CUSTOMS BOND

AND
DOCUMENTATION
Assignment Prepared By

Victor Quiah
ID: CBT3D230116
Reference No: 0600066891
Date: 28/10/2023
 Table of Contents

1. Introduction
2. Identify Commercial Activities
3. Terminologies of commercial management
4. Incoterm
5. Duty Draw Back:
6. Yearly bond audit
7. Cash incentive
8. Appointment of Warehouses and Procedure to be followed:
9. Warehousing bond

10.Permission for deposit of goods in a warehouse and period for which they
may remain in warehouse.

11.The Customs Bond Commission rate

12.Types of Bonded Warehouses
13.Bonded Ware House Management
14.Payment of rent and warehouse charges
15.Bill of Entry for Warehousing
16.Utilization Declaration
17.Type of LC

18.Shipping line & BL process

19.Conclusion

20.Abbreviation
21. Questions and Answer
1. Introduction
A company is open to close all economic activities need to involve commercial part. All kinds of
license issue and renew, collect master L/C or Sales contract, Open Back to Back Lc to purchase raw
materials, process all documentation for export, collect payment from buyer and realize in bank,
provide Back to Back Lc payment, prepared incentive document and collect incentive payment,
prepare Customs Bond yearly Audit paper and submit to pass yearly audit report, renew general bond
per 3 years. Every commercial steps need to keep record by computer and register. maintain good
communication with Bank, BKMEA/ BGMEA, Buyer, Suppliers, Forwarder, C&F, Customs Bond,
Vat office, Income Tax Office, etc.

2. Identify Commercial Activities

 Sales Contract
 Master L/C
 UD
 C&F
 UP
 Export
 Shipping Line
 Negotiation
 PO
 PI

3. Terminologies of commercial management:

In commercial management terminology plays an important vital role in the understanding of contexts
and specialized texts. Understanding the intricate terminological details of the technical and scientific
contexts helps commercial executives comprehend what the main message of the document is and it
helps specialists to transmit the content more effectively. The need for operational definitions is
fundamental when collecting all types of commercial data it is particularly important when a decision
is being made about whether something is correct or incorrect or when a visual check is being made
where there is room for confusion. Undoubtedly, commercial terminology helps us to fully understand
specific topics. Well-defined terminology helps people across various industries communicate more
efficiently reduces ambiguity and increases clarity which makes it an important factor in commercial
activities.
Key business terms of commercial management:
Whether a fresh-faced commercial executive of the commercial team or an experienced member or the
commercial team or commercial manager himself must do accomplish develop skills on the following
business terms handy & have to brush up them through on daily duty study skills to use these terms
with ease and confidence over the time onward. Whole team of commercial must equipped with the
following commercial terms knows properly and can act accordingly in time of needed. Terms of
commercial management mandatory to know, understand & learn properly under basic 2 segments:
1. Shipping terms &
2. Financial terms.

Shipping related terms (called as incoterms): globalization has given impetus of international trade
which is increasing by the day. International trade involves multiple agencies, transportation agents,
carriers as well as customs and banks etc of the two countries involved in trade. Any export or import
transaction involves transportation of goods predominantly via sea or air and in some cases over the
road transportation too. Export and import transactions are essentially dependent upon documentation
and information to flow across all related agencies smoothly. In fact it is essential for information to
flow to the agencies involved in each sector in advance before the physical goods arrive or move. The
advancement of technology in terms of internet and edi has helped smoothen the transactions
internationally across all countries. Similarly in the case of international terms of trade too, things have
been smoothened and standardized across all countries with the introduction of incoterms published by
icc or international chamber of commerce in 1936. Incoterms are the standard terms of trade that
define the rights and obligations of the parties involved in trade. It specifies the responsibility of the
buyer and the seller by defining the transaction and the cost aspects concerning the transaction and
especially related to carriage, custom duties as well as insurance, etc. However it limits itself to the
scope of the liability of costs and definition thereof and does not deal with the ownership or transfer of
title of goods.

4. Incoterm:
Short for international commercial terms, are critically important to know because they’re legal commercial
terms used to determine who (i.e., the buyer or the seller) is responsible for what during the shipping
process. Started from 1919 and published first time since 1936, icc (international chamber of
commerce) have been maintaining and developing incoterms counted as following 13. If you choose or
agree to the wrong incoterms in the contracts during negotiations with your international buyer, you
could risk a financial hit. Incoterms were created as common codes of conduct and contract and are
regulated by the international chamber of commerce for international trade. Each incoterms does one
of two main things. The first is to determine at what point the responsibility and ownership for the
shipment transfers from the seller to the buyer. This is important in case the shipment gets lost or
damaged in transit. The second is to determine who is responsible for, or who pays for, the
transportation of the goods, import and export processes, insurance, loading and unloading, and the
like. CBLM Generally, incoterms — short for “international commercial terms” — consist of 11
“shorthand” descriptions provided by the international chamber of commerce of the shipping terms
that can be applied to a given contract. Using incoterms effectively eliminates the need to go into
minute detail regarding every element of the shipping process every time a contract for the purchase,
sale, lease, transportation, etc. Of goods is entered into. For example:
• Where delivery takes place.
• Which party shoulders the risks of loss and damage, and when.
• Who is responsible for clearance by customs.
• Which party is liable for payment of duties and taxes.
• Which party is responsible for insurance.
• When acceptance by the buyer occurs.
• When the seller is permitted to recognize sales revenue.
• Who is responsible for loading and/or unloading of the goods.
• When the purchaser’s lender(s) can safely provide funding for purchases

5.Duty draw back:

Duty drawback activities are performed as per statutory regulatory order benefits. Drawback is the
 refund of duties and taxes paid on inputs/raw materials used for the manufacture of exported goods
and services. The term duty draw back is used exclusively for refund of duties and taxes against
export. Under the provisions of sub-section (1) of section 13 of the value added tax act, 1991 read
with section 37 of the customs act, 1969 all duties and taxes paid on inputs/raw materials used for
the manufacture of exported goods or services shall be refunded except income tax paid in advance
and supplementary duty paid on the inputs/raw materials declared by the government in official
gazette as non-refundable. Except a few items, all exports from Bangladesh are zero rated,
meaning goods and services of export are not only exempted from duties and taxes, but also that
duties and taxes paid on the inputs/raw materials used for the manufacture of exported goods or
services are refundable to the exporter. Under the provision of sub-section (2) of section 13 of the
value added tax act, 1991, an exporter of goods or services-cum-supplier of goods or renderer of
services is allowed to adjust duties and taxes refundable to him as drawback against duties and
taxes payable by him for supply of goods or services rendered. Exporters are allowed drawback on
two different methods: (a) drawback on actual case-to-case basis, and (b) drawback on flat rate.
Drawback on flat rate is applicable to cases on which orders are issued by director general, duty
exemption and drawback office (DEDO) and published in the official gazette. Orders for drawback
on flat rate are issued for ease of refund of duties and taxes depending on the nature of the goods of
exports, nature of inputs used in the manufacture of exported goods, value of the inputs and the
rate of duties and taxes applicable to the inputs. In accordance with the provision of sub-section (1)
of section 13 of the value added tax act, 1991 read with sub-rule (1) of rule 30 of the value added
tax rules, 1991 and sub-section (c) of section 39 of the customs act, 1969, any claim for drawback
is to be submitted at the time export is established or within 6 months from the date of export.
Claims for drawback of duties and taxes against export made to DEDO and all other claims for
refund of duties and taxes are to be made to the respective custom house or customs, excise and
Commissionerate.
DEDO has two main functions –
(A) Payment of drawback of duties and taxes; and
(b) Issuance of input-output coefficient.

6. Yearly bond audit:

Using authorized audit form & formats yearly bond audit is mandatory by commercial department to
perform by presenting a lot of documents to customs bond Commissionerate with audit note as
follows:
1. Up to date trade license
2. Up to date trade tin & vat return
3. Set up force loan issues
4. Prepare audit note
5. Submit up to date trade PRC (proceed realization certificate)
6. Undertaking
7. Declaration by audit note
8. Photocopy of passbook
9. Import document for audit period; m L/C, bb L/C, ip, po, UD, invoice, bl/awb/tr etc,
10. Export documents like: shipping bill, invoice, indent, bl/awb/tr, egm. Exp form, export order
7.Cash incentive:

Cash incentive is the certificate in which one is certifying that the client is a genuine exporter and
eligible for getting a cash incentive for his claimed total export value. As per the Bangladesh bank’s
circular issued in September last year, an additional 1 per cent special incentive was applicable against
export of readymade garment products. RMG exporters were enjoying 1-per cent additional special
incentive in addition to the 4-per cent cash incentive against export of new textile and garment
products and expanding export of textile items to new markets-markets other than the united states,
Canada and the European Union. Small and medium industries of the textile sector would get cash
incentive at the rate of 4 per cent against export of apparel products. The export-oriented local textile
sector would enjoy cash incentive at the rate of 4 per cent as an alternative to duty bonds and duty
drawbacks. The 2-per cent cash incentive remained unchanged for exporters of apparel products to the
Euro zone in fy21 as it was awarded in fy20. Commercial department does this significant process of
document presentation to ca firm audit and finally receive positive feedback from bb bank very
carefully to earn maximum amount. Application of cash incentive as per government rules and
regulations: commercial department take liability to precede cash assistant support by submitting a set
of documents. Cash incentive is an attractive provision from the government side which only provided
for specific sectors for inspiring doing export-import business. To increase the export value
government agreed to give incentive to the exporter spreading business and increase national revenue
repetitively. After realization of export money from the importer, an exporter has to apply for the cash
incentive to the bank and the bank will then conduct an audit of the firm. After the audit, the firm will
place a certificate to a branch of the bank and the branch will forward it to the bank's head office. Cash
incentive audit can be treated as a compliance audit. It is a special type of audit within which the
auditors have to comply with terms of reference (tor), Bangladesh bank (BD) circular and import
policy to certify appropriate amount of cash incentive for the applicants. For exporters in 38 categories
subsidy announced unchanged. As per Bangladesh bank's circular issued in September last year, an
additional 1% special incentive was applicable for the export of readymade garments. Being under
following category:
1. Regular
2. Euro zone
3. Out of Euro zone
4. New market (except USA, Canada & EU)

Special category RMG exporters are enjoying the additional special incentive in addition to the 4%
cash incentive for the export of new textile and garment products and expanding export of textile items
to new market-markets other than the united states, Canada and the European union.

1%+4%+4%+2% (Additional Incentives + Regular incentives+ New market+ Yearly Turnover)

8. Appointment of Warehouses and Procedure to be followed:

When any dutiable goods have been entered for warehousing and assessed under section 80, the owner
of such goods may apply for leave to deposit the same in any warehouse appointed or licensed under
this Act.
9. Warehousing bond
A bonded warehouse in Bangladesh is a licensed facility that allows eligible exporters to store
imported goods and inputs without paying import duties and VAT.

10. Permission for deposit of goods in a warehouse and period for which they
may remain in warehouse.
As per Customs Act, 1969, 100% export oriented businesses are eligible to get bond facilities. Bond
facilities were present from the early year of Customs act enactment. Initially, Bond benefits were
monitored by the concern Custom Houses. Then one company has to go all Custom Houses through
which he import or export. It was a very complex work for the reconciliation of import and export
quantities. To avoid such situation and encouraging export businesses, in November 2000, the
Customs Bond Commissionerate started is journey. There are different types of Bond Licenses issued
by this office for facilitating exporters. Now most of the 100% export industries are running under
direct supervision of Bond Commissionerate.

11. The Customs Bond Commissionerate :

The Customs Bond Commissionerate has two offices, namely-(1) Customs Bond
Commissionerate, 342/1, Segunbagicha, Ramna, Dhaka and (2) Customs Bond Commissionerate,
42, M. M. Ali Road, Lalkhan Bazar, Chittagong. In other cases, the respective Custom House or
VAT Commissionerate controls the Bonded Ware House under their jurisdiction.Customs Bond
Commissionerate:
Chittagong is the second Bond Commissionerate of Bangladesh. The activities of the Customs Bond
Commissionerate, Regional Office of Chittagong started on 25/03/2001 !D. The country’s largest
industrial city, Chittagong, was transformed into a full-fledged commissionerate in August 2011
in response to the long-standing needs of the business community. The Government of
Bangladesh provides bonded warehouse facilities to exporters to earn foreign exchange, expedite
exports and increase international trade.

12. Types of Bonded Ware Houses:

There are basically two types of bonded warehouses depending on the type of raw material used, the
purpose of use and the type of export. Namely:

(i) Special Bonded Warehouse (SBW) Special Bonded Warehouse License is issued in favor of 100%
export oriented garment industry organization. These include oven garments, knit garments and
sweaters.

(ii) General Bonded Warehouse (GBW) General Bonded Warehouse License is issued to 100%
(100%) export oriented industrial establishments except for export oriented garment industry
establishments.
There are 7 (seven) types of establishments in General Bonded Ware House. E.g. (100%) export
oriented latent exporters manufacturing or accessories industry of packing / cartoon, level, polybag,
hanger, zipper, button, padding etc. 100% export oriented tanneries and tanneries; 100% export
oriented shipbuilding industry; Home Consumption Bonded Wire House; Diplomatic bonds; Bond
institutions of the Export Processing Zones (IACs) and One hundred percent export-oriented covert to
covert export-oriented organization.

13. Bonded Ware House Management:

The Customs Bond Commissionerate performs the following functions in the management of bonded
warehouses. E.g. Bond license issue Renewal of 100% export oriented latent bond license Auto
renewal of 100% export oriented garment and net garment bond license Change of ownership of the
bond license Approval of factory relocation application Execution of General Bonds Annual audit
Permanent inter-bond transfer No Objection Letter for Unloading Imported Goods (If General Bond is
not valid) Bank Guarantee Release (in case of latent exporter) Bank Guarantee Release (in case of
Direct Exporter) Issuance of bond license in new format Lien Bank Additions

14. Payment of rent and warehouse charges :The owner of any warehoused goods shall pay
to the warehouse-keeper rent and other charges at the rates fixed under any law for the time being in
force

15. Bill of Entry for Warehousing:

Bill of Entry for Warehousing: Also known as Bond Bill of Entry, this type is issued when the
importer is not willing to pay import duties at the time of import. In this case, the importer can store
the goods in a dedicated warehouse until all dues are cleared at the Customs department.
16. Utilization Declaration: Utilization Declaration is a very important customs document for
RMG Sectors. UD need for relies importable raw-materials from all customs ports. It also need for
Export, GSP, Cash incentive and others. In 1998 the national Board of Revenue (NBR) of Bangladesh
has been permitted to BKMEA for issue Utilization Declaration to their members unit. BKMEA issued
in terms of notification of NBR under SRO no: 3(36)-CUS-4/87(Part-3)-373 dt. 23.2.1998 for the
stated raw-material for import storage and export of ready garments as per master L/C or Contract.

A. Utilization Declaration. Required Documents: Application on company letter head.

Consumption Report on company letter head. Export L/C or Contract Copy Back to Back L/c copy

(Import/Local) Proforma Invoice (Raw Material) Bank Certificate Measurement Chart. Sample.

Money Receipt.

B. Utilization Declaration Amendment. Required Documents: Application on company letter

head. Consumption Report on company letter head. (If need) Export L/C or Contract Copy

(Amendment copy) Back to Back L/c copy (Import/Local)

Proforma Invoice (Raw Material) Bank Certificate Measurement Chart. (If need) Sample. Previous

UD/Amendment copy. Money Receipt.

C. Export Order.

Required Documents: Application on company letter head. Consumption Report on company letter head. Export

L/C or Contract Copy Back to Back L/c copy (Previous) Proforma Invoice (Raw Material Previous) Bank

Certificate (NOC) Measurement Chart. Sample. Stock UD/Amendment copy. Cash Memo (if need) Money

Receipt.

D. Sample Pass Book.

Required Documents: Application on company letter head. Sample Pass Book (Which Book Issued) Money

Receipt.

E. UD Statement Certificate.

Required Documents: Application on company letter head. Money Receipt.

F. No UD Certificate.

Required Documents: Application on company letter head. Money Receipt.

G. CO Certificate.

Required Documents: Application on company letter head. CO Type copy (Which Issued) Money Receipt.
H. Production Certificate.
Required Documents: Application on company letter head. Production Certificate Type copy. (Which Issued)
Money Receipt.
I. Cancel UD/AM/EO Certificate.
Required Documents: Application on company letter head. Original UD/AM/EO Copy (Which Issued) Money
Receipt.
J. Inter Bond Certificate.
Required Documents:
Application on company letter head. Original UD/AM/EO Copy (Which Issued) Money Receipt.
K. Duplicate GSP Request Certificate.
Required Documents: Application on company letter head. GSP Photocopy Newspaper copy Police Station
NOC Money Receipt.
L. Free of Cost Certificate.
Required Documents: Application on company letter head. Invoice Packing List BL Bank NOC Money Receipt.
M. Bond License Renewal Request Certificate.
Required Documents: Application on company letter head. Bond License photocopy.
Chalan copy (5000Tk and Vat1500TK)
Money Receipt

N. New Bond License issue Request Certificate.

Required Documents: Application on company letter head. Money Receipt.
O. Export Goods return Certificate.
Required Documents: Application on company letter head. Return BL copy Invoice Packing List Money
Receipt.
P. All kinds of Customs Related request Latter.
Required Documents: Application on company letter head. Related Papers. Money Receipt.
Q. Member or commercial ID Card.
Required Documents: Application From. (Which Issued from BKMEA) Passport Size Photo Copy (1 Pcs.)
Form 12 attested Photocopy of Memorandums (If Member) Money Receipt.
R. Service Book.
Required Documents: Application on company letter head. Money Receipt.
S. GSP Form.
Required Documents: Application on company letter head. Money Receipt.
T. Machinery Relics Certificate.
Required Documents: Application on company letter head. Import L/c Invoice Packing List BL Money Receipt.
U. Machinery Bond Relise Certificate.
Required Documents: Application on company letter head. Import L/c BL Bank PRC Installation Certificate.
Money Receipt.
V. Alternate Cash Assistance/New Market Ext. Pronodona./Small Factory Pronodona
Required Documents:
Application on company letter head.
Export of Contract L/C copy Back to Back L/c
copy
Performa Invoice copy
Packing List
Bank Certificate
Exp form
GP-2 copy
Spinning Mills Certificate
BTMEA Certificate
Shipping copy
Bill of Lading copy
PRC copy
Undertaking
Annul Production manufacturing capacity
of the Unit.
Break Down
Form Kha.
Money Receipt

17. Type of LC:

18. Shipping line & BL process:

19. Conclusion:

A sound financial system can ensure economic development of a country. In this system, bond market can play
a vital role in Bangladesh. Bond market provides long term finance to issuers by creating alternative source of
finance, besides it also provides steady source of income to investors. The study has explored the prospects of
corporate bond market and identified major impediments to develop corporate bond market in Bangladesh. We
have collected secondary data from various sources. The primary data have been collected from investors of
Dhaka Stock Exchange (DSE). A total of eighty investors from fifteen brokerage firms were surveyed with the
self-administrated questionnaires followed by in-depth interviews. The primary data have analyzed to explore
investors' perception and reveal major hindrances to develop corporate bond market in Bangladesh. Finally, we
concluded that there is an enormous prospect to develop long term corporate debt market in Bangladesh. In this
regard, it has suggested that policy makers should create adequate platform to extend existing bond market.
 20. Abbreviation

 FOB=Free on Board
 C&F=Cost & Freight
 C&F= Clearing, and Forwarding
 CFR= Cost and Freight
 CIF=Cost Insurance Freight
 L/C=Letter of Credit
 LCA=Letter of Credit Authorization
 B/L=Bill of Lading
 AWB=Air Way bills
 P.I= Proforma Invoice
 PSI=Pre Shipment Inspection
 CRF=Clean Reports of Finding
 NNRF=Non Negotiable Reports of Finding
 CPC=Customs Procedure Code
 ASYCUDA=Automated Systems for Customs Data
 LCL(containers)=Least Cargo Load
 FCL(containers)=Full Cargo Load
 ICD= Inland Container Depot
 UD= Utilization Declaration
 UP = Utilization Permission
 VDS= VAT Deduction at Sources
 TIN = Tax Identification number
 BEPZA= Bangladesh Export Processing Zone Authority
 BEZA= Bangladesh Economic Zone Authority
 CRAD= Customs Revenue Audit Department.
 BCT= Bangladesh Customs Tariffs (1st schedule)
 IGM = Import General Manifest EGM= Export General Manifest
 UTIN: Unique Tax Payer Identification No
  ETIN: Electronic Tax Identification No
 PRC= Proceed Realization Certificate
 AV= Assessable Value
 ETA = Estimated Time of Arrival
 ETD= Estimated Time of Departure
 P.C= Port Clearance
 LDT= Light Displacement Weight
 DWT = Dead Weight Tonnage
 LOA= Length Over All

Question and answer as below:

Q. 1. Write down four activities of commercial department?

Answer:
1. Management of funding through bank,
2. Approval of sanction,
3. Liaising with associations
4. Buyer, buying agency & supplier management

Q 2. What are the differences between Buying agency & buying office?
Answer:
Buying agency or liaison office is an independent buyer’s regional office, from where all kind of
necessary approvals have given. It can’t show any income without expenditure according to local law.
Buying office is that, which works at a time with different buyers and brands. In this case, all the
required approvals are coming from the buyer. They are only authorized from order execution not for
major decision making.

Q.3 What is Input output co-efficient?

Answer:
A coefficient is a statistical measure of the degree to which changes to the value of one variable
predict change to the value of another. In positively correlated variables, the value increases or
decreases in tandem. Input output co-efficient: between two variables a very good co-relation put the
co afferent’s physical status onward co-efficiencies. In commercial co efficiency developed on
depending maximum related sparking for correction and crosschecking several ways lead to
coefficient. Both input and output to get a reliable co efficient depends on very sharp interpersonal
business relation between both end of input and output. Input-output coefficient (also technical
coefficient) is any of the numerical elements of an input-output matrix. The input coefficients can be
interpreted as the percentage share (%) of costs for intermediate inputs (goods and services) and
primary inputs in total output (production value).

Q 4. What is meant by Transferrable L/C ?

Answer:
This L/C enables the seller to assign part of the letter of credit to other party(ies). This L/C is
especially beneficial in those cases when the seller is not a sole manufacturer of the goods and
purchases some parts from other parties, as it eliminates the necessity of opening several L/C's for
other parties.

Q. 5.What is certified check?

Answer:
A certified check is a personal check that the customer signs and the bank certifies. The bank certifies
that the customer has enough funds to clear the check and that the
signature is genuine. The bank will usually set aside the funds to make sure that the check clears.
However, on some occasions, this might not happen.

Q. 6.What are the differences between Bank draft & Money order?
Answer:
Bank drafts and money orders are quite similar. We pay for both of them in advance and print the
amount. Additionally, we see them both as very secure forms of payment to a third party. The payer
can use a money order or draft rather than carrying large quantities of money. However, you literally
‘buy’ a money order like you would a product in a store. You give the issuer cash who then creates
the money order.

Q. 7. What is Real time gross settlement (RTGS)?

Answer:
To facilitate safe, secured and efficient interbank payment system, Bangladesh bank launched real
time gross settlement (BD-RTGS) system on 29th October 2015 as part of its inclusive digitalization
initiative. BD-RTGS opened a new horizon in the payment ecosystem, accommodating instant
settlement of large value and time critical payments in the country. RTGS is an electronic settlement
system where transfer of funds takes place from one account of a bank to that of another bank on a
real-time and on gross basis. Real-time refers transactions that do not need any waiting period.
Transactions are settled as soon as they are executed. Needless to say that minimum limit of a
transaction is BDT 1, 00,000 whereas there is no limit in case of government payment.

Q. 8.Write down 6 licenses required for garments to operate.

Answer:
01. Export registration certificate (E.R.C)
02. Import registration certificate (I.R.C)
03. Factory layout plan approval.
04. Fire license.
05. Factory license
06. Environment certificate.

Q. 9. What are facilities a garments factory will receive after registered form DOT (department of
textile)?
Answer: DOT is Provide as below recommendations:
1. Issuance of 1st, 2nd& 3rd adhok irc,
2. Regular adhok irc
3. Importers ownership change
4. IP (import permit)
5. Machinery release
6. Visa grant for foreign resident
7. NOC of foreign loan
8. Issuance of composite RMG
9. Adding HS code in bond license

Q. 10. What are the two aspects of trading?

Answer: The two aspects are –
1. purchase, and
2. sale.
Q. 11. What are the two categories of business?
Answer: Business activities may broadly be classified into two categories namely:
1. Industry and
2. commerce.

Q. 12. Write down the types of business with explanation?

Answer: Types of business.
Sole proprietorship:
In this kind of business, a single person owns and operates the business. There isn’t any kind of legal
separation between the owner and business. Thus, the onus of legal plus tax liability is on the owner.
Partnership:
As the name suggests, it is a business where two or more people run it together. The partners bring
in resources and money, and then the shares in the profit or loss are divided amongst them.
Corporation:
In this business, a group of individuals act together as a single entity. The owners in this business are
called shareholders. They discuss their views on the common stock of the corporation. There are
unfavorable taxation rules in a corporation for the business owners.
Q. 13. What are the Parties of a cheque?
Answer: Parties of a cheque: 1. Drawer 2. Receiver who is paid the amount 3. Drawee or debtor
Q. 14. What are documents for EPB certificates?
Answer: Issuing GSP and SAPYA certificates:
1.Export l.c/sales contract/contract.
2. Back to back L/C, connecting back to back /.c
3 .Production certificate issue from BTMA/bill of entry for import of yarn.

4.Certificate of origin from a textiles mills for supply of yarn/fabrics foreign chamber certificate of origin
for import of yarn
Q. 15. What are the documents needed to obtain certificate of origin?
Answer: Annex-iii and Canadian license.,Pay order tk.100 (one hundred) in favours of EPB.,Invoice,
Packing list. L/C ,Back to back L/C ,Utilization declaration.,Shipping bill, Bill of lading/airway
bill.,Import permit of BEPZA for EPZ firm and concern documents., Chalan., I.d card, signature card
to managing director or proprietor., Copy of EPB registration certificate
Q. 16: What are the information requires for a complete delivery challan?
Answer: A complete delivery challan requires the following information:
Name and address. Every delivery challan should include the name and address of the consigner
and the consignee., Gst, Date and challan number, Hsn code and item description, Quantity,
Taxable value and tax rates, Rate and amount. Place of supply
Q. 17: What are the Difference between tax invoice and delivery challan?
Answer: Difference between tax invoice Delivery challan
and delivery challan Tax invoice
A tax invoice indicates the value of a A delivery challan usually does not include
particular product. such value but sometimes may include
product worth.
It is a legal proof of ownership of goods and It presents that a customer has
services. acknowledged the receipt of goods,
however shows no legal ownership.
A document provided when a sale occurs It is most commonly used to move items
from one location to another while noting
the products' description, condition, and
amount, although it does not always end in
a sale.
Displays the real worth of the commodities It will not display the items' true worth. The
delivery challan may include the value of
the products indicated on the delivery
challan, but it will not include the tax
payable.

Q. 18 What are the steps required for L/C opening?

Answer: To open L/C following steps are followed:
Collect pro-forma invoice from suppliers company as per demand
Check proforma invoice (pi) to ensure all terms and conditions including details are appropriate to the
import demand and do necessary correction accordingly.
Prepare forwarding letter to bank for open L/C for respected company against master L/C sales
contract to suppliers.
LCAF (letter of credit authorization form) form fills up duly.
After LCAF is filled up with forwarding and pi L/C opening application will be submitted to banks
concern department
In between of these process to ensure safety of the L/C consignment insurance cover note and policy
number will collected from insurance company and mentioned in BTB L/C and L/C draft copy will be
collected for correction and after confirmation of draft with supplier final swift of draft copy will proceed
to onward process of confirming L/C opening.
Q. 19 What are the types of payment terms and conditions in export?
Answer: There are 5 types of payment terms and conditions in export. They are as follows:
1.Open account
2.Documentary collection
3. Letter of credit
4. Cash in advance
5.Consignment
Q. 20: What are the functions of drawback office (DEDO)?
Answer: DEDO has two main functions –
1) Payment of drawback of duties and taxes; and
(2) Issuance of input-output coefficient.
Q 21: What are the duties and taxes refundable to the exporter under the provision of sub-rule (1)
of rule 30 of the value added tax rules, 1991?
Answer: Following duties and taxes refundable to the exporter under the provision of sub-rule (1) of
rule 30 of the value added tax rules, 1991 –
Customs duty
Supplementary duty
Value added tax
Advance trade vat(atv)
Turnover tax
Excise duty
Regulatory duty
Q. 22: What are the approval of temporary shifting of the factory?
Answer: Approval of temporary shifting of the factory will be given after getting all the following
documents:
Attested copy of agreement of factory rent or ownership document.
Layout plan and approved design of the factory.
Trade license
Recommendation from related association or chamber.
NOC from lien bank.
Q. 23: What are the documents required for the application for auto-renew of bond license?
Answer: Documents needed to submit with application for auto-renew of bond licence-
Treasury challan of 5000/-(five thousands) TK per year as renewal fees;
Contract paper of house rent or the ownership deed of factory in necessary
IRC / ERC
Copy of trade license
Recommendation of association
Q. 24: What are the information contained in Proceeds realization certificate (PRC)?
Answer: Proceeds realization certificate (PRC) must contain following information accordingly
Reference number of the certificate
Export L/C number
Date of the export L/C
Exp. No.
Date of realization
Realized value in us$
The original copy of proceeds realization certificate (PRC) must be submitted. It is normally
issued in the organizational pad of the exporter's bank. No photocopy is accepted for cash
incentive purpose.
Q. 25: What are the information contained in Bill of export/ shipping bill?
Answer: Bill of export/ shipping bill must contain following information accordingly
Master L/C no.
Master L/C date
Exp. No.
Short shipment pieces (if any)
Quantity / unit (in pieces)
Gross weight
Net weight
Q. 26: What are the types of post clearance audit?
Answer: There shall be three types of post clearance audit:
Transaction based audit (TBA)
Premises based audit (PBA)
Theme based audit (THBA).