Beruflich Dokumente
Kultur Dokumente
Import section of any bank deals with L/C opening and post import financing i.e. LIM & LTR. Now the procedure from opening L/C to disbursement against L/C is given below.
Indent or Performa Invoice: Indent or Performa invoice is the sale contract between seller and buyer in import-export business. There is slight difference between indent and Performa invoice. The sales contract, which is direct correspondence between importer and exporter, is called Performa invoice. There is no intermediary between them. On the other hand, there may be an agent of exporter in importers country. In this regard, if the sale contract is occurred between the agent of exporter and importer then it is called indent.
? One debit voucher to be passed. ? Corresponding credit voucher to be passed (Margin, commission, postage, stamp, F.F.C. and others). ? Liability voucher to be passed.
Accounting treatment:
L/C Applicants A/C or Customers A/C Margin A/C Commission A/C Postage A/C Stamp A/C F.FC. (foreign corresponding charge) A/C Telex charge A/C Other A/C Customers liability A/C Bankers liability A/C Cr. Dr. Cr. Dr. Cr. Cr. Cr. Cr. Cr. Cr.
SOME DEFINITIONS Bill of Exchange: According to the section 05, Negotiable Instruments (NI) Actunconditional order signed by the maker, directing a certain person to pay [on or to the order of a certain person or to the bearer of the instrument. It may be either at sight or certain day sight. At sight means making payment whenever documents will reach in the issuing bank. Commercial Invoice: Commercial Invoice issued by exporter is the accounting document by which the seller charges the goods to buyer. Bill of lading: A bill of lading is a document usually stipulated in a credit when exporter dispatches the goods. It is an evidence of a contract of carriage, is a receipt for the goods and is a document of title to goods. It also constitutes a document that is or may be, needed to support an insurance claim.
THE DOCUMENTS SENT TO THE ISSUING BANK THROUGH THE NEGOTIATING BANK:
The negotiating bank carefully checks the documents provided by the exporter against the credit, and if the documents meet all the requirement of the credit, the bank will pay, accept, or negotiate in accordance with the terms and conditions of the credit. Then the bank sends the documents to the L/C opening bank.
POST-IMPORT FINANCING:
If there is no available in cash in importers hand, he can rrequest the bank to grant loan against the documents for the purpose of post import finance. There are two following forms of post import finance available in MTBL Dilkusha Branch. LIM (Loan against imported merchandise). LTR (Loan against trust receipt). On the arrival of goods and lodgment of import documents, importeer may request the bank for clearance of goods from the port (custom) and keep the same to bank godown. Propeer sanction from the cxompetent authority is to be obatained before clearance of consignment. For giving these types of loan, officer makes loan proposal and sends it to H/O for approval. After getting approval from H/O, bank grants loan in the form of either LTR or LIM. Accounting treatnent: LIM/LTR creation:
By and large, it is mentioned herewith that bank only deals with the documents, not with goods & services in case of foreign exchange business.