Meaning and Scope of Import
Import means the inflow of goods and/or services into a country from overseas suppliers, purchased by individuals, firms or government entities. Imports are essential for meeting domestic demand, supporting industrial production and accessing raw materials, machinery and technology unavailable locally.
Regulatory Framework Governing Import Trade
Role of Authorized Dealer (AD) Banks
Import transactions are regulated by Authorized Dealer Bank and all foreign exchange transactions must be routed through Authorized Dealer (AD) branches of commercial banks. AD banks act as custodians of import documents and ensure compliance with foreign exchange regulations.
Receipt of Import Bills
Arrival of Import Documents at AD Branch
Immediately upon receipt of import bills from the negotiating or remitting bank, the AD branch must:
- Record the details in the Inward Receipt Register
- Assign a serial number and date
- Mark the same serial number and date on the forwarding schedule
This step ensures proper tracking and accountability of import documents.
Custody and Control of Import Documents
Safe Custody of Documents
All import bills received by the AD branch remain under the custody of:
- The In‑Charge of the Foreign Exchange Department or
- Any other authorized officer appointed by management
Unprocessed or unlodged bills at the end of the day must be stored under secure custody to avoid loss, tampering or unauthorized access.
Scrutiny of Import Documents
Responsibility of the AD Branch
It is the responsibility of the AD branch to carefully scrutinize import documents to ensure that:
- Documents are drawn strictly as per Letter of Credit (L/C) terms
- Documents are complete and free from discrepancies
This scrutiny is critical to protect the bank and importer from financial and legal risks.
Examination of Supporting Documents
Verification of Letter of Transmittal
The Letter of Transmittal must be checked to confirm:
- Correct reference to the LC
- List of documents enclosed
- Clear instructions from negotiating bank
Scrutiny of Documentary Credit
The bank must verify:
- Validity of the LC
- Compliance of presented documents with LC terms
- Adherence to UCP and banking practices
Verification of Bill of Exchange
The Bill of Exchange must be examined for:
- Correct drawer and drawee
- Proper tenor
- Accurate amount
- Authorized signatures
Scrutiny of Commercial Invoice
The Commercial Invoice must match:
- LC description of goods
- Quantity and unit price
- Total value
- Name of exporter and importer
Examination of Transport Documents
Bill of Lading or Air Waybill
Transport documents must confirm:
- Shipment from correct port
- Clean on‑board status
- Correct consignee and notify party
- Shipment within LC validity
Verification of Certificate of Origin
The Certificate of Origin must:
- Be issued by authorized authority
- Correspond with goods description
- Match LC requirements
Scrutiny of Packing List
The Packing List must:
- Detail package numbers and contents
- Match invoice and transport documents
- Support customs examination
Examination of Insurance Documents
Insurance policies or certificates must:
- Cover required risks
- Be effective from shipment date
- Match the insured value and currency
Lodgment of Import Documents
Meaning of Lodgment
Lodgment is the process by which the issuing bank:
- Makes payment to the negotiating bank
- Adjusts LC liability
- Transfers the bill amount to Payment Against Documents (PAD) account
Steps in Lodgment Process
During lodgment, the bank must:
- Convert foreign currency at BC Selling Rate
- Enter details into the PAD register with PAD number
- Endorse the related LCAF (Letter of Credit Authorization Form)
- Note utilization in LC file
- Ensure IMP forms are properly signed by importer
Intimation to Importer
Notification of Lodgment
The importer must be notified immediately after lodgment through an intimation letter, stating:
- Total bank dues
- Request for prompt retirement of documents
Timely notification helps prevent storage charges and delivery delays.
Retirement of Import Documents
Payment by Importer
To retire documents, the importer must pay:
- Bill value
- Interest (if applicable)
- Bank charges and commissions
Upon payment, documents are released to the importer for customs clearance.
Delivery of Documents
After full settlement:
- Documents are handed over to the importer
- Importer proceeds with customs clearance
This completes the financial obligation of the importer to the bank.
Matching of Bill of Entry
Submission of Customs Bill of Entry
The importer must submit an authenticated copy of the customs Bill of Entry within four months from the date of remittance.
Verification by AD Bank
The AD bank verifies:
- Goods description
- Quantity and value
- Matching with IMP form and retained invoice
If details match, the import transaction is considered satisfactorily completed.
Reporting and Regulatory Compliance
Cases of Discrepancy or Non‑Submission
If:
- Bill of Entry is not submitted within stipulated time or
- Material discrepancy is found
The case must be reported quarterly to Bangladesh Bank as per prescribed format.
Regulatory Action by Bangladesh Bank
Importers who fail to comply may:
- Be barred from opening new Letters of Credit
- Require prior permission from Bangladesh Bank
- Face restrictions if major discrepancies persist
Importance of Proper Import Procedure
A well‑managed import process:
- Ensures compliance with foreign exchange regulations
- Protects banks from financial risk
- Supports transparent international trade
- Prevents misuse of foreign currency
Understanding import procedures is essential for importers, bankers, auditors and regulators alike.
