TFFE

Briefly answer the following questions: (i) Key criteria of a deemed export. A deemed export means supplying goods or inputs to an export-oriented industry within Bangladesh. The goods do not physically leave the country. However, the supply is treated as…

The flight of money out of Bangladesh can reduce the country’s foreign exchange reserves and weaken the formal financial system. Therefore, effective monitoring, stronger regulation, and better investment opportunities are needed to control such activities. Steps to be taken (1)…

Capital Flight Capital flight means the large-scale transfer of money or financial assets from a country to foreign countries. It usually occurs when individuals or businesses lose confidence in the domestic economy, fear currency depreciation, political or economic instability, or…

Transferable LC A transferable LC allows the first beneficiary to transfer all or part of the credit to another beneficiary. It is commonly used when a middleman receives an LC from the buyer and transfers it to the actual supplier….

Buyer’s credit is a financing facility where a bank or financial institution provides finance to the importer so that the exporter can receive payment immediately. Reasons for popularity (1) Immediate Payment to Exporter: The seller receives payment immediately, so the…

Documentary Collection Documentary Collection is a method where banks handle the export documents and collect payment from the importer on behalf of the exporter. The banks do not give any payment guarantee to the exporter. Operational Procedure: (1) The exporter…