Endorse B/L Favoring Importer If Proceeds Is Already Receive

[Mehdi]

Hi,

Is there any regulatory problem to endorse B/L favoring importer if the export proceeds are received after goods have been shipped through TT?

Look forward to receive comments on the above question.

Regards...........Mehdi

[Md.zakir Hossen]

yes there is some reservation in the guideline for foreign Exchange Transaction. See Chapter 22 page 114 article 8 and 9
" That in respect of export of goods from Bangladesh (excepting
export from Type A industrial units located in the EPZs) to foreign
countries by land route or by sea, the Railway Receipts, Bills of
Lading and any other documents of title to cargo should be drawn
only to the order of an AD designated for this purpose by the
respective exporters and delivered to the authorized representatives
of the Ads concerned and to none else. However, in case of export
of goods, full payment for which value has been received by the
exporter in advance through the AD, the Bill of Lading and other
documents may be endorsed by the AD in favour of foreign
importers and the same may be sent directly to thethe Bill of Lading and otherdocuments may be endorsed by the AD in favour of foreign
importers and the same may be sent directly to the importers abroad by the AD."

"9.The ADs to whose order the relative Railway Receipts, Bills of
Lading etc. are drawn shall endorse the same to the order of their foreign correspondents but in no case they shall make any blank endorsement or endorse it to the order of the consignee unless they have obtained specific or general approval of the Bangladesh Bank therefor. However,in the cases of export from Type A industrial units located in EPZ, Bill of Lading/Airway Bill /other documents of title to cargo drawn to the order of the AD may be blank endorsed or endorsed in favour of the consignees as per terms of the export LC/export contract."

I THINK THIS WILL HELP YOU.

[Mehdi]

The regulations appear to protect the exporter from nonpayment. But if the situation as stated earlier that payment (not in advance) is received through TT just after movement of shipment. Does the banker require BB approval to endorse the BL to importer?

Regards..............Mehdi

[nesarul]

Dear mahdi,
I think you are rightly said that the salient factor here is received of payment. If it is certain, i think no problem such as advance tt for export. But assurness regarding receiving a payment after effecting shipment, may not provide certinity to the nominated bank that it will actually receive fund for export value. isn't it, pls comment.
regards
nesar

[Mehdi]

Thanks for the comments.

In this particular case, the bank has already received payment but is hesitating to endorse BL to the importer due to the wording in para 9 of ch-22 of GFET.

Regards.........Mehdi

[shahriar]

dear all,

at what point does the export occurs? is it when the goods passes the ships rail or when u loose control over the right of the goods? i believe unless a bank endorses the document, there is no export since till then it is possible to call it back.

if this theory is right then i see no problem with endorsing the BL directly to the importer. however not sure whether u will be able to convince the audit team with this!!

regd

shahriar

[Md.zakir Hossen]

Shariar is right

Regulator see the control of the goods.

[nesarul]

Dear all,
after receiving the proceeds, what is the necessity to control over goods.
regards
nesar

[Md.zakir Hossen]

Dear Nesar
I do not mean that.

[Mehdi]

Thanks to all for the comments/views on the issue. I will let you know what has happened to the particular situation.

Regards...Mehdi