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Bangladesh import volumes continue to rise

16/12/2016

In the ICC Global Trade Survey 2016, it was reported that in 2015 Bangladesh had seen the highest growth in MT700's sent (Issue of a Documentary Credit) at 12.84% when compared with 2014.

This trend seems to have continued into 2016 with the following report that appeared in the Financial Express, Bangladesh on 14 December 2016.

"Bangladesh's imports surged about 15 percent to 15.14 billion U.S. dollars in the first four months of the 2016-17 fiscal year (July 2016-June 2017), a central bank official said Wednesday.

The Bangladesh Bank (BB) official said the settlement of letters of credit (LCs), generally known as actual imports, stood at 15,140.56 million U.S. dollars in July-October period of the current fiscal year compared to 13,194.56 million U.S. dollars in the same period a year earlier.

Overall import orders, officially known as fresh opening of import letters of credit (LCs), also rose 14.45 percent in July-October period of the current fiscal year, he said quoting provisional BB data.

The central bank official who preferred to be unnamed said the overall import orders increased to 14,891.59 million U.S. dollars in July-October period this year against 13,011.31 million U.S. dollars in the same period of the last 2015-16 fiscal year (July 2015-June 2016)."


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A credit required: “1 COPY OF APPL'S CERTIFICATE OF CONFIRMATION OF THE AMOUNT TO BE PAID (THE REMAINING CLAIMING AMOUNT). THE REMAINING CLAIMING AMOUNT IS THE DIFFERENCE BETWEEN THE FINAL PURCHASE PRICE AMOUNT AND EIGHTY PERCENT (80%) INVOICE AMOUNT OF THE PROVISIONAL INVOICE. WITHIN FIVE (05) BUSINESS DAYS AFTER THE RECEIPT OF COPY OF FINAL INVOICE FROM THE BENEFICIARY THROUGH ELECTRONIC MAIL, THE APPLICANT SHALL SEND COPY OF APPLICANT'S CERTIFICATE OF CONFIRMATION OF DRAWING CERTIFYING THAT THE DRAWING AMOUNT IS IN ORDER. IN THE EVENT THAT APPLICANT'S CERTIFICATE OF CONFIRMATION IS NOT RECEIVED WITHIN ABOVE MENTIONED TIME, THE BENEFICIARY SHALL PRESENT 20% LC DOCUMENT AGAINST DISCHARGE PORT DOCUMENTS WITHOUT APPLICANT'S CERTIFICATE OF CONFIRMATION OF DRAWING.” Beneficiary presented their confirmation with amount to be paid being the difference between the final purchase price amount and 80% invoice amount of the provisional invoice. Can issuing bank raise a discrepancy of: 1. Certificate of confirmation not issued by the applicant as LC required or 2. Unpresentation 1 copy of applicant’s certificate of confirmation unpresentation. Because issuing bank received applicant’s confirmation that amount to be paid differs with amount to be paid by beneficiary (applicant showed deduction which is not mention under LC) plus applicant provided proof that applicant sent email to beneficiary within 5 banking days as LC required and amount to be paid. Whether or not applicant is protected by any terms or conditions of UCP, ISBP or ICC opinions,… because they presented applicant’s confirmation to beneficiary but beneficiary did not present applicant's document under their presentation?