kamal wrote:01.BTB LC is seaprate form Master Export LC; though the BTB LC is issued backed by/secureid by Master LC.
02. In Bangladesh Local BTB LC can issue in Foreign Currency. If the Local BTB LC is issued in Foreign Currency than it must pay in Foreign Currency that was mantioned in the BTB LC through FC Clearing Account maitained with Bangladesh Bank(BB).
03. The Sttelment of BT B LC should be from the proceeds of master LC, but in case of failur in export or non realisation of proceeds the liability must pay at maturity from the applicat`s own sources or by forced loan. In such cases post facto approval of BB is needed. Pl. See GFET-1996. V-1 Ch-15, Para-33.
shahriar wrote:dear zahid,
i agree with nesar. i believe that if u chk your bank, you will find a lots a lcs are opened in USD or BDT while the master lc is in euro and vice versa. one thing i must add that the BTB lcs that you generally see at your counter are actually separate lcs. so far i understand that for btb lcs there are certain things need to me common with master lc; the commodity. but here we are importing raw material. to me the master lc is a merely a security of the new lc. but i believe that in general practice, we apply the "However named Theory" here.