In response to a letter of a bank customer give him in details the rules of opening a Letter of Credit (L.C) in your bank.

Our Ref: Enquiry/answer/FEx/import/987/12

Wednesday, May 14, 2012

Mr. B

46 Nasirabad Industrial Area

Chittagong 1212

SUB: RULES OF OPENING A LETTER OF CREDIT

Dear Sir,

It’s a pleasant surprise to receive your enquiry on opening a letter of credit. Here below are the salient rules and requirements for opening a letter of credit:

01. Your company must have a current account with a bank branch

02. A trade license from the municipality

03. Import Registration Certificate (IRC)

04. A certificate on your solvency from your bank

05. Certificates on your company’s TIN and VAT from the Revenue Board

06. LCA form to be duly filled out and signed

07. Some stamped and chargeable documents like DP Note, IMP form, Letter of Continuity etc. to be signed.

Your bank will collect a confidential report from the concerned foreign bank about the exporter’s ability to supply the commodities you are to import. Your bank will also examine whether the importable commodities are permissible items and will crosscheck other info like HS Codes and the genuine price of the importable goods. Depending on your business background your bank will decide at what margin the Letter of Credit favoring you as an individual or a company can be opened safeguarding their interests.

Should you need further details feel free to visit our branch at your convenience.

Thank you so much.

M
Manager