Voice of International Business

You’ve owned a big export sales contract. So, you are going to invest a considerable amount. But, is your export contract is legally enforceable?   If it is not legally enforceable, you are running a higher risk of nonpayment by the buyer. The question is, how you can be sure that the contract is enforceable by Law?   We will discuss the straightforward way to understand whether your contract is a valid contract for legal enforcement in case of any breach. When You Will Need Legal Enforcement   Many of the exporters and importers are dealing with their businesses depending on the contract. The question of legal enforcement comes only when any of the parties breaches the contractual obligations.   For example- export is done as per terms of the contract, but payment is not received. Or, export is done, and payment is made, but quality and quantity of the export goods are not as per contract, etc.   Common Elements of a Legally Enforceable Contract   The Law o

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 ( GFET ), 2018, Vo