1. Based on a buyer’s expression of interest to enter into a business deal, the exporter prepares a price quote and terms of trade. A Proforma Invoice is then sent to the importer for approval. If modifications are required, the document is returned to the exporter for the necessary amendments. 2. Once both parties agree on the terms, the importer confirms an intent to purchase. An L/C is then opened by the importer and forwarded to the exporter’s nominated bank in Bangladesh. 3. The process of communication between the buyer and the exporter is mainly through exchange of emails. If required, however, supporting documents are sent through courier services.
1. The exporter determines the quantity of shrimp to be procured from the local supplier(s). Having one or more preferred suppliers of shrimp is a common practice in the shrimp exporting business. 2. Generally, the suppliers’ firms are located within the vicinity of the exporter’s factory. 3. Based on the quantity, a price quote is served by the exporter to the supplier. Upon agreement on the terms and conditions, the supplier confirms an intent to supply and signs a contract with the exporter. 4. Once the delivery is made to the exporter’s premises, the exporter requests its bank to make payment to the shrimp supplier. For this, a copy of the sales contract and the supplier’s invoice are submitted to the bank. 5. The bank adjusts this payment at the end of the business cycle when final payment is received from the overseas buyer.
1. The exporter requests a space with a shipping line. In most cases, an email is sent to the shipping line with details of the shipment. 2. Based on the request, the shipping line issues a Draft Bill of Lading for consideration by the client. 3. Based on the document and confirmation by the shipping line, the exporter schedules pick-up and delivery of the container with the inland haulage company. 4. A booking confirmation is then issued by the latter and this document is kept by both the parties for executing of further activities.
1. This is a voluntary step, which is undertaken by the exporter on ad hoc basis. To obtain insurance, the exporter lodges an application with the insurance company, along with copies of the Commercial Invoice, L/C, Packing List and cargo Booking Confirmation. Based on satisfactory documentary evidence, the insurance company issues a policy. The exporter then pays the premium to the company.
1. The exporter initially conducts sample tests of the shrimp in its own laboratory, which is located within the warehouse premises. 2. A request letter is then forwarded to the Fish Inspection and Quality Control (FIQC) of the Department of Fisheries (DoF) to conduct quality inspection and issue a Health Certificate. 3. Supporting documents supplied with the application are the Proforma Invoice, Packing List and Lab Test Report. 4. Once the completed application is received by the FIQC, an inspector visits the warehouse and assesses the quality control facilities available at the warehouse. If the inspector is not satisfied, it is the responsibility of the exporter to put in place the necessary equipment and ensure hygiene within the factory. 5. The whole application process will then need to be repeated. On the other hand, if the inspector is satisfied with the overall environment of the factory, the inspector collects samples of the shrimps to conduct bacteria and antibiotic tests. 6. While the bacteria test is generally done in the regional FIQC office (in this case, the FIQC Khulna office) and takes between 10 and 15 days, the antibiotic test is usually carried out at the Bangladesh Council of Scientific and Industrial Research (BCSIR) in Dhaka and takes between 15 and 20 days. 7. If the samples fail any of the tests, the exporter is asked to rectify the issue and reapply. On the other hand, if the results are satisfactory, a Quality Certificate is issued on the products tested, which is forwarded to the exporter.
1. The agent submits the online Bill of Entry on the custom’s website. 2. Submitting the BE requires the agent to provide electronic copies of a number of supporting documents including the Commercial Invoice, Packing List, EXP Form, GSP Certificate (in some cases), Certificate of Origin and Insurance Certificate (Insurance Policy). Customs authorities then verify the documents and issue a ‘C’ Number upon finding the document satisfactory. 3. The exporter’s agent then acknowledges receipt of the ‘C’ Number and makes a print out of the acknowledgement receipt for conducting customs clearance at a later date.
1. As per the transport contract, the inland haulage company collects the goods from the factory premises and transports them to the port. In a normal situation, it takes between eight and 10 hours for a consignment to reach Chittagong Port from Dhaka. 2. On arrival, the CFA requests entry of the vehicle into the port area (or if the goods are to be taken to a private container terminal, the vehicle goes directly to the private depot). 3. The Port Authority or Private Depot then records details of the truck/container and issues an entry pass allowing the truck/container to enter the controlled area. 4. The date and time of entry of the truck/container is officially recorded. The goods are then taken to the designated area where cargo inspection is to take place.
1. Firstly, the exporter fills in the EXP Form and then requests a Packer’s Certificate from the relevant industry association, which, in this case, is the Bangladesh Frozen Food Exporters’ Association (BFFEA) in Dhaka. This document, along with the EXP Form, Commercial Invoice, Quality Certificate, L/C, and Packing List are then compiled by the exporter to lodge a customs declaration.
1. The Shipping Agent coordinates handling of the container at the terminal and moves it to the berth area with permission from the Port Authority. It is the responsibility of the Shipping Agent to prepare a Container Loading List and a Container List Message to be used for berthing the container and stowing it on the designated vessel in a coordinated manner. 2. While the container is in the process of being stowed onto the vessel, the Shipping Agent prepares the final Bill of Lading which is supplied to the CFA. 3. An export Manifest is also prepared and submitted to customs to obtain clearance to export the goods. 4. Parallel to this process, the Port Authority prepares a list of outward-going containers to be stowed on the vessel and ensures that the Shipping Line verifies the list. 5. Once all these activities are completed and the cargo release order is received from customs, the ship sets sail as per schedule.
1. The CFA submits a copy of the ‘C’ Number Acknowledgement Receipt to customs along with hard copies of all the supporting documents. 2. Customs then retrieves information from the previously lodged online declaration and cross checks with the documents received from the CFA. 3. An inspector is then authorised to inspect the cargo and certify compliance with the declaration. If any misconduct is found, export of the shipment is stopped and a case is filed against the exporter. If no discrepancy in found, customs issues a Shipping Bill and seals the container. 4. The CFA then receives the Shipping Bill on behalf of the exporter and signs the EXP Form, a copy of which is kept by customs.
1. The exporter collates all the documents that will be needed by the importer to receive the consignment in the importing country. The Certificate of Origin is obtained from the local Chamber of Commerce and the GSP Certificate is issued by the Export Promotion Bureau (EPB) upon finding the evidence satisfactory.
1. As soon as the documents for the importer are ready, these are submitted to the exporter’s bank by the exporter. 2. The bank verifies all the documents against the conditions laid down in the initial L/C sent by the importer’s bank. If any discrepancy is found, the exporter is notified and is required to resubmit the documentation, ensuring rectification of the problem. 3. Once the documents are found to be fully compliant with the L/C conditions, the exporter’s bank forwards the documents to the L/C issuing bank in the importing country. 4. The importer’s bank then transfers the payment to the exporter’s bank, which then notifies the exporter of the deposit of the payment in the exporter’s account. The exporter then collects the payment.