Best Trade Solution

Dear Bangladeshi DC Experts

Situation -01
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LC established for 180 days usance confirmed & discounted by bank "X". After 180 days importer approached to avail refinance from bank "Y" for further 180 days which is within LCAF validity. In this case whether Bank permission required or not.

Situation -02
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LC established for 180 days usance confirmed & discounted by bank "X". After 180 days importer approached to extend the validity of the LC by the same bank for further 180 days which is within LCAF validity. In this case whether Bank permission required or not.

Solicit your valuable opinion on 02 cases.

Regards
Khurshed

Hi,
Kindly see GFET V-1 Chapter-7 page-37
33.(a) Subject to compliance with other conditions laid down in
this chapter and in the current IPO, import LCs may be opened on
deferred payment/usance basis in the following cases:
i) Import of capital machinery on upto 360 days usance basis;
ii) Industrial raw material imports for own use of industrial
importers (including back to back imports discussed in detail in
the next section) on upto 180 days usance basis;
iii) Import of coastal vessels including oil tankers and ocean going
vessels including those procured for scrapping on upto 360
days usance basis;
iv) Import of agricultural implements and chemical fertilizers on
upto 180 days basis;
v) Import of life saving drugs (certified/declared as such by Drugs
Administration Authority) on upto 90 days usance basis.

So, I think UR importer need Special approval
Thanks & Regards