As a banker for Bangladeshi garments exporters, how will you facilitate the exporters starting from Letter of Credit to shipment and export bill realization?

As a banker, I will assist the exporter at different stages of the export process. From receiving the LC to realization of export proceeds, I will provide the necessary banking support.

Advising Export LC: Receiving the LC from the issuing bank, I will verify its authenticity. After verification, I will advise the LC to the exporter.

Checking LC Terms: I will carefully check the important terms of the LC, such as shipment date, expiry date, and required documents. If there is any difficult or unusual condition, I will inform the exporter.

Pre-shipment Finance: If the exporter needs finance before shipment, I will arrange Packing Credit or Export Cash Credit. For purchasing raw materials and accessories, I may also arrange a Back-to-Back LC.

EXP Form and Shipment: Before shipment, I will arrange the necessary EXP form. The exporter will then complete the customs and other shipping formalities.

Submission of Documents: After shipment, I will collect export documents from the exporter. These may include the commercial invoice, bill of lading, packing list, and certificate of origin.

Examination of Documents: I will examine the documents carefully against the LC terms. If I find any discrepancy, I will inform the exporter so that it can be corrected where possible.

Negotiation of Export Bill: If the documents are found in order, I will negotiate or purchase the export bill. The exporter will receive payment according to the applicable banking terms.

Sending Documents: After negotiation, I will send the documents to the issuing bank. I will also claim reimbursement according to the instructions of the LC.

Realization of Export Proceeds: When the export proceeds are received, I will adjust the exporter’s outstanding liabilities, if any. The balance amount will then be credited to the exporter’s account.

Reporting and ERQ Retention: Finally, I will match the realized proceeds with the EXP form and complete the required reporting. The eligible portion of the foreign currency will be retained in the exporter’s ERQ account.