an organization acting as C&F agent or as F.F., must possess TIN Number and be computerized within 5 (five) years .

(12)”Food Products” means food products consumed by man directly or after processing.

(13) “Registered Importer” means an importer registered under the Importers, Exporters and Indentors (Registration) Order, 1981;

(14)” Controlled list “means the list of items, import of which is controlled and given in the table of annexure-1;

(15) “Goods” means the list of goods specified in the first schedule of Custom Act, 1969 (Act No.IV of 1969);

(16) “Annexure” means an annexure appended to this order;

(17) ”Permit” means an authorization for Import and Export, and includes import permit, clearance permit, import permit on returnable basis, export permit or export-cum-import permit as the case may be issued by Import Control Authority.

(18) The “Sponsor" means Board of Investment (BOI)/ BEPZA/BSCIC or Handloom Board in case of handloom industries run by weaver’s 'Association' ;

(19) ‘Re-export’ means export of any imported item within specific period with at least 10% value addition to the import value after reprocessing the said imported item locally by changing either its quality or shape or both;

(20) “Actual user” means a person, group of persons, institution, body or organization, other than registered importers, who may import a permissible item (not being an industrial raw material requiring further processing before being used or consumed) in limited quantity for his or its own use or consumption and not for sale or transfer;

(21) “Chief Controller” shall have the same meaning as given in the Imports and Exports (Control) Act, 1950 (Act No. XXXIX of 1950);

(22) “Expatriate Bangladeshi” means foreign exchange earning Bangladeshi citizens working/living abroad;

(23) “Commercial importer” means an importer registered under the Importers, Exporters and Indentors (Registration) Order,1981 who imports goods for sale without further processing ;

(24) “Fish or Livestock or Bird’s feed” means feeds which are imported and taken by Fish or Livestock or Bird directly or after processing;

(25) “Importer for lease financing” means an importer registered, as special case, under the Importers, Exporters and Indentors (Registration) Order, 1981 approved by the Government for provision of lease financing to the industrial, energy, mining, agricultural, construction, transport and professional service sector;

(26) “Industrial consumer” means a recognized industrial unit registered as an Industrial importer under the Importers, Exporters and Indentors (Registration) Order, 1981 which is 100% Bangladeshi industrial unit and foreign investor registered with relevant sponsoring authority ;

(27) “Public sector importer” means importers being government organizations or institutes, statutory bodies, corporations and public universities.

CHAPTER TWO

General Provisions for Import

3. Regulation of Import- Import of goods under this Order shall be regulated as follows:

(a) Unless otherwise specified in this order, the items banned for import in the list (annexure-1) shall not be importable: Provided that, those items which are importable on fulfillment of certain conditions specified in the list shall be importable on fulfillment of those conditions.

[Explanation--- Items mentioned in the foot note given after the restricted list (annexure-1) shall be treated as banned items.]

(b) Except the items specified in the article 3(a), all other items are importable freely.

(c) While determining the import status of an item mentioned in the ‘Control List’, if the description of goods does not conform to the H. S. Code mentioned against the item or any discrepancy arises between the H.S. Code and the description of goods, in that case the description of goods shall prevail.

4. Conditions for regulating import. ---- If the import of an item was restricted before coming into effect of this Order or if such restriction has been made effective due to the inclusion of the item in the Control List annexed to this Order or for imposition of any other condition such restriction shall be subject to the following conditions :--

(a) In case any restriction is imposed on import of a particular commodity with a view to protecting the interest of a local industry the concerned sponsoring authority / Bangladesh Tariff Commission shall strictly monitor production of that industrial unit regularly;

(b)The industrial units (Protected Industry) which are specially engaged in

“assembling type” activities shall have to move towards progressive

manufacture actively and expeditiously;

(c) Except due to the rise of price of raw materials or the decline in the rate of exchange, if the increase in the price of an item increases or the price of finished product is disproportionately higher than the rise in the price of the raw materials in the international market, the ban on the import may be revoked on the recommendation of the concerned sponsoring authority or Bangladesh Tariff Commission;

(d) Goods from Israel or goods produced in that country and also goods carried in the flag vessels of that country shall not be importable.

(e) However, if any one is aggrieved by any decision regarding ban or restriction on import of any item, he can refer his representation to the Bangladesh Tariff Commission. The Bangladesh Tariff Commission will duly examine such a representation and furnish its recommendation(s) to the Ministry of Commerce for consideration.

5. General Conditions of Import of goods- ---

(1) For import purpose, use of H.S. Code with at least eight digits corresponding to the classification of goods as given in the First Schedule of the Customs Act,1969 (Act No. IV of 1969) based on the Harmonized Commodity Description and Coding System, shall be mandatory: Provided that, Bank shall not issue L.C. Authorisation form or open L/C without properly mentioning H.S. Code number for the item(s) correctly.

(2) NOC on the basis of ROR (Right of Refusal)---

(a) No Objection Certificate on the basis of Right of Refusal (ROR) from any authority shall not be required for import of any freely importable item by any Public Sector agency: Provided that in cases where a public sector agency is required to import banned/restricted items included in the Control List prior permission of the Ministry of Commerce shall be obtained on the basis of NOC issued by the Ministry of Industries or by the Sponsoring Ministry/Division or by both, as the case may be;

(b) In case of import of restricted items for approved projects financed under foreign aid, the concerned Ministry, Department, Agency or Corporation will approach the Ministry of Commerce directly for decision furnishing a list of the items duly certified giving detailed description and provisions of contract of the aided project, etc. and other necessary information along with quantity or number, price and H.S. Code Number of each item to be imported.

(3) Pre-shipment inspection---

(a) In this order where there is condition for pre-shipment inspection of imported goods the said condition has to be complied with.

(b) Unless otherwise specified, in case of export and import, shipment of goods can be made under The Bangladesh Flag Vessels (Protection) Ordinance, 1982 (Ord. No.XIV of 1982).

(4) Import at competitive rate---

(a) Import shall be made at the most competitive rate and it is mandatory for the importers, at any time, to submit documents of the price of the goods paid or to be paid to Import Control Authority regarding the price paid or to be paid by them;

(b) In case of import under Untied Commodity Aid in the private sector, goods shall be imported at the most competitive rate by obtaining quotations from at least three suppliers/indentors representing at least two source countries. Provided that, this condition shall not apply for opening L/C up to Tk. One lac.

(c) For import at the most competitive rate by the Public Sector importers, quotations have to be invited before opening letter of credit and goods shall be imported at the most competitive price.

(5) Import on C&F or CFR, CPT, FOB, CIF, CIP, DAF, DES, DEQ and DDU basis---

(a) Goods can be imported by water, land and airways on C&F or CFR, CPT,FOB,CIF,CIP,DAF,DES,DEQ, and DDU basis : Provided that in case of import on FOB basis the concerned importer shall have to properly comply with foreign exchange regulation;

(b) Unless there is specific provision in the relevant loan agreement/project agreement concluded with the foreign donors for import on CIF or CIP basis, no import shall be allowed on CIF or CIP basis without prior approval from the Ministry of Commerce;

(c) Any expatriate Bangladeshi with income earned abroad and any foreign investor with his share of equity can send capital machineries & raw-materials on CIF or CIP basis;

(d) Goods from foreign countries free of cost or gift items are importable on CIF or CIP basis;

(e)Before opening L/C, necessary insurance cover note shall be purchased from the Sadharan Bima Corporation or any other Bangladeshi insurance company approved by the GoB.

(6) Import by mentioning “Country of Origin”---

(a) In all cases of import, “country of origin” shall be mentioned clearly on the package and container of goods;

(b) A certificate regarding “country of origin” issued by the concerned Government agency, approved authority or organization of the exporting country must be submitted, along with import documents to the Customs Authority at the time of release of goods : Provided that the provisions of “country of origin” shall not be applicable to coal and export oriented garments industries;

(c) In case of import of cotton it shall not be required to mention “country of origin” on each bale : Provided that “country of origin” need not be mentioned in the phyto-sanitary certificate;

(d) Subject to the conditions imposed by the Foreign Exchange Regulation Act,1947 (Act VII of 1947), Bangladesh Bank and Commercial Banks, “country of origin” need not be mentioned by the 100% export oriented industries approved by Custom Authority including the industries importing raw materials for the use of said industries.

(e) In case of import of Aluminium Ingot, Zinc Ingot along with other Non-ferrous and Ferrous metals, “country of origin” need not be mentioned.

(f) In case of import of Limestone, in different consignments/lot by the rope-way or by river, as raw-materials for Chhattak Cement Factory, “Country of Origin” certificate from the exporting country’s Government, approved authority or organization shall be submitted once to the Customs authority at the time of release of goods, instead for each consignment/lot for the quantity mentioned in L/C.

(7) Inscription of Name, Address and TIN of Importer-

Except in the case of following imports, the name, address and TIN shall be inscribed or printed in indelible ink on, at least two percent of the largest packet/cover/tinned package/sack pack/wooden box/other packets containing the imported goods, as:---

(a) For the products imported uncovered and in bulk;

(b) For products valued up to US$ 5000(five thousand) in each challan;

(d) For import of approved foreign aid-based projects;

(e) For import of free sample , advertisement materials and gift items valued US$ 1000 (one thousand ) or less as per provisions of the Import Policy Order;

(f) For imports under the Transfer of Residence Baggage rules,2000 ;

(g) For goods imported by the actual user;

(h) For Import by the Diplomatic Missions;

(i) For Import by the 100% export oriented Industrial units under Bonded Ware-House;

(j) For goods imported on returnable basis;

(k) For export-cum-import goods;

(l) For goods imported on entre-pot basis;

(m) For import by various educational institutions/charitable organizations/ hospitals;

(n) For goods sent by Bangladeshi nationals living abroad.

5. A. Source of finance--- import may be allowed under the following sources of finance, as :---

(a) Cash –

(i) Cash foreign exchange (balance of the foreign exchange reserve of Bangladesh Bank);

(ii) Foreign currency accounts maintained by Bangladeshi Nationals working/living abroad;

(iii) External economic aid (Commodity Aid, Loan, Grant);

(iv) Commodity exchange: Barter and Special Trading Arrangement (STA) .

(b) Commercial importers and industrial consumers may utilise their respective shares under Barter/STA as per basis notified.

(c) Import under the Special Trading Arrangements (STA) which are or were concluded with prior approval/permission of the government, shall be subject to the specific procedures laid down by the government in this respect.

(d) The provision of sub-para (a) (iv) of this para will remain effective only upto the time of completion of on-going agreements.

6. Fund provision for financing import- Unless otherwise specified, the importers shall import primarily against cash foreign exchange.

7. Import procedure- Import shall be made as per the following procedure:-

(1)Import Licence not required- Unless otherwise specified, no import licence will be necessary for import of any item.

(2) Import against LCA Form- Unless otherwise specified, all import transactions through a Bank (L/Cs. bank drafts, remittances etc.) shall require LCA forms irrespective of the source of finance.

(3) Import through L/C- Unless otherwise directed import will be effected only through opening irrevocable L/C: Provided that L/C is not required for each consignment via Teknaf custom station of quickly perishable items worth ten thousand to fifteen thousand US dollar, via other custom station, five thousand to seven thousand US dollar, essential food items under the limit approved by the govt. time to time and for import of capital machinery and raw materials for industrial use without any price limit; Provided further that conditions stated in sub para (6) shall be applicable here and importers shall be required to register with authorized dealer Bank for importation without L/C.

(4) Import against LCA Form but without opening of Letter of Credit (L/C) - Import against LCA Form may be allowed without opening of Letters of Credit in the following cases:

(a) Import of books, journals, magazines and periodicals on sight draft or usance bill basis;

(b) Import of any permissible item for an amount not exceeding US Dollar 50,000/- (fifty thousand) is allowed only during each financial year against remittance made from Bangladesh; in case of Myanmar---

(i) Import of rice , wheat, maize,soyabin oil, palm oil, onion and fish items valued upto twenty thousand US dollar in a single consignment and other items valued ten thousand US dollar and

(ii) Import of rice under Public Sector valued upto US $ two million in a single consignment shall be importable and in this case above mentioned annual ceiling of fifty thousand US dollar shall not be applicable.

(c) Import under commodity aid, grant or such other loan for which there are specific procurement procedures for import of goods without opening any L/C: and

(d) Import of “international chemical references” through Bank drafts by recognised pharmaceutical industry on the approval of Director, Drugs Administration for the purpose of quality control of their products.

(5) Import against Import Permits and in special cases against Clearance Permit (for clearance of goods on payment of fine)- In the following cases, neither LCA Form nor opening of L/C will be necessary; but Import Permit (IP) or Clearance Permit (CP) will have to be obtained by the importer, as for example---:

(a) Import of books, magazines, journals, periodicals and scientific and laboratory equipments against surrender of UNESCO Coupons;

(b) Import under Pay-As-You-Earn-Scheme in the following cases only on the basis of clearance of the Bangladesh Bank :

(i) New or not exceeding ten years old plant and machinery of permissible specification;

(ii) New or not exceeding five year old motor cars;

(iii) Cargo or passenger vessel of steel or wooden bodies, including refrigerated vessel of any capacity either new or not exceeding fifteen years old :Provided that in case of ocean going old ships, not exceeding twenty five years old shall be importable;

(iv) Import of plant and machinery for export-oriented industrial units with the clearance of the competent sanctioning authority, wherever necessary;

(v) Trawlers and other fishing vessels, either new or not exceeding twenty five years old: Provided that for import under this scheme the sanctioning authority of such import shall forward a copy of sanction letter to the Chief Controller and the importer shall apply to the CCI&E along with necessary papers for prior permission;

(c) Import of item(s) by passenger coming from abroad in excess of the permissible limits of quantity/value as per the relevant baggage rules, provided the import of the said item(s) is permissible under the relevant baggage rules;

(d) Import of samples, advertising materials and gift items above the ceiling prescribed as per paragraph 12 of this Order;

(e) Import of only drugs and herbal medicines under bonus system subject to the condition that it shall be obligatory on the part of the importers concerned to pass on the benefit to the consumers. The Director, Drugs Administration shall devise appropriate procedure in this behalf;

(f) Import of capital machinery and spare parts, as share of capital of the foreign share-holder for an approved joint venture or 100% foreign investors industrial unit already set up or to be set up;

(g) Import of any other goods, not specifically exempted from permit.

(6) Import on Deferred Payment Basis or Against Supplier’s Credit- Subject to restriction and prohibitions contained in this order, import on deferred payment basis or against Suppliers Credit may be allowed on the basis of procedure laid down by the Bangladesh Bank in this behalf.

(7) Import against direct payment abroad- Only Bangladeshi nationals living abroad may send any importable item irrespective of value ceiling against direct payment abroad in the name of any Bangladeshi living in Bangladesh. The name and address of the consignee shall be mentioned in the import documents, in such case.

(a) No permission or import permit from the Import Control Authority shall be necessary ;

(b) In this case a certificate from the Bangladesh embassy in that country as an earner of foreign exchange has to be submitted. Sender’s passport No., occupation, annual income, period of stay abroad etc. shall have to be mentioned in that certificate;

(8) Time limit for opening of L/C-

(a) Unless otherwise specified, for import under cash foreign exchange, letter of credit shall be opened by all importers within one hundred and fifty days from the date of issue or from the date of registration of LCA form:

Provided that the above time limit may be extended upto such time as deemed fit by the Chief Controller;

(b)For import under foreign aid/grant and barter/STA, L/C shall be opened within the time limit as may be notified by the Chief Controller.

(9) Validity of shipment for goods-

(a) Unless, otherwise specified, shipment of goods shall be made within seventeen months in the case of machinery and spare parts and nine months in the case of all other items from the date of issuance of LCA Form by Bank or registration of L/C Authorisation Form with Bangladesh Bank Registration unit, as the case may be.

(b) Shipment of goods under commodity aid/grant, and account trade arrangement/counter trade arrangement shall be effected within the time limits as may be notified by the Chief Controller;

(c) In case where shipment could not be made within the validity period due to circumstances beyond control of the importer, the Chief Controller may extend the time limit for shipment of goods on the merit of each case;

(10) Restriction on L/C after imposition of ban/restriction- No extension of the date of shipment in any Letter of Credit or amendment to Letter of Credit or enhancement of the value or quantity of goods shall be allowed by the nominated Bank or by the Import Control Authority after the import of the item or items have been banned or restricted.

(11) Document required to be submitted along with LCA Form- Importers in both public sector and private sector shall submit to their nominated Banks the following documents along with the L/C Authorisation Form for opening Letter of Credit:

(a) L/C Application Form duly signed by the importer;

(b) Indents for goods issued by Indentor or a Proforma Invoice obtained from

the foreign supplier, as the case may be; and

(c)Insurance Cover Note.

(12) Additional documents to be furnished by public sector importers- In addition to the documents mentioned in sub-paragraph (11) above, public sector importers shall submit the attested photocopy of sanction letter from the Administrative Ministry or Division or Authority, wherever applicable;

(13) Additional documents to be furnished by private sector importers- In addition to the documents mentioned in sub-paragraph (11) above private sector importers will be required to submit the following documents, as :---

(a) Valid Membership certificate from the registered local Chamber of Commerce and Industry or any Trade Association established on all Bangladesh basis, representing any special trade/business;

(b) Renewed Import Registration Certificate for the concerned financial year;

(c) A declaration, in triplicate, that the importer has paid income-tax or submitted income tax return for the preceding year;

(d) Proof of having Tax Identification Number (TIN) in all cases of imports, excepting personal use;

(e) Any such document as may be required as per this Order or Public Notice, or instruction issued by Chief Controller, from time to time under this Order;

(f) Any necessary papers or documents according to this Order;

(g) Insurance Cover Note either from Sadharan Bima Corporation or from any Bangladeshi Insurance Company and duly stamped insurance policy against this cover-note.

(14) Violation of the requirement of LCA/LC-

(a) Shipment effected before issuance of the L/C Authorisation Form by the nominated Bank and registration with the authorized dealer bank, wherever necessary, and before opening of L/C or after expiry of the validity of the L/C Authorisation Form or L/C shall be treated as import in contravention of this Order.

(b) L/C Authorisation Form obtained on the basis of false or incorrect particulars or by adopting any fraudulent means shall be treated as invalid and void abinitio.

(15) Import against indent and pro-forma Invoice- L/C may be opened against an indent issued by a local registered Indentor or against a pro-forma invoice issued by a foreign manufacturer/seller/supplier.

(16) Procedure to be followed by banks for acceptance/issuance of LCA Forms- Banks will follow the following procedures in the case of accepting or issuing of LCA Form:

(a) Acceptance of LCA Forms by the nominated banks-

(i) LCA Forms and other relevant papers shall be submitted by recognised industrial units in the private sector and registered commercial importers to their respective nominated bank for the purpose of import by opening L/C.

(ii) While accepting LCA Forms from a private sector importer the nominated banks shall ensure that the concerned importer has a valid Import Registration Certificate (IRC), the requisite renewal fees for IRC for the relevant financial year has been paid and particulars of the treasury chalan showing payment of renewal fees has been duly recorded in the IRC of the said importer. Unless a private sector importer is specifically exempted from IRC, LCA Forms shall not be accepted from him/her, or L/C shall not be opened in his/her favor without valid and legally renewed IRC.

(iii) In case of import through land route, name of the land port of destination in Bangladesh will be clearly stated in concerned L/C;

(iv) L/C for import of capital machinery and initial spares for setting up of a new industrial unit may, however, be opened without any Import Registration Certificate (IRC) and without obtaining exemption certificate from the Chief Controller. No formal sanction shall be necessary from the sponsoring authority for such import against cash foreign exchange in respect of industrial units in the free sector;

(v) Certificate from the related bank regarding import cost payable at cash foreign currency of capital machineries and equipments by foreign investors organisations within their equity share is to be required;

(b) Compulsory recording of H.S. Code Number- Banks shall not process any LCA Form or open L/C without properly recording the appropriate H.S. Code Number on the LCA Form or L/C. Bangladesh Bank shall monitor the compliance by the banks (scheduled) of the above requirements.

(c) Registration of LCA Form- In case of import by opening L/C or without L/C, the authorised dealer bank shall get the LCA Form registered and submit the Bangladesh Bank’s copy to Bangladesh Bank along with monthly statement after payment is made. Out of the rest copies, 2 (two) copies to the office of the Chief Controller of Imports and Exports, 1 (one) copy to the importer, 1 (one) copy to Customs Authority are to be sent and the other copy will be preserved with the bank. The dealer Bank shall send all the information of registration to the concerned office of Bangladesh Bank in a statement on monthly basis.

(d) Case where LCA Forms under Government allocation are not required to be registered- In case of import under Loan, Credit, Grant or Barter or STA where registration with the Bangladesh Bank is not necessary, the nominated bank, after endorsing the particulars mentioned in the L/C Authorisation Form shall forward the L/C Authorisation Form along with L/C application Form and other required documents to the designated bank with the request to open L/C. The designated bank after opening L/C, shall forward the third and fourth copies of L/C Authorisation Form to the concerned Import Control Authority within fifteen days.

(e) Transmission of the copy of L/C for record of the Import Control Authority- In all cases, the L/C opening banks shall forward a legible copy of the L/C and copy of amendment thereto, if any, to the concerned Import Control Authority for their record within fifteen days.

(f) Despatch of Income Tax declarations submitted by private sector importers- The nominated bank of the concerned private sector imports shall retain one copy of the Income Tax declaration furnished by the private sector importers and forward the other copies to the Director (Research and Statistics), National Board of Revenue, Segunbagicha, Dhaka.

(g) Change of Nominated Bank- Within the jurisdiction of any particular Regional office of Controller of Imports and Exports, change of nominated Bank can be done if no objection is provided by both the Banks and the matter has been informed to the concerned Regional Office of Controller of Imports & Exports.

CHAPTER THREE

FEES REGARDING IMPORTS

8. Registration Certificate:----

(1) Registered commercial importers and industrial consumers have been classified into six categories on the basis of their value ceiling of overall annual import for the year 2009-10 to 2011-12. Their Registration (IRC) and renewal fees have been re-fixed as under :

Category	Value Ceiling of annual import	Initial Registration fees	Annual renewal fees
First	Tk. 1, 00,000.00	Tk. 1,800.00	Tk. 1,700.00
Second	Tk. 5,00,000.00	Tk. 3,000.00	Tk. 2,300.00
Third	Tk. 15,00,000.00	Tk. 4,800.00	Tk. 3,500.00
Fourth	Tk. 50,00,000.00	Tk.9,500.00	Tk. 6,700.00
Fifth	Tk. 1,00,00,000.00	Tk. 17,500.00	Tk. 11,000.00
Sixth	Above Tk.1,00,00,000.00	Tk. 23,000.00	Tk. 17,000.00

(2) An importer shall apply in writing to the concerned Import Control Authority for registration in any of the six categories mentioned above along with necessary papers and original copy of the Treasury Chalan as evidence of payment of the prescribed registration fees.

(3) Import Control Authority shall make an endorsement under seal and signature on the IRC of each importer indicating the value ceiling of annual import and the rate of renewal fees applicable in each case.

(4) Importers whose already registered for renewal there registration certificate shall submit two copies of application in writing, main copy of IRC and copy of treasury chalan of renewal fees paid to Bangladesh Bank or with Sonali Bank,(where there is no branch of Bangladesh Bank) under the Head of Account “1/1731/0001/1801” to the Import Control Authority indicating the category stated at sub-para (1) in which they intend to be classified.

(5) Importers of all categories can renew their IRC through their nominated banks.

(6) Importer can pay renewal fee in cash prescribed for the said category to the nominating bank against receipt and submit application along with main copy of IRC and the receipt to the nominating bank.

(7) The banks shall deposit the money received as renewal fees to the Bangladesh Bank or to The Sonali Bank where there is no branch of Bangladesh Bank under the Head of Account “1/1731/0001/1801” separately.

(8) The banks shall, in turn, shall make an endorsement under seal and signature on the IRC of the importer indicating the value ceiling of annual import and the rate of renewal fee applicable in his case and return the original IRC to the importer concerned.

(9) The nominated bank shall keep with it one copy of the importer’s application and send the other copy to the concerned Import Control Authority along with original copy of treasury chalan regarding payment of renewal fees. The Bank shall also send a separate list of importers where Registration Certificates have been renewed by it under each of the six categories mentioned above within first week of each month.

(10) Renewal Fees for the concerned financial year shall be paid within 30^th September of that year without any surcharge.

(11) Any importer intending to open L/C for the purpose of import before the aforementioned dates in sub-para (10) shall however be required to first pay renewal fees properly for the financial year concerned at the prescribed rate.

(12) Importers failing to pay renewal fees within the above time limit shall have to pay, in addition to arrear renewal fees, surcharge at the following rates:-

Surcharge for delay for a period not exceeding one year	Surcharge for delay for a period exceeding one year but not exceeding two years	Surcharge for delay for a period exceeding two years but not exceeding three years.
Tk. 200.00	Tk. 300.00	Tk. 1,000.00

(13) In case an importer already registered in one category intends to be classified into a higher category, he/she shall pay renewal fees for the balance amount as per the rate applicable for the relevant higher category in accordance with the procedure mentioned in sub-para (4),(5) and (6).

(14) The bank shall make necessary amendments on the IRC of the importers concerned and send to the concerned Import Control Authority one copy of the importer’s application along with original treasury chalan showing payment of additional amount of renewal fees.

(15) No importer shall be allowed to open L/C in excess of the value ceiling of annual import applicable for him.

(16) The importer concerned and the bank shall be equally responsible for any violation of this condition (sub para -15).

(17) The sponsoring authority (Board of Investment/BSCIC/BEPZA) while sending recommendation to the Chief Controller of Imports and Exports for issuance of IRC in favour of a new industrial unit shall clearly mention the category under which the concerned industrial unit is to be registered.

(18) Indentors and exporters shall pay registration and renewal fees at the following

rates :-

	Initial registration fees	Renewal fees
Indentor	Tk. 27,500.00	Tk. 13,500.00
Exporter	Tk. 3,500.00	Tk. 2,500.00

(19) Indentors shall pay renewal fees in cash to the Bangladesh Bank or Sonali Bank, where there is no branch of Bangladesh Bank, under the Head of Accounts “1/1731/0001/1801” and send the original copies of the Treasury Chalan along with original copy of IRC with renewal book to the concerned Regional Import Control Office for record and verification.

(20) Indentors shall pay renewal fees in cash to their respective nominated banks against appropriate receipt and deposit their IRCs for renewal.

(21) The Banks shall, in turn, deposit the received amount separately with the Bangladesh Bank or Sonali Bank, where there is no branch of Bangladesh Bank, under the aforementioned Head of Accounts mentioned in sub-para (4) and send the original copy of the Treasury Chalan along with original export Registration Certificate to the respective Import Control Authority for record and verification.

(22) Exporters shall deposit renewal fees with the Bangladesh Bank or Sonali Bank, where there is no branch of Bangladesh Bank, under the Head of Account mentioned in sub-para (4) and send the original copy of the Treasury Chalan along with original Export Registration Certificate to the respective Import Control Authority in the first week of every month for endorsement of renewal fees.

(23) Indentors and Exporter shall pay renewal fees for the concerned financial year within 30^th September of that year without any surcharge.

(24) Those who fail to pay renewal fees within the time limit mentioned in sub-para (23) shall pay surcharge, in addition to arrear renewal fees at the following rate:-

Surcharge for delay for a period of one year or less	Surcharge for delay for a period exceeding one year but not exceeding two years.	Surcharge for delay for a period exceeding two years, but not exceeding three years.
Indentor Tk 600.00	Tk. 1250.00	Tk. 1,800.00
Exporters Tk. 200.00	Tk. 400.00	Tk. 600.00

(25) All concerned Banks shall send a list of those indentors who have paid renewal fees to the concerned Import Control Authority within 1^st week of every month.

(26) Importers, Exporters and Indentors who fail to pay renewal fees for a period exceeding three years may submit applications to the Chief Controller of Imports and Exports for regularization of their Registration Certificate for renewal the same. The Chief Controller of Imports and Exports will dispose of such applications on the merit of each case.

(27) Registration Certificate Renewal Book- All registered Importers, Exporters and Indentors must obtain a Registration Certificate Renewal Book for endorsement of information relating to the renewal.

(28) An amount of Tk. 300 (three hundred) as fees for each renewal book shall be deposited through Treasury Chalan under Head of Account “1/1731/0001/1801”.

(29) The Renewal Book shall be obtained together with the Registration Certificate in case of new Registration Certificate is issued.

(30) Importers, Exporters and Indentors who have already received Registration Certificates shall obtain Renewal Books from their respective licensing office on submission of Chalan showing payment of fees.

CHAPTER FOUR

Miscellaneous Provisions

9. Import on Joint Basis.--- (1) Importers all over Bangladesh may form one or more groups for import on joint basis according to their convenience.

(2) The procedure for import on joint basis is given at Annex-2.

(3) The industrial consumers shall form group or groups with other industrial consumers only.

(4) The commercial importers may form group or groups with other commercial importers.

10. Import by Actual User.---

(1) Individuals or institutions not being registered importers, may import permissible items valued up to US Dollar Five thousand for their own use under cash foreign exchange without any permission from the import Control Authority.

(2) Prior permission from the Chief Controller shall be necessary in case of such imports exceeding US Dollar five thousand.

(3) The provision of subpara (1) and (2) shall also apply to the government servants and employees of bodies-corporate set up by or under any statute for the time being in force:

Provided that, such employee shall produce a certificate from their respective Head of Department or Organisation to the effect that the items(s) to be imported are for their actual use and not for sale.

(4) Goods imported by actual users observing the provisions mentioned in sub-para (1), (2) & (3) shall not be sold within one year of their import except with the permission of the concerned Import Control Authority.

11. Import by Bangladeshi professional’s abroad. --- Bangladeshi professionals living abroad may import their own professional and scientific equipments out of their own foreign exchange earnings abroad without any value ceiling. In such case, permission or permit from Import Control Authority shall not be required.

Explanation.--- According to this para, professionals mean and include all professionals including Doctors, Engineers, Scientists and Legal practitioners.

12. Import of Samples, Advertising Materials and Gifts. ---

(1) Items of gift, advertising materials and samples may be imported free of charge within C&F value limit without any prior permission or permit from the Chief Controller in the following cases during each financial year, as :---.

Types of Importers	Items of Samples, advertising materials & gifts.	Quantity/C&F value of the item up to which import will be allowed without import permit/prior permission.
1	2	3
Importers/Indentors/Agents of allopathic medicine	Drugs & medicines (allopathic)	Tk.1,00,000.00 (one lac) only
All Importers, Indentors and Agents.	Other samples and advertising materials.	Tk.1,25,000.00 (One lac twenty five thousand) only
Agents of foreign manufacturers, appointed in Bangladesh	New brand of item for sale with a view to introducing them to the consumers.	Tk.1,00,000.00 (one lac) only
Individuals/Organizations	Bonafide items of gifts	Tk.75,000.00 (Seventy five thousand) only
Advertising materials shall include, among others, diaries, brochures, posters, calendars, pamphlets and technical literature related to the trade of the concerned importers as well as ball-point pen, key ring and lighters with company-name engraved/printed thereon.

(2) With a view to facilitating manufacture of products of new design(s) for the purpose of export or production of goods locally according to the choice of the foreign buyer(s) the following samples may be imported by the concerned exporters without any prior permission from the Chief Controller and without any permit during each financial year, such as:--

Sl. No.	Types of exporters	Yearly value ceiling/ maximum numbers of samples to be imported		Remarks
1	2	3		4
1.	Export oriented readymade garments industry.	(a) (b) (c)	Maximum 500 (five hundred) samples with not more than 10 (ten) in each category. In case of old garments manufacturer and exporter, import facility for 0.5% of the cloth used in making garments in the preceding year shall be available. In case of new industrial units import facility for 0.5% of the cloth/fabric/yarn/wool/acrylic required by them for utilizing half of their approved capacity shall be available.	-----
2.	Export oriented mechanized shoe industry.	Maximum 100(one hundred) pairs of sample.		-----
3.	Export oriented tannery industry.	Maximum 100(one hundred) pairs of tanned leather sample
4.	Other Exporters/ Manufacturers	US$ 10,000.00 (ten thousand only)		Subject to the production of necessary certificate recommendation from E.P.B

(3) If import of samples is required for execution of export-orders and the concerned foreign supplier does not agree to supply the sample free of charge, the concerned exporter/manufacturer may import, on the basis of recommendation of Export Promotion Bureau and with prior permission of Chief Controller, such samples within their respective value/quantity limit noted above, under cash foreign exchange, on payment of price for the items under the normal Banking Rules.

(4) For the purpose of manufacture of item for export, banned or restricted items(s), if required, may also be imported as samples within their respective value/quantitative limit mentioned above.

(5) In case of import of samples, if required, in excess of the value ceiling mentioned in sub-paragraphs (1) and (2 prior permission of the Chief Controller and Import Permit must be obtained.

(6) If import of banned items in finished form are required for the purpose of local production/assembling of the same, recognised industrial units under the respective sector may import free of charge such banned items as free samples not exceeding 2 Nos. of each model, subject to the prior permission of the Chief Controller. Local agents of the foreign supplier will also get similar facility for import of such items as samples, if required, for participation in tenders.

(7) The noncommercial goods costing not more than taka ten thousand exported by Bangladeshis living abroad to the family members in Bangladesh for personal uses (with restricted items) can be released on payment of duty and tax applicable thereof without any permit and in one financial year, the number of items shall not be more than one in case of electronic goods, in other cases the number shall not be more than five.

13. Temporary importation with conditions for re-exports. ---

(1) Agents and representatives of the foreign manufacturers shall be allowed to import machinery and equipment on temporary basis of their Principal or parent company for arranging demonstration and exhibition in Bangladesh subject to the conditions stated below:

(a) The goods brought into Bangladesh for such exhibition or demonstration will be re-exported within a period of one year;

(b) The importer shall execute a bond and furnish a Bank Guarantee or undertaking or a legal instrument to the satisfaction of the Customs Authority at the time of clearance of the goods regarding their timely re-export;

(2) If any banned or restricted item is included in the equipment/ material needed to be imported on temporary basis for the implementation of any development project or for any other specific purpose, prior permission of the Chief Controller must be obtained for their import.

(3) Equipment/material (excluding banned or restricted item(s) imported on re-export basis under sub-para (2) above may be transferred with the prior permission of Chief Controller to any local contracting firm at a concessionary rate of duty/duties.

(4) Import for ‘entre-pot’ trade: goods can be imported for ‘entre-port’ trade against back-to- bank L/C of the buyer through Import Permit on returnable basis issued by the office of the Chief Controller of Imports and Exports. It is to be mentioned in the import declaration that it is ‘entre-pot’ or ‘Temporary import’.

(5) Such goods will not be allowed to bring out side of the port area, if the port of entry and port of export is the same.

(6) If the port of import and export are separate, goods can be shifted to the port of export with the permission of Customs Authority on payment of 100% duty & taxes under Duty Draw Bank system or against 100% Bank Guarantee and it is to be exported within the specified time limit.

(7) Import for Re-export: Any goods can be imported for 100% export against export L/C of the buyer on payment of Duty & Taxes under Duty Draw back system/against 100% Bank Guarantee/under Bonded Warehouse with Import Permit on returnable basis issued by the Chief Controller of Imports & Exports.

(8). ‘Processed in Bangladesh’ is to be mentioned in the packet of the re-exported goods. Besides, date of expiry and packing of the goods, description of goods are to be written/printed on each pot /container/package of the goods.

(9) In case of re-export of imported goods is to be done by observing all the procedures and formalities of the Government.

(10) For sending of machinery/equipment/cylinder for repair/re-filling/maintenance etc. to another country, Export-Cum-Import Permit/Permission is to be taken from the Import Controlling Authority on submission of Bank guarantee of equivalent value of the goods. However, NOC from Bangladesh Bank is to be taken before export of such goods.

(11) Provisions of sub-para (10) are applicable for the industrial enterprises and in those cases the enterprises shall execute & submit bonds on recommendation from the sponsoring authorities.

14. Import into and Export from the Export Processing Zone (EPZ). ---

(1) Import into and export from the EPZ shall remain outside the purview of this Order ;

Provided that, the banned items mentioned in the annexure -1 shall not be imported and in case of import of other items, the rules & regulations related to public health and environment must be observed strictly.

(2) The banking and customs procedure relating to export from or import into the Export Processing Zone to or from any country outside Bangladesh shall be regulated in accordance with the instructions issued in that behalf by the Bangladesh Bank and the National Board of Revenue respectively from time to time.

(3) All statistics regarding import into and export from Export Processing Zone shall be maintained by the Customs Authority concerned.

(4) Subject to the provisions of sub-paragraphs (5) and (6) below all movement of goods between the Export Processing Zone and any other area in Bangladesh outside the Zone shall be regulated in accordance with the existing Imports and Exports Control regulations.

(5) EPZ Authority shall prepare a list of items (on the basis of N.O.C. from the NBR) required to be procured from the Bangladesh Customs area for use in the EPZ area and get the same approved by the Ministry of Commerce. Any correction in, or amendment to the said list may be made in accordance with the same procedure. Industrial units situated in the EPZ area shall pay in convertible currency, out of their own foreign currency accounts, the cost of goods procured from the Bangladesh Customs area as per the said list. EPZ Authority shall issue Pass Books in favour of industrial units situated in the EPZ area indicating therein the amount in Taka upto which goods can be procured locally on a yearly, half yearly or quarterly basis. The EPZ Authority shall determine the proforma of the aforesaid Pass Book and the requisite Accounting System in consultation with the Customs Authority. When the value ceiling mentioned in the Pass Book will be exhausted the EPZ Authority may endorse a fresh value ceiling in the same Pass Book or issue a new Pass Book.

(6) EPZ Authority shall issue necessary “In-Pass” and “Out-Pass” for machinery and equipment which are required to be brought out of EPZ area for the purpose of repair. On the basis of such passes the Customs Authority, after making necessary entries in appropriate register, shall allow movement of machinery and equipment out of the EPZ area for the purpose of repair and into the EPZ area after repair. However the documentation and accounting procedure for such outward and inward movement of machinery and equipment shall be determined by the EPZ Authority in consultation with the Customs Authority.

15. Additional conditions for import of food for human consumption. ---

(1) In case of import of milk, milk food, milk products, edible oil and other food items produced in any country, test of radioactivity levels present in those items is mandatory. In this case, a certificate from competent authority recognised by the government of the exporting country is to be submitted to the custom authority with other import documents. Incase of import of milk & milk product, a melamine-free certificate from the competent authority recognised by the exporting country must be submitted to the custom authority. It is to be noted that test of radioactivity levels of vegetables and seeds, which may be used as food directly is also mandatory.

(2) In case of import of food items from any country, the shipping documents must be accompanied by radioactivity-test reports from the concerned authority of the exporting country indicating the level of CS 137 found in such radioactivity-test in each kilogram of food items shipped. In addition, a certificate to the effect that the items are fit for human consumption shall also be required:

Provided that, in such case, Collection of representative samples of such food item from on board ship at the port of loading and despatch thereof shall not be necessary.

(3)The following procedure shall be applicable in the matters of radioactivity-test of food items to be imported from any country, as: ---

(a) Prior to shipment of the aforesaid item(s) the inspection agent of the supplier or buyer/consignee shall make necessary arrangement for the test of radioactivity levels for such items;

(b) Prior to the arrival of a ship carrying such items at a Bangladeshi port, the buyer or consignee or his inspection agent shall make necessary arrangement for sending by courier the certificate regarding radioactivity-test to the concerned Customs Authority;

(d) In case of import of food items, which were, produced neither in any European country nor packed/ tinned in or shipped from the third country submission of the aforesaid certificate about radioactivity-test to the Customs Authority shall not be required:

Provided that, a report on radioactivity-test of importable food items (The report is to include the level of CS 137 found per kilogram of the item concerned); and

(e) A general certificate to the effect that the items are fit for human consumption must be enclosed with the Bill of Lading (B.L.).

(4) Only after satisfactory fulfillment of the conditions laid down in sub-para (2) and clauses of sub-para (3) above the Customs and the Port Authority shall allow the unloading of the concerned goods from the ship to the jetty.

(5) On arrival of a ship carrying the aforesaid items at a Bangladesh Port ---

(a) the Customs Authority shall collect the required number of samples of the items carried by the ship in presence of the importer’s representative and the port authority (samples are to be collected from the port area) or the master of the ship (in case special appraisement is to be made while the ship is still at the outer anchorage or mooring) and shall properly pack the samples and attach to it a tag made of hardboard as per proforma given by the Bangladesh Atomic Energy Commission;

(b) The tag so attached shall bear the signatures of all those who were involved in the collection of the sample i.e. the representative of the customs authority, the importer’s representative and the representative of port authority and the master of the ship;

(c) After packing and tagging the samples as mentioned above, the Customs Officer concerned shall send it to the customs samples room;

(d)The Custom officer in charge of the sample room shall keep proper record of the samples and hand over the same to the Officer/ Staff of Bangladesh Atomic Energy Commission against appropriate record and signature;

(e) After receipt of the samples in the Laboratory, Bangladesh Atomic Energy Commission shall within twenty-four hours, send to the Customs Sample Room their report on the result of examination of the samples:

Provided that, in case of collection of samples after office hours the customs officer concerned shall keep the same in his own custody and hand it over to the samples room the next day immediately after the opening of office;

(f) The representative of Bangladesh Atomic Energy Commission shall on receipt of information, collect such sample from the Sample Room on the same morning and shall make arrangement for sending reports to the Sample Room after proper examination of the samples;

(g)The representative of Bangladesh Atomic Energy Commission shall collect samples from the sample room twice a day i.e. once in the morning and again in the afternoon.

(6) If on test of sample(s) of the consignment by the Bangladesh Atomic Energy Commission, it is found that the consignment contains radioactivity level above the acceptable limit, the consignment shall not be released and the concerned exporter/supplier shall be bound to take it back at his own expense.

(7) The testing procedures described at sub-paragraph (3), (4) and (5) above shall also be applicable in case of import of milk, milk food, milk products, fish feed, edible oil and other food items, even when these have been produced in any country and packed/ tinned in or shipped from another country.

(8) The condition laid down in sub-paragraph (3), (4), (5) and (6) shall be mentioned in the concerned Letters of Credit / Purchase Orders.

(9) The Customs Authority shall, in the usual course, release the goods, only after getting the Clearance Certificate(s) from the Bangladesh Atomic Energy Commission certifying that the radioactivity level found in the imported food-stuff is within the acceptable limit.

(10) Whatever may be in sub paragraph in (1) and (9), Radioactivity-test for palm oil, palmolein and RBD palm stearine produced in Malaysia or Indonesia and imported or to be imported from Malaysia, Indonesia & Singapore shall not be required:

Provided that, Bangladesh Atomic Energy Commission (BAEC) shall collect samples, for radioactivity-test of these item(s) from the market from time to time and this policy shall be liable to change if, on test of such sample(s) by the BAEC it is found at any stage that the items contain harmful levels of radioactivity.

(11) Test for determination of purity of the imported RBD palm stearine, by the Bangladesh Standard and Testing Institution (BSTI)/Bangladesh Council of Scientific and Industrial Research (BCSIR) is obligatory. For this purpose, the Customs Authority shall collect the required number of samples of the items carried by a ship in presence of the nominated officer(s) of the Port Authority and the importer or his representative. The Customs Authority shall seal the sample in their presence and send the same to the authorized officer of the Bangladesh Standard and Testing Institution/Bangladesh Council of Scientific and Industrial Research, Dhaka or Chittagong for conducting necessary test. The authorized officer of the BCSIR shall duly test the samples of such items promptly and furnish expert report as to whether those samples of palm oil, palm olein or RBD palm stearine are in conformity with the description of the items given in the import documents. BSTI/BCSIR will then send such report to the concerned Customs Authority.

(12) The concerned importer(s) shall bear all expenses incurred for the radioactivity-test of the above food items imported or to be imported. The importers shall also bear the expenses relating to the test conducted by the Bangladesh Standard and Testing Institution/Bangladesh Council of Scientific and Industrial Research, of such RBD palm stearine.

(13) Radioactivity-test shall not be necessary in case of import of cigarette, cigarette paper, pipe tobacco, whiskey, beer and other alcoholic beverages, concentrated essence, spices and medicine.

(14) These procedures shall not apply to the food items imported or to be imported, for which separate procedure has been prescribed by the Ministry of Food for testing radioactivity level. In these cases, the procedure prescribed by Ministry of Food shall be followed.

(15) Acceptable limits of radioactivity for milk powder, milk food and milk products is 95 bq of CS-137 per kilogram and that for other food items is 50bq of CS-137 per kilogram. The level of CS-137 in an item shall be calculated in the state it reaches the port without being liquefied, concentrated or processed. In case of local items, the level of CS-137 in an item shall be calculated in the state it is marketed. The highest acceptable limit of radioactivity levels may be revised by the government from time to time.

(16) In case of import of rice, wheat, other cereals and food stuff from SAARC and South-East Asian Countries, the provision of the above mentioned radioactivity-test shall be relaxable on fulfillment of the conditions mentioned below, as:---

(a) Imported rice, wheat, other food cereals and food stuff must be produced in SAARC or South-East Asian Countries and a certificate of origin, issued by the related Government/ approved Agency of the exporting country, shall be submitted, along with import documents to the Customs Authority;

(b) A certificate, issued by the Government/ Approved Agency of the exporting country, declaring that the standard & quality of the imported rice, wheat, other cereals and foodstuff are fit for human consumption and free from all harmful germs, shall be submitted to the Customs Authority;

(c) In case of import of easily perishable foodstuff such as, fresh fruits, fishes, vegetables etc. from SAARC countries, a certificate regarding radioactivity issued by that Government Agency of the exporting country shall be acceptable.

(17) Milk food: All kinds of milk food products including baby food with fat contents covered under H.S. Heading 04.02 or 19.01 and all H.S. Code classifiable there under shall be importable subject to the following conditions, as;---

(a) Baby food produced from milk shall be imported in tin containers up to 2.5 kgs only;

(b) Milk food with cream shall be imported in the tin containers or bag in box up to 2.5 kgs;

(c)The Industrial enterprises, which are approved by the packing or caning Sector of Board of Investment, Bangladesh Small & Cottage Industries Corporation or Director, Institute of Public Health & Nutrition , shall import milk food with cream or baby food in big airtight Hermitic Container for packing locally ( retail) ;

(d) The words: “ gv‡qi `y‡ai weKí bvB Ó (There is no alternative to breast-feeding) shall be printed clearly in relatively larger letters in Bangla in a visible space on each tin ,airtight package or bag in box of baby food with cream;

(e) Composition and percentages of various ingredients shall be printed in Bangla on the tin containers, airtight packages or bag in boxes of milk food;

(f) The date of manufacture and the date of expiry (for human consumption) shall be embossed or shall be computer printed in permanent ink either in Bangla or in English on each tin container, airtight package or bag in box of milk food;

(g) The net weight of milk food shall be clearly indicated on each container in Bangla or in English; apart from this, in case of import of milk and milk product baby food, the registration number given by the Director, Institute of Public Health & Nutrition (IPHN) shall be printed on every tin, airtight package or bag in box clearly;

(h) The condition mentioned at clauses (d), (e), (f) and (g) above must be embossed on the tin container. Separate printed labels shall, in no way, be pasted on the tin container;

(i) Measuring spoon shall be supplied in tin containers of baby food i.e. milk food having fat contents up to 19%;

(18) Import of non-fat dried milk shall be made subject to the following conditions, as ---

(a) Import of non-fat dried milk, packed in bag/ tin, shall be allowed;

(b) The importer shall produce an analysis certificate duly authenticated by the competent authority of the exporting country and the certificate shall contain a declaration to the effect that the milk food is fit for human consumption;

(c) The date of manufacture and date of expiry of fitness of the contents for human consumption shall be printed on each container, tin or bag;

(d) In case of import of milk food products and powder milk, pre-shipment inspection shall be mandatory for determination of radioactivity level and the goods may be shipped only if in such test the radioactivity level is found within the acceptable limits approved by the Government. Such test report shall be sent to all concerned authorities as one of the shipping documents;

(e) On arrival of milk food and dried milk in the country, the consignment shall be subject to radioactivity test for the second time before release of the goods and the goods shall be released only if the radioactivity level is found within the acceptable as well as approved limits. The existing procedure of testing the radioactivity level of imported milk food and dried milk on arrival in the country shall continue as usual.

(19) The date of manufacture and the date of expiry for import of Food and beverage: For import of all kinds of food and beverages, the date of manufacture and the date of expiry shall clearly be embossed on each tin , container or package and printed label shall not be pasted on the tin, container or package separately :

Provided that, no food items will be allowed to import after the expiry date.

(20) In case of wine/liquor, date of expiry need not to be mentioned.

(21) The quantity and description of ingredients and colours used in preserved food must be printed on pot, container or package and no separate label will be pasted on it. In this case, embossing is a must.

(22) Date of manufacture and date of expiry shall have to be written/printed on the container/package of those raw materials used in preparation of food and beverages which are to be unusable after certain period of time.

(23) For import of all food products, (directly consumed/drunk or consumed/drunk after processing) the importer shall require to submit along with other shipping documents a cautionary certificate from the government of the exporting country or from appropriate approved agency to the effect that the item is “fit for human consumption”, “that it does not contain harmful ingredients”, or that “it is free from all kinds of harmful germs.” Such a certificate shall mention the age group for which the item is eligible for consumption.

(24) In case of all foodstuff/edible substances importable to Bangladesh, the importers shall send information of the edible substances mentioned in sub para 25(29) in a prescribed form of BSTI to the Bangladesh Standard & Testing Institution (BSTI) and information of other food stuff to Bangladesh Centre for Science and Industrial Research .

(25) All foodstuff/edible substances imported into Bangladesh must undergo mandatory tests of BSTI and BCSIR. On arrival of the consignment in Bangladesh the importers shall submit samples of the items to the BSTI/BCSIR for testing and obtain clearance certificate from them. If food staff/edible substance does not conform to their standard, the consignment will not be eligible for release and the importer will be subject to legal action.

16. Additional terms and conditions to be applicable for the import of fish feed, poultry feed and animal feed items. ---

(1) In case of import of fish feed, poultry feed and animal feed items, the shipping documents must be accompanied by radioactivity-test reports from the competent authority of the exporting country and a certificate to the effect that the items are fit for consumption by fish, poultry or animal as the case may be and the radioactivity-test report must clearly indicate the level of CS-137 found in such radioactivity-test in each kilogram of the items.

(2) The imported fish feed must be free from chloromphenicol and Nitro furan

(3) Such items shall be released only when their radioactivity levels are found within the acceptable limits in accordance with the reports mentioned in sub-para (1), otherwise, the supplier shall be under obligation to take back the consignment at his own expense.

(4) Meat and Bone Meal will be importable subject to prior permission issued by the Directorate of Fisheries & Livestock and in case of import of Meat and Bone Meal; name of the source animal is to be mentioned:

Provided that, import of Meat and Bone Meal of swine is banned.

(5) In case of import of Bone and Meat Meal prepared from the source of other animal, a certificate issued by the competent authority of the exporting country be submitted to the effect that it is free from Bovine Spongiform Encephalopathy (BSE).

(6) Registered Vaccines and diagnostic reagent used in fish and poultry industry will be importable subject to permission issued by the Directorate of Fisheries and Livestock.

(7) In case of import of poultry and birds, a certificate mentioning free from Avian Influenza issued by the appropriate authority of the exporting countries .

(8)The conditions in the para shall be mentioned in the letter of credit to be opened for import of fish feed, poultry feed and animal feed items.

(9) There is no need for further testing of radioactivity level of fish feed, animal and poultry feed items after their arrival at the Bangladesh port.

(10) In case of import of canned fish, the date of manufacture, the date of expiry and net weight shall be clearly embossed or computer printed in permanent ink in Bangla or in English on its container and printed label shall not be pasted on the container separately.

(11) In case of import of fish, a certificate issued by the Government/Government recognized concerned authority of the exporting country to the effect that the fish is free from Formalin, to be submitted to the Customs Authority.

(12) It is to be examined by the Government recognized agency at the port of entry in Bangladesh that no Formalin is used in the imported fish and it will be released subject to certification that there is no Formalin in it.

(13) In case of import of beef, mutton or chicken or other consumable meat of animal, the date of manufacture and date of expiry of the exporting country have to be embossed/printed on the container and preservation process is to be mentioned on it. Separately printed label shall not be pasted on the container.

(14) A certificate from the competent authority of the exporting country to the effect that the imported goods are free from Bovine Spongiform Encephalopathy (BSE) and Avian Influenza is required.

(15) In case of import of meat from the countries under European Union, a certificate issued by the competent authority of the exporting country to the effect that the meat is free from ‘mad cow disease’, to be submitted to the customs authority.

(16) In case of import of Protein concentrate prepared from Bone Meal, Meat Meal and Meat & Bone Meal from America, Europe and other countries, a certificate to the effect that prepared items is by no means infected with Transmissible Spongiform Encephalopathy,(TSE) must be submitted along with shipping documents.

17. Release of Goods detained by the Customs.---

(1) If a consignment of imported goods is detained by the Customs Authority, the concerned importer may apply to the Chief Controller of Imports and Exports with a prayer to issue instruction to the Customs Authority for clearance of the consignment. Such an application shall be submitted to the Chief Controller within Ninety days from the date of objection given in writing by the Customs Authority. Applications submitted after expiry of the above time limit will not be considered with exception to special case(s).

(2) Such applications according to sub-para (1) must be accompanied by written objection(s) of the Customs Authority or detention memo showing the ground(s) for detention of the consignment(s).

(3) The Chief Controller, in all such cases except those involving issuance of IP/CP for items in the control list or other restricted items of other paragraphs of the Import Policy Order (sub para-1), shall take into consideration all the relevant aspects of the cases for their proper assessment and expeditious disposal at his level.

(4) The Chief Controller shall, however, forward to the Ministry of Commerce with his opinion such other cases that involve import of items in the control list or items otherwise restricted for import as per any other provision of the Import Policy Order for decision regarding relaxation of the relevant provisions.

18. Claim for import facility in cases accepted in Review, Appeal and Revision .--- No claim for import shall be entertained in cases accepted under Review, Appeal and Revision Order, 1977, if the item is no longer permissible for import.

19. Import in contravention of the Order. ---- Goods imported in violation of any provision of this Order or of any notification issued there under by the Chief Controller shall be treated to have been imported in contravention of the provision of the Act.

20. Amendment or alteration of this Order. ---- The Government may at any time amend, alter or relax the provision of this Order.

21. Provisions regarding export. ---- All provisions regarding export as mentioned in this Order shall apply in case of export of goods.

CHAPTER FIVE

General Provisions for Industrial Import

22. General rules for Import in the Industrial sector- Unless otherwise specified in this order------

(a) Industrial units approved on regular basis will be allowed to import up to three times of their regular import entitlement of the items, import of which is banned for commercial purpose and which are importable by industrial consumers only;

(b) Industrial units approved on adhoc basis will be allowed to import upto the maximum value limit not exceeding two times of their half-yearly import entitlement;

(c) After receiving the 1^st adhoc share the concerned industrial units shall apply through the concerned sponsoring authority to the Chief Controller of Imports & Exports for regularisation of their import entitlement;

(d) Import entitlement and IRC of the concerned industrial unit will be regularised on the basis of recommendation of the sponsoring authority, if 80% of the first adhoc share had been utilised. Otherwise, clearance will be issued for the 2^nd adhoc share;

(e) Adhoc IRC of the concerned industrial unit shall not be renewed until the Chief Controller of Imports and Exports issues clearance for the 2^nd adhoc share or regularises its import entitlement on the basis of recommendation of the sponsoring authority;

(f) If, after utilisation of the 1^st adhoc share, an industrial unit is allowed to utilise their 2^nd adhoc share as per recommendation of the sponsoring authority instead of regularising their import entitlement, the industrial unit, after utilisation of the 2^nd adhoc share, will be able to apply to the sponsoring authority for regularisation of their import entitlement. The adhoc entitlement and the adhoc IRC will be regularised as per recommendation of the sponsoring authority.

(g) In case of import by those sectors of industries for which entitlement has been fixed on the basis of more than one shift, units accepted on a regular basis under such a sector shall not be eligible to import more than 100% of the annual entitlement for such restricted raw materials or packing items and the industrial units accepted on an adhoc basis, under such a sector shall not be eligible to import more than 100% of the half-yearly amount for such restricted items;

(h) Govt. sector industrial units will obtain approval of the Ministry of Commerce through their administrative Ministry the total annual requirement of the restricted items at the beginning of the financial year;

(i) Regular industrial units which have been provided with special financial benefit along with payment of advance income tax with respect to import of industrial raw materials/packing materials/spare parts will not import those items three times more than the import criteria even if those items are freely importable;

(j) Amount of approved import entitlement (sum and word in taka) will be clearly quoted in the IRC at the time of its issue by the office of the Controller of Imports and Exports and the regional office of the Chief Controller of Imports & Exports will delivery a copy of the entitlement paper approved by sponsoring authority duly countersigned by the concerned regional office of Imports & Exports;

(k) A copy of the entitlement paper duly endorsed shall be provided to the sponsoring authority;

(l) The provisions at sub-para (b) and (g) above shall not apply in case of import by the readymade garments, hosiery and special textile industries operating under bonded warehouse system and the pharmaceutical (allopathic) industries; but the provisions of sub-para (6) and (9) of paragraph 23 respectively shall apply in these cases;

(m) Import under cash foreign exchange- Subject to the provision of sub-para (b) and (g) industrial sectors for which no fund under Government allocation has been provided may import their essential raw materials, packing materials and spares (excluding restricted items in the control list) under cash foreign items without any value limit.

23. Prescribed condition for import of industrial items-

(1) Items of import by the Foreign Exchange Earning Hotels- Foreign exchange earning hotels may import, by purchasing cash foreign exchange, all items under H.S Heading No. 22.03, 22.06, 22.08 and all H.S. Code classifiable under it and all items including sausages of meat of swine under H.S. Heading No. 16.01 and H.S. Code No. 1601.00.

(2) In addition to importing from abroad, the foreign exchange earning hotels may also purchase their prescribed items from the duty free shops of the Bangladesh Parjatan Corporation subject to payment of customs duties and other dues at usual rate.

(3) For such import mentioned in sub-para (1), (including items purchased locally) they shall observe the following conditions and procedure, as: ----

(a) Import of the restricted items shall be limited to twenty percent of the foreign

exchange earned by the hotel during the preceding financial year;

(b) Import of alcoholic beverages and spares shall be limited to a maximum of seven and a half percent of the total foreign exchange earning and the remaining twelve and a half percent may be utilized for import of other restricted item(s);

(c) Total import of restricted item shall not exceed twenty percent of the total earnings of foreign exchange referred to at above clause (a);

(d) Foreign exchange earnings of a hotel shall be recorded by the bank to which the foreign exchange is sold and utilization of foreign exchange will be recorded by the nominated bank while opening L/C for these restricted items;

(e) Before submitting LCA From and opening of L/C for any restricted item the foreign exchange earning hotel shall obtain necessary endorsement in the IRC from the concerned Import Control Authority.

(4) Beer & wine of all categories (H.S. Heading No. 22.03 to 22.06 and all H.S. Code classifiable under this heading) - Beer & wine of all categories shall be importable only by foreign exchange earning hotels as per conditions of sub-para (1) of this Order. In special cases, such items may be imported with approval of Ministry of Commerce & prior permission from Chief Controller subject to specified conditions; however, in all cases of import of beer & wine related beverages, concerned importer shall firstly obtain licence/permission from the Director General, Narcotics Control Department.

(5) M.S. Sheet and Plate (hot rolled), G.P. Sheet, B.P. Sheet, Stainless Steel, CRCA Sheet, Tin Plate, M.S. Sheet and Silicon Sheet----

a) Recognized industrial units having entitlement for M.S. Sheet, Stainless Steel Sheet, C. R. C. A. Sheet, Silicon Sheet, B.P. Sheet or Tin Plate (misprint), may import these items of secondary quality also and these items of prime quality as well as secondary quality shall also be importable on commercial basis;

(b) G.P. Sheet or secondary quality G.P. Sheet shall be freely importable; both by commercial importers and industrial consumers, without any value-limit and irrespective of its size, gauge or quantum of zinc coating.

(6) Raw materials & packing materials for pharmaceutical industry------

(a) Government approved and recognized pharmaceutical industries shall get the Block List duly approved by the Director, Drug Administration specifying the description of raw and packing materials, value, quantity, according to their annual production programme;

(b) The Block List shall be used in case of import for pharmaceutical industries and raw and packing materials mentioned in the Block List shall be importable, irrespective of the restricted list, up to the quantity and value as mentioned in the Block List. Item which does not appear in the Block List shall not be importable by the concerned pharmaceutical industry even if such item is otherwise freely importable;

(c) In case of import of raw and packing materials for pharmaceutical industries for which prior permission from any other authority other than the approval of the Director, Drug Administration, is required to be obtained as per the provisions of this Order, such prior permission from the concerned authority shall be duly obtained for import of such raw and packing materials. Director, Drug Administration shall furnish copies of the approved Block List to the Customs Authority and the Office of the Chief Controller, Imports and exports;

(d) Imported raw and packing materials shall be released by the Customs Authority on the basis of import-invoice and analysis report of the raw materials, certified by the Director, Drug Administration or Govt. approved internationally reputed Pre-shipment Inspection Agent regarding the quantity, value and quality of each item.

(7) RBD Palm Stearine and Tallow-

(a)Recognised industrial units under soap industry may be allowed to import this item as per the entitlement for the item only on the basis of specific recommendation of the sponsoring authority;

(b) After the import RBD palm Stearine and Tallow the importers shall inform the quantity so imported & utilization to the sponsoring authority.The sponsoring authority being satisfied with proper utilization of the goods imported on recommendation previously will give permission for next share of entitlement;

(8) Import on adhoc basis by the IWT Operators, Poultry and Dairy Farms and Fish Catching unit---- Inland Water Transport Operators, fish catching units and poultry and dairy farms which are not recognised as industrial units may import permissible items as per their requirement without any recommendation or permission from any authority. They shall, however, be required to comply with the conditions and procedures of imports as per this Order.

(9) Import by Export-Oriented Industries-

(a) Recognised readymade garment industries operating under the bonded warehouse system shall be permitted to import raw and packing materials (including banned & restricted items), the approved quantity as per Utilization Declaration (U.D) issued by the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) in accordance with the policy formulated by the National Board of Revenue on the basis of confirmed and irrevocable Letter of Credit for export of readymade garments against back to back letter of credit. They will have to import fabrics, excepting gray fabrics, in regular and continuous length of 18.29 metre or above in “thaan” or standard pieces or size;

(b)These industrial units mentioned in clause (a) shall not be allowed to import cloth in pieces or cloth cut into pieces. Staple pins shall also not be importable against back to back L/C;

(c) For import of gray fabrics the provisions at clause (d) of sub-para 23(29) of this order shall apply. Duplex board of four hundred gm (gray back) shall be importable under back to back L/C through entry in the Pass Book;

(d) Duplex board of lesser thickness(determined by EPB) for use as collar and back board may be imported against back to back L/C through entry in the Pass Book;

(e) Import of raw and packing materials against back to back L/C by such units mentioned in clause (a) may also be made through submission of LCA forms, duly filled in, to the concerned nominated Bank and under this arrangement, such units will not be required to obtain IP/CP from the concerned Import Control Authority for clearance of their raw and packing materials imported against back to back L/C;

(f) Such units (mentioned in clause a) under readymade garments industry shall, however, be permitted to import raw materials on ‘No Cost Basis’ for execution of export orders of the following conditions, as :---

(i) Each case will be realized on consignment basis against U.D issued by the BGMEA and for this no foreign currency will be remitted from Bangladesh;

(ii) Pre-shipment inspection certificate regarding finished products, if required, will have to be produced at buyer’s expense during execution of export and no rejection of readymade garments made for export will be allowed;

(iii) The entire value added amount in respect of readymade garments shall be repatriated to Bangladesh. The lowest percentage of value addition shall be as under:

Table

Sector/field *	minimum rate of value addition
Export of knit garments	Twenty percent (20%)
Export of Non-quota category woven garments	Twenty percent (20%)
Export of quota category woven garments up to US$ 40 (F.O.B) per dozen	Twenty percent (20%)
Export of quota category woven garments above US$ forty (F.O.B.) per dozen	Twenty percent (2 Twenty percent (20%); however, in no case the value addition per dozen shall be less than US$ twelve;
In case of export of higher price garments	Value addition for Value addition of quota category & non-quota category shall not be less than fifteen percent and ten percent respectively. However, in this case the value of per dozen shall be US$ sixty (F.O.B) or more;
Export of all types of sweater	Twenty percent (20%)
Export of all types of baby garments	Fifteen percent (15%)

(iv) Quantity, price and description of the materials imported on consignment basis must be mentioned in the invoice but imported raw and packing materials may be transferred through inter-bond transfer and imported gray fabrics, knit fabrics and white fabrics may be transferred to various dyeing and printing or processing plant.

(10) The export oriented readymade garment units operating under bonded warehouse system shall be allowed to import knitted fabrics in roll or “thaan” form only.

(11) Unless otherwise specified in the order regarding other exportable goods, the rate of local value addition for other export items and establishment of back-to-back L/C for import of raw and packing materials of those items against net F.O.B. value of export L.C. shall be upto the maximum percentage notified by Export Promotion Bureau.

(12)Recognised units under specialized textile industry operating under the bonded warehouse system shall be permitted to import raw & packing materials (including banned/restricted items) as determined by customs authority on the basis of confirmed and irrevocable letter of credit for export of the items of specialised textile against back to back L/C. For this purpose no prior permission from the Chief Controller shall be required.

(13)Recognised export-oriented hosiery industry under bonded warehouse system will be allowed to import raw and packing materials (including banned & restricted items) to an amount fixed by the customs authority against back-to-back L/C by establishing confirmed and irrevocable letter of credit. For this, prior permission from the Chief Controller will not be necessary. But recognized Garment Industries will be allowed to import yarn and knitted fabrics in “thaan” or roll form for production of hosiery and knitted garments.

(14)Import of fabrics in cut pieces and import of knitted fabrics other than in ‘thaan’ or roll form will not be allowed. Recognised Garments Industries in sweater sector will not be allowed to import sweater, jamper, pullover ,maflar, hand sock and sock in form of piece, panel or roll or in ‘thaan’ or in the form of cut pieces. Only import of all yarn of all sorts will be allowed as raw materials for these items.

(15) All other export-oriented industries export-oriented readymade garment/hosiery and specialised textile industries may be allowed to import any banned or restricted raw and packing materials and spares required for the execution of specific export order with prior permission from the Chief Controller on the basis of recommendation of the sponsoring authority. In such instance, the concerned industrial units shall submit bank guarantee covering hundred percent of the value of the banned or restricted item(s) imported. However, such bank guarantee shall not be required in case of export- oriented industries operating under banded warehouse licence.

(16) Recognised manufacturing and exporting units in all other sectors operating under the bonded warehouse system may import their raw and packing materials under back to bank L/C arrangement. This provision shall cover both the output manufacturing (direct exporters) as well as the input manufacturing (indirect exporters) units.

(17) In case of industries which supply raw materials to export oriented industries i.e. deemed exporters, raw materials can be imported against back to back L/C through bonded warehouse.

(18) Only 100% export oriented industries unit under bonded warehouse system will be allowed to import necessary raw materials & packing materials for 4 (four) months in revolving system against back-to-back L/C against Master Export L/C or against confirmed contract by the buyer. In this case-----

(a)The concerned bank will consider value of export of the previous year or performance certificate as the basis for fixing the need.

(b) In case of new factories the need for four months will be fixed on the basis of production capacity determined by the Board of Investment.

(19) For import against back-to-back L/C by these industries mentioned in sub-para (17), authorization of Bangladesh Bank will not be necessary and raw materials will be imported without L/C and against contract on the basis of Bank Customer relationship through sight/ the usance L/C under prevailing rules.

(20) If few separate cut pieces are found in the container/consignment of fabrics imported for readymade garment industry, Customs Authority shall detain only the cut pieces instead of the total container/consignment.

(21) The restriction of 18.29 metres shall not be applicable in case of

embroidered fabrics, badges, labels, stickers & patches imported for the execution

of specific export order by readymade garment industry.

(22) It shall not be considered as the violation of Import Policy if any buyer/supplier makes shipment of raw & packing materials before establishment of back-to-back L/C for export oriented readymade garments industry/textile industry, the back to back L/C is opened before submission of challan manifest.

(23) Subject to the obtain ability of bonded warehouse licence, opening of L/C shall not be required to import raw materials (ingredient) for 100% export oriented jewelry manufacturing industry. In such case of import without opening L/C a prior permission from the Customs Authority shall be required for release of imported goods.

(24) Import of raw materials and capital machineries for garment industries are allowed without any value limit and opening of L/C.

(25) Rough Diamond (H.S. Code No. 7102.10, 7102.21, 7102.31) ----

(a) 100% export oriented finished diamond manufacturing industrial units operating under supervised bonded warehouse system will be allowed to import Rough uncut diamond as raw material on consignment basis without opening L/C and making payment of its value at sight / usance system against export contact/supply order with foreign buyers fulfilling the conditions of the paragraph, but in that case import cost including value addition will be minimum export value which will be repatriated through legal banking channel;

(b) Processing of such uncut diamond will be deemed to entail loss of contents not exceeding 75%;

(c) The concerned exporters will be allowed to export finished diamond only after realization of the money covering total amount of the value added to the exportable finished diamond, subject to the rate of value addition being not below US$ 10.00 (ten) per caret. The total added value finished diamond is to be repatriated through banking channel, L/C, documentary collection, Cash against Collection (CAD) or TT;

(d) Exports & Import of Rough diamond from /in Bangladesh will have to be carried out as per procedure prescribed by Bangladesh Bank and the Customs Authority. “Rough Diamond Import and Export (Control) Rules, 2006” is also to be followed for import of rough diamond and its export.

(26) In case of import of raw-materials for 100% export-oriented industries operating under bonded warehouse system & manufacturing corrugated carton, thread, poly bag , butterfly labels interlining, leather, leather goods, foot ware etc., the previous process, i.e. import through SEM or Cash L/C procedure under bonded warehouse, will also remain valid along with the existing back to back L.C facilities.

(27) Export-oriented Industries who are deemed exporters will be given Utilization Permit (UP) against Back-to-Back L/C subject to the following conditions, as:---

(a) In the cases where payment for carton and accessories is not possible after payment through L/C adjustment for payment of carton and accessories will be made if there is surplus in any other L/C opened for raw and packing materials. Such adjustment for payment against raw and packing materials will be made through adjustment in seven such cases;

(b) Various relevant information of the cases in which surplus money is adjusted against back-to-back L/C, such as relevant back-to-back L/C number, reference, date, name and address of the L/C opener, description of the commodities, quantities and other relevant information’s should be clearly quoted in the UP.

(d) Adjustment for inland back-to-back L/C should be made within 6(six) months.

(e) It will be applicable irrespective all value for all consignment according to the conditions mentioned in clause (a) --- (d)

(28) Import against Import Permits and in special cases against Clearance Permit (for clearance of goods on payment of fine) ---- Any recognised industries set up or to be set up under 100% foreign investment need not open LCA form or L/C to import capital machineries & equipments, but the importers have to obtain Import Permit or in special cases,Clearance Permit from Ministry of Commerce.

(29) Grey-Fabrics----

(a) Only the recognised textile finishing (mechanized) units operating under the bonded warehouse system shall import all types of “Grey Fabrics” against back-to-back L/C on the conditions that all the imported Grey Fabrics after finishing, dyeing or printing shall be supplied to export-oriented readymade garments units or be exported to the foreign countries;

(b) Where the imported grey fabric after finishing, dyeing or printing are directly exported to foreign countries, the concerned importer will be required to finish, dye or print at least an equal quantity of local grey fabrics, and supply the same to the export oriented readymade garment units or directly export the same to the foreign countries during the same financial year. However, if the imported grey fabrics after finishing, dyeing or printing are supplied to the export oriented readymade garment units, the condition of processing an equal quantity of local grey fabrics shall not apply;

(c) The Export Promotion Bureau shall properly monitor about the compliance of the above conditions by the importers of grey fabrics;

(d) The export oriented readymade garment industries operating under bonded warehouse system may import grey fabric for the quantity recommended or determined by ‘Utilization Expert Committee’ constituted by the Ministry of Commerce or the relevant Customs SRO. Grey fabrics so imported shall be endorsed in the Customs Pass Book of the concerned readymade garment units. On export of readymade garments made by using imported grey fabrics, the same shall be endorsed in the Pass Book as per existing procedure for the purpose of adjustment showing that the entire quantity of imported grey fabrics has been fully utilized in the garments exported;

(e) Grey fabrics shall be importable under usual procedures for using in export oriented industry and for direct export against a specific export order.

(f) Export oriented specialized textile (dyeing, printing & finishing or dyeing, printing, finishing, weaving/spinning) units only which have got required technical capability may import grey fabrics & yarn upto four months requirement in revolving system according to the conditions in clauses (a)---(c (maximum 33% of production capacity)) even without back-to-back L.C. under supervised bonded warehouse system. In this case quantity of import against a factory will be determined on the basis of the certificate issued by the concerned bank on the export performance of the existing factory in the previous year;

(g) 100% export oriented specialised mill may import raw materials under supervised bonded warehouse upto twelve months requirement in revolving system without back to back L.C. In this case quantity of import will be determined on the basis of the certificate issued by the concerned bank on the export performance of the existing mill in the previous year.

(30) Import of parts, accessories and components:--- Parts, accessories or component, import of which is otherwise banned or restricted, shall however, be importable along with machinery only as its integral and indispensable part:

Provided that, the said machinery item is permissible for import.

(31) Second-hand/reconditioned machineries---

(a) Second-hand/ reconditioned capital machineries & generators or generating set used in industry shall be importable without any price limit but a certificate from a surveyor enlisted, nominated or appointed by National Board of Revenue to the effect that each machine has at least 10 (ten) years economic life except generators or generating sets, must be submitted along with Bill of Lading.

(b) In case of import of generators or generating sets, certificates containing age not more than 5 (five) years of the equipments from the appropriate authority of exporting country.

(32) Electric Meter (Electric Kilowatt Meter) ----

(a) In case of import of single-phase electric meter (H.S. Code No. 9028.30) in complete form its standard will have to conform to AC Energy meters part 1 (Accuracy class-II) BDS 131 (part-1):1998 and AC energy meters part-2 (Accuracy class-I) BDS 131 (part-2):1999;

(b) Testing of standards shall not, however, be necessary for importing the spare parts of electric meters (H.S. Code No.9028.90) but prior to marketing the electric meters in complete form, made of the imported parts must conform to the BDS 131:1998 and the same shall be tested by BSTI.

(33) Recognised industrial units under packing and canning sector will import full-cream milk powder and foods of Horlicks type in tin or in bulk packing on fulfillment of the rules as given below, as:---

(a) A certificate from the appropriate authority of the exporting country (Government department of health or food) showing ingredients and their combination, date of manufacture, date of expiry for use as human food, will be enclosed with each consignment;

(b) Rules relating to radioactivity test as laid down in para 15* in this Order will be applicable.

(c) Provision of sub-para (17) of para 15 of this Order will be applicable for import of those items in tin container or in tin pot or in case of selling those items in retail packing/canning imported in bulk package.

(d) In case of import of those items in bulk container information relating to ingredients of that item, proportionate rate of the ingredients, date of manufacture and date of expiry showing for use as human food will have to be printed permanently on the body of the bulk container or on label or on sticker.

(34) Coconut oil--- (H.S. Heading No. 15.13 and all H.S. Code classifiable under this heading) Coconut oil shall be importable by the recognised industrial units of hair oil upto acid value 0.6 and the soap industry upto acid value 10.0. It shall be also importable for commercial purpose and in this case acid value will not exceed 0.6.

(35) Import of Waste and Scrap-

(a) Only recognized bonafide user Mills will import iron and steel scrap (H.S. Heading No. 72.04 and all H.S. Code classifiable under it) as raw materials against its import entitlement.

(b) Aluminum waste and scrap (H.S. Heading No. 76.02 and all H.S. Code classifiable under this heading) will be importable by recognized industrial units which are industrial consumers.

(36) Recovered paper or paper board (waste and scrap) (H.S. Heading No. 47.07 and all H.S. Code No. classifiable under it) is importable for use as industrial raw material.

(37) Break Acrylic (H.S. Heading No. 39.15 and H.S. Code No. 3915.90 classifiable under it) Break Acrylic will be importable under the following conditions:

(a) Only those recognized industrial units using acrylic as raw material for their industry will be allowed to import acrylic according to their production capacity as quoted on their IRC;

(b) Immediately after import of Break Acrylic the source of import of Break Acrylic and the country of origin shall be informed to the Directorate of Environment;

(c) A pre-shipment inspection certificate from an internationally reputed surveyor or PSI Company approved by the NBR to the effect that the imported break acrylic does not contain any toxic or radioactive substance as per International Convention on environment which can contaminate Environment will have to be produced by the importer and on the basis of the certificate, the import consignment will be released according to the customs rules and regulation in force.

(38) Recognised 100% export oriented industrial unit can import related raw materials for export after reprocessing against its import entitlement approved by sponsoring authority.

(39) Methanol/Methyl Alcohol----

(a) (HS Code No. 2905.11 of H.S. Heading No. 29.05 and all H.S. Code classifiable under this Code)- Methanol/Methyl Alcohol may be imported only by the recognised industrial units for actual use as raw materials of their industries according to their import quota:

Provided that, general provision for the industrial import of this order will, however, not apply in ease of such import of methanol;

(b) Government approved educational and research institutions other than recognised industrial units can import Methanol or Methyl Alcohol with prior permission from the Ministry of Commerce.

(40) Crude Soya-bean (H.S. Heading number 15.07 and H.S. code number 1507.10.10 & 1507.10.90 classifiable under it) – Crude Soya-bean oil will be importable for use in production of edible oil by the recognised edible oil producing industrial units bearing their own refineries or by any commercial unit having contract with any refinery up to the quantity limit as contracted , with prior permission from the Ministry of Commerce and in this context the commercial unit will be treated as an industrial unit.

(41) Refined Palm Olein and Crude palm Olein ----

(a) (H.S. Heading no. 15.11 and all H.S. Code classifiable under this item): -The provisions in para 15 of this order, shall be followed in case of Import of refined palm olein subject to production of separate certificate from the health authority and the Chamber of Commerce & Industry of the exporting country to the effect that the consignment of the palm olein is fit for human consumption. These certificates shall be submitted to the Customs Authority at the time of Clearance of Consignments;

(b) The following items shall not be permissible for import as edible oil : ---

(i) Solid or Semi-solid palm oil which looks like vegetable ghee;

(ii) Refined, bleached & deodorized (RBD) palm stearine and tallow;

(iii) Crude palm stearine;

(iv) Refined and crude palm oil.

(c) Office of the Chief Controller of Imports & Exports will give permission on case to case basis only to the edible oil producing industries having Fractionation Plants to import Refined and Crude Palm oil on the basis of the recommendation of the Board of Investment. The Board of Investment will monitor the mater.

(d) Crude Palm Olein- Edible oil producing industrial units having own refineries and approved by appropriate authorities will be eligible to import crude palm olein or crude palm oil for producing edible oil or any commercial unit having contract with any refinery will be eligible to import the same up to the quantity limit as contracted, with prior permission from the Ministry of Commerce and in this context, the commercial unit will be treated as an industrial unit;

(e) Import of Crude soya-bean oil and crude palm olein through conservation in the tank terminal (H.S. Heading N15.07 & 15.11) ---- Crude soya-bean oil (Crude soya-bean oil) and Crude palm oil imported by importers mentioned in sub-para (40) & (41) (d) will be reserved in tank terminal under the supervision of custom authority by tanker from mother vessel and the reserved oil may be released under bonded ware-house system on payment of custom dues properly;

(f) Before supply of edible oil from tank terminal to local units customs authority will ensure whether correct amount of duties, Vat etc. has been paid. And if foreign currency is remitted showing illegal sale of excess amount of oil reserved or received in the tank and any discrepancy arises between import, sale and export, the tank terminal conserved with will be held responsible and the customs authority will ensure the matter. Account of import, sale and return of each imported consignment will be sent to Foreign Policy Department of Bangladesh Bank;

(g) All the relevant rules and regulations including the rules laid down in para 15 of this Order shall have to be observed duly;

(h) Commodities imported on different dates will be kept in different terminals, so that date of expiry can be ensured.

CHAPTER SIX

THE RULES OF IMPORT BY COMMERCIAL IMPORTERS

24. Commercial import –

(1) Commercial import under cash foreign exchange or under Government Allocation- Commercial import will normally be made under cash foreign exchange, subject to availability of fund import of few commercial items may be allowed under Government allocation. In such cases the name of items, source of finance and other terms and conditions for commercial import will be notified by the Chief Controller from time to time.

(2) Import of industrial raw and packing materials and spares by commercial importers--- Industrial raw and packing materials and spares which do not occur in the banned and restricted lists shall be freely importable under cash foreign exchange by commercial importers.

(3) Commercial import by Foreign Firms- Foreign Firms registered in Bangladesh under the companies Act, 1994 (Act No.XVIII of 1994) shall be allowed to import permissible commercial items against their commercial IRC, without any prior permission from the Chief Controller, However, in such cases of import of commercial items Foreign Firms shall inform the Office of the Chief Controller in writing the detailed information of the item (eg. HS code of the item, description of the item, quality, value, name and address of the exporting foreign firm etc.) before importation.

(4) Import of capital machinery for commercial purpose- Commercial Importers may import permissible new and second hand or reconditioned items of industrial capital machinery & generator or generating set and accessories under cash foreign exchange without any value limit for commercial purpose by observing the rules & regulations of this order.

Prescribed conditions for import of following items-

25. Explosives & Radioactive goods----

(1) Import of explosives including Sulphur classifiable under H.S. Heading No. 25.03 & 28.02, Phosphorus classifiable under H.S. Heading No. 28.04, Potassium Chlorate classifiable under H.S. Heading No. 28.29, Potassium Nitrate and Barium Nitrate classifiable under H.S. Heading 28.34, Trinitrotoluene (TNT) classifiable under H.S. Heading No. 29.04,Aluminium (powder) classifiable under HS heading No.28.05, Arsenic Sulphide classifiable under HS heading No.28.30, Sodium Nitrate & Ammonium Nitrate classifiable under HS heading No.28.34, and H.S. Heading No. 36.01 to 36.04 classifiable the all item including explosives and calcium carbide shall not be allowed except with the prior approval of the Chief Inspector of Explosives of the Ministry of Energy & Mineral Resources.

(2) Commercial import of explosive substances shall not be allowed except through the Trading Corporation of Bangladesh (TCB).

(3) The TCB may sell explosive substances imported by it to the actual users only under intimation to the Ministry of Home Affairs.

(4) Explosive substances shall however, be importable by the Govt. recognised industrial units upto the entitlement for such items with prior approval of the Chief Inspector of Explosives. But such industrial units shall not be allowed to import explosives in excess of their import entitlement/value under the provisions of para 22 of this Order.

(5) Immediately after giving clearance for import of Potassium Chlorate the Chief Inspector of Explosives shall inform the National Board of Revenue in writing about the quantity of Potassium Chlorate to be imported.

(6) Explosive substances imported by industrial units against their import entitlement/value shall be used in the factory for production purposes only and these shall not be sold, transferred or used in any other way.

(7) Thorium nitrate classifiable under H.S. Heading No. 28.34, all items including radio-active chemical/element & including isotopes classifiable under H.S. Heading No. 28.44 to 28.46, X-ray including radiography or radiotherapy apparatus classifiable under H.S. Heading No.90.22 & H.S. Code No. 9022.19, 9022.21,9022.29 is importable only with prior permission from the Bangladesh Atomic Energy Commission.

(8) Nuclear Reactors & its parts (H.S. Heading No. 84.01 & all H.S. Code No. classifiable under it) Importable by Bangladesh Atomic Energy Commission only with the clearance of sponsoring Ministry.

(9) Acid--- An industrial user having Acid licence under Acid Control Act, 2002 (No 1 Act of 2002), Acid (Import, Production, Storage, Transport, Sale and use) Control Rules, 2004 will be able to import any type of sulphuric acid, hydrochloric acid, nitric acid, phosphoric acid, caustic potash, carbolic acid, battery fluid (acid), chromic acid, aqua-regia and other corrosive items of acid type including solid, liquid or mixed acid upto the amount fixed by the sponsoring authority in their import entitlement as determined by the government.

(10) A firm or a person having licence under Acid Control Act, 2002 (No 1 Act of 2002), Acid (Import, Production, Storage, Transport, Sale and use) Control Rules, 2004 will import acid mentioned in Sub-para (9) on commercial basis or for personal use subject to permission of the Ministry of Commerce.

(11) Chemical Fertilizer- Coloured and granular S.S.P and powder S.S.P. that is colour mixed S.S.P. of any type and granular S.S.P. of all type and powder S.S.P. (H.S. Code no. 3103.10) and Crystal Fused Magnesium Phosphate (H.S. Code No. 3103.90) are banned for import:

Provided that chemical fertilizer under H.S. Heading 31.02 to 31.05 and other chemical fertilizer classified under them is importable under the following conditions:

(a) A list showing ingredients needed in manufacturing chemical fertilizer duly attested by the manufacturer should be there along with shipping documents;

(b) Pre-shipment Inspection certificate from an internationally recognized inspection company should be there along with shipping documents. Specification of imported chemical fertilizer mentioned therewith should be in consistent with the specification approved by the Ministry of Agriculture;

(d) Specification as well as information regarding physical and chemical properties of the imported fertilizer shall be furnished in the invoice of the shipping documents;

(e) Specifications and properties mentioned in clause (d) must coincide with those approved by the Ministry of Agriculture;

(f) Other information according to the international rules shall be furnished in the Bill of Lading;

(g) The importer will be a member of Bangladesh Fertilizer Association.

(12) By fulfilling conditions mentioned in sub-para (10), imported fertilizer can be released without post landing inspection but on condition that both the supplier and the importer will be simultaneously responsible for detection of harmful material in any subsequent examination;

(13) Ground rock phosphate (H.S. Heading No. 25.10 and H.S. Code No.2510.20 classifiable under it) - Ground rock phosphate is importable on fulfillment of conditions as mentioned below, as :--

(a) Total Phosphates (as P₂O₅) percent 28.00 by weight minimum;

(b) Particle size minimum 90 percent, the materials shall pass through 0.15 mm IS sieve and the balance 10 percent of the materials shall pass through 0.25 mm IS sieve;

(c) To ensure quality its sample has to be submitted to the Ministry of Agriculture or an organization approved by the Ministry of Agriculture. Ministry of Agriculture will give NOC if the sample is found upto the standard on test;

(d) Bank will open L/C on submission of that NOC to the Bank.

(e) Post Landing inspection of imported ground rock phosphate will have to be done by the agency appointed by the Ministry of Agriculture and if the sample is found accurate on test, customs authority will allow clearance of the consignment.

(14) Pesticides & insecticides: pesticides will be determined as per the “The Pesticides Ordinance, 1971 (Ordinance no. II of 1971)”- Pesticides & insecticides shall be importable subject to the following conditions :

(a) Containers shall be in good condition and capable of withstanding the risk of handling and carrying by sea;

(b) Correct technical/chemical name of the contents must be marked on the container; and

(i) Name of the product;

(ii) Name and address of the manufacturer or the formulator or the person in whose name, the pesticide is registered;

(iii) Net contents in container;

(iv) Date of manufacture;

(v) Date of test;

(vi) Normal storage stability and time limit;

(vii) Name and percentage by weight of active ingredients and total percentage of other ingredients, warning or caution statements such as “keep out of reach of children”, “Dangerous”, “Warning” or “Caution”, etc.;

(viii) The goods should possess quality to capacitate it to be in good condition in normal storage.

(15) Second-hand Clothing (H.S. Heading No.63.09 & all H.S. Code classifiable under this heading)- Second-hand clothing shall be importable only by selected importers on the basis of prior permission issued in their favor subject to the following conditions:

(a) Only blankets, sweaters, ladies cardigans, men’s jackets including zipper jackets, men’s trousers and shirts of synthetic and blended fabrics shall be importable as second-hand clothing and no other items of second-hand clothing shall be importable;

(b) Share of an individual importer shall not exceed Taka fifty thousand and the maximum quantity to be imported within that share shall further be subject to weight limit as mentioned below:----

Sl .No.	Name of Goods	Quantity
01	Blanket	1.5o (one & half) ton
02	Sweater	4 (four) ton
03	Ladies Cardigan	4 (four) ton
04	jacket including zipper jackets	4 (four) ton
05	Men’s trouser	4 (four) ton
06	Shirts of synthetic blended fabric	1 (one ) ton

(c) If an importer intends to import more than one of the above table then import of the concerned items shall be limited to the quantity worked out in proportion to the L/C value for the said items within the overall share of Taka fifty thousand;

(d) Other terms and conditions shall be notified by the Chief Controller in due course and L/C for import of second-hand clothing may be opened only by the selected importers on the basis of such notification;

(e) All consignments of second-hand clothing shall be accompanied by a certificate from a recognised Chamber of Commerce of the exporting country certifying that the consignment does not contain any item whose import is banned as per this Order;

(f) Commercial Importers registered for second-hand clothing shall not be allowed to import second-hand clothing if they are not selected for such import in accordance with selection procedure;

(g) A total of three thousand importers shall be selected throughout the country only on the basis of open lottery by a three-member district committee headed by Deputy Commissioner of the concerned district against district quota worked out on the basis of population;

(h) The concerned importers shall be required to bring imported second-hand clothing to their own districts. The Ministry of Commerce will take necessary measures to ensure compliance of this condition.

(16) Medicine----Medicine (Sulphonamides classifiable under H.S. Code No. 2935.00 under H.S. Heading no. 29.35, H.S. Heading No. 29.37 to 29.39 and all items classified under them, anti-biotic classified under H.S. Heading No.29.41, all items classified under H.S Heading No. 30.01, all items including live vaccine classified under H.S. Heading No. 30.02 all items classified under H.S. Heading No. 30.03 and 30.04) Medicine included in importable list through government gazette notification by Drug Administration Authority will be imported on prior approval by the Director, Drug Administration and the amount of medicine, trade name and generic name, value, registration number given by Drug Administration, date of manufacture and date of expiry will be mentioned in the approval letter.

(17) Enzymes classified under H.S. Heading No. 35.07 and all items classified under H.S. Heading No. 29.36 are importable by importers and manufacturers of medicine on approval of Director, Drug Administration and subject to conditions mentioned in para 23(6) and 25(16) of this Order. Vitamin A & D (Food grade) under H.S. Heading No. 29.36 and Enzymes (Food grade) under H.S. Heading No. 35.07 is freely importable.

(18) Bandage (sterile surgical) classified under H.S. Code No.3005.90 and H.S. Heading No. 30.05, composite diagnostics (in vivo) classified under H.S. Code No. 3822.00 and H.S. Heading No. 38.22, syringe (with or without disposable needle) in blister pack or in ribbon pack classified under H.S. Code No. 9018.31 and H.S. Heading No. 90.18 and blood bags (sterile) for transfusion classified under H.S. Code No. 9018.90 and H.S. Heading No. 90.18 and Complete Infusion Set classified under HS Code No. 9018.39.10 are importable on permission of Drug Administration and subject to the conditions mentioned in para 23(6) and 25(16) of this order.

(19) Parts and Fittings for Infusion Set under H.S. Heading No. 39.26 and H.S. Code No. 3926.90 are importable on approval of Drugs Administration and subject to the conditions mentioned at para 23(6) and 25(16).

(20) Cigarette- The Words “mswewae× mZK©xKiY t a~gcvb ¯^v‡¯’¨i Rb¨ ¶wZKi” (Statutory warning: “Smoking is injurious to health”) shall be printed clearly in Bangla on the packet of the cigarette. However, in case of cigarettes imported by the bonded warehouses, this statutory warning shall be printed clearly in any language other than Bangla on the packet of the cigarette.

(21) Computer- Foreign commercial firms, engaged in computer business shall be allowed to import their proprietary items, i.e. new computer and its spares and accessories, either by opening L/C or by direct payment abroad.

(22) Old computer will be allowed subject to the following conditions:-

(a) Computer older than Pentium 4 or previous than equivalent model will not be imported;

(b) Pre-shipment inspection report from a PSI Company approved by the NBR will be submitted to the customs authority before release of the consignment;

(d) Before opening of L/C importers of old computers will have to apply to the Computer Council in their prescribed form giving detailed information as to which type of computer is to be imported and from which country.

(e) Computer Council will ensure that the applicant organization has sales center, service center and manpower for training and repairing of computers and issue clearance for opening of L/C for old computer;

(f) The importer will have to produce the clearance of Computer Council to the customs authority at the time of clearance of the consignment and report to the Computer Council after clearance;

(g) The Computer Council will monitor everything concerning sale of old computers;

(h) Old UPS and Old Computer parts will not be importable;

(i) Computers of all old models are importable for use in training by NGO Affairs Bureau/Directorate of Secondary and Higher Secondary Education/Director of Technical Education and Govt./Private Educational Institution run by NGO’s on recommendation of Primary Education Directorate.

23) Gold & Silver---- Gold & Silver shall be imported only by fulfilling the conditions imposed under The Foreign Exchange Regulation Act, 1947 (Act VII of 1947).

(24) Gas Cylinder or Gas Container--- Importable with clearance certificate from the Chief Inspector of Explosives.

(25) Gas in cylinder (H.S. Heading No.27.05 and all H.S. Code classifiable under it)- Importable only with the clearance certificate from the Chief Inspector of Explosives.

(26) Petroleum oil & all kinds of oil obtained from bituminous mineral crude & LPG– Importable by Bangladesh Petroleum Corporation (HS Code No. 2709.00 under HS Heading HS heading No.27.09). However, in private sector, it is importable with the approval of the Ministry of Power, Energy & Mineral Resources & prior permission from the Ministry of Commerce and private sector importer is to have a licence from the Energy Regulatory Commission according to Energy Regulatory Commission Act, 2003.

(27) Ethylene oxide gas (H.S. heading No. 27.09 and all H.S. Code No. 2709.00 classifiable under it) – Importable by recognized industries as raw-materials according to the approved block-list of Drug Administration and prescribed specification.

(28) All petroleum products & Liquefied Natural Gas (LNG) are importable subject to conditions below :---

(a) All petroleum products except liquid paraffin (H.S.Heading no. 27.10 and all H.S. Code classifiable under it) is importable by Bangladesh Petroleum Corporation. But all types of finished lubricating oil, grease & transformer oil along with motor car engine of minimum two APISC/ CC engine oil, lubricating oil of JASO-FB grade or TC for two stroke engine will also be importable on private basis;

(b) The private sector importers shall have licences from the Energy Regulatory Commission according to Energy Regulatory Commission Act, 2003;

(c) Liquefied Natural Gas (LNG), liquefied Propens & Butanes (HS Code No.2711.11.00, 2711.12.00 & 2711.13.00 of HS Heading No.27.11) are importable on private basis, but the private sector importers shall have licences from the Energy Regulatory Commission according to Energy Regulatory Commission Act, 2003;

(d) In case of private sector import of LNG, permission from the Ministry of Power, Energy & Mineral Resources is required.

(29) Some items- the following items will be importable subject to submission of a certificate from Bangladesh Standards and Testing Institution (BSTI) to the Customs Authority to the effect that the standard of the goods conform to the Bangladesh Standard (BDS) specified by Bangladesh Standards and Testing Institution as quoted against their names. Government may change this list, if necessary:-

TABLE

Sl.No.	Name of Goods		BDS No.
1.	Cement Part- 1 : Composition, specification & conformity criteria for common cement		BDS EN-197 (part- 1):2003.
2.	Galvanised steel sheet & coil		BDS-1122:2007
3.	Toilet soap		BDS- 13:2006
4.	Shampoo, synthetic detergent based		BDS-1269:2002, amendment ( 1:2003)
5.	Tubular florescent lamps for general lighting services		BDS- 292:2001
6.	Ballast for florescent lamps performances requirements		BDS IIC-60921:2005
7.	Performances & construction of electric circulating fans & regulators (ceiling & deck head fans, pedestal fans & table/cabin fans with in-built regulators)		BDS-181:1998 amendment-1:2006
8	Primary batteries:---
	(a)	Part -1 general	BDS IIC-60086 (part-1):2005
	(b)	Part-2 physical & electrical specification	BDS IIC-60086 (part-2):2005
	(c)	Part-3 Watch batteries	BDS IIC-60086 (part-3):2005
	(d)	Part-4 Safety of Lithium batteries	BDS IIC-60086 (part-4):2005
	(e)	Part-5 Safety of batteries with aquas electrolyte	BDS IIC-60086 (part-5):2005
9.	Cocoanut oil		BDS-99:2007
10.	Ceramic Table wares		BDS-485:2000, amendment 1,2,3:2006
11.	Milk powder & cream powder		BDS CSC-207:2008
12.	Biscuit		BDS-383:2001
13.	Lozenges		BDS-490:2001 amendment -1:2007
14.	Jam, Jelly and Marmalade		BDS-519:2002
15.	Soya bean oil		BDS-909:2000
16.	Vacuum pan sugar(plantation white sugar		BDS-361:1994
17.	Fruit or vegetable juice		BDS-513:2002
18.	Chips/crackers		BDS-1556:1997, amendment no.1:2004
19.	Honey		BDS CAC-12:2007
20.	Fruit Cordial		BDS-508:2006
21.	Sauce (fruit and vegetable )		BDS-512:2007
22.	Tomato ketch-up		BDS-530:2002
23.	Infant formula		BDS/CSC-72:2003
24.	Soft drinks		BDS-1586:2007
25.	Instant noodles		BDS-1552:2007
26.	Edible sunflower oil		BDS-CSC-23:2002
27.	Tooth paste		BDS-1216:2001, amendment 1,2,3:2006
Sl.No.	Name of goods		BDS No.
28.	Skin cream		BDS-1382:1992, amendment 1,2,3:2006
29.	Skin powders		BDS-1337:1991, amendment 1:2006
30.	Lipstick		BDS-1424:1993, amendment 1,2:2006
31.	After shave lotion		BDS-1524:2006
32.	Two-pin plugs & socket outlets reversible type for domestic use		BDS-102:2005
33.	Three pin plugs & socket outlets		BDS-115:2005
34.	Tumbler & other switches for domestic & similar purposes (push button, piano, switches, etc.)		BDS-117:2005
35.	Polyester Blend Suiting		BDS-1175:2001
36.	Polyester Blend Shirting (market varieties)		BDS_1148:2003
37.	Ceramic tyles -- definitions, classification, characteristics & marking		BDS ISO 13006:2006
38.	Toffees		BDS-1000:2001
39.	Processed cereal based foods for infants and young children		BDS-074:2007

(30) Toys and Recreational items of all types- On the body or packet of the toys of each type should be embossed the age group of the children for which they are intended.

(31) Potato seeds (H.S. Heading No.07.01 and H.S. Code No. 0701.10 classifiable under it) - Potato seeds shall be importable subject to the following conditions:-

(a) The importer shall submit, along with import documents a quarantine certificate furnished by the original supplier and a phytosanitary certificate, along with export documents from the Government agency of the seed exporting country;

(b) A quarantine certificate shall also be obtained from the Plant Protection Authority before clearing imported potato seeds, from the Customs Authority; and

(32) Rice seeds (HS Code No. 1006.10.10 under HS Heading No. 10.06) will be importable subject to the following conditions :---

(b) In case of import of hybrid rice seeds, there shall be in the phytosanitary certificate that the seed is purified with hot water treatment and with approved pesticides;

(c) A quarantine certificate of shall also be obtained from the Plant Protection Authority before clearing imported rice seeds, from the Customs Authority; and

(d) An import permit issued by the Plant Protection Authority for importing rice seed should be submitted at the time of L/C opening.

(33) Coal/Hard Coke- (H.S. Heading No.27.01 & 27.04 and all H.S. Code classifiable under this Headings): In case of import of coal and hard coke in both private & public sector, pre-shipment inspection certificate shall be obtained from an internationally reputed surveyor to the effect that the quantity, weight and quality (standard) of the item are found as declared and quantity of sulphur should not be above 1% (one percent).

(34) M.S. Billets- (H.S. Heading No.72.07 all H.S. Code classifiable under this Heading): Only prime qualities of M. S. Billets shall be imported ,irrespective of sources of fund, subject to pre-shipment inspection by an internationally reputed surveyor . Necessary certificate regarding pre-shipment inspection shall be produced to the Customs Authority at the time of releasing of goods.

(35) Boiler- (H.S. Heading No.84.02 & 84.04 and all H.S. Code classifiable under this Headings)- Boilers will be importable on the basis of a certificate from internationally reputed surveyor as regards standardization and quality of such boilers.

(36) Weighing machines (H.S. Heading No. 84.23 and all H.S. Code classified under this item):- Only metric system weighing and measuring instruments machines e.g. weighing scale, length measuring instruments (steel tape, wooden scale, flexible tape and shape wood used by tailors for measuring cloth) and its spares (in built-up or knocked down condition) shall be importable :

Provided that for commercial import of metric system weighing and measuring instruments, the importer/dealer shall have to be registered with Bangladesh Standard and Testing Institution (BSTI).

(37) Weights & Measures (H.S. Heading No.90.16 and all H.S. code classified under this item)- Only metric system weight measuring instruments(burette, pipette, beaker, measuring flax, measuring cylinder etc.), measuring instruments (Thermometer, pressure gauze, Taximeter, water meter etc.) and weights shall be importable:

Provided that for commercial import of metric system weights and measures, the importers /dealers should be registered with Bangladesh Standard and Testing Institution (BSTI).

(38) Sea-going ships, oil tankers and fishing trawlers (H.S. Heading No. 89.01 & 89.02 and all H.S. Code classifiable under this Heading)- Ships, oil tankers and fishing trawlers of more than 25 (twenty five) years old shall not be importable.

(39) Warships of all kinds (both new & second-hand) (H.S. Heading No.89.06 and all H.S. Code classifiable under this Heading)- Importable only by the Ministry of Defence.

(40) Scrap vessels:-- In case of import of scrap vessels (HS Heading No. 89.08), a certificate containing the goods is free from all poisonous and hazardous garbage materials issued from the government of exporting country or an authority approved by the government, must be submitted with shipping documents .

(41) All items including swords & Bayonets (H.S. Heading No.93.07 and all H.S. Code classifiable under this Heading)- Importable only by user agencies with clearance from the Sponsoring/Administrative Ministry.

(42) Animals, plants and plant products- Quarantine conditions shall be applicable.

(43) Tire Cord Fabric (Secondary quality)- Tire cord fabric of secondary quality fit for making fishing nets shall be freely importable on commercial basis.

(44) Refined Edible Oil- Refined edible oil shall be importable subject to following conditions:-

(a) Refined edible oil is to be imported in bulk in a refined edible oil carrier tanker;

(b) After unloading it is to be preserved in a tank terminal fit for preservation of refined edible oil and while carrying/supplying it inside the country, the concerned importer must carry/supply it in a tanker used for carrying refined edible oil or in a new container;

(c) Importable refined edible oil must conform to the quality standard of the exporting country and to the standard of BSTI and valid certificates from the authorities of both the countries are to be submitted to the Customs Authority at the time of clearance of the goods;

(d) In case of import in drum or bottle or container the date of production and date of expiry must be mentioned on it;

(e) Conditions laid down at paragraph 15 of this Order is to be followed strictly.

(45) Chicks- (H.S. Heading No. 01.05)- Only one day old chicks shall be importable according to following conditions :---

(a) A certificate issued by the authorized officer of the Livestock Department of the exporting country, to the effect that the importable chicks are free from contagious disease;

(b) A certificate issued by the World Organization of Animal Health to the effect that the exporting country is free from Avian influenza, is to be submitted.

(c) Importer must submit to the bank, at the time of L/C opening, certificate from an authorized officer of the Livestock Directorate that he has either hatchery or breeding farm.

(46) Poultry and eggs of birds--- Poultry and eggs of birds (HS Code No. 0407.00 under HS Heading No. 04.07) are importable on prior permission from the Ministry of Commerce subject to the following conditions :---

(a) Eggs are importable in limited quantity from the country free from Avian Influenza or Bird Flu;

(b) For every consignment of imported eggs, there must be a certificate mentioning the goods are free from Avian Influenza or Bird Flu virus & harmful bacteria, issued from the Life Stock Department or competent authority of the exporting country.

(47) Deep frozen semen of oxen (H.S. Heading 05.11 and H.S. Code No. 0511.10 classifiable under it)- Deep frozen semen of oxen, except of Frisian; Frisian Cross; Shahiwal; Shahiwal Cross, Frisian--Shahiwal Cross, A.F.S., A.F.S. Cross variety is banned. But Deep frozen semen of oxen of Frisian; Frisian Cross, Shahiwal, Shahiwal Cross, Frisian--Shahiwal Cross, A.F.S., A.F.S. Cross variety is importable.

(48) For the import of semen mentioned in sub-para (47) a certificate shall be obtained from the competent authority of the exporting country regarding the variety of semen to the effect that it is free from any contagious and venereal diseases and the exporting country is also free from Bovine Spongiform Encephalopathy (BSE).

(49) “Ethanol (ethyl alcohol) analar grade (undenatured)” is importable only by recognized pharmaceutical units with the approval of the Director, Drug Administration and subject to prescribed conditions.

(50) Cinematograph film, whether or not incorporating sound track----: Cinematograph film exposed & developed whether or not incorporating sound track is importable on the following conditions:-

(a) Cinematograph film (exposed) in English language without sub-title and in other languages with sub-title in Bangla or in English shall be permissible for import.

(b) Import or export permit as considered necessary, may be issued on the basis of specific recommendation of the Film Development Corporation for import or export of the print/negative of such Cinematographic film produced as a joint venture.

(51) second hand/reconditioned engines and gear boxes-

(a) Commercial import of second hand/reconditioned engines and gear boxes of bus, truck, car, mini-bus and microbus will be permissible. But such engines and gear boxes shall not be permissible for import if the economic lives are less than seven years. In this case, a certificate, either from exporting country’s recognized Chamber of Commerce & Industry or from an internationally reputed surveyor shall be submitted to the Customs Authority at the time of release of the goods;

(b) Secondhand/reconditioned marine diesel engines above 35 (thirty five) horse power used in coasters, launches and self propelled barges and other watercrafts of this type will be commercially importable.

(52) Tele-communications equipments---

(a) Radio Transmitters and Trans-receiver Wireless Equipment, Walkie-talkie, and other Radio Broadcast Receivers including Receivers incorporating Sound Recorders or Reproducers are importable by Radio Bangladesh, Bangladesh Television, Private sector Television & Radio with permission of using Radio Frequency from Bangladesh Telecommunication Regulatory Commission and clearance from the sponsoring or administrative Ministry.

(b) The equipments mentioned in clause (a) importable by other Government, Semi- Government & Autonomous agencies and Private sector except the Public Sector cited in clause (a) on the basis of clearance from the concerned administrative Ministry and NOC from the Bangladesh Telecommunication Regulatory Commission.

(53) Radio Navigational Aid Apparatus, Radar Apparatus and Radio Remote Control Apparatus--- Radio Navigational Aid Apparatus, Radar Apparatus and Radio Remote Control Apparatus are importable by user agencies with clearance from the sponsoring Ministry.

(54) Tanks & armoured fighting vehicles: All items including tanks & armoured fighting vehicles are importable only by the Ministry of Defence.

(55) All items including Military Weapons: All items including Military Weapons are importable only by the Ministry of Defence.

(56) Combat cloth- Combat cloth shall be importable only by the Defence Services and Law and Order Controlling Agencies.

(57) Ozone level depleting materials--- In case of import of any item prepared/manufactured by using ozone level depleting materials or for import of any item containing such materials, the importer must follow the Ozone level Depleting Material (Control) Rules, 2004 and obtain permission from the Department of Environment.

(58) Wood packing materials--- In case of import of wood packing materials, wood and wooden materials are to be disinfected with heat treatment by the concerned Government Agency of the exporting country by following the rules of IPPC (International plant protection convention) and ISPM-15 (International Sanitary and Phytosanitary Measures-15), a Phytosanitary Certificate of it is to be submitted to the Customs Authority by the importer along with other export documents.

(59) Common Salt --- Common Salt is not importable. But, “Salt Boulder for Crushing”, at the preparation stage is importable by observing the conditions of the BDS standard 1236:2007.

CHAPTER SEVEN

IMPORT BY PUBLIC SECTOR IMPORTERS

26. Public Sector Import: ---

(1) Ministries and Government Departments may import goods against specific allocation given to them by the Government. No Import Licence or Permit shall be required for such import. The Ministries and Government Department may import their required items themselves or through the Directorate of Supply and Inspection, subject to the provisions to this Order.

(2) All Ministries and Government Departments except the Ministry of Defence shall first duly submit L/C Authorization Form to their nominated Banks before opening L/C for the purpose of import.

(3) Import against specific allocation of funds- All Public Sector agencies, public sector corporations, research institutes, industrial enterprises and Public Universities and may be allowed to import permissible items on the basis of specific allocation of funds made by the Government to them for import under Government allocation. All such importers shall be eligible to open Letters of Credit directly though their nominated Banks for import of permissible items on submission of L/C Authorization Forms on the basis of allocation or sub-allocation of funds without cover of any import licence.

(4) Import under Government allocation by industrial enterprises or agencies- Government allocation for import may be made to the public sector industrial enterprises or agencies in proportion to their requirement subject to availability of foreign exchange. Such public sector importers may import their items approved by the Ministry of Commerce in any proportion or combination within the overall allocation made to them. They shall not however sell or otherwise dispose of any imported item in unprocessed form.

(5) Import allowed under cash foreign exchange- In addition to imports under Government allocation the public sector importers will also be eligible to import any permissible item under cash foreign exchange.

(6) Import Registration Certificate (IRC) not required by the public sector- Import Registration Certificate (IRC) shall not be required for importers by the public sector.

(7) Import on Cash Against Delivery (CAD)- Public sector agencies may opt for import on “Cash Against Delivery (CAD)” basis in accordance with the procedure laid down by the Bangladesh Bank.

(8) Guidelines for import of goods by Public Sector Agencies---All Government agencies are to follow the following conditions while importing goods, as:---

(a) To compare the competitive market rate quotations shall be obtained before opening of letters of credit and procurement shall be made at the most competitive rate and the provisions of Public Procurement Act, 2006 & Public Procurement Regulation, 2008 shall be applicable.

(b) In case of import under cash and conditional loan or grant, at least three quotations shall be obtained from registered indentors or from foreign suppliers ;

Provided that, this condition shall not apply in case of proprietary items or where value of the consignment is less than taka thirty thousand only.

(9) Pre-shipment Inspection of goods- Where the value of a single item authorized for import is Taka five lac or above, the importing agency shall arrange Pre-shipment Inspection.

(10) Pre-shipment Inspection shall be entrusted to internationally reputed surveyors only ;

Provided that, Public Sector Agencies may however, be allowed to clear goods on production of a certificate from their Administrative Ministry to the effect that pre-shipment inspection requirement has been waived by that Ministry in respect of the imported items or that no pre-shipment in respect of a particular consignment was considered necessary.

(11) Import by the Trading Corporation of Bangladesh (TCB) - TCB shall import any permissible item, arms & ammunition with the prior permission of the Ministry of Commerce, TCB shall also be allowed to import banned & restricted items upto approved quantity within the specified time and TCB shall avail itself all the facilities of industrial & commercial imports provided by the Order (IPO 2009-12).

CHAPTER EIGHT

IMPORT TRADE CONTROL (ITC) COMMITTEE

27. ITC Committee:---(1) In case of any dispute between an importer and the Customs Authority on ITC classification or description of goods imported under First Schedule of Customs Act., importer may ask for adjudication by the local ITC Committee set up at Chittagong, Dhaka, Khulna, Benapole and Sylhet.

(2) The local ITC Committees will consist of representatives of the Chief Controller, Local Chamber of Commerce and Industry and the Customs Authority and will be headed by the representative of the Chief Controller.

(3) If the local ITC Committee is required to discuss and take decision about any special type of item, a representative from the concerned Trade Association which represents that particular item shall also be invited to attend the relevant meeting of the Committee.

(4) The importer concerned shall be given an opportunity to plead his case before the local ITC Committee. Necessary decision shall be taken by the above Committee within 15(fifteen) days.

(5) If the importer is not satisfied with the decision of the local ITC Committee, he may file an appeal to the Central ITC Committee at Dhaka which shall consist of the Chief Controller as the Chairman and representative of the National Board of Revenue, the concerned sponsoring authority and the Federation of Bangladesh Chamber of Commerce and Industry as members.

(6) A revision petition may be filed with the Secretary, Ministry of Commerce in accordance with the Review. Appeal and Revision Order, 1977, if the decision in appeal does not satisfy the importer.

(7) In addition to appeal petition, the Chief Controller may, if he considers necessary, place any case relating to ITC matter before the Central ITC Committee.

CHAPTER NINE

COMPULSORY MEMBERSHIP OF RECOGNISED CHAMBER OF COMMERCE AND INDUSTRY AND TRADE ASSOCIATION.

28. To obtain Membership etc.--- (1) All Importers, Exporters and Indentors shall secure/obtain membership /primary membership from a recognised Chamber of Commerce and Industry or he shall obtain compulsorily membership from the concerned trade organisation formed on all Bangladesh basis representing his own trade:

Provided that,Government may exempt any Importer, Exporter or Indentor from the aforesaid provision in the public interest.

(2) In the cases, where importers, exporters & indentors shall be allowed to obtain IRC/ERC against their provisional/primary membership of a recognised Chamber of Commerce and Industry or Trade Association established on all Bangladesh basis, in those cases the issued IRC/ERC shall remain valid upto the validity of the respective provisional/primary membership. Afterwards, subject to the submission of permanent/regular membership, permanent/regular IRC/ERC shall be issued after getting the provisional one return back.

Annexure-1

List of Controlling Importable Items

TABLE

H.S. Heading number		H.S.Code No.		Description of items and Conditions of Import
1		2		3
12.07		All H.S. Code		Poppy seeds & “Postadana” banned (Postadana” shall not also be importable as spices or in any other way).
12.11		All H.S. Code		Import of Grass (Andropogen Spp.) & Bhang (Cannabis Sativa).
13.02		All H.S. Code		Import of Opium is banned. Agar agar & pectin are importable with prior clearance from the Director, Drugs Administration.
23.07		2307.00		Imports of Wine Lees, Argol are banned.
27.10		2710.00.71		(a) In case of import of Furnace Oil for use in own industry/firm:- (1) Bangladesh Petroleum Act, 1974 (Act LXIX of 1974) and Rules issued by the Government, from time to time, in this respect will be applicable; (2) Importer must inform Bangladesh Petroleum Corporation regarding quantity and quality of the importable Furnace Oil on or before 5^th of every month; and (3) The importer must obtain Explosive Licence and other required licence(s) as per prevailing rules. (b) In case of import for sale/marketing to other consumers:- (1) An agreement is to be signed with Bangladesh Petroleum Corporation as per Bangladesh Petroleum Act 1974 (Act LXIX of 1974) and rules issued by the Government from time to time, in this respect these rules will be applicable; (2) Quality of the salable petroleum product must be as per specification of BSTI; (3) All arrangement is to be made by the importer for collection, storage and marketing of furnace oil; (4) Representatives of Bangladesh Petroleum Corporation and BSTI can inspect any establishment of the importer to examine the quality of the salable item; (5) Imported furnace oil is to be sold at the market rate; (6) The importer must obtain Explosive Licence and other required licence(s) as per prevailing rules; (7) Furnace Oil is to be sold only to the user industry; and A statement regarding quantity and quality of monthly imported and marketed furnace oil is to be sent to Bangladesh Petroleum Corporation on or before 5^th of every month.
27.11		All H.S. Code		Except Liquefied natural gas (LNG), Liquefied propane and butanes (which are part of L.P.G.), Petroleum gas and other gaseous hydrocarbons are banned for import.
27.13		All H.S. Code		All items including petroleum oil residues are banned except petroleum coke & petroleum bitumen.
29.29		2929.90.00		Import of Sodium Cyclamate (semi-solid sugar) is banned.
29.30		2930.909		Import of Aliyl isothiocyonate (artificial mustard oil) is banned.
38.08		All H.S. Code		Insecticides, namely Heptachlore-40, WP, DDT, Bidrin Brand in the generic name: Dicrotopes, Methyl Bromide, Chlorden-40, WP and Daildrin are banned. But all other items classifiable under this heading are importable subject to the certain conditions as mentioned below:- (a) Importable subject to the prescribed conditions at para 25(14) of this order. (b) Deltramethrine of synthetic pyrithroid group shall be importable with the prior permission of the Ministry of Commerce but only by those firms who will be certified and guaranteed by the Ministry of Health that the item will be used only for public health purpose;
				(c) Insecticides of the Synthetic Pyrithroid group i.e. (1) Cyhalothrin, (2) Cypermethrin, (3) Cyfluthrin, (4) Fenvelarate, (5) Alpha Cypermethrin, (6) Es-Fenvalarate, (7) Deltamethrin. (8) Danitol 10 EC (Fenpropathrin) may be imported by fulfilling the following conditions i.e. (1) Description of the imported insecticides must be communicated to the Agricultural Extension Directorate and it will monitor the use of the imported insecticides. (2) The imported insecticides must be used as per the approved level provided by the Pesticide Rules, 1985.
56.08		All H.S. Code		Fishing nets (Gillnet) with meshes of 4.5 centimetres or less in width or length. With the prior permission from the Director General of Fisheries Deptt. only deep-sea fishing vessels shall be allowed to import nets with meshes of 4.5 cm or above under Sea Fish Ordinance, 1983 (Ord. No. XXXV of 1983). Director General Fisheries Department shall give permission for an importer per trawler to import 4.5 cm radius/mesh-net upto maximum 8 (eight) bags/sacks per year.
63.05		6305.31		Import of Polypropylene bag is banned.
84.08		8408.90		Import of chassis with Two stroke engines of three wheeler vehicles (Tempo, auto rickshaw etc.) is banned.
87.01 to 87.04	All H.S. Code		(a) Motor car of any C.C. and microbus, minibus, jeeps including other old vehicles and tractors are importable under the following conditions, as :--- (1) No vehicle will be more than five years old in the case of shipment. (2) Old vehicles will be importable only from the country of its origin. Old vehicles will not be importable from any third country; “Provided that , old vehicles can not be imported from third country except those which were to be used personally and are to be used personally and in case of import from third country , certificate of registration & certificate of cancellation of registration ( from the country of use)) will have to be submitted to the customs authority”. (3) A certificate containing age, model number and chassis number of the old car will have to be submitted to the custom authority from Japan Auto Appraisal Institute (JAAI)In case of import of cars from Japan and from the recognised Automobile Association in case of import of old cars from other countries. (4) For determining date/age of the imported old car the date/age will be calculated from the first day of the next year of manufacture of chassis. (5) In case of import of cars from Japan date of manufacture will be ascertained/ determined after examining the chassis book published by Japan Automobile Association and for import from other countries by examining the chassis book published by the concerned Government approved Automobile Association. No old car or vehicle will be importable from a country which do not publish chassis book. (6) With respect to catalytic converter in petrol driven car and connection of Diesel particulate Filter in diesel driven car, action will be taken as per S.R.O.29-law /2002 dated February 16, 2002 issued by the Ministry of Environment and Forest. (7) No car will be importable without seat belt. (8) Wind shield glass and both sides window glasses of driving seat must be transparent so that inside of the car is visible. (b) Old Taxicab from 1250 CC to 2000 CC:- Subject to fulfillment of conditions laid down at clause (2) to (6) above, Taxicab of less than 3 (three) years old will be importable.
	8703.221		Three-wheeler vehicles of two-stroke engine (tempo, auto rickshaw etc.) are banned for import.
87.08	All H.S. Code		Following used parts of motor vehicles will be importable subject to conditions mentioned below:- (a) Body parts:- (1) Bumper; (2) Front grill; (3) Door Assy; (4) Wind shield/wind shield glass; (5) Mirrors; (6) Radiator Assy; (7) Light/Lamps; (8) Dash board Assy; (9) Bonnet Assy; (10) Felder Assy; (11) Door mirror Assy; (12) Seats; (13) Rear mudguard Assy; (14) Cabin Assy/Bodies; (15) Head lights(excluding bulb); (16) Tail lamps (excluding bulb); (17) Side sights Assy; (18) Wiring Sets; (19) EFI control unit; (20) Starter; (21) Alternator; (22) Eddy compressor/condenser/cooling chamber Assy; (23) Other rubber channels and rubber mouldings condenser. (24) Fuse box; (25) Distributor; (26) Dumper; (27) Nose cart (b) Under teren parts:- (1) Power steering Assy; (2) Suspension shock Absorbers; (3) Steering wheels Assy; (4) Steering column and steering boxes; (5) Differential Assy; (6) Propeller shaft Assy; (7) Axles Assy; (8) Brake drum and hubs Assy; (9) Vacuum booster with brake master pump Assy; (10) Brake drums Assy; (11) Wheel cylinder Assy; (12) Silencer and exhaust pipes. (13) Mounting; (14) Fuel pump; (15) Air cleaner box Conditions:- (1) Above mentioned parts will be importable by the recognized repairing and servicing industry registered with Board of Investment (BOI)/ BSCIC/recognized association of repairing Servicing Industries/ Registrar Joint Stock Company and Firms.
			(2) Commercial import of used motor vehicles parts will not be allowed. (3) A pre-shipment certificate from an internationally reputed surveyor regarding quality of the above mentioned used parts is to be submitted. (4) The seller or the assembler shall give a written guarantee for 2 (two) year for the sold or assembled parts. (5) The repairing and Assembling industry must be a member of the related Automobile and Repairing Association. (6) The repairing and servicing Industry shall maintain a proper sale register of the imported used parts and a quarterly sales statement is to be sent to CCI&E. (7) After import, CCI&E shall regularly monitor regarding use of the imported used parts. (8) The importer must have VAT registration & TIN number as a Repairing & Servicing Organisation and related documents & papers are to be submitted to the Custom Authority.
87.11	All H.S. Code		More than 3 (three) years old and above 155 CC motor cycle are banned. However, above more than 150 CC limit will not be applicable for the Police Department. In case of import of 3 (three) years old motor cycles, this 3 (three) years’ period will be calculated from the first day of the calendar year next to the manufacturing year. To determine the age of old motor cycle, certificate (PSI) from internationally recognized & NBR (National Board of Revenue) approved inspection company may be accepted as alternative to registration cancellation certificate.
90.18	9018.31		Import of Glass syringe is banned
93.02	All H.S. Code		All items including Revolver and Pistol are importable by authorized dealers of firearms subject to prior permission of the Ministry of Home Affairs. For private sectors 1 (one) NPB revolver/pistol with 50 rounds of cartridges/ammunitions and .22 bore rifle/.12 bore short gun/ gun with 100 rounds of cartridges/ammunitions shall be importable by TCB/appointed authority/persons on approval of the Ministry of Commerce on NOC/recommendation from the Ministry of Home Affairs.
93.03 to 93.05	All H.S. Code		All items including other firearms (except banned bore) are importable by authorized dealers subject to prior permission of Ministry of Home Affairs. For private sector these items shall be importable by TCB/appointed authority/person on approval of the Ministry of Commerce on NOC/Recommendation from the Ministry of Home Affairs.
93.06	All H.S. Code		(a) Air gun ammunition for sports, hunting etc. is importable by authorized dealers of firearms subject to prior permission of the Ministry of Home Affairs. For private sector these items shall be importable by TCB/appointed Authority/person on approval of the Ministry of Commerce on NOC/recommendation from Ministry of Home Affairs. (b) Other ammunitions are importable by Ministry of Defence.

Foot note of the restricted lists

The following goods shall not be importable:

(1) Maps, charts and geographical globes which do not indicate the territory of Bangladesh in accordance with the maps published by the Department of Survey, Government of the People’s Republic of Bangladesh;

(2) Horror comics, obscene and subversive literature including such pamphlets, posters, newspapers, periodicals, photographs, films, gramophone records and audio and video cassette tapes etc;

(3) Books, newspapers, periodicals, documents and other papers, posters photographs, films, gramophone records, audio and video cassettes, tapes etc. containing matters likely to outrange the religious feelings and beliefs of any class of the citizens of Bangladesh;

(4) Unless otherwise specified in this order, goods of secondary or sub-standard quality or below –standard or old, used, reconditioned goods or factory rejects and goods of job-lot/stock-lot;

(5) Reconditioned office equipment, photocopier, type-writer machine, telex, phone, and fax;

(6) Unless or otherwise specified in this order, all kinds of waste;

(7) Goods (including their containers) bearing any words or inscriptions of a religious connotation the use or disposal of which may injure the religious feelings and beliefs of any class of the citizens of Bangladesh;

(8) Goods (including their containers) bearing any obscene picture, writing inscription or visible representation; and

(9) Import of live Swine and any item prepared from swine is banned.

ANNEXURE-2

PROCEDURE FOR IMPORT ON JOINT BASIS

(Please see Para-9)

1. Group by Commercial Importers: ---

Commercial importers have been allowed the facility of import on joint basis for the sake of economy. For this purpose subject to condition of this order, the group of the importers may be formed before or after registration of the LCA Form with the nominated authorized dealer bank.

Such importers having different nominated L/C opening banks, desirous of importing their share in cash, loan, and credit or under account trade arrangement/counter trade arrangement on joint basis may do so in accordance with the procedure mentioned below:

2. The procedure of formation of groups to import Joint-basis before registration of LCA form in the nominated recognized dealer bank. ---

(1) An importer will submit to his nominated Bank the L/C Authorization Form in the usual manner duly filled in and signed along with a declaration, that---

(a) He had not applied in any manner to import his share for the current financial year individually and agrees to effect import of the same on joint basis under the group leadership of M/s...................................... (Name and address of the group leader with IRC No. and his nominated bank to be mentioned), and that

(b) He undertakes not to make in any manner any claim whatsoever from the Import Control Authority in any matter arising out of default or dispute with the group leader of members of the group. Signature of the importer will be verified by the authorized officer of nominated bank with date.

(2)The importer’s nominated Bank after being satisfied that the L/C Authorization Form, the declaration given by the importer and other required information are complete and correct in all respect, will forward these papers to the nominated Bank of the group leader and will certify on the body of the L/C Authorization Form as under:

“We have no objection to allow the abovementioned group under the group leadership of M/s............................................................................................. ....................................................................................................... this importer is eligible to import................................................................................... For Taka..........................................

Seal and signature of the Authorized Officer

of the importer’s bank with date”

(3) The group leader will submit L/C Authorization Form in a similar manner. In addition of L/C Authorization Form he will also submit L/C Application Form covering the total value of all the L/C Authorization Forms of the group members including his own share. He will also submit a declaration to the effect that -----

(a) Particulars given in the L/C Authorization Form are correct to the best of his knowledge;

(b) He has not applied, in any manner, to import his share for the current shipping period separately other than as a member of group; and that ----

(c) He has undertaken to act as the group leader for importation on joint basis for the sake of economy by the importers in the group (here group leader will record the names and address and IRC Nos. of all the member including that of himself and their individual shares) and that.

(d) He undertakes not to make in any manner any matter arising out of default or dispute with members in the group. The signature of the group leader will be verified by the authorized officer of his bank with date.

(4) The group leader’s bank, after being satisfied that L/C Authorization Form and the declaration given by the group leader are complete and correct in all respects, will certify on the body of the L/C Authorization Form as under:

“We have no objection to allow the above importer to act as group leader of the group................................ Members”.

Seal and signature of the Authorized Officer

of the group leader’s banks with date.

(5) Certified LCA form with all other LCA forms registration will be completed in the Group leaders’ nominated bank.

(6) After completion of registration of LCA form, the concerned bank will send two copies of declaration and certified LCA form to the importer’s concerned Import Control Authority for post checking.

(7) The eligible commercial importers belongs to the same nominated bank including all the branches who are interested to import under Cash/IDA credit, free loan or under credit share in the cases of Joint Basis import, the import procedure will be same. The bank will forward complete set of document outlined above, such as LCA form, declaration etc. to the Group Leaders nominated bank by endorsing necessary certification on the body of the LCA form. The group leader’s nominated bank will process the LCA form outlined as above and to complete the registration in the bank.

(8) The eligible commercial importers, who are interested to import on Joint basis under account trade arrangement/counter trade arrangement and tied loan or credit, shall submit their LCA form to their respective nominated Bank in the prescribed manner. In such cases they do not need any application for opening of L/C. The nominated bank on being satisfied that the LCA form is in order, will forward all the copies of the same to the group leader’s nominated bank after making necessary entries in the importers Registration Certificate. The group leaders nominated bank on being satisfied that the LCA form of group leader and group members are in order and found completed all formalities of import on Joint basis being done, the nominated bank will transmit the LCA form of group leader and other members of the group to the designated bank along with the application form for opening of letter of credit for the total amount covered by individual LC authorization forms. The designated bank will open letter of credit and endorse two copies of each LCA form to concerned Import and Export control office.

3. Procedure in case of formation of group for import on joint basis after registration of L/C Authorization Form:---

(1) In case of formation of group for import on joint basis after registration of LCA form, the importer will submit LCA form in his nominated bank and he will inform his bank in written or submit a declaration that he intend to make a group after registration of LCA form. The importers nominated bank after being satisfied that the LCA forms are found complete and correct in all respect will register along with declaration and advise the importer to form a group or group(s) immediately.

(2) The importer shall be required to submit a declaration to their bank exactly same manner as laid down under para 2(1) of this Annexure while forming a group. Importers signature will be attested by the authorized officer of his nominated bank. The said bank will forward the entire document i.e. LC Authorization form and declaration to the group leaders nominated bank with certificate as laid down in the para 2(2) of this Annexure.

(3) The group leader shall also submit L/C Authorization Form and L/C Application Form with a declaration as mentioned in para 2(3) of this Annex. The signature of the group leader will be verified by the authorized officer of his bank with date and will endorse required certificate on the body of L/A Authorization Form mentioned in para 2(4).

(4) The group leader’s Bank will then keep two complete sets of L/C Authorization Forms, declaration of all group members and certificates issued by the different banks of the group members with complete set of L/C Authorization Form including declaration and certificate issued in respect of group leader for opening of L/C and forward other 2(two) copies of L/C Authorization Forms along with complete set of papers (declaration and certificates) to the concerned Import Control Authority for post-checking. If group members belong to different Import Control Jurisdictions, complete set of papers shall be submitted to the concerned Import Control Officers of the group members for post-checking.

(5) Where the eligible commercial importers desirous of importing their share on joint basis are located within the jurisdiction of the same Import Control Authority and have the same nominated bank including all the branches of the banks within the jurisdiction of the same Import Control Officer, the procedure for import on joint basis will be same as outlined above except that the different branches of the same will forward the complete set of documents outlined above to the branch of the same bank which is the nominated bank of the group leader. The nominated bank of the group leader will process the L/C Authorization Forms in the same manner as outlined above.

(6) In case of import on joint basis under Account Trade Arrangement/Counter Trade Arrangement and tied loan or credit, the procedure as mentioned above in Para 2(8) shall be followed:

4. In both cases of the formation of group, as soon as L/C is opened and transmitted to the foreign supplier, the nominated bank of the group leader will endorse the group leaders IRC as the case may be and advise the concerned Import Control Authority or Authorities and the respective banks of the members of the group about the particulars of the L/C with individual share of each member of the group.

5. Group by Industrial Importers: In case of import by industrial units on joint basis, they should nominate a group leader and request their nominated bank to forward their L/C.As along with other relevant papers to the nominated bank of the group leader for opening of L/C in accordance with the procedure outlined under para 2.and 3.of this Annex. The group leader’s nominated bank after verification of the LCA Form shall open Letter of Credit on joint basis and endorse the LCA Forms accordingly.

6. Importers submitting L/C Authorization Form for opening of L/C or effecting import on joint basis in violation of the provisions of the Import Policy Order, 2009-2012 or of this Annex. shall be liable to punishment as per provision of this Order.

By order of the President

Joint Secretary

Government of the People’s Republic of Bangladesh

Asian Clearing Union (ACU).

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ACU means Asian Clearing Union. It was established at the initiative of United Nations ‘Economic and Social Commission for Asia and the Pacific (ESCAP). ACU was formed on 09.12.1974. The Draft agreement, establishing the ACU, was finalized at a meeting at Bangkok in 1973 with the senior Gov’t Officials and Officials of Central Banks. The ACU started its function/operation in November, 1975. ACU is the simplest form of payments arrangement whereby the members settle payments for inter regional transactions among the participating Central Banks on a multilateral basis.

The name of the ACU currency is Asian Monetary Unit (AMU). The value of one AMU is equivalent to one US dollar.

The head quarter of Asian Clearing Union situated at Tehran, Iran.

There are 08 (seven) member countries setting their respective import & export payments through ACU currencies:
(i) India,

(ii) Iran,

(iii) Mayanmar (Burma),

(iv) Sri Lanka,

(v) Nepal,

(vi) Pakistan,

(vii) Bangladesh and

(viii) Bhutan.

Objectives & functions of ACU:

(i) To settle the import & export payment claim of member countries easily.
(ii) Not to use the currency of other countries except the currency of member countries.
(iii) To expand the use of currency among the member countries of ACU.
(iv) To establish financial cooperation among the regional countries.
(v) Providing short term credit facilities by the system to the debtor participants for a period of two calendar months.

INCOTERMS

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INCOTERMS mean International Commercial Terms. These terms prepared by The International Chamber of Commerce (ICC). First the INCOTERMS were published by the ICC in 1936. These terms are accepted and used throughout the world as simple and reliable terminology for avoiding misunderstanding between buyer and seller. The purpose of INCOTERMS is to provide a set of International rules for the interpretation of the important terms used in Foreign Trade Contracts i.e. Export & Import. It is a set of uniform rules codifying the interpretations of trade terms defining the rights and obligations of both the buyer and seller in an international transaction. It defines the commercial, legal and insurance responsibilities of the exporter & importer during an international trade. The INCOTERMS 2000 publication came in to effect on 1st January, 2000.

SL	INCOTERMS	Seller’s duties	Buyer’s duties
1	EXW = Ex Works	i. Only deliver the goods at his factory premises. ii. If the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale.	i. Take delivery of the goods at the seller’s factory. ii. All cost & risk at his own.
2	FCA = Free Carrier	i. Deliver the goods at the named point into the custody of the carrier mentioned by the importer.	i. Contract for the carriage and pay the freight.
	A. FOR = Free on Rail	i. Responsibility up to loading the wagon.	i. Pay the freight. ii. Delivered the goods from Railway.
	B. FOT = Free on Truck	i. Deliver the goods to the truck. ii. Truck receipt prepared and advance copy despatch to the buyer. iii. Pay loading cost according to the custom of the port not include in the freight.	i. Nominate Carrier, Pay the freight, Pay un-loading cost. ii. Freight paid upto destination point. iii. Delivered the goods from the truck.
	C. FOB Airport = Free on Board	i. Deliver the goods to the Air Carrier at the Air port of departure.	i. Accept delivery of the goods at the Air port of departure. ii. Pay the Air Freight.
3	FAS = Free Alongside Ship	i. Deliver the goods alongside the ship. ii. Provide on “alongside” receipt.	i. Contract for the carriage. ii. Pay the freight.
4	FOB = Free on Board	i. Deliver the goods on board. ii. Provide a clean on board receipt.	i. Accept delivery of the goods at the Airport of arrival. ii. Pay the freight.
5	CFR = Cost & Freight	i. Contract for the carriage. ii. Pay the freight to the named destination. iii. Deliver the goods on board. iv. Pay loading costs. v. Provide clean on board bill of lading. vi. Pay unloading cost.	i. Receive the goods at the port of destination. ii. Pay the duty, sale tax, DSC & I.P. Fees etc. iii. Pay the load conveyance/carrier charge upto buyers’ godown.
6	CIF = Cost Insurance and Freight	i. Contract for the Carriage. ii. Pay the freight to the port of destination. iii. Contract for the insurance of the goods. iv. Pay the insurance premium. v. Provide clean on board Bill of lading and cargo insurance policy or certificate. vi. Pay loading cost. vii. Pay un-loading cost.	i. Accept delivery and receive the goods as per B/L, invoice and insurance policy. ii. Pay the duty & sale taxes etc. iii. Pay the local carriage charges.
7	CPT = Freight Carriage paid to	i. Contract for the carriage and pay the all freight to the final destination. ii. Deliver the goods into the custody of the first carrier. iii. Furnish to the buyer the usual transport documents.	i. Accept delivery and receive the goods. ii. From that named point pay local conveyance Charges upto his custody.
8	CIP = Freight Carriage and Insurance paid	i. Contract for the carriage. ii. Pay the freight to the named point of destination. iii. Deliver the goods into the custody of the first carrier. iv. Pay export taxes and fees. v. Contract for insurance of the goods and pay the insurance preium.	i. Take delivery of the goods.
9	DAF = Delivered at Frontier	i. Deliver the goods upto custom border. ii. Up to this point sellers will pay all freight.	i. Take delivery of the goods from that point. ii. Pay duty and other taxes. iii. Pay for carriage.
10	DES = Delivered Es Ship	i. Deliver the goods on board the ship at the port of destination.	i. Take delivery of the goods from the ship at the port of destination. ii. Pay un-loading costs. iii. Pay duty and others taxes.
11	DEQ = Delivered Ex Quay	i. Deliver the goods on the quay at the port of destination. ii. Pay unloading costs. iii. Pay duties, Taxes and other charges if required.	i. Take delivery of the goods from the quay at the port of destination.
12	DDU = Delivered Duty Unpaid	The sellers has to bear the costs and risks involved in bringing the goods there to excluding duties, taxes and other official charges payable upon importation as well as the costs and risks of carrying out customs formalities.	The buyer has to pay any additional costs and to bear any risks caused by his failure to clear the goods for import in time.
13	DDP = Delivered Duty Paid	i. Deliver the goods to the named place. ii. All freight paid by the seller. iii. Pay the duty, Taxes & other charges. iv. Clear the goods from the port of destination.	i. Receive the goods at the named place of their godown.

Crossing and Endorsement of Cheque.

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Introduction:

Ordinarily, the payee of a cheque is entitled to encash at the counter of the paying banker by presenting it within the specified banking hours. In case of a bearer cheque, the paying banker does not need to go into an elaborate exercise with regard to the identity of the holder of the cheque. An order cheque is also paid by the paying banker on being apparently satisfied about the true identity of the presenter of the cheque. To ensure that the cheque is not encashed by a wrong person, by concealing his identity, there has developed a practice called ‘crossing of a cheque’. The practice has been given legal coverage in the Negotiable Instrument Act, 1881.

When cheque is crossed it in effects means a request-more appropriately, an instruction by the client not to pay the cheque directly over the counter but to a banker only for crediting the payees account with the bank. A cheque bearing such an instruction is called a ‘crossed cheque’. The crossing of a cheque is intended to ensure that its payment is made to the right payee. Section 123 to 131 of the Negotiable Instrument Act contain provisions relating to crossing. According to section 131-A, these sections are also applicable in case of drafts. Thus not only cheques but bank drafts also may be crossed.

For our discussion we may differentiate crossing into following two types:

1. General Crossing.

2. Special Crossing.

1. GENERAL CROSSING:

a) Meaning: According to section-123 of NI Act, where a cheque bears across its face an addition of the words “and company” or any abbreviation thereof between two parallel transverse lines or two parallel transverse lines simply, either with or without the words “not negotiable” that addition shall be deemed a crossing & the cheque shall be deemed to be crossed generally.

b) Specimen of General Crossing:

c) Features of General Crossing:

i. From the above section we find that a cheque is said to be crossed generally when it bears across its face any of the following:

• Two transverse parallel lines.

• Two transverse parallel lines with the word “And Company”.

• Two transverse parallel lines with any abbreviation of the word “& Company”.

• Two transverse parallel lines with the words “Not Negotiable”.

• Two transverse parallel lines with the words “Account Payee Only”.

ii. The cheque crossed generally does not ceases to be negotiable further.

iii. The collecting banker can collect the proceeds of the cheque in the account of that person mentioned on the cheque.

d) Significance of General Crossing:

i. The effect of general crossing is that it gives a direction to the paying banker.

ii. The direction is that, the paying banker should not pay the cheque at the counter. It should be paid only to a fellow banker. In other words, payment is made through an account and not at the counter. Sec.126 of the NI Act clearly lays down that, “Where a cheque is crossed generally, the banker on whom it is drawn, shall not pay it otherwise than to a banker”.

iii. If a crossed cheque is paid at the counter in contravention of the crossing:

a) The payment does not amount to payment in due course. So, the paying banker will lose his statutory protection;

b) He has not right to debit his customer’s account, since, it will constitute a breach of his customer’s mandate;

c) He will be liable to the drawer for any loss, which he may suffer;

d) He will be liable to the true owner of the cheque who may be a third party, irrespective of the fact, that, there is no contract between the banker and the third party. As a general rule, a banker is answerable only to his customer.

iv. The main intention of crossing a cheque is to give protection to it. When a cheque is crossed generally, a person who is not entitled to receive its payment, is prevented from getting that cheque cashed at the counter of the paying banker. But, it gives only a limited protection, in the sense, that if the thief is not the customer of the paying banker, he can encash that cheque through his banker, by forging the signature of the payee. However, it can be detected. To avoid this danger, special crossing was introduced.

4. Special Crossing

a) Meaning: A special crossing implies the specification of the name of a banker on the face of the cheque. Sec.124 of N.I. Act 1881 reads. “Where a cheque bears across its face an addition of the name of a banker, either with or without the words “Not Negotiable” that addition shall be deemed a crossing and the cheque shall be deemed to be crossed specially, and to be crossed to that banker”.

Drawing of two transverse and parallel lines is not necessary in case of a special crossing. When a cheque has been specially crossed, the banker upon whom it has been drawn will make the payment only to that banker in whose favour it has been crossed.

b) Specimen of Special Crossing:

c) Significance of Special Crossing:

i. It is also a direction to the paying banker. The direction, is the, that paying banker should pay the cheque only to the banker, whose name appears in the crossing or to his agent. Sec.126 the NI Act clearly lays down that “where a cheque is crossed specially the banker on whom it is drawn, shall not pay it, otherwise than to the banker to whom it is crossed or his agent for collection.

ii. If a cheque specially crossed to a bank is presented by another bank, not in the capacity of its agent, the paying banker is justified in returning the cheque.

iii. A special crossing gives more protection to the cheque than a general crossing. It makes a cheque still safer because a person, who does not have a real claim for it, would find it difficult to obtain payment. In special crossing, the cheque is specially crossed to the payee’s banker. Hence, the banker, in whose favour the cheque has been crossed, knows the payee and his specimen signature well. So, he will not collect if for any person other than the payee. If there is any forgery, it can be easily detected by the banker. But, we can not say that, it gives full protection in the sense, that, an unscrupulous person, who has an account in the same bank but at a different branch, can encash it by forging the signature of the payee. It can also be detected.

Difference between General and Special Crossing

General Crossing	Special Crossing
1. Drawing of two parallel transverse lines is a must.	1. Drawing of two parallel transverse lines is not essential.
2. Inclusion of the name of a banker is not essential.	2. Inclusion of the name of a banker is essential.
3. In General Crossing paying banker to honor the cheque from any bank A/C.	3. In Special Crossing paying banker to honor the cheque only when it is presented through the bank mentioned in the crossing and no other bank.
4. General Crossing can be converted into a Special Crossing.	4. Special Crossing can never be converted to General Crossing.
5. In case of General Crossing the words “And Company” or “& Company” or “Not Negotiable” between the transverse lines to highlight the crossing does not carry special significance.	5. In case of Special Crossing the name of a banker may be written within two parallel transverse lines or with the words “And Company” or “Account Payee Only” or “Not Negotiable” the inclusion of these words has become customary.

Double Crossing

When a cheque bears two separate special crossing, it is said to have been doubly crossed.

As per section-127, “where a cheque is crossed specially to more than one banker except when crossed to an agent for the purpose of collection, the banker on whom it is drawn shall refuse payment thereof.”

Thus a paying banker shall pay a cheque doubly crossed only when the second banker is acting only as the agent of the first collecting banker and this has been made clear on the instrument. Such crossing may be done in those cases where that banker in whose favour the cheque is to be paid.

Who can cross a cheque?

a) A cheque may be crossed generally or specially by the drawer.

b) Holder may also cross it.

c) Holder may turn a general crossing into special crossing.

d) A banker may cross an uncrossed cheque & he may cross it specially to himself or to another banker for purpose of collection through him.

The above contention is substantiated by section-125 of NI Act-1881.

Opening of crossing/cancellation of crossing

If the crossing on a cheque is cancelled, it is called opening of the crossing. The cheque thereafter becomes an open cheque. Only the drawer of the cheque is entitled to open the crossing of the cheque by writing the words “Pay Cash” and canceling the crossing along with his full signature. His initials are not sufficient for this purpose.

The paying banker must be very careful in ascertaining the validity or genuineness of the drawer’s signature opening the crossing. If drawer’s signature (already on the cheque) is forged by the holder in order to open the crossing and the payment is obtained at the counter, the banker will remain liable to the true owner of the cheque. The banker is under an obligation to pay the cheque according to the direction of the drawer conveyed through the crossing on the cheque.

Definition of Negotiable Instrument

Negotiable Instrument means a promissory note, bill of exchange or cheque payable either to order or bearer (Section-13).

Promissory Note: A ‘Promissory Note’ is an instrument in writing containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or the order of certain person, or to the bearer of the instrument (Section 4 of NI Act).

Bill of Exchange: According to Section 5 of NI Act, a bill of Exchange is “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to order of, a certain person or to the bearer of the instrument”.

Cheque: A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand (Section 6 of NI Act). A cheque is a bill of exchange which is always (i) Drawn on a banker specified therein and (ii) Payable on demand.

Introduction:

A negotiable instrument may be transferred by negotiation. (i) Negotiation can be effected by mere delivery if the instrument is a bearer one. (ii) By endorsement and delivery in case it is an order instrument. An order instrument means instrument payable to a specified person or to the order of that specified person. If an instrument payable to order is transferred without endorsement, it is merely assigned and the holder thereof is not entitled to the rights of a holder in due course.

Meaning of Endorsement:

An endorsement is the mode of negotiating a negotiable instrument. A negotiable instrument payable otherwise than to a bearer can be negotiated only by endorsement and delivery. An endorsement, according to sec. 15 of the NI Act is “when the maker or holder of a negotiable instrument signs the same, otherwise than as such marker. For the purpose of negotiation on the back or face thereof or on a slip of paper annexed thereto, he is said to endorse the same and is called the endorser. The person to whom the instrument is endorsed is called the endorsee.

“The word endorsement is said to have been derived from Latin ‘en’ means ‘upon’ and ‘dorsum’ meaning ‘the back’. Thus usually the endorsement is on the back of the instrument though it may be even on the face of it. Where no space is left on the instrument, the endorsement may be made on a slip of paper attached to it. This attached slip of paper is called ‘Allonge’.

Essentials of a Valid Endorsement:

An endorsement in order to operate as mode of negotiation must comply with the following conditions, namely:

1. It must be written on the instrument itself and be signed by the endorser. The simple signature of the endorser, without additional words, is sufficient. An endorsement written on an allonge is deemed to be written on the instrument itself.

2. The endorsement must be of the entire instrument. A partial endorsement, that is to say, an endorsement, which purports to transfer to the endorsee a part only of the amount payable, or which purports to transfer the instrument to two or more endorsees severally (i.e. separately), does not operate as a negotiation of the instrument.

3. Where a negotiable instrument is payable to the order of two or more payees or endorsees who are not partners, all must endorse unless the one endorsee has authority to endorse for the others.

4. Wherein a negotiable instrument payable to order, the payee or endorsee is wrongly designated or his name is misspelt, he should sign the instrument in the same manner as given in the instrument. Though, he may add, if he thinks fit, his proper signature.

5. Where there are two or more endorsements on an instrument, each endorsement is deemed to have been made in the order in which it appears on the instrument, until contrary is provided.

6. An endorsement may be made in blank or special. It may also be restrictive.

Types of Endorsement:

According to the N.I. Act, 1881 endorsement may take any of the following forms:

1. Endorsement in blank or general endorsement.

2. Endorsement in full or special endorsement.

3. Restrictive endorsement.

4. Partial endorsement.

5. Conditional endorsement.

1. Endorsement in Blank or General Endorsement:

In case of an endorsement in blank, the payee or endorser does not specify an endorsee and he simply signs his name (S. 16 NIA).

2. Endorsement in Full or Special Endorsement:

When the payee or endorser specifies the person to whom or to whose order the instrument is to be paid, the endorsement is called special endorsement or endorsement in full. The specified person i.e. the endorsee then becomes the payee of the instrument.

3. Restrictive Endorsement:

An endorsement is restrictive when it prohibits further negotiation of a negotiable instrument. Sec. 50 of the NI Act 1881states. “The endorsement may, by express words, restrict of exclude the right to negotiable or pay constitute the endorsee an agent to endorse the instrument or to receive its contents for the endorser or for some other specified person.”

For example, if B endorses an instrument payable to barer as follows, the right of C to further negotiate is excluded

• Pay the contents to C only

• Pay C for my use

4. Partial Endorsement:

If only a part of the amount of the instrument is endorsed, it is a case of partial endorsement. An endorsement which purports to transfer to the endorsee only a part of the amount payable, or which purports to transfer the instrument to two or more endorsees severally, is not valid.

5. Conditional Endorsement:

If the endorser of a negotiable instrument, by express words in the endorsement, makes his liability or the right of the endorsee to receive the amount due thereon, dependent on the happening of a specified event, although such event may never happen, such endorsement is called a conditional endorsement (Section 52 of NI Act). Such an endorser gets the following rights:

He may make his liability on the instrument conditional on the happening of a particular event. He will not be liable to the subsequent holder if the specified event does not take place to the instrument even before the particular event takes place.

For example, “pay C if he returns from London”. Thus C gets the right to receive payment only on the happening of a particular event, i.e. if he returns from London.

Effect of Endorsement

An unconditional endorsement of a negotiable instrument followed by its unconditional delivery has the effect of transferring the property therein to the endorsee. The endorsee acquires a right to negotiate the instrument further to anyone he likes.

Section 50 of NI Act also permits that an instrument may also be endorsed so as to constitute the endorsee an agent of the endorser.

• To endorse the instrument further or

• To receive its amount for the endorser or for some other specified person.

Usual forms of Banks Endorsement:

1. Payee’s Account Credited

For: EXIM, Elephant Road Branch Officer Where the payees name in the cheque and name in the depositors slip is same.

2. Payee’s Account will be Credited on realization

For: EXIM, Elephant Road Branch Officer In case of OBC

3. Our Branch endorsement conformed

For: EXIM, Elephant Road Branch, Dhaka. OBC received from other branch for collection

4. Purchaser’s Account Credit

For: EXIM, Elephant Road Branch In case of cancellation of DD/PO etc.

5. Received Payment for EXIM, Elephant Road Branch Officer In case of a cheque where the Branch is the Beneficiary in the name of EXIM, Elephant Road Branch or yourself.

Islamic Banking by Zubair Ikbal and Abbas Mirakhor.

2011-03-03T01:33:00.000-08:00

RIBA: MEANING & TYPES, REASONS FOR RESTRICTION OF RIBA, RENT & COMMISSION.

2011-02-28T19:30:00.000-08:00

Dictionary Meaning: In Arabic Riba means increase, excess, expansion, additional etc.

Technical Meaning: It means Interest/usury/sud etc.

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wbgœwjwLZ KzdjB Reasons for restriction of Riba:

1. my` K…cbZv I †jv‡fi m„wó K‡i: my`‡Lvi KLbI A‡b¨i Afve I mgm¨v‡K gvbweK `„wó‡Kvb †_‡K, mnvbyf~wZi `„wó‡Z †`‡L bv eis A‡b¨i Afve‡K cuywR K‡i ‡jv‡fi ekeZ©x n‡q AwaK K…cbZvi cwiPq †`q|

2. ‡¶v‡fi Rb¥ †`q: FY MÖnxZv eva¨ n‡q FY †bq Ges eva¨ n‡q D”P nv‡i my` †`q Ges wb‡Ri KóvwR©Z A_© my`‡Lv‡ii nv‡Z Zz‡j w`‡q AwZ K‡ó Rxeb hvcb K‡i, d‡j my`‡Lv‡ii cwZ Zvi GKUv Pvcv †¶vf m„wó nq hv mgv‡Ri Rb¨ LyeB ¶wZKi|

3. ‰bwZK Ae¶q: ‡h e¨emv‡q my` †ekx, my`‡Lvi †mLv‡bB cuywR LvUvq, d‡j gv`K`ªe¨, Ryqv, Akxj Qvqv Qwe, bvix e¨emvi gZ RNb¨ ˆbwZKZv we‡ivax KvR mgv‡R we¯Zvi jvf K‡i Ges mgv‡Ri ‰bwZK Ae¶q NUvq|

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5. cuywR MVb K‡g hvq: my‡`i Kvi‡b `ªe¨g~j¨ e„w× cvq, d‡j †fv³v‡`i µ‡hi cwigvY K‡g hvq Ges †gvU weµq K‡g hvIqvi Kvi‡b Drcv`‡Ki jv‡fi cwigvb K‡g wM‡q cuywRMV‡b †bwZKvPK cÖfve †d‡j|

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· my` Aek¨B aŸsk e‡q Av‡b|

Fungible Non-Fungible Goods

Origin of Riba is loan. Now what is a loan and what are its essential characteristics? For the purpose of defining loan, Riba, Rent, etc. the goods and services available in this world are divided into two groups. One group is called Fungible goods or Maale Faani, and the other non-Fungible goods or Maale Gaire Faani.

Fungible goods: are those goods benefit from which cannot be derived without fully consuming the goods or it may be defined as the goods which if used once, loses its very existence or is transformed into other goods. For example, Rice, salt, money, etc. The essential characteristics of Fungible goods are:

i) It does not exist or gets transformed or it is used once.

ii) It does not have flow of service; cannot give service or benefit more than once and

iii) Its service cannot be made separated from the goods itself, therefore, its service cannot be sold keeping the goods separate.

Non-Fungible goods: On the other hand, non-Fungible goods are the goods which can be used repeatedly and benefit can be taken from them as many times as possible throughout their life or existence. For example, table, car, land, etc. This kind of goods has also got three essential characteristics. These are:

i) These exist inspite of repeated use;

ii) These have got flow of services, therefore, can give service more than once and

iii) Their service can be separated from the goods itself, therefore, can be sold keeping the goods as it is.

Loan-Quard/Quarde Hasanah

Loan in Arabic is termed as Quard. Loan or Quard may be defined as follows:

To give any person a Fungible goods for using the same for his benefit on condition that he shall return similar goods in same quantity/amount within a fixed period or when possible for him. An analysis of this definition gives the following essential elements of loan:

i) The goods must be Fungible one;

ii) It must be given to someone for his use and benefit;

iii) There must be a condition to return similar goods in same quantity/amount;

iv) There must have a period of maturity which may be fixed or may also be kept open;

v) The lender does not bear any risk of the loan he lent;

vi) Nothing additional (of the same goods or any other goods, services or benefit) over and above the principal should be imposed, charged or even expected against loan.

Any transaction having fulfilled these conditions, shall be termed a loan or Quard. This actually is what we call Quard-e-Hasansh.

Riba based Loan or Quard-ur-Riba

When any loan/Quard is offered or received on condition that certain additional amount or any other excess or benefit will be charged or be paid (over and above the principal) the loan or quard is turned into a Loan on Riba or Quard-ur-Riba, the excess being the Riba or interest.

Thus, the difference between Quard-e-Hasanah and Quard-ur-riba is that, in Quard-e-Hasanah, there is no excess but in Quard-ur-Riba there is excess which is Riba or interest. This excess is paid by the borrower to the lender for which borrower loses to that extents while the lender becomes gainer to the same extent. It is, thus, taking the excess paying nothing in return. This is great injustice. That is why it is Haram.

Rent

In Arabic it is termed as ‘Ajr’ which means consideration, exchange value, reward, wages, etc. It is the price of service of non-fungible goods.

The term ‘Ijarah’ has been derived from ‘Ajr’. Ijarah is one kind of Bai/Buying and selling. It is a mechanism by which the service of a non-fungible goods is sold in exchange of Rent (Ajr) keeping the goods and its ownership unsold. Thus it is an exchange of counter value, one side being the service and the other side the ‘Rent’. Therefore, it is Halal.

Commission

Definition (In general):

The fee charged by or paid to a broker, agent, or auto sales representative for negotiating a real estate, car sale, or loan transaction.

Definition (In the view point of Banking):

A fee paid to the Bank by a client for transacting a piece of business like negotiating sale or performing a service.

A commission is generally a percentage of the sales price/contract basis/fixed basis.

In view point of Shariah:

A fee charged by a broker or agent for his/her service in facilitating a transaction by rendering services. The payment of commission as remuneration for services rendered or halal products sold is a common way to reward sales people.

Difference between Quard, Riba, Profit and Rent

SL	Quard	Riba	Profit	Rent
1.	One good-Fungible	One good-Fungible	Two goods-Fungible	Two goods/ service-Non-Fungible
2.	No transformation.	No transformation.	Transformation.	Transformation.
3.	No risk of transformation and ownership.	No risk of transformation and ownership.	Risk borne.	Risk borne.
4.	Certain.	Certain.	Uncertain.	Fixed & certain.
5.	Condition to return similar goods in same quantity/amount.	Condition to return that certain additional amount or any other excess or benefit will be charged or be paid.	Condition to return not similar goods.	Condition to return not similar goods/service.
6.	It’s Halal.	It’s Haram.	It’s Halal.	It’s Halal.
7.	Buying and selling not required.	Buying and selling not required.	Buying and selling is must.	It’s one kind of buying and selling. It’s a mechanism by which the service of non-Fungible goods is sold in exchange of Rent.

INVESTMENT MODES: MUDARABA, MUDHARAKA, BAI-SALAM AND ISTISNA’A

2011-02-28T19:27:00.000-08:00

Investment:

Investment is the action of Deploying Funds with the intention and expectation that they will earn a positive return for the owner. Funds may be invested in either real assets or financial assets. When resources are spent to purchase fixed and real assets. For example, the establishment of a factory or the purchase of raw materials and machinery for production purposes. On the other hand, the purchase of a legal right to receive income in the form of capital gains or dividends would be indicative of financial investment. Specific example of financial investment are, deposits of money in a bank account, the purchase of Mudaraba bonds.

There are different modes of investment under the Islamic Shari’ah which can be classified into three categories:

1. Trading or Bai(‡Kbv-‡ePv) mode (Bai-Muazzal, Bai-Murabaha, Bai-Salam, Istisna’a)

2. Partnership or Share(Askx`vix) mode (Mudaraba, Musharaka)

3. Leasing/Izara(fvov) mode (Hire purchase, Izara-Bil-Baia, Leasing)

Bai Murabaha mode of investment:

The term “Bai-Murabaha” have been derive from Arabic words ‘Bai’ and ‘Ribhun’. The word ‘Bai’ means purchase and sale and the word ‘ribhun’ means an agreed upon profit. ‘Bai-Murabaha’ means sale on agreed upon profit.

Bai-Murabaha may be define as a contract between a Buyer and Seller Under which the seller sells certain specific goods permissible under Islamic shariah and the Law of land to the Buyer at a cost plus agreed profit payable in cash or on any fixed future date in limp sum or by installments.

Important Features of Bai-Murabaha:

To offer an order by the client to the bank.
To make the promise binding upon the client to prophase from the bank and also to indemnity the damages caused by breaking the promise.
To take security in the form of cash/kind/collaterals.
To document the debts resulting from Bai-Murabaha.
Stock and availability of goods is a basic conditi9on.
Bank must bear the risk until delivery of goods to the client.
Bank may sell it at a higher price.
Price once fixed cannot be changed.

Bai-Muajjal mode of investment: the term ‘Bai’ and the ‘Muajjal’ have been derive from Arabic words ‘Bai’ and ‘Ajalu’. The word ‘Bai’ means purchase and sale and the word ‘Ajalu’ means a fixed time or fixed period. ‘Bai-muajjal’ means sale for which payment is made at a future fixed date or within a fixed period. In short, it is a sale on credit.

Bai Muajjal may be defined as a contract between a buyer and a seller under which the seller sells certain goods permissible under Islamic Sharia and the Law of the country to the buyer at an agreed fixed price payable at a certain fixed future date in lump sum or within a fixed period by fixed installment. The seller may also sell goods purchase by himas per order and specification of the buyer.

Important Features of Bai-Muajjal:

It is permissible for the client to offer an order to purchase by the Bank particula goods deciding its specification and committing himself to buy the same from the bank on Bai-muajjal i.e. deffered payment sale at fixed price.
It is permissible to make the promise binding upon the client to purchase from the Bank, that is, he is either satisfy the promise or to identify the damages caused by breaking the promise without excuse.
It is permissible to take cash/collateral security to Guarantee the implementation of the promise or to identify the damages.
It is also permissible to document the debt resulting from Bai-Muajjal bu a Guarantor, or a mortgage.
Stocks and availability of goods is a basic condition for signing a Bai-Muajjal Agreement. Therefore, the Bank must purchase the goods as per specification of the Client of goods to acquire ownership of the same before signing the Bai-Muajjal Agreement with the client.
After purchase of goods the Bank bust bear the risk of goods until those are actually delivered to the Client.
The Bank must deliver the specified goods to the Client on specific date and at specific place of delivery as per Contract.
The Bank may sell the goods at a higher price than the purchase price to earn profit.
The price once fixed as per agreement and deferred cannot be further increased.
The Bank may sell the goods at one agreed price which will include both the cost price and the profit. Unlike Bai-Murabaha, the Bank may not disclose the cost price and the profit mark-up separately to the Client.

Diference between Murabaha and Bai-Muazzal:

Murabaha	Bai-Muazzal
1. Bank sell it at a higher price an spot payment or as any future date.	1. Bank sell it at a higher price but payment will be deffered.
2. Bank must bear the risk until delivery of goods to the client.	2. Client bear the risk of goods as the Possession of goods are in party control.
3. Possession of goods under bank’s control.	3. Possession of goods under party’s control.
4. Cost of the goods sold and the amount of profit should be mentioned in the Murabha Agreement.	4In Bai-Muazzal mode any selling price of goods should be mentioned in the Bai-Muazzal agreement i,e.
5. Pledge of goods by the bank.	5. Goods to be hypothecated by the bank.

MUDARABA

Definition of Mudaraba:

Mudaraba is a partnership in profit whereby one party provides capital and the other party provides skill and labour. The provider of capital is called “Shahib al-maal” while the provider of skill and labour is called “Mudarib”.

Types of Mudaraba:

Mudaraba Contracts are generally divided as under:

Unrestricted Mudaraba and
Restricted Mudaraba

Unrestricted Mudaraba:

Unrestricted Mudaraba may be defined as a contract in which the Shahib al-maal permits the Mudarib to administer the Mudaraba fund without any restriction.

Restricted Mudaraba:

Restricted Mudaraba may be defined as a contract in which the Shahib al-maal restricts the actions of the Mudarib to a specified period or to a particular location or to a particular type of business.

Terms and elements of Mudaraba:

* Contracting Parties

There are two contracting parties in Mudaraba:

1. The provider of the capital i.e. ‘Shahib al-maal’ and

2. The Mudarib.

* Capital

Capital is the amount of money given by the provider of funds i.e. Shahib al-maal to the Mudarib with the purpose of investing it in the Mudaraba business.

* Profit & Loss:

Profit should be for both Shahib al-maal and Mudarib as per agreed ratio. Loss should be borne by the Shahib al-maal.

The main features of Mudaraba:

a) There should be two parties: Shahib al-maal (financer/Investor) and businessman is Mudarib (Who provides skill and labour).

b) There should be written agreement/contract between the Bank and the businessman which includes nature of business, period/time, sharing of profit etc.

c) Bank will finance and the businessman will run the business by providing his labour & skill.

d) The Bank will not interfere in the business.

e) The businessman will appoint employee(s) and he will run the business independently.

f) The Shahib al-maal /Financier/Investor reserves the right to check/verify the accounts of the business at any time.

MUSHARAKA

Definition of Musharaka:

Musharaka is a contract of partnership between two or more parties in which all the partners contribute capital, participate in the management, share the profit in proportion to their capital or as per pre-agreed ratio and bear the loss, if any, in proportion to their capital/equity ratio.

Types of Musharaka:

In the context of Islamic Banking financing, Musharaka may be of two types:

Permanent Musharaka
Diminishing Musharaka

Permanent Musharaka:

Permanent Musharaka may be defined as contract of partnership business between the Islamic Bank and its clients in which the Bank participates in the equity and share the profit at a pre-agreed ratio or bear the loss, if any, in proportion to the ratio of capital/equity where termination period of the contract is not specified. This is also called continued Musharaka.

Diminishing Musharaka:

Diminishing Musharaka is a special form of partnership in which one of the partners promises to buy the share of the other partner gradually until the title to the equity is completely transferred to him.

Contracting Parties:

There are two or more contracting parties known as partners. It is a condition that all the partners should be competent to give or be given power of attorney.

Capital:

Capital contributed by the partners may be in the equal or unequal and in the form of cash or cash equivalent, goods & commodities, assets or properties etc.

Distribution of Profit:

Profit should be distributed among the partners as per their ratio of capital or as per agreement.

Distribution of Loss:

The loss, if incurred in the business, shall be borne by the partners exactly according to the ratio of their respective capital.

Some Important Features of Musharaka:

Capital should be specific
Equal share is not a must
Nature of capital may be money or valuables
Active participation of partners
Ratio of profit prefixed
Variation in share of profit permissible
Participation and sharing profit & loss
Partners retains the ownership and right to management

Difference between Mudaraba and Musharaka:

Mudaraba	Musharaka
1. The capital in mudaraba is the sole responsibility of Shahib al-maal.	1. In Musharaka it comes from all the partners.
2. In Mudaraba, the Shaheb al-maal has no right to participate in the managemant which is carried out by the Mudarib only.	2. In Musharaka, all the partners can participate in the management of the business and can work for it.
In Mudaraba the loss, if any is suffered by the Shahib al-maal only, because the Mudarib does not invest anything. His loss is his labour and skill.	3. In Musharaka, all the partners share the loss to the extent of the ratio of their investment.

BAI-SALAM

Meaning:

Bai-Salam is a combination of two Arabic words Bai and Salam. Bai refers to Purchase and Sale while Salam means Advance. Payment of Bai-Salam transaction is made in advance. It is a form of sale on delayed terms in which the money may be paid first and the goods delivered at a later date.

Definition:

Bai-Salam is sale whereby the seller undertakes to supply some specific goods to the buyer at a future date in exchange for an advanced price fully paid on the spot.

Bai-Salam may be defined as a contract between a Buyer and a Seller under which the Seller sells in advance the certain goods permissible under Islamic Shari’ah and the law of the land to the Buyer at an agreed price payable on execution of the said contract and the goods is/are delivered as per specification, size, quality at a future time in a particular place.

The components of Bai-Salam:

The components of Bai-Salam contract are:

· The contract parties i.e. Seller and Buyer

· The price and the merchandise

· The specifications of the contract.

Important features of Bai-Salam:

a) A commodity /product sold without having the same in existence or possession of the seller. Commodity ready for sale, Bai-Salam is not allowed in Shariah.

b) Generally to meet instant need of the seller so that production is not hampered due to shortage of fund/cash and as such. Industrial and agricultural products are purchased/sold in advance under Bai-salam.

c) Permissible to obtain collateral security from the seller to secure the investment from any hazards (non supply, partial supply, low quality).

d) Permissible to obtain mortgage / or personal guarantee from a third party before or at the time of signing the agreement.

e) Bai-Salam on a particular commodity/product or on a product of a particular field or farm cannot be effected (Agri. Product only).

f) Bai-Salam is not permissible for any ready goods/products.

g) Unit price and total price of the goods must be fixed and mentioned in the contract.

h) The exact time and place of delivery must be specified.

ISTISNA’A

Meaning:

The word Istisna’a has been derived from a Arabic word which means Industry. Istisna’a means to purchase specific product(s) by placing order to a manufacturer or to sale specific product(s) after having the same manufactured against order of a buyer.

Definition:

Istisna’a is a contract between a manufacturer/seller and a buyer under which the manufacturer/seller sells specific product(s) after having manufactured, permissible under Islamic Shari’ah and Law of the Country after having manufactured at an agreed price payable in advance or by instalments within a fixed period or on/within a fixed future date on the basis of the order placed by the buyer.

In short, it is a contract with a manufacturer to make something.

Features of Bai-Istisna’a:

a) Istisna’a contract is another exceptional method where by commodities are bought and sold without existence of it.

b) Delivery of goods is deferred and payment may also be delayed. Advance payment/ spot payment like Bai-Salam is not necessary. However payment may be made in advance or by installments.

c) Sometimes advance payment against the goods is being paid to meet the production cost.

d) Buyer gets the opportunity to make payment within the stipulated date in future or by installments.

e) If the production of the commodity started or part payment is made, none of them can revoke the contract.

f) If the product(s) are ready for sale, Istisna’a is not allowed in Shari’ah.

g) It gives the buyer opportunity to pay the price in some future dates or by installments.

h) Istisna’a is specially practised in Manufacturing and Industrial sectors. However, it can be practised in agricultural and constructions sectors also.

Diference between Istisna’a and Bai-Salam:

Istisna’a	Bai-Salam
1. The subject of istisna’a is always a thing which needs manufacturing.	1. Bai-Salam can be effected on anything, no matter whether it needs manufaturing or not.
2. It is not necessary in Istisna’a that the price is paid in full in advance.	2. It is necessary in Bai-Salam that the price is paid in full in advance.
3. The contract of Istisna’a can be cancelled before the manufacturer starts the work.	3. The contract of Bai-Salam, once effected, can not be cancelled unilaterally.
4. It is not necessary in Istisna’a that the time of delivery is fixed.	4. The time of delivery is an essential part of the sale in Bai-Salam.

Weightage system in Islamic Banking.

2011-02-23T19:47:00.000-08:00

Say in 2011 a bank earned profit amounting Tk. 257,15.91 Lac against deposit of Tk. 3151,08.81 Lac. Calculation of the percentage may be defined as under:

Against Tk. 3151,08.81 Lac deposit, we earned profit of Tk. 257,15.91 Lac
   ”        100            ”

If we distribute profit to all category depositors @ 8.16%, It will not:
a)    Logical
b)    Rational
c)    Justified
On the other hand it is not possible for the Bank to invest particular category of deposit to particular category of investment, like:
a)    Deposit of MSB A/C’s to Cement Industries.
b)    Deposit of MSTD A/C’s to Iron Industries.
c)    Deposit of MTDR A/C’s to Garments Industries.
d)    Etc.
To make logical, rational, justified Islami Bank management introduced weightage system:
It is known to us that we are obtaining deposit on Al-Wadia & Mudaraba Principle. In Al-Wadia deposit we are not giving any profit and in Mudaraba deposit we are giving profit at lest 65% amount of investment income.

Here three important points are lying/hidden:

a)    At least
b)    65%
c)    Investment Income

Distribution of Weightage

Sl. No.    Name of Deposit                         Weightage
01          Mudaraba Term Deposit
               a)    01 month                                 0.83
               b)    03 months                                0.88
               c)    06 months                                0.92
               d)    12 months                                0.96
               e)    24 months                                0.96
               f)    36 months                                 0.96
02    Mudaraba Savings Deposit                         0.75
03    Mudaraba STD                                          0.62
04    Steady Money                                          1.15
05    Super Savings                                          1.17
06    Multiplus Savings                                      1.17
07    Money Grower
         a)    05 years                                          1.16
         b)    08 years                                          1.17
         c)    10 years                                          1.18
         d)    12 years                                          1.19
08    Education Savings                                     1.14
09    Hajj Deposit                                             1.10
10    Smart Saver                                              1.17

Share of Mudaraba Depositors on Gross Investment Income, 2006

(Figure in thousand)
01)    % of cost bearing deposit to total deposit
% of cost free deposit to total deposit    Ratio of cost bearing deposit to cost free deposit

02)    Gross Investment Income    392 95 46
03)    Share of Cost Free Fund (18%)    70 73 18
04)    Share on Mudaraba Deposits on Gross Investment Income (82%)
i.e. 82% of distributable income (82% of Sl. No. 2)     322 22 28
05)    Less: 35% Management Fee (35% of Sl. No. 4))    112 77 80
06)    65% of distributable profit for Mudaraba Depositors (4-5)    209 44 48

(Figure in thousand)
Sl. No.    Name of Deposit    Total yearly Average Balance     Weightage    Weighted balance    Share of distributable profit    Percentage
1    2    3    4    5 (3X4)    6    7
01    Mudaraba Term Deposit
    a)    01 month    34 86 46    0.83    289376    23889    6.85%
    b)    03 months    464 62 35    0.88    4088687    337540    7.26%
    c)    06 months    162 20 20    0.92    1492258    123193    7.60%
    d)    12 months    928 10 74    0.96    8909831    735549    7.93%
    e)    24 months    25 28 82    0.96    242767    20042    7.93%
    f)    36 months    54 62 55    0.96    524405    43292    7.93%
02    Mudaraba Savings Deposit    111 92 74    0.75    839456    69301    6.19%
03    Mudaraba STD    90 00 68    0.62    558042    46069    5.12%
04    Steady Money    194 23 05    1.15    2233651    184398    9.49%
05    Super Savings    273 43 57    1.17    3199198    264109    9.66%
06    Multiplus Savings    24 00 80    1.17    280894    23189    9.66%
07    Money Grower
    a)    05 years    36 90 49    1.16    428097    35341    9.58%
    b)    08 years    23 30 02    1.17    272612    22505    9.66%
    c)    10 years    47 16 11    1.18    556501    45942    9.74%
    d)    12 years    120 95 89    1.19    1439411    118830    9.82%
08    Education Savings    56 46    1.14    6436    531    9.41%
09    Hajj Deposit    4 35    1.10    479    40    9.09%
10    Smart Saver    71 06    1.17    8314    686    9.66%
    Total    9a) 25929634        9b) 25370415    9c) 2094448.02

01)    Individual Weighted balance (col.5))    =    Individual yearly average balance X Weightage (col.3 X col.4)
02)    Individual Share of distribution (col.6)    =    Total distributable profit X Individual weighted balance (col.9c X col.5)
            Grand total weighted balance (col.9b)
03)    Percentage (col.7)    =    Individual share of distributable fund X 100 (col.6 X 100)
            Individual total yearly average balance (col.3)

Deposit: Importance & types, Profit mark-up.

2011-02-23T19:37:00.000-08:00

Deposit:

• Deposit is a Current liabilities of a bank in the form of Current accounts, Notice deposits, Savings deposits, Fixed deposits etc.

• In other words money transferred into a customer account at a financial institution.

Importance of deposit:

Before discussing about the importance of deposit, we have to know/discuss about the function of a Bank. In short we may say that the following are the main functions:

1)    Obtaining deposit from different avenues.
2)    Issue of cheque, Pay order, Demand draft, TT etc, though now a days Banks are doing more & more.
3)    Invest money to the client for business purpose.
From the above it is clear to us that obtaining deposit is the first & main function of a Bank. If we cannot obtain deposit at lower rate & invest the same at a higher rate (Spread at least 3%), Bank cannot survive. So deposit is the lifeblood of a Bank. Without deposit no Bank can run. Low-cost and no-cost deposit is very much helpful for the Bank.

Types of Deposit:
Deposit are mainly in two types, as per BRPD Circular No. 03 dated 10.07.97 & 06 dated 24.06.07 deposit can be defined as followings:
1)    Demand Deposit
2)    Time Deposit

1) Demand Deposit: An account from which deposited funds can be withdrawn at any time without any notice. On the other hand we can say that the deposit which may be allowed/withdrawn on demand is called Demand Deposit. Such as the balance of CD, SB etc.. For calculating the demand deposit, there is a formula:

a)    100% balance of Al-Wadia CD A/C
b)    9% balance of Mudaraba SB A/C
c)    100% balance of Bills
d)    100% Sundry deposit

2) Time Deposit: The time deposit is a common form of savings that place restrictions on when a depositor can withdraw funds. i.e. moneys deposited by the customer repayable after the expiry of a certain period which ordinarily ranges from 3 months to 3 years. The period of deposit is usually fixed at the time of the deposit is made. Depositors of this category give their explicit consent to the Bank to invest the same in any business at the discretions of the Bank with a view to earn profit in a more remunerative manner. Time Deposits constitute a very important resource for Banks.

Here is also a formula:
a)    91% balance of Mudaraba SB A/C
b)    100% Mudaraba STD A/C
c)    100% balance of MTDR (FDR)
d)    100% balance of Scheme A/C

From the data given below we may calculate Demand Deposit & Time Deposit.

01.    Al-Wadia Current Deposit        Tk.    30607967.09
02.    Mudaraba Savings Deposit        Tk.    21085388.14
03.    Mudaraba Sort Term Deposit    Tk.    1546250.25
04.    Mudaraba Term Deposit           Tk.    250302045.95
05.    Mudaraba Sundry Deposit         Tk.    32401353.90
06.    Mudaraba Scheme Deposit       Tk.    260568151.00
07.    Bills Payable                           Tk.    2541832.54
        Total                                      Tk.    597506738.62

Answer:
         Demand Deposit       Time Deposit
3,06,07,967.09 X 100%    30607967.09    2,10,85,388.14 X 91%    19187703.21
2,10,85,388.14 X   91%    1897684.93    25,03,02,045.95 X 100%    250302045.95
15,46,250.25 X 100%       1546250.25    26,05,68,151.00 X 100%    260568151.00
3,24,01,353.90 X 100%    32401353.90
25,41,832.54 X 100%        2541832.54
Total                            67448838.46          530057900.16

Banking Articles

Required papers of a new importer for Import Registration Certificate (IRC).

INCOTERMS 2010 published by The International Chamber of Commerce (ICC).

Export Development Fund (EDF)

Modes of Export Finance in Islamic Banking.

Bill of Exchange

Invoice

Modes of Import financing by Islami Bank.

Transport document.

Balance of Trade and Balance of payment.

Common major discrepancies those to be checked on receiving Export/Import documents.

Import Registration Certificate (IRC)

Bangladesh IMPORT POLICY ORDER 2009-2012.

CHAPTER ONE

Beginning

FEES REGARDING IMPORTS

Tk. 1, 00,000.00

Tk. 1,800.00

Tk. 1,700.00

Initial registration fees

Indentor Tk 600.00

Exporters Tk. 200.00

General Provisions for Industrial Import

TABLE

By order of the President

Asian Clearing Union (ACU).

INCOTERMS

Crossing and Endorsement of Cheque.

Islamic Banking by Zubair Ikbal and Abbas Mirakhor.

RIBA: MEANING & TYPES, REASONS FOR RESTRICTION OF RIBA, RENT & COMMISSION.

Commission

INVESTMENT MODES: MUDARABA, MUDHARAKA, BAI-SALAM AND ISTISNA’A

MUDARABA

MUSHARAKA

BAI-SALAM

ISTISNA’A

Weightage system in Islamic Banking.

Deposit: Importance & types, Profit mark-up.