CHAPTER-1

Loan Against Trusted Receipt

Loan Against Import Merchandise

CHAPTER-2
Export L/C Advising

Foreign Trade

CHAPTER-3
Remittance

Export

Opening L/C Payment Against Document Pre Shipment Finance Post Shipment Finance

1.1

ORIGIN OF THE REPORT

ffd8ffe000104a46494600010201009600970000ffe20c584943435f50524f46 494c4500010100000c484c696e6f021000006d6e74725247422058595a2007 ce00020009000600310000616373704d53465400000000494543207352474 20000000000000000000000000000f6d6000100000000d32d4850202000000 0000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000116370727400000150000000336465736 3000001840000006c77747074000001f000000014626b70740000020400000 0147258595a00000218000000146758595a0000022c000000146258595a00 00024000000014646d6e640000025400000070646d6464000002c40000008 8767565640000034c0000008676696577000003d4000000246c756d690000 03f8000000146d6561730000040c0000002474656368000004300000000c72 5452430000043c0000080c675452430000043c0000080c625452430000043c 0000080c7465787400000000436f7079726967687420286329203139393820 4865776c6574742d5061636b61726420436f6d70616e790000646573630000 000000000012735247422049454336313936362d322e31000000000000000 000000012735247422049454336313936362d322e31000000000000000000 000000000000000000000000000000000000 n todays world only academic education does not make a student perfect to become competitive with the outside world. Internship is highly needed to gain idea, knowledge and experience.

Stamford University Bangladesh, one of the reputed private universities in Bangladesh, has designed the curriculum of the BBA course such a way that the international standard graduates will be produced. After completing 129 credit hours, one student needs to go for further 03 credit hours internship program in a commercial organization. From this internship program students get the opportunity to learn facing the real business world.

First Security Islami Bank Limited is a place where I could learn the business dealings. This organization has created a positive image to the customers mind by providing better service. This bank has introduced some modern banking scheme that has got high market demand. As it maintain the pace with the competitive business world, its activities, culture, philosophy and style leads an intern student to be the best at any field of working life. As an intern student I have got the opportunity to work with this organization for three months and acquire idea about real business world.

1.2

OBJECTIVE OF THE STUDY

To know the Financial Performance of First Security Islami Bank Limited. To evaluate their strength and weakness regarding banking sector. To justify their way of banking in our economy. Export & Import system. To overview the whole operation at a glance. To illustrate banks liquidity and capital reservation with special reference to the annual report. To clarify the disbursement, advances and classified loans. To know the contribution of GDP towards Bangladesh economy. To state the major drawbacks and the way of improvement.

1.3

RATIONAL OF THE STUDY

Any academic course of study has a great value when it has practical application in real life. Only a lot of theoritical knowledge will be a little important unless it is applicable in practical life.So we we need proper application of our knowledge to get some benefit from our theoritical knowledge to make it more fruitful. This is why internship program is a prerequisite for acquiring BBA Degree in my University. The entire BBA program is divided into Twelve trimester . The internship program is executed in the last semester and it has got the same weight as othersemester in the evaluation process. As the classroom discussion alone can not make a student perfect in handling the real business situation. Therefore it is an opportunity for the students to know about real life situation through this internship program. This program consists of three phases:

1.3.1 Orientation of the organization: To accustom the internee with structure , functions, and performance of the organization.

1.3.2 The project Work:

To pertainning to a perticular problem matching with the internees capacity and organizations requirement.

1.3.3 The report writing: To eptomize the internees analysis, findings and achievements, in this connection, I was assigned to First Security Islami Bank Limited, Mohakhali branch, all departments for my practical orientation. I would like to add, this report is completely confidential and prepared with a view to expose myself to the prctical exposure and knowledge.

1.4

Methodology

Collection of Data:

Primary data are collected by using interviewing technique. The report is an exploratory research and for qualitative survey open ended question was ask to the Bank official.

Population: All the Branches of First Security Islami Bank Limited located in everywhere in Bangladesh has been taken into consideration as population.

Sample: First Security Islami Bank Limited, Mohakhali Branch, is the vital sample. Classification, analysis, interpretations and presentation of data; some arithmetic and graphical tools are used in this report for analyzing the collected data and to classifying those to interpret them clearly. Findings of the study: The collected data were scrutinized very well and were pointed out and shown as findings. Few recommendations are also made for improvement of the current situation.

Final report preparation: On the basis of the suggestions of our honorable faculty advisor some corrections were made to present the paper in this form.

1.5

LIMITATIONS OF THE STUDY

Aim is to evaluate the performance evaluation of the First Security Islami Bank Limited. In doing so, I have encountered the following problem and hindrance:

I couldnt spend sufficient time, required to make an in-depth study on such an important issue. The study was limited by the availability of data.

The major limitation I have faced in preparing this report was the sensitivity of data. As it is a highly competitive market, if the margin imformation is released to other competitors, it may have a negative impect on their business.

Confidentiality of data was another barrier that was confronted during the conduct of the study. Rush hours and business was another reason that act as an obstacle while gathering data.

2.1

LITERATURE REVIEW

ffd8ffe000104a46494600010201009600970000ffe20c584943435f50524f46494c450001010 0000c484c696e6f021000006d6e74725247422058595a2007ce0002000900060031000061637 3704d5346540000000049454320735247420000000000000000000000000000f6d600010000 0000d32d4850202000000000000000000000000000000000000000000000000000000000000 000000000000000000000000000000000001163707274000001500000003364657363000001 840000006c77747074000001f000000014626b707400000204000000147258595a000002180 00000146758595a0000022c000000146258595a0000024000000014646d6e64000002540000 0070646d6464000002c400000088767565640000034c0000008676696577000003d40000002 46c756d69000003f8000000146d6561730000040c0000002474656368000004300000000c72 5452430000043c0000080c675452430000043c0000080c625452430000043c0000080c74657 87400000000436f70797269676874202863292031393938204865776c6574742d5061636b61 726420436f6d70616e790000646573630000000000000012735247422049454336313936362 d322e31000000000000000000000012735247422049454336313936362d322e310000000000 00000000000000000000000000000000000000000000angladesh economy has been experiencing a rapid growth since the '90s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers' remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to channelize consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established First Security Islami Bank Limited in the year 1999. The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on August 29, 1999 with an authorized capital of Tk. 1,000 million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk 2,300 million as on June 30, 2008. The total equity (capital and reserves) of the Bank as on June 30, 2008 stood at Tk 2,538.57 million. The Bank has 49 branches across the country and a wide network of correspondents all over the world. The Bank has plans to open more branches in the current fiscal year to expand the network. The Bank offers the full range of banking and investment services for personal and corporate customers, backed by the latest technology and a team of highly motivated officers and staff. In our effort to provide Excellence in Banking services, the Bank has launched Online Banking service, joined a countrywide shared ATM network and has introduced a co-branded credit card. A process is also underway to provide e-business facility to the bank's clientele through Online and Home banking solutions. First Security Islami Bank is the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments.

Name of the Company First Security Islami Bank Limited

CORPORATE INFORMATION Legal Form

Date of Commencement August 29, 1999 Registered Office 23 Dilkusha Commercial Area, Dhaka-1000, Bangladesh Telephone +88029560229 Telefax +88029561637 E-mail

k incorporated on August 29, 1999 as a Public Limited Company under the Companies Act 1994 and Bank

info@fsiblbd.com
Web Page

www.fsiblbd.com
Auditors Syful Shamsul Alam & Co. Chartered Accountant Tax Consultant K.M. Hasan & Co. Chartered Accountant Managing Director A.A.M. Zakaria Company Secretary Abdul Hannan Khan

3.1 Overview of the First Security Bank

a. Introduction First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999 as a banking company under Companies Act 1994 to carry o n banking business. It obtained permission from Bangladesh Bank on 22 Sept ember 1999 to commence its business. The Bank carries banking activities th rough its Fifty two (52) branches in the country. The commercial banking acti vities of the bank encompass a wide range of services including accepting de posits, making loans, discounting bills, conducting money transfer and foreig n exchange transactions, and performing other related services such as safe keeping, collections and issuing guarantees, acceptances and letter of credit. b. Vision of the Bank To be the unique modern Islami bank in Bangladesh and to make significant c ontribution to the national economy and enhance customers trust and wealt h, quality investment, employees value and rapid growth in shareholders eq uity.

c. Mission of the Bank The bank has chalked out the following corporate objectives in order to ensur e smooth achievement of its goals:

To be the most caring and customer friendly and service oriented bank. To create a technology based most efficient banking environment for its cust omers. To ensure ethics and transparency in all levels. To ensure sustainable growth and establish full value of the honorable share holders and Above all, to add effective contribution to the national economy.

d. Objectives of the Bank

The objectives of the FSIBL are given below:

To provide efficient computerized banking system. To enhance foreign exchange operations. To accept deposits on profitloss sharing basis. To establish a welfareoriented banking system. To play a vital role in human development and employment generation. To contribute towards balanced growth and development of the country thro ugh investment operations particularly in the less developed areas. To establish participatory banking instead of banking on debtorcreditor rel ationship.

2.2 Organ Gram of FSIBL:

MANAGING DIRECTORS Foreign Exchange

Import

DEPUTY MANAGING DIRECTER Foreign Bill for Collection

EXECUTIVE VICE PRESIDENT Inward Remittance.

SENIOR VICE PRESIDENT VICE PRESIDENT FIRST VICE PRESIDENT

Outward Remittance

ffd8ffe ffd8ffe0 000104 00104a4 a46494 6494600 600010 0102010 201009 0960097 600970 0000ffe2 000ffe2 0c58494 0c5849 3435f505 43435f5 24f46494 0524f46 c450001 494c45 0100000 000101 c484c69 00000c 484c69 6e6f0210 6e6f021 00006d6 000006 e747252 d6e747 4742205 252474 8595a20 220585 07ce000 95a200 2000900 7ce000 0600310 200090 0006163 006003 73704d5 100006 3465400 163737 0000004 04d534 9454320 654000 000004 7352474 945432 2000000 073524 0000000 742000 0000000 000000 0000000 000000 0f6d6000 000000 1000000 000000 ffd8ffe000104a46494600010201009600970000ffe20c5849 00d32d4 0f6d600 43435f50524f46494c4500010100000c484c696e6f02100000 8502020 010000 6d6e74725247422058595a2007ce000200090006003100006 0000000 0000d3 16373704d5346540000000049454320735247420000000000 0000000 2d4850 000000000000000000f6d6000100000000d32d48502020000 0000000 202000 0000000000000000000000000000000000000000000000000 0000000 000000 0000000000000000000000000000000000000000001163707 000000 0000000 ffd8ffe000104a46494600010201009600970000ffe20c5849 000000 274000001500000003364657363000001840000006c777470 0000000 43435f50524f46494c4500010100000c484c696e6f02100000 000000 74000001f000000014626b707400000204000000147258595 0000000 6d6e74725247422058595a2007ce000200090006003100006 000000 a00000218000000146758595a0000022c000000146258595a 0000000 16373704d5346540000000049454320735247420000000000 000000 0000024000000014646d6e640000025400000070646d64640 0000000 000000000000000000f6d6000100000000d32d48502020000 000000 00002c400000088767565640000034c000000867669657700 0000000 0000000000000000000000000000000000000000000000000 000000 0003d4000000246c756d69000003f8000000146d656173000 0000000 0000000000000000000000000000000000000000001163707 000000 0040c0000002474656368000004300000000c725452430000 0000000 274000001500000003364657363000001840000006c777470 000000 043c0000080c675452430000043c0000080c6254524300000 0000000 74000001f000000014626b707400000204000000147258595 000000 43c0000080c7465787400000000436f707972696768742028 0001163 a00000218000000146758595a0000022c000000146258595a 000000 63292031393938204865776c6574742d5061636b617264204 7072740 000000 0000024000000014646d6e640000025400000070646d64640 36f6d70616e79000064657363000000000000001273524742 0000150 000000 00002c400000088767565640000034c000000867669657700 2049454336313936362d322e3100000000000000000000001 0000003 000000 0003d4000000246c756d69000003f8000000146d656173000 2735247422049454336313936362d322e3100000000000000 001163 3646573 0040c0000002474656368000004300000000c725452430000 707274 0000000000000000000000000000000000000000 6300000 043c0000080c675452430000043c0000080c6254524300000 000001 1840000 43c0000080c7465787400000000436f707972696768742028 500000 006c777 63292031393938204865776c6574742d5061636b617264204 003364 4707400 36f6d70616e79000064657363000000000000001273524742 657363 0001f000 2049454336313936362d322e3100000000000000000000001 000001 0000146 2735247422049454336313936362d322e3100000000000000 840000 26b7074 0000000000000000000000000000000000000000 006c77

ASSISTANT VICE PRESIDENT FIRST ASSISTANT VICE PRESIDENT EXECUTIVE OFFICER PRINCIPAL OFFICER

ffd8ffe ffd8ffe0 000104 00104a4 a46494 6494600 600010 0102010 201009 0960097 600970 0000ffe2 000ffe2 0c58494 ffd8ffe000104a46494600010201009600970000ffe20c5849 0c5849 3435f505 43435f50524f46494c4500010100000c484c696e6f02100000 43435f5 24f46494 6d6e74725247422058595a2007ce000200090006003100006 0524f46 c450001 16373704d5346540000000049454320735247420000000000 494c45 0100000 000000000000000000f6d6000100000000d32d48502020000 000101 c484c69 0000000000000000000000000000000000000000000000000 00000c 484c69 6e6f0210 0000000000000000000000000000000000000000001163707 6e6f021 00006d6 274000001500000003364657363000001840000006c777470 000006 e747252 74000001f000000014626b707400000204000000147258595 ffd8ffe000104a46494600010201009600970000ffe20c5849 d6e747 4742205 a00000218000000146758595a0000022c000000146258595a 43435f50524f46494c4500010100000c484c696e6f02100000 252474 8595a20 0000024000000014646d6e640000025400000070646d64640 6d6e74725247422058595a2007ce000200090006003100006 220585 07ce000 00002c400000088767565640000034c000000867669657700 16373704d5346540000000049454320735247420000000000 95a200 2000900 0003d4000000246c756d69000003f8000000146d656173000 000000000000000000f6d6000100000000d32d48502020000 7ce000 A 0600310 0040c0000002474656368000004300000000c725452430000 0000000000000000000000000000000000000000000000000 200090 SSISTANT O FFICER 0006163 043c0000080c675452430000043c0000080c6254524300000 0000000000000000000000000000000000000000001163707 006003 73704d5 43c0000080c7465787400000000436f707972696768742028 274000001500000003364657363000001840000006c777470 100006 ffd8ffe000104a46494600010201009600970000ffe20c5849 3465400 63292031393938204865776c6574742d5061636b617264204 74000001f000000014626b707400000204000000147258595 163737 43435f50524f46494c4500010100000c484c696e6f02100000 0000004 36f6d70616e79000064657363000000000000001273524742 04d534 a00000218000000146758595a0000022c000000146258595a 6d6e74725247422058595a2007ce000200090006003100006 9454320 2049454336313936362d322e3100000000000000000000001 654000 0000024000000014646d6e640000025400000070646d64640 16373704d5346540000000049454320735247420000000000 000004 7352474 2735247422049454336313936362d322e3100000000000000 00002c400000088767565640000034c000000867669657700 000000000000000000f6d6000100000000d32d48502020000 945432 2000000 0000000000000000000000000000000000000000 0003d4000000246c756d69000003f8000000146d656173000 0000000000000000000000000000000000000000000000000 073524 0000000 2.3. Perfo 0040c0000002474656368000004300000000c725452430000 rmanc 0000000000000000000000000000000000000000001163707 742000 0000000 043c0000080c675452430000043c0000080c6254524300000 L e of FSIB 274000001500000003364657363000001840000006c777470 000000 0000000 43c0000080c7465787400000000436f707972696768742028 74000001f000000014626b707400000204000000147258595 ffd8ffe000104a46494600010201009600970000ffe20c5849 000000 This has bee n appreci 0f6d6000 63292031393938204865776c6574742d5061636b617264204 a00000218000000146758595a0000022c000000146258595a 43435f50524f46494c4500010100000c484c696e6f02100000 000000 able improve ment in th 1000000 36f6d70616e79000064657363000000000000001273524742 6d6e74725247422058595a2007ce000200090006003100006 000000 e performanc 0000024000000014646d6e640000025400000070646d64640 e of the b 00d32d4 00002c400000088767565640000034c000000867669657700 0f6d600 16373704d5346540000000049454320735247420000000000 ank in all resp 2049454336313936362d322e3100000000000000000000001 ect. As su 8502020 2735247422049454336313936362d322e3100000000000000 010000 0003d4000000246c756d69000003f8000000146d656173000 ch, there has 000000000000000000f6d6000100000000d32d48502020000 been a no 0000000 0000d3 ticeable rise i 0000000000000000000000000000000000000000 n deposit 0040c0000002474656368000004300000000c725452430000 0000000000000000000000000000000000000000000000000 0000000 2d4850 s as advance 043c0000080c675452430000043c0000080c6254524300000 0000000000000000000000000000000000000000001163707 d as also i 0000000 202000 ffd8ffe000104a46494600010201009600970000ffe20c584 n foreign exc 274000001500000003364657363000001840000006c777470 hange bu 43c0000080c7465787400000000436f707972696768742028 0000000 000000 siness. Profit 63292031393938204865776c6574742d5061636b617264204 943435f50524f46494c4500010100000c484c696e6f021000 ffd8ffe000104a46494600010201009600970000ffe20c584 ffd8ffe000104a46494600010201009600970000ffe20c58 s of the b 74000001f000000014626b707400000204000000147258595 000000 0000000 ank witnesse 36f6d70616e79000064657363000000000000001273524742 d a marke 006d6e74725247422058595a2007ce000200090006003100 943435f50524f46494c4500010100000c484c696e6f021000 4943435f50524f46494c4500010100000c484c696e6f0210 a00000218000000146758595a0000022c000000146258595a 000000 d up trend fro 2049454336313936362d322e3100000000000000000000001 0000000 00616373704d53465400000000494543207352474200000 006d6e74725247422058595a2007ce000200090006003100 00006d6e74725247422058595a2007ce000200090006003 m TK. 12. 0000024000000014646d6e640000025400000070646d64640 000000 17 crore in 20 00000000000000000000000f6d6000100000000d32d48502 02 to TK.2 0000000 00616373704d53465400000000494543207352474200000 10000616373704d53465400000000494543207352474200 2735247422049454336313936362d322e3100000000000000 000000 2.12 crore in 00002c400000088767565640000034c000000867669657700 2003 sho 0000000 02000000000000000000000000000000000000000000000 00000000000000000000000f6d6000100000000d32d4850 00000000000000000000000000f6d6000100000000d32d4 0000000000000000000000000000000000000000 000000 wing a rise of 0003d4000000246c756d69000003f8000000146d656173000 74.04 per 0000000 00000000000000000000000000000000000000000000000 20200000000000000000000000000000000000000000000 85020200000000000000000000000000000000000000000 0040c0000002474656368000004300000000c725452430000 000000 cent. All thes e have be 0000000 00011637072740000015000000033646573630000018400 00000000000000000000000000000000000000000000000 000000 en possible d 043c0000080c675452430000043c0000080c6254524300000 ue to the 0000000 00006c77747074000001f000000014626b70740000020400 00001163707274000001500000003364657363000001840 00000001163707274000001500000003364657363000001 000000 pursuit of pra 43c0000080c7465787400000000436f707972696768742028 gmatic an 0000000 0000147258595a00000218000000146758595a0000022c00 000006c77747074000001f000000014626b7074000002040 840000006c77747074000001f000000014626b707400000 000000 d prudential p 63292031393938204865776c6574742d5061636b617264204 olicies in 0000000 0000146258595a0000024000000014646d6e640000025400 00000147258595a00000218000000146758595a0000022c 204000000147258595a00000218000000146758595a0000 000000 overall manag36f6d70616e79000064657363000000000000001273524742 ement of 0001163 000070646d6464000002c400000088767565640000034c00 000000146258595a0000024000000014646d6e640000025 022c000000146258595a0000024000000014646d6e64000 000000 the bank und 2049454336313936362d322e3100000000000000000000001 er the abl 7072740 000000 00008676696577000003d4000000246c756d69000003f800 400000070646d6464000002c40000008876756564000003 0025400000070646d6464000002c4000000887675656400 e the guidanc 2735247422049454336313936362d322e3100000000000000 e of the b 0000150 000000 oard of the dir 0000000000000000000000000000000000000000 ectors. A 0000146d6561730000040c0000002474656368000004300 4c0000008676696577000003d4000000246c756d6900000 00034c0000008676696577000003d4000000246c756d690 0000003 000000 s a part of pru 000000c725452430000043c0000080c675452430000043c0 3f8000000146d6561730000040c000000247465636800000 00003f8000000146d6561730000040c0000002474656368 dential po 001163 3646573 licies provision 000080c625452430000043c0000080c74657874000000004 has been 4300000000c725452430000043c0000080c675452430000 000004300000000c725452430000043c0000080c6754524 707274 made for bad a 36f70797269676874202863292031393938204865776c657 nd doubtf 6300000 043c0000080c625452430000043c0000080c746578740000 30000043c0000080c625452430000043c0000080c746578 000001 ul loans to the t 4742d5061636b61726420436f6d70616e790000646573630 1840000 0000436f707972696768742028632920313939382048657 7400000000436f707972696768742028632920313939382 une of TK 500000 006c777 000000000000012735247422049454336313936362d322e 76c6574742d5061636b61726420436f6d70616e790000646 04865776c6574742d5061636b61726420436f6d70616e790 003364 4707400 31000000000000000000000012735247422049454336313 57363000000000000001273524742204945433631393636 00064657363000000000000001273524742204945433631 657363 0001f000 936362d322e310000000000000000000000000000000000 2d322e31000000000000000000000012735247422049454 3936362d322e31000000000000000000000012735247422 000001 0000146 00000000000000000000 336313936362d322e310000000000000000000000000000 049454336313936362d322e310000000000000000000000 840000 26b7074 00000000000000000000000000 00000000000000000000000000000000 006c77

. 8.64 crore against lone classified during 2003. Credit Rating Agency of Bangladesh (CRAB) has given BBB 3 (pronounced trip le B three) rating in Long Term and ST4 rating in Short Term to First Secu rity Islami Bank Limited. Commercial Banks rated BBB' have adequate capaci ty to meet their financial commitments. However, adverse economic conditio ns or changing circumstances are more likely to lead the Banks into a weaken ed capacity to meet their financial commitments. BBB rated banks are subjec t to moderate credit risk. Such banks are considered mediumgrade and as s uch may possess certain speculative characteristics. At the same time, banks rated ST4 in short term are considered to have below average capacity fo r timely repayment of obligations. Such capacity is highly susceptible to adve rse changes in business, economic, or financial conditions than for obligations in higher categories. SENIOR OFFICER

OFFICER

Particulars 31 Dec 2009 31 Dec 2008

Paid-up Capital 1,000,000,000 900,000,000 Total Capital Fund 1,347,916,019 1,147,285,290

(125,708,856) 92,854,020 Total Assets 26,941,780,871 20,448,667,971 The total deposit of the bank increased sharply by 80.56 percent from Tk. 23, 504.54 million at the end of 2007 to Tk. 25,854.54 million at the end of 2008. Total Deposits A graphic presentation of the year wise movement has been given below: 23,504,045,031

ffd8ffe0 00104a4 Total Loans and Advances 6494600 ffd8ffe000104a46494600010201009600970000ffe Figure:0102010 Deposits 18,616,225,315 20c584943435f50524f46494c4500010100000c484c 0960097 13,646,387,225 696e6f021000006d6e74725247422058595a2007ce 0000ffe2 00020009000600310000616373704d53465400000 TotalContingent LiabilitiesandCommitments 0c58494 00049454320735247420000000000000000000000 3435f505 5,114,783,363 000000f6d6000100000000d32d4850202000000000 24f46494 00000000000000000000000000000000000000000 c450001 00000000000000000000000000000000000000000 2.4 Financial Highlight 3,058,703,340 00001163707274000001500000003364657363000 0100000 001840000006c77747074000001f000000014626b7 c484c69 Credit Deposit Ratio (in %) 07400000204000000147258595a00000218000000 6e6f0210 79.20% 146758595a0000022c000000146258595a0000024 00006d6 000000014646d6e640000025400000070646d6464 77.57% e747252 000002c400000088767565640000034c000000867 4742205 Percentage of Classified Loans against total Loans and Advances(in 6696577000003d4000000246c756d69000003f8000 8595a20 000146d6561730000040c00000024746563680000 6.50% 07ce000 04300000000c725452430000043c0000080c675452 9.75% 2000900 430000043c0000080c625452430000043c0000080c 0600310 7465787400000000436f7079726967687420286329 Profit before tax & provision 0006163 2031393938204865776c6574742d5061636b61726 128,530,728 73704d5 420436f6d70616e790000646573630000000000000 3465400 202,623,523 012735247422049454336313936362d322e310000 00000000000000000012735247422049454336313 0000004 Amount of Classified Loans 936362d322e310000000000000000000000000000 9454320 1,210,643,000 00000000000000000000000000 7352474 2000000 1,330,787,000 0000000 Provision kept against Classified Loans 0000000 707,694,000 0000000 0f6d6000 1000000 707,694,000 00d32d4 Provision Surplus/(deficit) 8502020 0000000 136,733,91 0000000 16,630,400 0000000 Cost of Fund 0000000 0000000 9.06% 0000000 8.52% 0000000 Interest Earning Assets 0000000 0000000 23,803,097,996 0000000 18,326,209,803 0000000 0000000 Non-interest Earning Asset 0000000 3,138,682,875 0001163 2,121,458,168 7072740 0000150 Return on Investment (ROI)(in %)
17,591,996,452

5.97% Return on Assets (ROA)(in %)

0.47%
0.99% Income from Investment w.fsiblbd.com
Source: ww

177,752,561
123,256,585 Earnings Per Share (Tk.)

3.20
(16.28)

2.5 Key Features of the Banking services:

a. Computerized Banking system The head office and the other branches have been provided with the State oftheart computer hardware as well as software to carry on daytoday accounting and routine work efficiently and quickly. The FSIBL is moving to th e next stage of automation through introduction of on line banking in all bran ches. b. SWIFT services

Quick transmittal of documentary credit and other financial messages Improve automation Transfer the found instantly Quick remittance Manage risks c. ATM Banking First Security Islami Bank Ltd. has implemented successfully Automated Telle r Machine (ATM) /DBDIT card transaction from June 25, 2008 . Through Autom ated Teller Machine (ATM) /Debit card, customer can avail the facilities like wi thdrawal money, balance inquiry and purchase goods from Point of sale (POS) using Dutch Bangla Bank Ltd. ATM Booth and POS.

d. Branch Networks and Inter Division and Branch Coordination

At present, the bank has 49 branches of which 21 branches are in Dhaka, 16 branches are in Chittagong, 05 branches are in Sylhet, 01 branch is in Rajsha hi, 03 branches is in Khulna and 01 branch is in Barishal. All the 49 branches are computerized under distributed server environment. FSIBL has already started their online and SMS banking facilities for their cli ents.

Bai-Murabaha (Deferred Lump Sum/ Installment Sale)

Bai-Muajjal (Deferred Installment / Lump Sum Sale)

Ijara (Leasing)

Musharaka (Joint-Venture Profit-Sharing)

Mudaraba (Trustee Profit-Sharing) Online Banking e. Others

Bai-Salam (Advance Sale and Purchase) SMS Banking

2.6 Products and Services of FSIBL

Hire-Purchase Lockers

Direct Investments Utility Bills

Purchase and card Negotiation of Export Bills Ready cash

Post Import Investment

Inland Bills Purchased

Murabaha Import Bills

Bai-Muajjal Import Bills

Pre Shipment Investment

Quard-ul-Hasan (Benevolent Investment) Al-Wadiah Current Deposit

Mudarabah Savings Deposit

Mudarabah Short Term Deposit

Tender Guarantee Mudarabah Term Deposit

Performance Guarantee Consumer Finance Scheme

Guarantee for Sub-Contracts Monthly Savings Scheme

More than Double the deposit in 6 years

Monthly Profit Scheme

Ready Cash Card services

Remittance service

First security bank Ltd. is a member of SWIFT (society for world wide interbank financial telecommunication)

The bank is planning to introduce Master Card very soon.

FSIBL is also planning to introduce Merchant Banking Activities.

CHAPTER-4

General Provisions for Export

4.0 Rules and Regulations to be followed for Export of Products The conditions stipulated in this Policy or in other related laws, and the rules and regulations related to foreign currency exchange issued from time to time by the Bangladesh Bank have to be followed in case of export of goods from Bangladesh. Besides, relevant documents within the scope of the above-mentioned conditions and rules and regulations have to be followed. 4.1 Control of Export of Products: Under this Policy, export of products will be controlled in the following ways such as:4.1.1 Export Prohibited Products: Unless otherwise stated, products prohibited under this Export Policy cannot be exported. Annex -1 reads the list of export prohibited products. 4.1.1 Products under Conditional Export: Products which are exportable under some conditions can be exported only after fulfilling those conditions. Such products have been listed in Annex-2. 4.2 Exportable Products: Unless otherwise stated, all other products except the products enlisted in Annex-1 and Annex-2, i.e. export prohibited products and the products whose export is contingent upon certain conditions shall be freely exportable. 4.2.1 Nothing in this policy shall be applicable to the following: 4.2.1.1 Store, equipment or spare parts of ships, vehicles or aircrafts bound for going abroad, and products declared as their kitchen items, or the baggage accompanied by the sailors or the crews and passengers of those ships, vehicles or aircrafts. 4.2.1.2. Export of samples subject to fulfillment of the following conditions: a) The product is not export prohibited; b) A maximum of US$ 5,000 worth of products (except medicine) based on FOB price (free on board) per exporter per year; c) Products sent as samples free of cost; provided that in case of medicine the maximum shall be (1) US$ 30,000 if there is no export L/C (letter of credit), or (2) 5% of the total value of the L/C or US$ 5000, whichever is less. Bangladesh Bank can increase these limits examining each case, if necessary. d) For 100% export-oriented garment industries, a maximum of US$ 7,500 worth of samples of ready made garments per year; e) The diamond processing farms having bond licenses issued from the Customs bond Commissionerate or diamond producing/ diamond-studded jewelery processing farms registered as producers with VAT Commissionerate, under National Board of Revenue can send abroad cut and polished diamond/diamond-studded jewelery worth of US$ 50,000 annually with a view to participating in international trade fair or showcasing for export market development. In this case the samples must be brought back to the country after the show. However, if the samples are sold, all sale proceeds

must be repatriated through legal banking channel and the amount of the proceeds shall not be less than the value of the samples;

f) Promotional materials (brochure, poster, leaflet, banner etc.) of any price or weight; g) Gift parcel worth of US$ 1,000 or equivalent in Bangladeshi Taka; h) Bonafide baggage of travelers traveling outside Bangladesh; and i) Relief materials exported by the Government. 4.2.2 Sample means limited amount of goods which are easily identifiable and which do not have any commercial value. 4.2.3. Gift parcel means gift materials sent through courier service. 4.3 Authority to relax export control:- The Government showing appropriate reasons can authorize the export of prohibited goods listed in Annex-1. Moreover, the Government can authorize, under special considerations, export, export-cum- import or re-export of certain products. 4.3 Entre-pt and Re-export:- Entre-pt trade and re-export shall have to be conducted under the procedures stipulated in the Public Notice No. 42 (2003- 2006)/import dated June 28, 2005 (14 Ashar 1412 Bangla) issued by the Office of the Chief Controller of Import and Export . Entre-pt trade means the export of an imported product at a price at least 5% higher than the import price. No change whatsoever in the quality, quantity, shape or any other aspect is necessary in this respect. Products under entre-pt trade shall not come out of the port boundary. However, the products can be brought out of the port boundary under special authorization.

Import price under entre-pt trade shall refer to the C&F price of the imported product as declared at the port of Bangladesh.

Re-export means the export of an imported product within a specific period of time with a value addition of at least 10% to the imported price by changing the quality or shape or both of the product by means of local reprocessing. Import price in this case shall refer to the C&F price of the imported product as declared at the port of Bangladesh. 4.4 Export opportunities without L/C:- Exports without L/C can be done through buying contract, agreement, purchase order or advance payment subject to the submission of EXP Form and Shipping Bill. In case of Advance Cash Payment, export without L/C will be allowed on consignment basis.

Buying Contract means a signed agreement between an exporter and an importer for the purpose of exporting a product. 4.5 Export-cum-Import

Cylinder and ISO tanks can be exported on a temporary basis only for the purpose of repairing, replacement or refilling of the imported products. However, an Indemnity Bond shall have to be submitted to the Customs Authorities at the time of export stating that the products will be imported back after completion of the necessary works. Bangladeshi exporters will be authorized to export replacement products in case the exported product is found faulty as per the sales agreement. However, the exporter shall have to submit the following papers to the Customs Authorities: a) Copy of the Sales Agreement; 1. Letter from the buyer with details of the faulty products; and Any other condition to be met according to the Customs Law.

A person traveling to a foreign country can bring his or her vehicle along with himself or herself if authorized under the carnet de passage by the Customs Authorities or any other appropriate authority, or authorized against the indemnity bond submitted to the Customs Authorities with the condition to re-import.

Re-exportation of Frustrated Cargo:- A frustrated cargo can be re-exported in compliance with the rules and regulations of the Customs Act 1969. The construction, engineering and electrical company shall be allowed temporarily to export-cum-import machinery for doing work as per contract under the following conditions: 1. Relevant copies of agreement and award have to be submitted to the Customs Authorities; and An indemnity bond has to be submitted stating that the machinery shall be returned after the completion of the task. 4.5 Pre-shipment Obligations:- Unless other conditions apply, pre-shipment certificate is not obligatory for export of any product.

4.6 Quality Control Certificate:- In case of export of products for which quality control certificate is obligatory, the exporter shall have to submit, to the Customs Authorities, a quality control certificate issued by the appropriate authority.

General Provisions for Import

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. 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. 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 countrys 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 ImporterExcept 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; (c) For import in government sector; (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.

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

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 Suppliers 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. Senders passport No., occupation, annual income, period of stay abroad etc. shall have to be mentioned in that certificate; (c) The payment receipt of the goods shall be certified by the Embassy. (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. 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; 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;

(b)

(c)

(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 covernote. (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 aga inst 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 Banks 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-5

5.1 Meaning of Foreign Exchange

Foreign Exchange means currency & trade exchange say conversion of one t o another. This is a part of economic & Science. This is a big deal divided into different currencies instrument such as Draft, Traveler Cheque, Bill of Exchan ge business including sell, purchasing of currency notes & TC etc. Currency E xchange means the conversion of one Currency in to another. The foreign exc hange activities of FSBL are divided into three parts: The bank has establishe d correspondent relationship with over 220 foreign correspondents all over th e world viz. The Hong Kong and Shanghai Banking Corporation Ltd., USA Mas hreq Bank Psc, UAE, Union De Banque Arabes Et Francaises, Franch and ICIC bank, and India to cater to the needs of the banks customers engaged in inte rnational trade. Our bank is maintaining adequate number of Nostro accounts in important currencies of the world to facilitate payments and transfer of fun ds. The Bank is providing excellent services to the clientele in foreign exchan ge and foreign trade operations through the above foreign correspondents. F oreign exchange is mainly combination of three parts. Those are given below: 1. Import Export Remittance

These three parts are most essential parts of Foreign Exchange Operations of FSIBL at Mohakhali branch. Not only FSIBL but also all banks of Bangladesh h ave maintained these rules for foreign exchange operations.

5.2 Foreign Exchange Market

Foreign Exchange market means the process where foreign currency is boug ht & sold. In this more that supply, currency value. Ultimately following are th e features of foreign exchange market. Bank & client. Different Banks in the come foreign exchange market. Different Bank & Schedule Bank of the same country. Different Control Bank. First Security Islami Bank Ltd. (FSIBL) is a Bank that follows the following two craters in respect & payment of foreign exchange. Local currency market value &

Foreign currency market value.

5.3 Types of Financial Institution

Brokerage firms & investment

Insurance Compani es

Person funds

Types of Financial Institution Commercial Bank

International mutual funds

ffd8ffe000104a4649460 0010201009600970000ff e20c584943435f50524f4 6494c4500010100000c4 84c696e6f021000006d6 e74725247422058595a2 007ce000200090006003 10000616373704d53465 40000000049454320735 24742000000000000000 0000000000000f6d6000 100000000d32d4850202 00000000000000000000 00000000000000000000 00000000000000000000 00000000000000000000 00000000000000011637 07274000001500000003 36465736300000184000 0006c77747074000001f 000000014626b7074000 00204000000147258595 a0000021800000014675 8595a0000022c0000001 46258595a00000240000 00014646d6e640000025 400000070646d6464000 002c4000000887675656 40000034c00000086766 96577000003d40000002 46c756d69000003f8000 000146d6561730000040 c0000002474656368000 004300000000c7254524 30000043c0000080c675 452430000043c0000080 c625452430000043c000 0080c746578740000000 0436f707972696768742 02863292031393938204 865776c6574742d50616 36b61726420436f6d706 16e79000064657363000 00000000000127352474 22049454336313936362 d322e310000000000000 00000000012735247422 049454336313936362d3 22e31000000000000000 00000000000000000000 0000000000000000000

Source: Reading materials for Foreign Exchange and Financial in Inte rnational Trade.

5.5 Foreign Exchange Market Operation

Foreign exchange dealers in each bank usually operate from one room; each dealer has several telephones and is surrounded by video screen and news ta ps. Only the head or regional offices of the larger banks actively deal in foreig n exchange. Foreign exchange brokers may be used as middlemen to find a t aker or takers foe the deal. Brokers do not trade on their own account but sp ecialize in setting up large foreign exchange transaction in return for a commi ssion. Most small banks and local offices of major banks do not deal directly i n the inter bank foreign exchange market.

5.5 Structure of Foreign Exchange Markets

Local Bank Customer buys Dm with Foreign Exchange Stock broker IMM/LIFFE/PSE Stock Broker

Customer buys $ with Dm Local Bank Major Banks inter bank market

Figure: Foreign Exchange Market Operations 5.6 How Foreign Exchange is Being Controlled Foreign Exchange is being controlled by the following ways:

To stabilize the rate of exchange To protect domestic industries For proper implementation of plans To increase the bargaining strength To check over invoicing & Under invoicing To check the Blank marketing and smuggling For regulating the international movements of goods

ffd8ffe000104a4649460001020100 9600970000ffe20c584943435f5052 5.7 Authorized Dealer Branch 4f46494c4500010100000c484c696e ffd8ffe0 Bangladesh Bank in exercise of the power under section 3 of Foreign Exchang 6f021000006d6e747252474220585 00104a4 e regulation Act. 1957 issues a license to schedule bank where they have ade 95a2007ce00020009000600310000 6494600 quate trained officer/staff to deal in Foreign Exchange. The banks that are aut 616373704d5346540000000049454 0102010 horized dealers.32073524742000000000000000000 ffd8ffe0 ffd8ffe0 ffd8ffe0 0960097 0000000000f6d6000100000000d32 00104a4 00104a4 00104a46 0000ffe2 d4850202000000000000000000000 6494600 6494600 49460001 0c58494 00000000000000000000000000000 5.8 Arbitrage of Foreign Exchange ffd8ffe0 0102010 ffd8ffe000 0102010 02010096 3435f505 00000000000000000000000000000 0960097 00104a46 0960097 104a46494 Arbitrage can be defined as simultaneous buying and selling of foreign curren 00970000 ffd8ffe0 00000000000000001163707274000 24f46494 0000ffe2 49460001 0000ffe2 600010201 cies for the purposes of making profit Arbitrage is carried out mostly by bank ffe20c584 00150000000336465736300000184 00104a4 c450001 ffd8ffe000104a46494600010201009600 0c58494 02010096 0c58494 009600970 in s, they keep constant watch over the latest development the financial mar 0000006c77747074000001f000000 943435f5 6494600 0100000 970000ffe20c584943435f50524f46494c4 3435f505 00970000 3435f505 000ffe20c5 ket of the world. 014626b7074000002040000001472 0524f464 0102010 c484c69 500010100000c484c696e6f021000006d6 ffd8ffe0 ffe20c584 24f46494 84943435f5 24f46494 58595a00000218000000146758595 94c45000 0960097 6e6f0210 e74725247422058595a2007ce000200090 00104a4 943435f5 c450001 0524f46494 c450001 a0000022c000000146258595a0000 10100000 0000ffe2 00006d6 00600310000616373704d5346540000000 6494600 0524f464 0100000 c45000101 024000000014646d6e64000002540 5.9 Foreign Exchange Regulation Items 0100000 c484c696 0c58494 e747252 0494543207352474200000000000000000 0102010 94c45000 c484c69 00000c484c c484c69 0000070646d6464000002c4000000 e6f02100 3435f505 4742205 Foreign exchange regulations items are given696e6f0210 below: 00000000000f6d6000100000000d32d485 0960097 6e6f0210 10100000 6e6f0210 88767565640000034c00000086766 0006d6e7 24f46494 8595a20 0202000000000000000000000000000000 0000ffe2 96577000003d4000000246c756d69 c484c696 00006d6 00006d6e7 00006d6 47252474 c450001 07ce000 0000000000000000000000000000000000 000003f8000000146d65617300000 0c58494 e6f02100 e747252 472524742 e747252 22058595 0100000 2000900 40c00000024746563680000043000 0000000000000000000000000000000116 3435f505 0006d6e7 4742205 2058595a2 4742205 a2007ce0 c484c69 0600310 00000c725452430000043c0000080 3707274000001500000003364657363000 24f46494 47252474 8595a20 007ce00020 8595a20 00200090 6e6f0210 0006163 c675452430000043c0000080c6254 001840000006c77747074000001f000000 c450001 22058595 07ce000 009000600 07ce000 00600310 00006d6 52430000043c0000080c746578740 73704d5 014626b707400000204000000147258595 0100000 a2007ce0 2000900 310000616 2000900 00061637 0000000436f707972696768742028 e747252

Bangladesh Bank Manual Foreign Exchange Circular Public notice Import and export policy gazette Ministry of commerce circular Guise line for foreign exchange regulation

5.10 Foreign Exchange Business of FSIBL

1.Import: The Banks foreign exchange business relating to import was tk.66 05.50 million at the ends of December 2005. 2. Export: Banks foreign exchange business relating to export was tk.2856. 50 million at the ends of December 2005. 3.Inward Remittance: During 2005the Bank handled inward remittance fro m Bangladeshi workers abroad to the tune of tk.62.21 million against 32.692 million in 2005.

5.11 Functions of Foreign Exchange of FSIBL

The Bank actions as a media for the system of foreign exchange policy. For th is reason, the employee who is related of the bank to foreign exchange, espe cially foreign business should have knowledge of these following functions:

Figure: Functions of Foreign Exchange of FSIBL

5.12 Method of Effecting Payment of FSIBL

First Security Islami Bank Ltd. follows the following method to make payment between countries: 1. Telegraphic Transfer (TT): This is an instruction for transfer of money by telegram, cable or telex from bank in one country to another bank in different center. This is an instruction from the importers bank to the exporters bank. The TT is realized by us fro m the party as per bank circular. 2. Mail Transfer: This transfer is the order to pay cash to 3rd party. This transfer is sent by mai l and the charge must be realized ad per bank circular. 3. Drafts and Cheque: A Draft is order issued by one bank to another bank or its branch.

Figure: Payment method of FSIBL

ffd8ffe000104a4649460001020 1009600970000ffe20c58494343 5f50524f46494c4500010100000 c484c696e6f021000006d6e7472 5247422058595a2007ce000200 09000600310000616373704d53 46540000000049454320735247 42000000000000000000000000 0000f6d6000100000000d32d48 50202000000000000000000000 00000000000000000000000000 00000000000000000000000000 00000000000000000000001163 70727400000150000000336465 7363000001840000006c777470 74000001f000000014626b7074 00000204000000147258595a00 000218000000146758595a0000 022c000000146258595a000002 4000000014646d6e6400000254 00000070646d6464000002c400 000088767565640000034c0000 008676696577000003d4000000 246c756d69000003f8000000146 d6561730000040c00000024746 56368000004300000000c72545 2430000043c0000080c6754524 30000043c0000080c625452430 000043c0000080c74657874000 00000436f70797269676874202 863292031393938204865776c6 574742d5061636b61726420436 f6d70616e790000646573630000 00000000001273524742204945 4336313936362d322e31000000 00000000000000001273524742 2049454336313936362d322e31 00000000000000000000000000 00000000000000000000000000 00

5.1 Letter of credit Meaning

Letter of credit (L/C) can be defined as a Credit Contract whereby the buyer s bank is committed (on behalf of the buyer) to place an agreed amount of m oney at the sellers disposal under some agreed conditions. Since the agreed conditions include, amongst other things, the presentation of some specified documents, the letter of credit is called Documentary Letter of Credit. The Uni form Customs & Practices for Documentary Credit (UCPDC) published by inter national Chamber of Commerce (1993) Revision Publication No. 500 defines Documentary Credit: Any arrangement however named or described whereby a bank (the issuing bank) acting at the request and on the instructions of a customer (the Appli cant) or on its own behalf 1. Is to make a payment or to the order of a third party(the beneficiary) or is to accept and pay bills of exchange(Drafts)drawn by the beneficiary, or

Authorizes another bank to effect such payment or to accept and pay such bi lls of exchange (Drafts)

Authorizes another bank to negotiate against stipulated documents provide t hat terms and conditions are complied with.

LETTER OF CREDIT

ffd8ffe000104a46494600010201 009600970000ffe20c584943435f 50524f46494c4500010100000c48 4c696e6f021000006d6e74725247 422058595a2007ce000200090006 5.2 Typ es 00310000616373704d5346540000 of Doc um entary Cre 000049454320735247420000000 dit 000000000000000000000f6d600 0100000000d32d48502020000000 000000000000000000000000000 000000000000000000000000000 000000000000000000000000000 0000000116370727400000150000 000336465736300000184000000 6c77747074000001f00000001462 6b7074000002040000001472585 95a00000218000000146758595a0 000022c000000146258595a00000 24000000014646d6e64000002540 0000070646d6464000002c40000 0088767565640000034c0000008 676696577000003d4000000246c 756d69000003f8000000146d6561 730000040c00000024746563680 00004300000000c725452430000 043c0000080c675452430000043c 0000080c625452430000043c000 0080c7465787400000000436f707 972696768742028632920313939

Documentary Credits may be either: (a) Revocable credit. (b) Irrevocable credit.

(a) Revocable credit: A revocable credit is a credit that can be amended or cancelled by the issuin g bank at any time without prior notice to the seller. In case of seller (beneficiary), revocable credit involves risk, as the credit may be amended or cancelled while the goods are in transit and before the docum ents are presented, or although presented before payments has been made. The seller would then face the problem of obtaining payment on the other ha nd revocable credit gives the buyer maximum flexibility, as it can be amende d or cancelled without prior notice to the seller up to the moment of payment buy the issuing bank at which the issuing bank has made the credit available. In the modern banking the use of revocable credit is not widespread.

(b) Irrevocable credit An irrevocable credit constitutes a definite undertaking of the issuing bank (s ince it can not be amended or cancelled without the agreement of all parties thereto), provided that the stipulated documents are presented and the seller satisfies the terms and conditions. This sort of credit is always preferred to re vocable letter of credit. Parties To a letter of Credit: The parties are: The Issuing Bank,

The Confirming Bank, if any, and

The Beneficiary.

5.3 Other parties that facilitate the Documentary Cre dit are:
The Applicant, The Advising Bank, The Nominated Paying/ Accepting Bank, and The Transferring Bank, if any

i. Importer Seller who applies for opening the L/C. ii. Issuing Bank It is the bank which opens/issues a L/C on behalf of the impo rter.

Issuing Bank (Bangladesh) Advising Bank (India)

Negotiating Bank (India) Reimbursing Bank (J)

ffd8ffe000104a46494600010 201009600970000ffe20c5849 iii. 43435f50524f46494c4500010 Confirming Bank It is the bank, which adds i ts confirmation to the credit and it is done at th 100000c484c696e6f02100000e request of issuing bank. Confirming bank may 6d6e74725247422058595a20 or may not be advising bank. 07ce00020009000600310000 616373704d53465400000000 494543207352474200000000 iv. 00000000000000000000f6d6 Advising / Notifying Bank is the bank throu g h which the L/C is advised to the exporters. T 000100000000d32d48502020 ffd8ffe000104a464946000102010096 h is bank is actually situated in exporters count 000000000000000000000000 00970000ffe20c584943435f50524f464 000000000000000000000000 r y. It may also assume the role of confirming 94c4500010100000c484c696e6f021000 a nd / or negotiating bank depending upon the 006d6e74725247422058595a2007ce00 000000000000000000000000 c ondition of the credit. 020009000600310000616373704d5346 000000000000000000000011 54000000004945432073524742000000 637072740000015000000033 0000000000000000000000f6d6000100 64657363000001840000006c v. 000000d32d4850202000000000000000 77747074000001f000000014 Negotiating Bank is the bank, which nego 00000000000000000000000000000000 626b70740000020400000014 t iates the bill and pays the amount of the ben 00000000000000000000000000000000 e ficiary. The advising bank and the negotiatin 7258595a0000021800000014 00000000000000001163707274000001 g bank may or may not be the same. Sometim 6758595a0000022c00000014 50000000336465736300000184000000 e s it can also be confirming bank. 6258595a0000024000000014 6c77747074000001f000000014626b70 646d6e640000025400000070 7400000204000000147258595a000002 646d6464000002c400000088 18000000146758595a0000022c000000 vi. 767565640000034c00000086 146258595a0000024000000014646d6e Paying / Accepting Bank is the bank on 640000025400000070646d6464000002 76696577000003d400000024 w hich the bill will be drawn (as per condition o c400000088767565640000034c000000 6c756d69000003f800000014 f the credit). Usually it is the issuing bank. 8676696577000003d4000000246c756d 6d6561730000040c00000024 69000003f8000000146d656173000004 74656368000004300000000c 0c000000247465636800000430000000 725452430000043c0000080c vii. 0c725452430000043c0000080c675452 Reimbursing bank is the bank, which wou 675452430000043c0000080c 430000043c0000080c62545243000004 l d reimburse the negotiating bank after gettin 625452430000043c0000080c 3c0000080c7465787400000000436f70 g payment instructions from issuing bank. 7465787400000000436f7079 79726967687420286329203139393820 726967687420286329203139 4865776c6574742d5061636b61726420 3938204865776c6574742d50 436f6d70616e79000064657363000000 First Security Islami Bank certify the CIB (cre 61636b61726420436f6d7061 d it information bureau) and all agreements ar 00000000127352474220494543363139 36362d322e3100000000000000000000 6e7900006465736300000000 e made before opening L/C as a result its good 0012735247422049454336313936362d 000000127352474220494543 s are not sold again raising the products price 322e3100000000000000000000000000 o r reducing the product price. It sis the single 36313936362d322e31000000 0000000000000000000000000000 000000000000000012735247 422049454336313936362d32 2e3100000000000000000000 000000000000000000000000 0000000000

deal system, Because FSIBL deals with the business of selling any buying, no t loaning.

5.5 Some Important Documents of L/C

(a) Forwarding: Forwarding is the letter given by the advising bank to the issuing bank. Seve ral copies are sent to the issuing bank. All copies including original should be kept in the bank. (b) Bill of Exchange:

According to the section 05, Negotiable Instruments (NI) Act1881, A bill of exchange is an instrument in writing containing an unconditional order signe d by the maker, directing a certain person to pay [on demand or at fixed or d eterminable future time] a certain sum of money only to or to the order of a c ertain person or to the bearer of the instrument. It may be either at sight or c ertain day sight. At sight means making payment whenever documents will r each in the issuing bank.

(c) Invoice: Invoice is the price list along with quantities. Several copies of invoice are gi ven. Two copies should be given to the client and the other copies should be kept in the bank. If there is only one copy, then its photocopy should be kept i n the bank and the original copy should be given to the client. If any original i nvoice contains the customs seal, then it cannot be given to the client. (d) Packing List: Packing list is the letter describing the number of packets and there size. If t here are several copies, then two copies should be given to the client and the remaining should be kept in the bank. But if there is only one copy, then the photocopy should be kept in the bank and the original copy should be given t o the client. (e) Bill of Lading: Bill of Lading is the bill given by shipping company to the client. Only one co py of Bill of Lading should be given to the client and the remaining copy shoul d be kept in the bank. (f) Certificate of Origin: Certificate of origin is a document describing the producing country of the go ods. One copy of the certificate of origin should be given to the client and the remaining copy should be kept in the bank. But if there is only one copy, then the photocopy should be kept in the bank and the original should be given to the client. (g) Shipment Advice: The copy mentioning the name of the insurance company should be given to the client and the remaining copies should be kept in the bank. But if only on e copy is given, then the photocopy should be kept in the bank and the origin al copy should be given to the bank.

5.6 Form IMP

This form is prepared for maintaining account of the money, which goes out s ide the country for the purpose of payment. This form is required by Banglad esh Bank. It is an application for permission under 5/5 of the Foreign Exchang e Regulation Act, 1957 to purchase foreign currency for the payment of impor t.

Copies of IMP Form IMP FORM has four copies: 1. Original copy for Bangladesh Bank. Duplicate copy for authorized dealers. It is issued for processing Exchange C ontrol Copy of bill of entry or certified invoice. Triplicate copy for authorized dealers record. Quadruplicate copy for submission to the bank in case of imports where docu ments are retired.

Following documents are sent with FORM IMP Letter of Credit Authorization Form, One copy of invoice, Indent copy / proforma invoice.

The following information is included in the FORM IMP: Name and address of the authorized dealer, Amount of foreign currency in words and figures, Names and address of the beneficiary, L/C Authorization Form number and date, Registration number of L/C Authorization Form with Bangladesh Bank, and Description of the goods.

IMPORT SECTION

ffd8ffe000104a464946000102010096 00970000ffe20c584943435f50524f46 494c4500010100000c484c696e6f0210 00006d6e74725247422058595a2007c e00020009000600310000616373704d I.1 Meaning 5346540000000049454320735247420 of Import 000000000000000000000000000f6d6 Year Import means Total L/C 000100000000d32d485020200000000 lawfully Amount in US $ carrying out of anything 0000000000000000000000000000000 Exchange Rate from one Amount in BDT country to 0000000000000000000000000000000 another 2008 country for 0000000000000000000000000116370 575 buying. It will be $5,755,019.22 7274000001500000003364657363000 occurred 73.80 according to 001840000006c77747074000001f0000 the 523,955,000.5I government 2009 law. First 00014626b7074000002040000001472 Security 500 Islami Bank 58595a00000218000000146758595a00 $37,752,857.15 Ltd. (FSIBL)s 70.00 00022c000000146258595a000002400 foreign 2,I52,000,000.00 exchange 0000014646d6e640000025400000070 business relating to import was 646d6464000002c4000000887675656 Tk.II05.50 million at 40000034c0000008676696577000003 the ends of December d4000000246c756d69000003f800000 2005.Ther are different 0146d6561730000040c000000247465 years import happened by 6368000004300000000c72545243000 FSIBL at Mohakhali 0043c0000080c675452430000043c00 branch. Those are given 00080c625452430000043c0000080c7 bellow: 465787400000000436f707972696768 74202863292031393938204865776c6 574742d5061636b61726420436f6d706 16e7900006465736300000000000000 12735247422049454336313936362d3

Table: Import performance from 2008 to 2009 at Mohakhali.

I.2 Classification of Import

There are Three types of import. They are given below: Commercial import Industrial import Import under wage

I.3 Import Mechanism:

To import, a person should be competent to be an importer. According to Import and Export (Control) Act, 1950, the officer of Chief Controller of Import and Export provides the registration (IRC) to the importer. After obtaining this, the person has to secure a letter of credit authorization (LCA) from Bangladesh Bank. And then a person becomes a qualified importer. He requests or instructs the opening bank to open an L/C.

I.5 Import procedure of FSIBL

An importer is required to have the following to import through PBL--Applicant has to apply for opening L/C by a prescribed form. Applicant has to submit the Letter of Indent or Letter of Proforma Invoice.

Letter of Indent: Many sellers have their agent in sellers country. If the contract of buying is made between the buyers and the agent of the sellers then Letter of Indent is required.

Letter of Proforma Invoice: If the contract is made directly between the buyers and the sellers then Invoice is needed. Letter of Proforma

Applicant has to submit IRC (Indentors Registration Certificate). It is a certificate being renewed every year. This certificate is necessary if the contract is made between the buyers and the agents of the sellers. IRC is of two types COM and IND. COM is given for commerce purpose and IND is given for industrial purpose. Applicant has to submit LCAF (Letter of Credit Authorization Form).

Applicant has to submit insurance document.

Applicant has to prepare FORM-IMP. Recently, there has been made a provision to give a certificate named TIN (Tax Payers Identification Number). Taxation department issues this certificate. Then after proper scrutiny bank will open an L/C. While opening L/C, importer must keep certain percentage of the document value in the bank as margin

I.5Restriction regarding source of procurement of goods

Goods from south Africa and Israel or goods orienting from these two countries shall not be importable goods shall not be importable in the flag vessel of those two countries.

Import at Competitive Rate: Import shall be made at the most competitive rate and the importers may be required, at any time, to submit documents regarding the price paid or to be paid by them. This order shall be exempted up to TK.1.00 lac for opening L/C. Pre-shipment Inspection: Unless otherwise specified per-shipment inspection of imported goods shall not be obligatory in case of import by the private sector importers. Import on CER basis: All imports by sea air and land route shall be made on cost and freight basis, Import on free on board basis may be made strictly observing Bangladesh Banks circular, before opening L/C necessary insurance cover note should have to be purchased form the insure co. no import shall be allowed on CIF basis without prior approval from the ministry of commerce.

I.7IImport Authorization
Import License not required: No import license will be necessary import of any item. Import against LCA form: Unless otherwise specified no import irrespective of the source of finance, shall be allowed exchange through submission LCA form, duly filled in, to the concerned nominated Bank. Import against LCA form but without opening: Import against LCA form may be allowed without opening of letter of credit in the e following cases:

Import of books, Journals, Magazines and periodicals on sight draft or essentials bill basis. Import of any permissible item for an amount not exceeding US$ 2500/-only during calendar year against remittance made from Bangladesh at WES rate.

I.7Deferred Payment

L/C may be open under deferred payment basis: Direct Payment in Abroad: Only for Bangladeshi National who live in abroad for service. Those who are entitled to purchases the importable goods for direct payment to the beneficiary from his own service without opening any L/C, The goods must be sent to the Bangladesh. Time limit opening L/C: Letter of credit shall be opened by all importers within 120 days from the sate of registration of LCAF with the Bangladesh Bank unless otherwise notified. Document required to be submitted along with LCA from: L/C application form duly signed by the importer. Indent for goods issued by indenture or pro-forma invoice obtained from the foreign supplier, as the case may be end Insurance cover note.

I.8 Import L/C (Letter of Credit)

A letter of credit is a conditional bank undertaking of payment. In other orders letters of credit is a letter form the importer Bankers to the exporter that the bills if drawn as per terms and conditions complied with will be honored on presentation. Classification of L/C: 1. Revocable L/C Irrevocable L/C Transferable L/C Revolving L/C Red clause L/C Green clause L/C Back to Back L/C

Documents submitted by the importer before opening of the L/C: Trade license (Valid) Import registration Certificate (Must kept in the bank custody )

Passbook import Income tax declaration Membership certificate

Memorandum of articles (in case of Ltd. Co.)

Register deed (in case of partnership firm)

I.9 Bank will supply the following papers /document before opening L/C L/C application from IMP from Charge documents paper The above paper must be completed dully filled and signed by the party and verified signature. L/C application and procedure for opening L/C: For opening L/C the client is to submit to the bank an application in the printed format of the designed bank. This is called L/C application form, which is also an agreement between the import and the bank. The form is to be stamped under stamp act. I n force in Bangladesh, The importer must be submit the L/C and IMP and indent or contract. Purchase order/ pro-forma invoice along with L/C application must be completed in and signed by the authorized person of the importer giving the following particulars: Full name and address of the supplier of beneficiary and importer Brief description of the goods L/C value for US$ etc which must not exceed the ALCA value The unit price quantity, quality of the goods Origin of the goods, port of loading and port of destination must be mentioned Model of shipment (Sea Air, Road etc.) List date of shipment and negotiation time Tenor of draft Mode of advising L/C Instrument to add confirmation if required. LCA number

I.10 Examination of L/C application

On receipt of L/C application it must be checked by an officer of L/C section very carefully in the following manner:

That all the information mentioned in above column has been furnished. That the terms to be Imported are eligible according to importers entitlement Thee goods are not being imported or originated from Sou8th Africa or Israel If the goods are imported from any member countries of ACU That all the cutting /permit etc are endorsed

That the validity of the L/C must not exceed the validity of LCA.

L/C ids opened within the validity period permitted in the license

I.11Retirement procedure for Deferred payment of issuance Bills:

When the draft is returned by the draw (importer) after duly accepted by him the following procedure to be maintained, The maturity date is to be worked out and noted in the bill register and also in due date diary. The due date dairy may be maintained by the dealing officer and the manager in charge of foreign exchange department. The foreign corresponding should be advised the due date maturity and the authorized to debit the NOSTRO account or to claim reimbursement on due date as per L/C terms. All the documents delivered to the importer except accepted bill of exchange or draft.

I.12 Charges for L/C opening

L/C commission: L/C commission 50% within 90 days , first quarter and subsequently increase 30% and upon on 15% vat. FCE-(Foreign Correspondent Charge): Below $25 up to $2500, If applicant want to bear the application charge then addition $75 will be charged. Telex per telex 300 taka .But if amendment is consider then per amendment 500 taka and of courier telex ,then it will be 1500 taka 1. Handing charge tk200 fixed. Stamp charge-per L/C 3I0 taka L/C margin- that means cash security ordered by Bangladesh Bank for industrial items it is liberal and for luxuries items it is highly cost.

I.13 Essential things contain of L/C form

L/C Number Shipping Period Importer name and address IRC (Import Registration Certificate) Years of renewal

L/C value Source of financing Description of goods

HSC (Harmonious system code.)

I.15 Processing and opening of Back to Back L/C procedure

An exporter serious to have an Import L/C limit under back to back arrangement. Must have applied to the designed bank in prescribed forms for sanction for opening of back to back L/C. In that case the following information is to be furnished by the applicant: 1. Full particulars of bank account Types of business (Proprietorship, Partnership, Ltd .co.) In case of Ltd. Co. Balance sheet of last 3 years and the name of directors. Historical Background Amount of limit required Goods to be imported Security to be offered Repayment schedule and source of fund Other liabilities of the customer with the bank Statement of assets and liabilities Trade license Valid bonded warehouse license Membership certificate

I.15 Other Documents Necessary For Import

L/C Terms Draft Invoice Recording in the Register

I.1I Import Performance of FSIBL FSIBLs import business stands at TK. 9,I87 crore during 2008 as against target of TK. 10800 crore. Achievement is 89.I9% with 29.97% growth rate. Its performance in import business in last 3 years was not up to the mark. The prospect of import business in our country is hopeful. So, it wants to develop its area of business

Table: Performance of Import Business

I.17 Achievement and the growth Years of Import of FSIBL

2005 2005 200I 2007 2008 Years Taka in Crore 2005 3379 2005 5I25 200I 5980 2007 7553 2008 9I87 Achievement (%) Figure: Achievement and growth of import 101.38% 101.50% 89.20% 89.15% 89.I9% Growth (%) 30.51% 3I.85% 29.33% 25.I3% 29.97%

ffd8ffe000104a46494600010201009600970000ffe20c584943435f50524f4 6494c4500010100000c484c696e6f021000006d6e74725247422058595a200 7ce00020009000600310000616373704d5346540000000049454320735247 420000000000000000000000000000f6d6000100000000d32d48502020000 0000000000000000000000000000000000000000000000000000000000000 0000000000000000000000000000001163707274000001500000003364657 363000001840000006c77747074000001f000000014626b70740000020400 0000147258595a00000218000000146758595a0000022c000000146258595 a0000024000000014646d6e640000025400000070646d6464000002c40000 0088767565640000034c0000008676696577000003d4000000246c756d690 00003f8000000146d6561730000040c000000247465636800000430000000 0c725452430000043c0000080c675452430000043c0000080c62545243000 0043c0000080c7465787400000000436f7079726967687420286329203139 3938204865776c6574742d5061636b61726420436f6d70616e79000064657 3630000000000000012735247422049454336313936362d322e3100000000 0000000000000012735247422049454336313936362d322e3100000000000 0000000000000000000000000000000000000000000

Meaning of Export
Export means lawful carrying out of anything from one country to another country for sale Export business handled by the FSIBL during 2003 stood at 2807 million, showing a growth Of 51.17 percent from TK. 1988.5 million during 2002. In 2007 witch exports are happened By FSIBL at Mohakhali branch, those are given below: To become an exporter an ERC (exporter Registration Certificate) must be obedient from the office of CCI & E. Table: Export performance from jan2007 to aug2005 at Mohakhali Branch

Amount in us $ 382,33I.70 323,079.95 555,725,57 313,855.53 581,12I.15 525,538.77 $2,930,837.75

Amount in BD TAKA January 23322538.7 2855I7I5.8 20289520.8I

175,555.73 EXPORT SECTION

1098

19725757.21 ffd8ffe000104a46494600010201009600970000ffe20c5 84943435f50524f46494c4500010100000c484c696e6f02 302981I0.39 1000006d6e74725247422058595a2007ce00020009000 27I95I30.12 600310000616373704d53465400000000494543207352 47420000000000000000000000000000f6d6000100000 25550757.9 000d32d48502020000000000000000000000000000000 185,527,859.97 000000000000000000000000000000000000000000000 000000000000000000011637072740000015000000033 64657363000001840000006c77747074000001f000000 014626b707400000204000000147258595a0000021800 0000146758595a0000022c000000146258595a0000024 000000014646d6e640000025400000070646d64640000 02c400000088767565640000034c00000086766965770 00003d4000000246c756d69000003f8000000146d6561 730000040c0000002474656368000004300000000c725 452430000043c0000080c675452430000043c0000080c 625452430000043c0000080c7465787400000000436f70 797269676874202863292031393938204865776c65747 42d5061636b61726420436f6d70616e79000064657363 0000000000000012735247422049454336313936362d3 22e310000000000000000000000127352474220494543 36313936362d322e31000000000000000000000000000 000000000000000000000000000

FOREIGN REMITTANCE

Definition of Exporter
The importers and exporters trade of the country is regulated by the importers Exporters control act 1950. No person / firm is allowed to export any thing from Bangladesh unless he is registered with CCI and E under the registration order (Importer and Exporter) 1952. To become an exporter an ERC (exporter Registration Certificate) must be obedient from the office of CCI & E.

Procedure for Maintaining Export Registration Certificate (ERC)

For obedient Export Registration Certificate (ERC), intending Bangladesh Exporters are required to apply to the CCI & E authority in the prescribed from along with the following documents:

Nationality Certificate Copy of valid Trade License Income Tax Certificate Bank certificate Copy of rent receipt of the business firm Registered partnership deep in case of partnership concerns Memorandum of articles & association and incorporation certificate in On satisfaction of the CCI & E the potential exporter is advised to deposit export registration fee of TK.1, 000 /- through treasure chalan to Bangladesh bank / sonali bank for enabling them to issue ERC. The ERC may be renewed every year on payment of renewal fee of TK.1, 000/through treasury chalan as started.

Different Types of Export

There are three types of export. Those are given below: Export under L/C Consignment basis export Export against advancement payment

Export under L/C:

Exporters are allowed to export the commodity under irrevocable letter of credit. Under this type of export, exporter will ship the goods as pr terms of the credit and will get payment as per arrangement as arrangement of the credit. Consignment basis export: Exports are allowed against firm contract. As per contract, importer will ship the goods and the buyer will make payment after selling the consignment.

Export against advancement payment: Sometimes exporter receives payment in advanced. In that case Authorized dealer should obtain a declaration from the exporter on the

General Rules for Export

There are rules, which are mandatory for export of any goods form Bangladesh. The rules are under: 1. No person can export any goods from Bangladesh unless he is duly registered as an exporter with the CCI & E. All export must be declared on the on the EXP form, which is consisting of 5 copies. Export much is against any of the following: a. Export L/C. b. Firm Contract c. Advance Payment. Transport documents related to land route or sea and any other Authorized Dealer. The Airway Bill And Any Other documents of title to car 5 go may be drawn to the order of a bank in the country of import. However in case of advance payment transport document may be drawn to the order of Foreign Import Bank endorsement of transport documents is prohibited Directions under SI. No shall not apply in the following cases; Export of Trade sample Personal Effects. Goods Shipped under the order of Govt . Export of fresh fish vegetable and fruits. Gift package for less than Tk.50/-

EXP must be submitted to the Bank by the exported and Bank will submit the Duplicate Copy to the Bangladesh Bank within 15 days from the date of shipment.

Payment for goods exported should be received through an authorized dealer in freely convertible currency.

Export proceeds must be received by the export within 5 months. Overdue export bills statement to Bangladesh Bank should be submitted by the 15th of the month following quarter to which it relates.

1. In case of short shipment exporter should give a notice of short shipment of/n the prescribed from in duplicate the prescribed from in duplicate the customs who will forward a Certified copy of the notice to the Bangladesh Bank.

Stages & Mechanism of Export

There are some stages and mechanism of export. Those are given bellow:

Exporter will make the goods ready for shipment. Arrangements have to be taken for inspection of goods by the competent authority as per credit terms. Exporter will declare on EXP form against export L/C firm contract /advance payment. Exporters have to arrange approval for export from custom authority on EXP from by submitting export L/C, export permission from CCI & E. After completion of custom formalities, shipping company will receive the goods and will issue B.L.

Export Document Checking

After submission of export document by the exporter, FSIBL must check, whether the entire required document submitted or not. FSIBL must examine all document stipulated in the credit with reasonable care to ascertain or not they appear, on their face to be in compliance with the term and condition of the credit .Document not stipulated in the credit will not be examined by the FSIBL. To examine document FSIBL must follow the L.C term and international Banking practice. Some Common discrepancies in export document: 1. Late presentation

Part shipmen effected Consignee/Notify party differs

F. CR presented instead of B/L

B/L shows freight collect instead freight prepaid B/L is clause Description of goods differs Unit price differs Per shipment inspection certificate absent Late shipment

Export Financing
To meet up the cost of goods to be exported, the exporter may require Bank finance. Besides, he may require finance for go down rent, freight etc. Even after shipment of the goods, exporter may require Bank finance to meet-up his expenditure up o repatriation of the export proceeds. There are two type of export finance:

Pre-shipment finance Post -shipment finance

Pre-shipment finance: Per-shipment investment is finance, allowed by a Bank to an exporter, to meet the cost up to shipment of the goods to overseas buyer. The purpose of the investment is to purchase raw materials or finished goods or manufacturing processing, packing and transporting the goods. Post-shipment finance: There is time gape between exports of the goods and realization of the proceeds. So exporter may require finance in that period to continue his business. So Bank may finance against export document ensuring the following:

Export document comply the credit terms. Buyer is Bona-fide.

Parties past performance is satisfactory.

Any other security in case of export under contract.

Security of Pre-Shipment Investment

Security of pre-shipment investment is given bellow: FSIBL will mark on the related export L/C. FSIBL will finance against having sufficient time to procure the goods for export. Finance to be after arrival of the imported raw materials under Back to Back L/C. FSIBL will supervise the production from time to time ensure export of the goods in time. FSIBL will adjust the liability proportionately from related export documents.

EXP Requirement
All export from Bangladesh must be declared by the shipper on EXP form to the FSIBL enabling them to submit the duplicate within 15 days from date of shipment. The shipper is required to repatriate the export proceeds within 5 months from the date of shipment otherwise penalty is imposed upon them A careful watch is to be ensure that the sale proceeds are received on due date. A due date diary must be maintained to pursue the individual case.

Inspection of Goods
The goods should be kept ready for inspection of the competent authorities and issue a certificate of quality control required under regulation: for example:

Export promotion Bureau. Custom Authorities who will inspect the goods under Sea customs Act. Chamber of commerce and industry. Other agencies authorized to inspect the goods before shipment.

Send shipping advice

On shipment of goods and receipt of bill of lading and other documents from the clearing and forwarding agents send a shipping advice to the importer abroad so that the latter may stand

making arrangement for taking delivery of the consignment.

Shipping Requirement of Exporter in the Context of Export

Every exporter under foes certain sequential formalities when takes up the venture of exporting goods First of all the exporter comes into contact with the buyer and negotiate the commodity contract, while negating the commodity contract and exporter takes into consideration three resects: A Cost of the commodity Insurance. Freight component

Required Documents /Papers of L/C Stipulation

There are different documents and papers of stipulation are given bellow: Commercial invoice Certificate of origin Negotiable bill of lading Pre-shipment inspection certificate. Quantity and Quality certificate. Fumigation certificate depending the nature of cargo Photo sanitary certificate depending the nature of cargo

Sending Export document on Collection

If the documents are discrepant exporters Bank will send the document to the issuing Bank on collection, at the request a risk of the exporter. At the time of sending documents on collection the following voucher to passed.

Dr. outward foreign bill lodged A/C Cr. outward foreign bill lodged A/C

After realization of the proceeds, above entries to reserve and the following voucher to be passed.

Dr. IBG A/C IBW@ Mid rate (Bangladesh Banks buying rate +TT documentary /2) Partys current account Cr. Partys investment account Cr. Partys investment income a/c Cr. Income a/c Cr.Telex charge Cr. F.C held against Back to Back L/C

Export Incentives
To promote the export business, government has declared some incentives for exporter. Following are the main incentives as per export policy 1997-2002 declared by the ministry of commerce:

Retention Quota: Export dared allowed to deep 50% of their export proceeds to their F.C A/C It is 7.5% in case of export against switch import is higher, proportionately.

Investment Period: Normally export finance, as working capital is allowed for 180 days. Now it has been extended up to 270 days for frozen foods, tea and leather

Credit Card: Exporters are allowed to get credit cards for business tour. Investment Facility: Commercial Bank may finance for export, up to 90% of FOB value of the export L/C

No Compensation: Commercial Bank will not impose compensation on overdue sight export bill under irrevocable export L/C.

Duty Draw Back: Those exporters, who are not available bonded warehouse facility, are entitled to get duty draw back facility. They will pay the duty to the custom authority at the time of importing the raw materials and after realization of the export proceeds. They will apply for draw back duty paid earlier authority will pay back the duty.

Duty Free Capital Machinery: 100% export oriented industries outside EPZ are also allowed to import capital machinerys free of duty.

Cash Incentives: Deemed exporters are allowed 25% cash incentive by Bangladesh Bank Stock Lot Disposal: Rejected garments and leather may be sold to local market paying 20% duty on the imported raw materials.

Meaning of Remittance
The word Remittance originates from the word remit which means to transmit money/ fund. In banking terminology, the work remittance means transfer of fund one place to another. When money transferred from one ffd8ffe000104a4649460001 country to another is called Foreign Remittance 0201009600970000ffe20c58 4943435f50524f46494c4500 010100000c484c696e6f0210 00006d6e747252474220585 Foreign Remittance 95a2007ce00020009000600 The basic function of this 310000616373704d5346540 department are outward and inward remittance of foreign 00000004945432073524742 exchange from one country to another country. In the 00000000000000000000000 process of providing this remittance services; it sells and 00000f6d6000100000000d3 buys foreign currency. The conversion of one currency 2d485020200000000000000 into another takes place at an agreed rate of exchange in 00000000000000000000000 where the banker quotes, one for buying and another for 00000000000000000000000 selling. In such transactions the foreign currencies 00000000000000000000000 are like any other commodities offered for sales and 00000000000011637072740 purchase, the cost (convention value) being paid by 00001500000003364657363 the buyer in home currency, the legal tender 000001840000006c7774707 4000001f000000014626b70 74000002040000001472585 95a00000218000000146758 Remittance Section Function of the 595a0000022c00000014625 8595a000002400000001464 6d6e6400000254000000706 46d6464000002c400000088 767565640000034c0000008 Handling of all incoming and outgoing foreign and 676696577000003d4000000 local remittance is the major 246c756d69000003f8000000 146d6561730000040c00000 Function for this department. 02474656368000004300000 000c725452430000043c000 Handling of incoming and outgoing T.T. 0080c675452430000043c00 00080c625452430000043c0 Outstation Cheque Collection. 000080c7465787400000000 436f7079726967687420286 Outstation Cheque Purchase. 3292031393938204865776c 6574742d5061636b6172642 Demand Draft Handling. 0436f6d70616e7900006465 73630000000000000012735 Other assorted work 24742204945433631393636 2d322e31000000000000000 00000001273524742204945 4336313936362d322e31000 00000000000000000000000 00000000000000000000000 00000

SECTION

Remittance Remittance of Fund

Remittance of fund is to be collected in two ways. First of all, it comes from inward basis and then, it happens outward.

Inward remittance
Any person can remit funds to another through Inland remittance by using the following means of remitting funds with charges

Pay Order (PO). Demand Draft (DD). Telegraphic Transfer (T.T). Mail Transfers

Pay Order (PO) A pay order is a written under, issued by a branch of the Bank, to pay a certain sum of money to a specific person or a bank. It may be said as to be a banker's cheque as it is issued by a bank and payable by itself.

Outward Inward

Demand Draft (DD) This is an instrument through which customers money is remitted to another person/Firm/organization in outstation (outside the clearing house area) form a branch of one Bank to an outstation branch of the same Bank or to a branch of another Bank (with prior arrangement between that Bank with the issuing branch). Telegraphic Transfer (TT) A Telegraphic Transfer is a remittance, which is banker through a coded by secret cheek signal, on the paying office pay the payee by crediting his

ffd8ffe000104a464946000102010096 effected by the 00970000ffe20c584943435f50524f464 telegram attested 94c4500010100000c484c696e6f02100 receipt of which, amount to the 0006d6e74725247422058595a2007ce0 account. 0020009000600310000616373704d534 65400000000494543207352474200000 00000000000000000000000f6d600010 0000000d32d485020200000000000000 00000000000000000000000000000000 Foreign Remittance 00000000000000000000000000000000 Foreign remittance is the 00000000000000000116370727400000 transfer of foreign currency from one country to another country. In another word, 15000000033646573630000018400000 foreign remittance 06c77747074000001f000000014626b7 foreign currency means, remittance in that are received in and 07400000204000000147258595a00000 made out abroad. Actually, foreign remittance 218000000146758595a0000022c00000 is purchase and sale of freely convertible foreign currencies 0146258595a0000024000000014646d6 exchange control as permissible under regulations of the country. e640000025400000070646d646400000 Foreign remittance is very important 2c400000088767565640000034c00000 for the country as valuable foreign exchange involved in the 08676696577000003d4000000246c756 is transfer mechanism. Foreign d69000003f8000000146d65617300000 two waysremittance takes place in 40c00000024746563680000043000000 00c725452430000043c0000080c67545 2430000043c0000080c6254524300000 43c0000080c7465787400000000436f7 07972696768742028632920313939382 04865776c6574742d5061636b6172642 0436f6d70616e7900006465736300000 00000000012735247422049454336313 936362d322e310000000000000000000 00012735247422049454336313936362 d322e310000000000000000000000000 00000000000000000000000000000

method of

Inward

Outward

Foreign

Instruments of Foreign remittance: Cash for : Dollar, pound, France Fr. Riyal or any other currency. T.C. : Travelers cheque. F.D.D : Foreign demand draft. T.T : Telegraphic Transfer, cable transfer or swift transfer. M.T : Mail Transfer. I. MO : International Money order. Cheque : By any person & institution. P.O : Payment order.

Inward Remittance
Remittance comes from foreign countries to our country is called To the bankers or ADs inward remittance means purchase of authorized dealers. Generally, inward remittances are received by TT, purchase of foreign bills & travelers Cheque, export bills. the formal channels of receiving inward remittance. A local bank indenting commission of local firm also comes under purview of

Inward Remittance Draft

Mail Transfer

ffd8ff e0001 04a46 49460 00102 01009 60097 0000ff e20c5 84943 435f5 0524f 46494 c4500

ffd8ffe0 00104a46 4946000 1020100 9600970 000ffe20 c5849434 35f50524 f46494c4 5000101 00000c48 4c696e6f 0210000 06d6e747 2524742 2058595a 2007ce00 0200090 0060031 0000616 373704d 5346540 0000000 4945432 0735247 4200000 inward remittance. 0000000 foreign currency by 0000000 draft, mail transfer, 0000000 Basically, these are 00f6d600 also receives 0100000 inward remittance. 000d32d 4850202 0000000 0000000 0000000 0000000 0000000 0000000 0000000 0000000 0000000 0000000 0000000 0000000 0000000 0000116 3707274 0000015 0000000 3364657 3630000 0184000 0006c777 4707400 0001f000 0000146 26b7074 0000020

Telegraphic Transfer
Purchase of Foreign Bills & Traveler

Export Proceed

Figure Modes of Inward Remittance

Outward Remittance
Remittance from our country to foreign countries is called outward foreign remittance. On the other word, sales of foreign currency by the authorized dealer or formal channels may be addressed as outward remittance. The authorized dealers must utmost caution to ensure that foreign currencies remitted or released by them are used only for the purposes for which they are released. Out ward remittance may be made by appropriate method to the country to which remittance is authorized. Most outward remittance is approved by the ffd8ffe000104a46494600 authorized dealer on behalf of Bangladesh Bank. Outward remittance 01020100c800c80000ffe20 may be made for following purposes -

c584943435f50524f46494c 4500010100000c484c696e 6f021000006d6e74725247 Travel 422058595a2007ce000200 0900060031000061637370 Medical treatment 4d53465400000000494543 2073524742000000000000 0000000000000000f6d600 Educational purpose 0100000000d32d48502020 0000000000000000000000 Attending seminar etc. 0000000000000000000000 0000000000000000000000 Balance amount of F.C account. 0000000000000000000000 0000001163707274000001 Profit of foreign companies. 5000000033646573630000 01840000006c7774707400 Technical assistance 0001f000000014626b7074 0000020400000014725859 5a00000218000000146758 New exporters up to USD I,000/- for business promotion 595a0000022c0000001462 58595a0000024000000014 F.C. remittance can be made for fare, exhibition from export 646d6e6400000254000000 retention quota. 70646d6464000002c40000 0088767565640000034c00 Outward remittance in favor of beneficiaries outside Bangladesh may 00008676696577000003d4 be made in any of the following manners : 000000246c756d69000003 f8000000146d6561730000 040c000000247465636800 0004300000000c72545243 0000043c0000080c675452 430000043c0000080c6254 52430000043c0000080c74 65787400000000436f7079 7269676874202863292031 393938204865776c657474 2d5061636b61726420436f 6d70616e79000064657363 0000000000000012735247 422049454336313936362d 322e310000000000000000 0000001273524742204945 4336313936362d322e3100 0000000000000000000000 0000000000000000000000 00000000

Outward Remittance Telegraphic Demand Draft L/C Payment Mail Transfer

ffd8ffe000104a46494 600010201009600970 000ffe20c584943435f 50524f46494c450001 0100000c484c696e6f0 21000006d6e7472524 7422058595a2007ce0 002000900060031000 0616373704d5346540 000000049454320735 247420000000000000 000000000000000f6d 6000100000000d32d4 850202000000000000 000000000000000000 000000000000000000 000000000000000000 000000000000000000 000000000001163707 274000001500000003 364657363000001840 000006c77747074000 001f000000014626b7 074000002040000001 47258595a000002180 00000146758595a000 0022c0000001462585 95a000002400000001 4646d6e64000002540 0000070646d6464000 002c40000008876756 5640000034c0000008 676696577000003d40 00000246c756d69000 003f8000000146d656 1730000040c0000002 474656368000004300 000000c72545243000 0043c0000080c67545 2430000043c0000080 c625452430000043c0 000080c74657874000 00000436f707972696 768742028632920313 93938204865776c657 4742d5061636b61726 420436f6d70616e790 000646573630000000 000000012735247422 049454336313936362 d322e3100000000000 000000000001273524 742204945433631393 6362d322e310000000 000000000000000000 000000000000000000 00000000000

Figure: Modes of Outward Remittance