Voice of International Business

If you are a trade finance professional, you should know what to check in an export contract before accepting it. After reading this article, you’ll be able to minimize the risk of export business both for your bank and your customer. Export starts with the communication between a buyer and a seller. When they reach an agreement for sell and buy, it becomes a sales contract or an export contract. However, all export contracts are not acceptable to bankers. Bankers want to make sure that their customer can secure their interests. Mainly, they want to be sure about protecting the interest of the bank and the exporter. However, what you may see (as a banker) is that Exporters are always trying to convince you that the Buyer is excellent. But it would be best to keep in mind that export businesses run two significant risks: buyer risk and performance (exporter's) risk. Additionally, a banker must also be careful about money laundering risk and compliance risk.   What Is Export ...

BIDA Approval Process for Outward Remittances due to Payment of Royalty, Fees for Technical Knowledge or Technical Assistance and Franchise Fees: Do you know that you will need  BIDA approval for payment of Royalty and Technical Fees  to make outward remittance?  Yes. Industrial enterprises in Bangladesh registered with Bangladesh Investment Development Authority (BIDA) need approval from BIDA for payment of royalty, fees for technical know-how and assistance and franchise fees. But, almost every business entity, especially industrial enterprises, needs to make payments abroad for those purposes. So, we will outline here the application and approval process from BIDA in detail. However, please note that Section 18 of the BIDA Act, 2016 has imposed this requirement. This requirement is not from the central bank of Bangladesh neither from the Foreign Exchange Regulation Act 1947. Please refer to Chapter 10, Para 25 of Guidelines for Foreign Exchange Transaction ( GF...

Sample Process Flow of Export: Many newbies in the International Trade arena want to know about Export. In this article, we will discuss a sample process flow of Export for them. It will help new professionals, including new bankers working with commercial issues, understand the basic Export process.   Let us discuss first what Export is? Export is the process of selling goods to other nation or country. Selling within the country is also considered as an Export. However, we call this process a “Deem export” or “Local export”. Local export is much an easier process than foreign Export or Final Export. We will cover here a sample process of “Final export” or “Export”. One thing you should keep in mind that this sample process is a Basic process. So, there may be some differences in a real-life scenario. Don’t be disheartened. We will also focus on Local Export in a later section of this article.   Parties Involved in Export: The actual process of the Final Expor...