1 . 1 .

B A C K G R O U N D O F T H E S T U DY

Export & Import can be termed as iron cell of blood in business field of a country. Without
business economic system of a country can’t survive. Form the very beginning of business
activity in human civilization business has a remarkable contribution as a whole. The number
of business organization is increasing day by day. This rapid expansion of the financial
market has created vast competition among the existing business organizations. The core
business of export and import companies are exporting and importing various goods and the
competitive environment. In this report I will report how effectively Noman Group is
functioning the documentary credit activities with its customers/suppliers in the context of
international trade. This is the most critical issue for a business organization to provide
excellent goods/services to its customers, satisfying the customers and thus increase the
profitability of the organization. For this reason it is essential for a business organization to
know about its customers i.e. whether customers are satisfied with the company’s services
and whether their expectations about Noman Groups’ services and the services they actually
receive from the suppliers/buyers especially about documentary credit in international trade. I
will also find out whether there is any functional gap and will recommend for minimizing the
gap to enhance its service quality and profitability. I believe this report will be helpful for the
management personnel of the organization to gain knowledge about suppliers’/customers’
perception and to improve its service quality. Moreover, this will also help me to gain
practical knowledge about various activities of documentary credit in the context of
international trade operations as it has a great contribution in the growth of our country.

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 1 . 2 . S TAT E M E N T O F T H E P R O B L E M

Statement: Documentary Credit for International Trade: A study on Noman Group.

Research Question: Is Documentary Credit Feasible for International Trade of Noman

Group?

1 . 3 . O B J E C T I V E S O F T H E S T U DY

The main purpose or objective of the report is to assemble practical knowledge and
experience about the activities performed by the different officials in the Export & Import
Departments. The report is prepared with the purpose of getting an overview of international
Business through LC operation at Noman Group. This study effort to pursue the following
tasks:

To know about the various documents and procedures which are used in Letter of
Credit (L/C) operations in International Trade especially in documentary credit of
Noman Group.
To know how the Export & Import departments reduce risks involved with
Documentary Credit in the context of international trade of Noman Group.
To understand the import and export procedure of Noman Group.
To know the parties & documents involved with the operation of Documentary Credit
of Noman Group.
To know the major activities involved with the functions of International Trade
especially in Documentary Credit.
To recommend actions that may be necessary to redesign the foreign trade procedure
of Noman Group.

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 1 . 5 . L I M I TAT I O N S O F T H E S T U DY

There is not anything perfect in the world. Everything has limitations and it’s sometime
impossible to avoid it. I tried my heart and soul to make this report acceptable, but I couldn’t
avoid limitations sometime. These barriers, which hinder my work, are as follows:

Lack of experience on practical work.

My required information is not arranged and is scattered.
The documentation part of the Letter of Credit with regard to export and import is
quite complicated and huge formalities are maintained.

The company secrecy posed a major problem since disclosure of some information
has been restricted.
Learning all the functions about International Trade within just three months was
really tough.
All branches of the sample company were not physically visited.
Difficulty in accessing latest data of internal operations.

Non-availability of some preceding and latest data.

It would be better to take interview of some loyal clients of this organization. But this has not
been possible for the lack of their time and busyness of the organization.

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2 . 0 . M E T H O D O LO GY O F T H E S T U DY

The information for this report has been prepared from practical work
experience at the branch. The information has been collected from the
most reliable sources. Quantitative and Qualitative judgments are also
applied in this report which has made the study more meaningful and
presentable. The sources are:

A critical source of information was collected through discussions with the officers of
Export & Import departments.
Collecting various necessary documents of International trade.
Direct observations of company activities.
Practical work experience from different desks.
Company Website.
“Annual Reports” of Noman Group.
Websites on Export & Import organization and international trade.
Overflowing conversation with the in-charge of the branch manager of Motijheel
office.

2 . 1 . D A T A A N A LY S I S A N D P R E S E N T A T I O N
TECHNIQUE

In order to analyze gathered data, I plan to use official software like Microsoft Office that
will run type, charts, regression and such. Besides Microsoft Office I will use MS-Excel to
generate charts and graph of different financial analysis. The data will be presented through
graphs for better visual understanding.

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 3 . 0 : C O M PA N Y P R O F I L E
WITH ITS HISTORY

Noman Group of Industries was incorporated in 1997 with a mission to grow up as an

internationally recognized home textile manufacturing company, by meeting day to day
market requirement and achieving customers' satisfaction.

Noman Group of Industries has commenced its commercial production from March 2000
The manufacturing process of Noman Group Of Industries is vertically integrated with
spinning, Weaving Printing & Dyeing with complete Back Process including CAD Designing
Studio, Singeing & Desizing, Continuous Bleaching Plant and Stitching Unit.

The mills are located at Tongi, Gazipur, Narshindi and Bhaluka near to Dhaka, the capital
city of Bangladesh. The company has invested around US$ 80 million to set up the state of
the art machineries to meet the challenges of 21st century's Textile World. The mill has
capacity of producing about 230.000 meters of finished fabrics or 46,000 sets of various
home textile products including bad linens, window furnishings, and table and kitchen linen
in 2005. Due to the true leadership of the Management, highly skilled expatiates from various
countries and 6.000 dedicated and hardworking employees. Noman Group of Industries has
crossed over US$ 123 million of exports till 2004.

Incorporated in 1968, Noman Group was originally founded as a trading company in Dhaka
as its first venture of business which eventually led the company turn in to manufacturing of
textile industry in 1975 with a vision of contributing the founder’s true leadership for the
well-being towards the country's economy. Headquartered in Bangladesh. The group owns 19
textile subsidies and a workforce consisting of more than 40,000 employees. Beside entire
value chain in textiles, Noman Group also has diversified business interest in housing and
real estate.

Today Noman Group is a reputed vertically integrated textile group in Bangladesh. The
group started its journey with a vision of establishing itself as the largest textile
manufacturing in the world and today with continuous effort to grow in this sector rapidly; it
has carved recognition not only in Bangladesh but spanning worldwide markets.

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We view business as a means to the material and social wellbeing of the investors, employees
and the society at large, leading to accretion of wealth through financial and moral gains as a
part of the process of the human civilization.

3.1: Vision

We view business as a means to the material and social wellbeing of the investors, employees and the
society at large, leading to accretion of wealth through financial and moral gains as a part of the
process of the human civilization.

3.2: Mission

Our Mission is to produce and provide quality & innovative healthcare relief for people,
maintain stringently ethical standard in business operation also ensuring benefit to the
shareholders, stakeholders and the society at large.

3.3: Objectives

Our objectives are to conduct transparent business operation based on market mechanism
within the legal & social framework with aims to attain the mission reflected by our vision.

3.4: Corporate Focus

Our vision, our mission and our objectives are to emphasize on the quality of product,
process and services leading to growth of the company imbibed with good governance
practices.

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3.5: The Founder’s Speech

Nomam Group Limited has successfully passed another challenging year and turned towards its 20th
year, which is the reflection of dedicated team work with clear mission in mind.

Last nine years everyone in this organization worked hard with delegation of authority, true
leadership of the management and developed Zaber & Zubair as a successful organization that now
ready to move forward with more enthusiasm and better preparation to achieve bigger target in this
changing environment of global market. I must admit that, this success came thru the guidance and
trusts of our each valuable customer around the world. I extend warm gratitude along with our honest
compliments to all of them.

Our mission is to achieve excellence in what we do. Our commitment is to cost effective production,
with the compliance to the minimum requirement of product standards. At the same time we will
ensure that Zaber & Zubair complies with all legal, social and environmental requirements.

This year we have invested further for doubling the capacity by putting more brand new machineries
in spinning, weaving, processing and stitching. To ensure that Zaber & Zubair safely disposes all its
effluents, we have also doubled the capacity of ETP. The employees are given adequate trainings for
their development in skills, personal safety and environmental protection.

Zaber & Zubair is completely ready with enough capacity and adequate human resources to face
future challenges.

All the best.

Md. Nurul Islam

Chairman

Noman Group

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3.6: Different Units of Noman Group:

In 1968 the footstep of Noman Group was established by putting a trading company in
Dhaka as its first venture of business which eventually led the company turn into
manufacturing of textile products in 1975 with a vision of contributing the founder true
leadership for the well being towards the country's economy.

Artex Fabrics Ltd.

Specialized Textile Industry with 38 Nos. Karl Mayer (Germany) warp knitting machine,
Manufacturing fabrics of Man made fibers, Mesh fabrics etc. for Local & Export.

Zaber & Zubair Fabrics Ltd.

100% Export oriented Composite Home Textile Industry.

We shall achieve our goals by establishing and maintaining as effective and efficient Quality
Management system, through which our corporate and departmental objectives and targets
are established and our measured performance is routinely evaluated. Attaining the required
label of quality in your textile Product and support services is as integral part of all our day to
day activities and must remain the focus of our attention at the times. Each member of our
team is accountable for ensuring conformance to our written procedures and contributing
towards continually improvement our overall performance

Sufia Cotton Mills Ltd.

Export Oriented Spinning industry with 42,504 Nos. Brand new spindles, Manufacturing
cotton and PC Yarn.

Talha Spinning Mills Ltd

Export Oriented Spinning industry with 54,888 Nos. Brand new spindles, manufacturing
100% Cotton Yarn.

Mariom Textile Mills Ltd.

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Specialized Textile Industry with 48 Nos. Karl Mayer (Germany) warp knitting machine,
Manufacturing fabrics of Man-made fibers for Local & Export.

Noman Fabrics Ltd

Dyeing, Printing & Finishing unit, Processing all kinds of Fabrics for Local & Export.

Zaber Spinning Mills Ltd

Export Oriented Spinning industry with 78,608 Nos. spindles and 1,800 Nos. Rotor (Rotor -
under implementation) manufacturing Cotton, PC Yarn.

Noman Textile Mills Ltd.

100% export oriented textile weaving Industry with 112 Nos. Air Jet Looms.

Talha Tex-pro Ltd.

Dyeing, Printing & Finishing unit, Processing all kinds of Fabrics for Local & Export.

Zaber & Zubair Accesories Ltd.

100% Export oriented Garments accessories items manufacture.

Zarba Textile Mills Ltd.

100% export oriented textile weaving Industry with 180 Nos. Air Jet Looms and 2,952 Rotor
(Rotor - under implementation).

Yasmin Spinning Mills Ltd.

Export Oriented Spinning industry with 77,376 Nos. spindles, manufacturing Cotton,
PC Yarn.

Ismail Textile Mills Ltd.

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100% export oriented textile weaving Industry with 184 Nos. Air Jet Looms.

Saad-Saan Textile Mills Ltd

Export oriented Home Textile Industry with 787 Nos. Sulzer projectile Looms.

Noman Weaving Mills Ltd.

100% export oriented textile weaving Industry with 128 Nos. Brand new Air Jet Looms and
156 Nos. sulzer Looms.

Zaber Spinning Mills Ltd

Export Oriented Spinning industry with 78,608 Nos. spindles and 1,800 Nos. Rotor (Rotor -
under implementation) manufacturing Cotton, PC Yarn.

Zubair Spinning Mills Ltd.

Spinning mills with 72,576 Nos. spindles and 1,560 Rotor manufacturing Cotton, PC Yarn
for Local & Export.

Talha Fabrics Ltd.

100% export oriented textile weaving Industry with 420 Nos. Air Jet Looms.

Noman Home Textile Mills Ltd

Export oriented Home Textile Industry with 288 Nos. Sulzer projectile Looms.

Sufia Fabrics Ltd.

Specialized Textile Industry with 209 Nos. Karl Mayer (Germany) warp knitting machine,
Manufacturing verity of synthetic Fabrics, Mesh Fabrics, Garments accessories etc. for Local
& Export.

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3.7: Product Line Embellishments:

Zaber & Zubair Fabrics is committed to satisfy customer expectations and needs and striving
for excellence and continual improvement by providing quality products and services
confirming fully to customers regulatory and internal requirements. This if true ensures our
continuing growth and success in the global market.

Aircraft T Shirt

Lorem Ipsum is simply dummy text of the printing and typesetting

industry. Lorem Ipsum has been the industry's standard dummy text
ever since the 1500s, when an unknown printer took a galley of t-
shirt.

Kitchen lines

Zaber & Zubair Fabrics is committed to satisfy customer

expectations and needs and striving for excellence and continual
improvement by providing quality products and services confirming
fully to customers regulatory and internal requirements. This if true
ensures our continuing growth and success in the global market.

Windows

Zaber & Zubair Fabrics is committed to satisfy customer expectations

and needs and striving for excellence and continual improvement by
providing quality products and services confirming fully to customer's
regulatory and internal requirements. This if true ensures our
continuing growth and success in the global market.

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Dyed Trimed Sheet

Platinum Troubadour

Comforter Set

Curtain
Window

Towel

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Bed Lines

Zaber & Zubair Fabrics is committed to satisfy customer expectations and needs and striving
for excellence and continual improvement by providing quality products and services
confirming fully to customers' regulatory and internal requirements. This if true ensures our
continuing growth and success in the global market.

3.8: Quality Policy:

Noman Group is committed to satisfy customer
expectations and needs and striving for
excellence and continual improvement by
providing quality products and services
confirming fully to customers' regulatory and
internal requirements. This if true ensures our
continuing growth and success in the global
market.

This company believes in the statement “Quality First and rest of the consequences”. They
want to achieve their goals by establishing and maintaining as effective and efficient Quality
Management system, through which their corporate and departmental objectives and targets
are established and their measured performance is routinely evaluated. Attaining the required
label of quality in customer’s textile Products and support services is as integral part of all
their day to day activities and must remain the focus of
our attention at the times. Each member of our team is
accountable for ensuring conformance to our written
procedures and contributing towards continually
improvement our overall performance.

Spinning:
One of the strong spinning bases in the country equipped
with brand new state of art machineries strongly back up
the entire process. Well-organized spinning units have a

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capacity for constantly checking quality standard and a distinctive product variety. The group
has five spinning mills that contains 200,000 spindles and producing 110 tons of yarn
everyday.

Spinning Mills

 Ismail Spinning Mills Ltd. Spinning unit with 45,000 spindles

 Yasmin Spinning Mills Ltd. Spinning unit with 46,000 spindles

 Sufia Cotton Mills Ltd. Spinning unit with 51,000 spindles

 Talha Spinning Mills Ltd. Spinning unit with 64,000 spindles

Expansion Plan

 1 Spinning Unit

 80,000 Spindles

 75 Ton

Weaving Mills

Zaber & Zubair Fabrics has 1200 shuttle-less SULZER

Wider width loom producing 150,000 meters of fabric in a
day. This is one of the strength of the company and biggest among the similar trade4 through
out the country. 200 Air Jet looms are expected to be in operation by October 2005 that will
add another 80,000 meters of fabric which make the capacity 230,000 meters per day. With
this strong backup of weaving unit, Zaber is capable to produce lower till higher count plain
& sateen weave fabric using single and double pick insertion, twill, half panama, voile &
different types of dobby patterns. End of 2005 expected a total capacity of 2,45,000 meters of
fabric per day out of 1600 shuttle less & 120 air jet looms.

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Stitching

A dedicated workforce of 2000 highly skilled workers enable out stitching unit to process
35,000 Bed Sets, 5,000 Pairs Curtain & 2000 quilted comforter a day.Current Production
lines includes Quilt Cover, Valance Sheet, Curtain, Flat & Fitted Sheet, Pillowcase,
Decorative Pillows and Comforter to meet customer demands. Also the unit is capable to
produce a wide range of high quality embellished products
of various attachments like trim, lace, piping and many
others.

Laboratory

Quality Concern for everyone With a well-furnished in-

house laboratory, Zaber & Zubair is capable to do most of
the common tests that a customer looks for i.e; Quality
concern for everyone is philosophy for professional workforce at ZnZ Fabrics. Quality
control procedures are carried out at every stage during production. From selection of cotton,
spinning, weaving. Printing, Stitching and packaging of final product, each process is
scrutinized and controlled to the markets individual quality standards. Keen commercial
thinking and ever mindful of the exacting specifications and requirements of international
standards, as well as crucial balance between the quality and value of customer's satisfaction.
With all furnished in-house laboratory, Zaber & Zubair is capable to carry out most of the
common tests that a customer looks for i.e; HVI Spectrum for row cotton testing , count &
Imperfection of Yarn through Uster Tester. washing Dimensional Changes,Colorfastness to
Light, Colorfastness to Rubbing, Color fastness to Washing ,Resistant to pilling ,Abrasion
Resistant , Fabric Weight, Appearance after Wash, Tear Strength, Tensile Strength, Seam
Slippage, Formaldehyde Content, Color comparison through
spectro photo meter,Dye Padder for ab dip,Dryer & Stenter for
chemical testing to keep the standards high in operation and
production Noman Group invested significant amounts from
testing raw cotton up to finished goods. To test and identify the
characteristics of raw cotton NG installed world class standards
raw cotton testing equipment HVI Spectrum from Zellweger,

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Uster, Switzerland and to identify fiber characteristics NG installed AFIS Pro (Advanced
Fiber Information System).Not only that to recognize yarn imperfection NG installed USTER
4 & 5.

Inspecting and checking every process of spinning through inline inspection procedure to
eliminate and improve the quality stable and secure.

Noman Group maintains quality procedures and AQL level in every process of Spinning,
Weaving, Dyeing and printing process to keep the standard up to the level .To ensure the
quality of Home textile goods of Zaber & Zubair NG invested in state of arts machineries and
well-equipped quality testing equipments. Zaber & Zubair is able to test most of the testing
requirements of customers throughout the world.

We believe in the statement “Quality First and rest of the consequences”. Following this
concepts Noman group reached in highest level of Quality management.

3.9: Corporate Social Responsibilities

Noman group has put huge emphasis on its corporate social responsibilities. The social
welfare activity of the group is mainly concentrated in health, safety, education and
infrastructure. Since 2003, Noman Group has invested over 2 million euros through
“Ismail Anjuman Ara Trust” in social welfare. It has so far established orphanages,
schools, & health care service as part of its corporate commitment to render social
welfare activities. It has also contributed to the surrounding areas of the factories by
building bridges, roads and few other infrastructures.
Noman Group teamed up with Quantum Foundation to host their annual summer blood drive
on July 8 at the Noman Group Headquarters. The event was inaugurated by Mr. Abdullah
Talha, Director of Noman Group.

The 2013 Blood Drive was a definitive success. It registered 25 donors with some even
managing to give a double donation of blood cells! A separate team of volunteers were on
site giving out drinks, snacks and t-shirts all who donated. The team was thrilled with the
turnout, and looks forward to next blood drive that’s slated to take place in
December.Keeping in mind the challenge of preventing HIV/AIDS among the high

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population density countries and the rapid increase of HIV prevalence in Asia, Noman Group
has taken up awareness programs aimed towards its massive workforce. Noman Group is
currently in talks with JCI Bangladesh for arranging a number of such programs in 2014.

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3.10: Clients of Noman Group:

3.11 Suppliers of Noman Group:

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3.12: ACHIVEMENTS

ISO 9001:2008
ISO 9001 is a quality management system. This certificate
demonstrates the ability to consistently provide product that
meets customer and applicable statutory and regularity
requirements. It is tired and tested framework for taking a
systematic approach satisfaction of the customer.

OEKO-Tex Standard 100

Globally accepted certificate for textile raw materials,
intermediate and finished products at all stage of
production, limiting the use of certain harmful chemicals.
The OEKO-tex label is a recognized benchmark for the
consumer and it is a quality assurance tool, for the
manufacturer. This is the confidence in textile an
international synonym for responsible textile production.

BRC Global Standard

The British retail consortium (BRC) issues the BRC Global
standard for consumer products. this is the global benchmark
for safety and legality of the product .the standard sets out of
the requirements for the production and supply of production
and supply of products of consistent quality.

GOTS: Global Organic Textile Standard

GOTS standards for the processing of fibers from

certified organic agriculture with a view to product eco-
friendly clothing. This certificate ensures organic status
of textiles, from harvesting of the raw materials,
through environmentally and socially responsible
manufacturing up to labeling in order to provide a
credible assurance to the end product.

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The remarkable achievements of the companies are:

 ISO 9001 : 2000 ( audited by URS )

 Oeko - Tex ( by Testex )

 BRC Global Standard Consumer Product ( by British Retail Consortium )

 BSCI (Business Social Compliance Initiative) (audited by SGS)

 Several audits on ETI (Ethical Trade Initiative) base code by different third party
audit companies.

Party audit companies:

 ISO 14001 ( audited by URS )
 SRM ( audited by URS )

 IWAY By IKEA

 Wal-Mart

 H&M

 Asda

 Disney

National Accreditations
The Managing Director, A.S.M.Rafiqul Islam(Noman) receiving the National Export Gold
Trophy from The Prime Minister of Republic of Bangladesh in the fiscal year of 2007 to
2008 as highest exporter in Bangladesh.

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3.13: MANAGEMENT HIERARCHY

OF NG

Chairman

Secretary

Managing Director

Deputy Managing Director

Director

Executive Director

General Manager

Deputy General Manager

Assistant General Manager

Senior Manager

Manager

Assistant Manager
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 Senior officer

Officer

Assistant Officer

3.14: Existing Departments of NG

1. HR & Administration
2. Production & Operation Department
3. Procurement Department
4. Export Department
5. Local export Department
6. Import Department
7. Local Purchase Department
8. Finance Department
9. Accounting Department
10. Marketing Department
11. Audit Department
12. Merchandising Department
13. Logistics Department
14. Insurance & Tax Department

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 D E S C R I P T I O N O F D O C U M E N TA RY
CREDIT

3.1: Methods of Payment in Foreign Trade

Foreign trade can be easily defined as a business activity, which crosses national
boundaries. These may be between parties or government ones. Trade among nations is a
common occurrence and normally benefits both the exporter and importer. In many
countries, international trade accounts for more than 20% of their national incomes.

There are four methods of foreign trade. These are:

1. Cash in Advance: In this methods, after confirming about products/service’s

features importer send money in advance to the exporter. Then the exporter sends
products/ services. Here importer always in risk.

Importer’s risks are:

Losing money;
Getting damaged products/services;
Losing the quality of products/services;
Risks in receiving less amount;
Facing unexpected behavior;
2. Open Account: After confirming about products/service’s features, the importer
wishes to get the products and the exporter send products and required documents.
Importer collects document and then products. After selling the products/services
the importer sends the amount of money gradually. As though the exporter sends
commodities, so the exporter always in risk of receiving money.
Exporter’s risks are:
Uncertainty of getting money;
Risks in receiving of specific amount of money;
Facing unexpected behavior;
3. Documentary collection: In this method, the exporter sends products/services with
required legal documents to importer. And then the importer collects the papers and
then the specific commodities. When the importer collects document he /she must
pay the specific amount of money. Otherwise it can’t be possible to collect the
documents as well as commodities. Here, importer & exporter both parties are
always in risk.

Importer’s risks are:

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 Losing money;
Getting damaged products/services;
Losing the quality of products/services;
Risks in receiving less amount;
Facing unexpected behavior;

Exporter’s risks are:

Uncertainty of getting money;

Risks in receiving of specific amount of money;
Facing unexpected behavior;
4. Documentary Credit: A Letter of Credit is a definite undertaking of the Issuing
Banks, to make the payment for the exporter, on behalf on the importer. As it is a
definite undertaking to make the payment for the exporter, on behalf of the importer,
so it is the best method of international trade. For this reason, I have chosen this
method for method making an informational full report and enjoyed working on it.

Advantages of both parties

For Importers:
No risks of losing money;
No risks of the quality of products/services;
No risks of receiving less amount products/services;
Expected behavior is shown;

For Exporter’s

Certainty of getting money;

No risk in receiving the specific amount of money;
Facing expected behavior;

3.2: Basic Regulations for International Trade

Foreign trade can be easily defined as a business activity, which crosses national
boundaries. These may be between parties or government ones. Trade among nations is a
common occurrence and normally benefits both the exporter and importer. In many
countries, international trade accounts for more than 20% of their national incomes. Foreign
trade has some basic regulations. These are:

1. Foreign exchange regulations act 1947.

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 2. Guideline for foreign exchange transactions 2009 by Bangladesh Bank.
3. Import Policy Order 2012-2015.
4. Export Policy Order 2012-2015.

Other Regulations

1. Foreign Exchange circular

2. Circular Letter
3. ICC rules and URC
4. ISBP (International Standard Banking Practice)

3.3: Definition of Letter of Credit

A Letter of Credit is a definite undertaking of the Issuing Banks, to make the payment for the
exporter, on behalf on the importer, in other words, it is a letter of the issuing Bank to the
beneficiary, undertaking to effect payment under some agreed conditions. It is an undertaking
of the Issuing Bank to the Beneficiary to make payment or to accept bill of exchange. It is
also an authorization of the Issuing Bank to effect payment or to negotiate bill of exchange,
against stipulated documents, complying investment terms. L/C is called documentary Letter
of Credit. Because the undertaking of the Issuing Bank is subject to presentation of some
specified documents. The Uniform Customs and Practice of Documentary Credit (UCPDC),
600, govern International Letter of Credit.

3.4: Documentary Letter of Credit

In simple terms, a documentary credit is a conditional bank undertaking of payment.
Expressed more fully it is a conditional Undertaking given by a bank (Issuing Bank) at the
request of a customer (Applicant) of on its own behalf to pay a seller (Beneficiary) against
stipulated documents provided all the terms and conditions of the Credit is complied with.

These stipulated documents are likely to include those required for commercial, regulatory,
insurance or transport purposes, such as commercial invoice, certificate of origin, insurance
policy or certificate and a transport document of a type appropriate to the mode(s) of
transport used.

Documentary credits offer both parties to transactions a degree of security, combined with
possibility, for creditworthy party, of securing financial assistance more easily.
25 | P a g e
 Are arrangements by banks for settling international commercial transactions?
Provide a form of security for the parties involved.
Ensure payment provided that the terms and condition of the credit have been
fulfilled.

Mean that payment by such means is based on documents only, and not on merchandise
or services involved.

3.5: Types of the Documentary Letter of Credit

Letter of Credit

Irrevocable Transferable

Documentary Credits are basically two types. It may be either

Transferable
Irrevocable

This type of credit can be revoked or canceled at any time without the consent of, or notice of
the beneficiary. “A revocable Credit may be amended or cancelled by the Issuing Bank at any
moment and without prior notice to the Beneficiary”

In case of seller (Beneficiary), Revocable Credit involves risk, as the Credit may be amended
of cancelled while the goods are in transit and before the documents are presented, or,
although presented, before payment has been made. The seller would then face the problem
of obtaining payment. On the other hand, Revocable Credit gives the seller up to moment of
payment by the issuing bank at which the issuing bank has made the Credit available. In
modem banking, the use of revocable credit is not widely used.

Irrevocable Credit is a commonly used type of documentary credit. The Credit which can’t be
revoked varied or changed/amended without the consent of all parties- buyer, seller Issuing
Bank and Confirming Bank (in case of confirmed LC). An Irrevocable Credit constitutes a
definite undertaking of the Issuing Bank and that the terms and conditions of the Credit are

26 | P a g e
complied with. Irrevocable Credit gives the seller greater assurance of payments, but he
remains dependent on an undertaking of a foreign bank. Irrevocable may be confirmed and or
unconfirmed.

It is a Credit of issuing bank, which is opened at the request of buyer/Importer upon an

exporter/seller abroad through an advising bank, the agent/correspondent of issuing bank add
their confirmation under credit line arrangement of the issuing bank the advising bank makes
its own, independent payment commitment when it add its confirmation. Confirmed Credit
gives the seller a double assurance of payment. Under confirmed credit, the seller has not
only got the undertaking of issuing bank, but also enjoys the payment and acceptance.
Confirmed irrevocable credit represents additional requirements.

Hence it is more costly. However, the confirmation charges are payable either by buyer or
seller as per agreed arrangement between them.

Some others Documentary Credit

Revolving Letter of Credit: Revolving L/C can be used when goods are to be delivered in
installment at specified intervals. The amount available at any one time is equivalent to the
value of one partial delivery. A revolving credit can be cumulative or non-cumulative means
that amount from unused or incompletely used portions can be carried forward to subsequent
period.

Standby Letter of Credit: Standby credits are encountered principally in the US. Under
the laws of most US states, banks are prohibited from issuing regular quarantines, so credits
are used instead. In Europe, too the use of this type of credit is increasing by virtue of their
documentary credit, stand-by credit are governed by the UCP. However, their function is that
of a grantee.

Back to Back Letter of credit: The Back to Back letter of Credit is a wing of Export
department at the advising bank on behalf of beneficiary. If the beneficiary exports
readymade garments products, then he may have to open this letter of credit for import of
raw materials. It is a sort of Pre-shipment finance before export of products.

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Transferable Letter of Credit: Transferable credit is particularly well adapted to the
requirements of international trade. A trader who receives payment from a buyer in the form
of a transferable documentary credit can use that credit to pay his own supplier. This enables
him to carry out the transaction with only a limited and lay of his own funds. The costs of the
transfer are usually charged to the trader and the transferring bank is entitled to delete them
in advance.

Red Clause: In the case of a red clauses credit, the seller can obtain an advance for an
agreed amount from the correspondent bank, goods that are going to be delivered under the
documentary credit. On receiving the advances, the beneficiary must give a receipt and
provide a written undertaking to present the required documents before the credit expires.
The advance is paid by the correspondent bank, but it is the issuing bank that assumes
liability. If the sellers does not present the required documents in time and fails to refund the
advance, the correspondent bank debits the issuing bank with the amount of the advance plus
interest. The issuing bank, in turn, has reveres to the applicant, who therefore bears the risk
for the advance and the interest accrued.

Green Clause: The clause which is printed /typed in green is an extension of Red “Red
Clause”. This clause authorizes the negotiating bank to grant advance to the beneficiary for
storage facilities at the port in addition to the earlier stated pre shipment advances.

3.6: Parties to Letter of Credit

A letter of credit is issued by the bank at the request of an importer in favor of an exporter
from whom he has contracted to purchase some commodities or services. Generally the
letter of credit is transmitted to the beneficiary through a bank in the beneficiary’s country.
Therefore, parties of letter of credit are mainly:

Obligatory Parties are

a) Importer / Buyer/ Applicant
b) Opening Bank / Issuing Bank
c) Advising Bank / Notifying Bank
d) Exporter /Seller / Beneficiary
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Besides, there are one or more than one banks who are involved in various capacities and
various stages to play an important role in the total operations of credit which are as
follows:

Optional Parties are

e) Negotiating Bank
f) Confirming Bank
g) Transferring Bank
h) Reimbursing / Paying Bank

The involved parties can be named below:

a) Importer/Buyer/Applicant is the person who requests/instructs the opening bank to

open a L/C. He is also called opener of Applicant of the credit.

b) Opening/Issuing Bank is the bank which opens/issues a L/C on behalf of the importer.
It is also called the importer's/buyer's bank. Exporter / Seller / Beneficiary are the party in
whose favor the L/C is established.

c) Advising / Notifying Bank is the bank through which the L/C is advised to the exporter.
It is a bank situated in the exporting country and it may be a branch of the opening bank or a
correspondent bank. It may also assume the role of confirming and/or negotiating bank
depending upon the conditions of the credit.

d) Exporter/ Seller/ Beneficiary: Beneficiary of the L/C is the party in whose favor the
letter of credit is issued. Usually they are the seller or exporter.

e) Negotiating Bank: A Negotiating Bank is the bank nominated or authorized by the

issuing bank to negotiate the documents and to pay the amount to the beneficiary, to incur a
deferred payment liability, to accept draft. If the negotiation of the documents is not
restricted to a particular bank in the L/C, normally the negotiating bank is the banker of the
beneficiary.

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f) Confirming Bank: The Bank, which under the instruction in the letter of credit adds
guarantee to the credit, thereby, undertaking the responsibility of payment/ negotiation/
acceptance under the credit in addition to that of issuing bank. A confirming bank does so if
requested by the issuing bank having arrangement with them.

g) Transferring Bank: Original beneficiary may transfer the L/C to second beneficiary
as per clause of the L/C. transfer may be made once only. The bank of the original
beneficiary authenticates the transfer and the bank is known as transferring bank. Normally
transferring bank authenticate the transfer and keeps record of transfer without any
engagement on their part.

h) Reimbursing Bank / Paying Bank: A reimbursing Bank nominated or authorized by

the issuing bank to make payment against stipulated documents, complying with the credit
terms. Normally issuing bank maintains an account with the reimbursing bank to make the
payment. Details regarding the rights and obligations of the different parties involved in the
documentary credit operations may be had from UCPDC (Article Nos. 13 to 19).

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3.7: Operational Mechanism of Letter of Credit

Indenter

Buyer/ Seller/
Sale/Purchase Contract
Importer Exporter

4. Submission of
Documents

1. Written Application to
Issue L/C
Effects

Payment by
3. Advices & or
confirms L/C

2. Issue L/C

Pay
Issuing Bank Advising/Confirming
5. Forward Document
/Negotiating Bank
or Reimburse

6. Effect Payment

Paying/

Reimbursing Bank

Instruct to Pay

or Reimburse

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3.8: Documents required for Opening a L/C

The importer after receiving the preformed invoice from the exporter, by applying for the
issue of a documentary credit, the importer request his bank to make a promise of payment to
supplier. Obviously, the bank will only agree to this request if it can rely on reimbursement
by the applicant. The applicant must therefore have adequate funds in the bark account or a
credit line sufficient to cover the required amount. Banks deal in documents and not in goods.
Once the bank has issued the credit its obligation to pay is conditional on the presentation of
the stipulated documents within the prescribed time limit. The importer should submit the
following documents for opening LC:

Valid import Registration Certificate (commercial/industrial).

Tax identification Number Certificate (TIN)
VAT Registration Certificate.
Membership Certificate of a recognized Trade Association as per IPO.
A declaration, in triplicate, that the importer has paid income-tax or submitted income
tax returns for the year preceding year.
Pro-forma invoice or indent duly accepted by the importer.
Insurance Cover Notice with money paid receipt covering value goods to the
imported.
L/C Application form duly signed by the importer.
Letter of Credit Authorization Form (LCAF) commercial or industrial as the case may
be duly signed by the importer and incorporation new ITC number of at least 6 digits
under the Harmonized system as given in the import Trade Control schedule 1998.

3.9: Proposal of L/C

Preparing a LC proposal is fundamental function of a letter of credit operation. Preparing a
LC proposal a lot of information is needed. For this purpose the client should co-operate the
bank. Otherwise the bank will not able to complete the proposal successfully. However, the
following papers/documents are required to process LC proposal. Completion of LC opening
as per Bank’s form under terms and condition stipulated thereon.

Completion of LC agreement form as per bank’s format.

Valid trade license.
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 VAT Registration Certificate.
TIN Certificate.
Valid/Renewed IRC — IRC to be properly Transferred/N.O.C from previous bank.
Membership Certificate form Chamber of Commerce.
Undertaking bearing Exchange Fluctuation.
Undertaking having no overdue liability with bank’s / financial institute.
Indent/P.I having address, Tel, Fax, E-mail address of Exporter/Indenter & Importer
duly to be signed by both with acceptance and mentioning actual date of delivery,
shipment date, ports with terms and condition

3.10: Terms and Conditions in a Documentary Credit

Expiry date of the DC for presentation of Shipping documents for Negotiation/
Honor;
Shipment expiry date within which the goods should be on board the name mode of
transport
Currency and amount, maximum that can be drawn under the DC, and tolerance if
any;
Applicant and Beneficiary
Ports of loading an delivery
Availability of the DC by Negotiation / Sight payment / Deferred payment /
acceptance with;
Availability of DC with a specific nominated bank to make the proceeds available to
the beneficiary
Goods description
Presentation should be made to whom, when and how and within what period
Reimbursement is available to be nominated bank, how and when;
Charges what are all to account of the applicant and beneficiary;
Confirmation: of the DC to be effected by whom and charges to whose a/c and of
course;

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3.11: Concept of Import
Import of merchandise involves two things: bringing of goods physically into the country
and remittance of foreign exchange towards the cost of merchandise and services. In case of
Import, the importers are asked by their exporters to open a letter of credit. So, that their
payment against goods is ensured. Documentary credit has emerged as a vital system of
trade payment. It is a key player of foreign trade.

3.12. Import Procedures

There are eight mechanism of import procedure. The procedures are mentioned below by a
flowchart.
Import Procedures
1. Registration with CCI & E

2. Determination terms of credit

3. Proposals for opening of L/C

4. Application by importer to the banker to open L/C

5. Opening of L/C by the bank for the opener

6. Shipment of goods and presentation of documents by exporter to

Nominated Bank

7. Lodgment of documents by the opening Bank from the negotiation

8. Retirements
Letter of Credit operations are mandatory in import procedure otherwise the import operations will
be unsafe.

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3.13: Import Process

Purchasing something from another country is known as import. The import functions relates
some consecutive tasks, which must be done one after one. The import process consists of
following activities:

1. Requisition about required raw products by Factory to procurement department

2. Collection of information about required raw products by Procurement department

3. Conduct with Supplier/Exporter

4. Making Proforma Invoice to open L/C

5. Opening L/C by Issuing Bank

6. Sending L/C copy to Advising Bank by Issuing Bank

7. Collection of L/C copy by Supplier/Exporter

8. Shipment of products

9. Documents submission to advising Bank

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 10. Advising Bank submits the documents to Issuing Bank

11. Collection of Documents by Importer from opening bank

12. Collection of products by C & F

13. Products send to the factory

3.14: Export Letter of Credit

The other type of L/C facility offered different banks is Export L/C. Bangladesh exports a
large quantity of goods and services to foreign households. Readymade textile garments
(both knitting and wove) jute, jute-made products, frozen shrimps, tea are the main goods
that the Bangladeshi exporters export to foreign countries. Garments sector is the largest
sector that exports the lion share of the country’s export. Bangladesh exports most of its
readymade garments products to USA and European Community (EC) countries.
Bangladesh exports about 40% of its readymade garments products to USA.

They open L/C to export their goods, which they open against the import L/C opened by
their foreign importers.

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 3.15. Export Procedure
According to Foreign Exchange Regulation Act, 1947, nobody can export by post and
otherwise than by post any goods either directly or indirectly to any place outside
Bangladesh, unless a declaration is furnished by the exporter to the collector of customs or to
such other person as the Bangladesh Bank may specify in this behalf that foreign exchange
representing the full export value of the goods has been or will be disposed of in a manner
and within a period specified by Bangladesh Bank. Payment for goods exported from
Bangladesh should be received through an Authorized Dealer in freely convertible foreign
currency or in Bangladeshi Taka from a Non-Resident Account. The Export section deals
with two types of Letter of credit that are as follows-

A) Export Letter of Credit

B) Back-to-Back Letter of Credit Pre-shipment Credit and Post-shipment credit can do

export financing. In case of pre-shipment financing 90% is financed by the bank. Of the
portion 75% is by Back-to-Back L/C and 15% by cash credit. Below the researcher stated in
broadly those two types of L/C.

Export Procedures

1. Obtaining Export Registration Certificate

2. Secure the order

3. Obtaining EXP

4. Signing of the contract

5. Receiving the Letter of Credit

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 6. Procuring the materials

7. Endorsement on EXP

8. Shipment of goods

9. Preparation of export documents for negotiation

10. Examination of documents

11. Negotiation of export documents

3.17.1: L/C Operations in Noman Group

Today Noman Group (NG) is one of the leading and most successful exporting enterprise in
the country. It plays a great role in the economy of the country. By export- import business
the company plays a great role to the economy of Bangladesh. NG is one of the greatest
company in export-import business.

International trade plays a vital role in the economic advancement process of a nation. So the
trend of country’s international trade, i.e. import & export is of a great concern to the
government of a country. Fluctuation in the parameters of foreign trade immediately brings
about some impact on the total economy. As such the nature, trend and the volume of foreign
trade are required to keep peace with the national economic needs and objective. Moreover
the items of import & export value and volume of the same, the corresponding time period,
sources of fund far payment and receipt, all these factors are to be considered very carefully
for making necessary adjustment to match with the national economic policies as well as
achieve balanced economic growth through the inter policy and inter policy co-ordination.
International trade policy relates to commercial policy, which has two main components of
38 | P a g e
Import policy relates to commercial policy, which has two main components of Import policy
and Export policy. The main operaions which are performed by the NG are mentioned below.

3.17.2: Documents required for opening L/C

Noman Group uses following documents to open import L/C. They submit the documents to
the bank. The documents are as follows:

Letter of Credit opening application form

Terms and Conditions of Noman Group
Proforma Invoice (4 copies)
Application & agreement for opening revocable/irrevocable without resource to
drawers L/C
Letter of Authorization Form (6 copies)
Joint Promissory Note
Letter of Disbursement
Authority to Debit

39 | P a g e
3.17.3: A Sample of L/C opening application to the bank.

September 13, 2009

To

The Executive Vice President

Shahjalal Islami Bank Ltd.

Dhanmondi Branch

Dhaka.

Subject: Request for opening 180 days issuance L/C for USD- 3, 66,760.00 at 5% margin in
the form of FDR as per sanction.

Dear Sir,

With reference to the above we like to inform you we want to import Capital Machinery from
USA/Singapore for existing industry. In this connection we are enclosing herewith the P/I
and the other related documents for your necessary action.

Therefore we request you, please open the above the L/C, at 5% margin. The said margin
may kindly be debited from our A/C- with you.

Thanking you

September 19, 2014

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3.17.4: A Sample of L/C Amendment application

To,
The Executive Vice President
Shahjalal Islami Bank Ltd.
Dhanmondi Branch
Dhaka

Subject: Amendment of L/C No. 296609020017 dated 17.08.2009

Dear Sir,
We would request you please amend our above L/C by full telex as under:

1. Clause No. 43P: Now partial shipment to be “Allowed” Instead of existing.

2. Clause no. 44C: Now date of shipment “31.01.2010” Instead of existing.
3. Clause no. 46A: (point-2): Now to be read as “Beneficiary’s manually signed (tow
copies marked as original) invoice in fold……. “ . And delete the word “In letter head
pad”.
4. Clause no. 46A: (point-3): Now to be read as “Detailed packing list in six folds duly
signed…… “ . And delete the word “In letter head pad”.
5. Clause no 47A (point-C): Now to be read as “House bill of lading issued by freight
forwarder not acceptable”. And delete “NVOCC”.
6. Clause no 47A (point-N): Please delete the point in it’s entirely.
7. Clause no 47A (point-P): Now to be read as “A survey certificate from a certified
appraiser to the effect that the residual life of machinery at least 10 ten) Years must
accompany the original shipping documents for negotiation”.

All other terms and conditions of the above L/C will remain unchanged.

Thanking You

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3.17.5: Important L/C Clauses

The following are the important clauses which are used in L/C sequential. It is shown as per
UCP-600.

27 - Sequence of Total

40A - Form of L/C- Irrevocable

20 - L/C No.

31C : Date of Issue

40E : Applicable rules: UCP

31D : Place of Expiry:

50 : Applicant :
59 : Beneficiary:

32B : L/C value:

39B : Tolerance:

41D : Available with Bank:

43P : Partial Shipment:

43T : Transshipment:

44E : Loading port:

44F : Discharge port:

44C : latest date of shipment:

45A : Description of Goods:

46A : Document required (Mandatory):

- Commercial Invoice (HS code, IRC no. , BIN, TIN must appear)

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 - Packing List (HS code, IRC no. , BIN, TIN must appear)

- Airway bill (HS code, IRC no. , BIN, TIN must appear)

- Beneficiary Certificate

- Certificate of Origin

- Freight, C/O, IN/P/L, Draft, applicant details

47A : Additional condition:

- L/C term :
- Payment term :
- The value, quantity, quality, unit price must be certified by the beneficiary
- L/C charges :
- Line, vessel :
- Third party Doc :
- Factory address :
- Beneficiary address:

- Discrepancies (if necessaries):

71B : Details of Charges:

48 : period of presentation :
49 : confirmation instruction :
78 : Instruction to the paying /accepting/Negotiating bank :
57D : Advise through:

72 : Back to Back Details

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3.17.6: Payment Mode of L/C

There are two types of payment mode which are used by Noman Group. The mode are
given below:

1. Sight Payment: Sight payment refers cash payment. When business

operation ends and the supplier receive cash money, it is the logical sequence
of service.
2. Deferred Payment: As per contact, sometimes the payment is paid after
certain specific time/duration, is known as deferred payment.

3.17.7: Bank’s funding against Letter of Credit

International trade needs to deal with several parties Bank is one of them. For performing
foreign trade, the NG does business with different banks. They open L/C. The banks provide
Loan Against Trust Received (LATR). The ways of funding are shown below:

1. Revolving: On the basis of contact,-which is done in the time of opening L/C- the
bank agrees to give specific amount of loan. And does foreign trade against this loan.
Let me make an example to clear the concept.
NG open an L/C to “P” bank and the bank agrees to give loan 80 lac. NG purchase
raw materials of taka 50 lac. IF NG wants to purchase within the time for taka 50 lac
again they must make payment of taka 20 lac to make the loan eligible of 50 lac.
2. Offshore: Banks make payment against L/C as per their operating roles, for this
purpose they create an unit named “Offshore Unit”. The purpose of this unit to make
payment. When the bank requires of making payment, they give payment from the
Offshore Unit, is known as Offshore.
3. Usance Paid At Sight (UPAS): Noman Group does foreign trade usance. They
generally for the time of 6 months/ 1 year, it follows the contact rules.
4. Export Development Fund (EDF): EDF is a fund for the exporters to motivate them
for developing export business. It is regulated & operates by the Bangladesh.
Bangladesh Bank provides loan for exporters. NG is the biggest receiver of EDF in
Bangladesh.

F I N D I N G S O F T H E S T U DY

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When I was working at Noman Group, Motijheel Branch, I have attained to some kind of
experiences. By analyzing the various data the following findings have been found:

Findings:

On the basis of previous analysis and practical experience of 3 months internship program,
the following findings are observed during the research period:

01. Inadequate manpower in Export & Import Departments. In export & import division
of motijheel branch there is lacking of manpower. The manpower of those sections is
not sufficient for prompt service.

02. In case of Export L/Cs, sometimes customers insist to give their payments though
their documents are found discrepant. In some cases, The company has to give
payment to these customers for different reasons. But it lessens the credibility of the
company.

03. Lack of promotional initiatives to expand the International business.

04. Most of the customers of the company ask for more quality service especially quick,
accurate and good behavior from the officials as they think a private firm should
provide such quality sufficiently. It has been found that inappropriate and slow work
process often compels the customers to compare the firm with government firm,
which is not a good indication for the reputation of the company.

05. Noman Group is following a conservative procedure for opening a LC. So

conservatism is there to open L/C, a lots of banks are involved in L/C operations. It is
time consuming and costly.

06. To communicate with the Negotiating Bank, Advising Bank. Reimbursing Bank the
branch uses SWIFT. It is a costly and time consuming media.

07. The Noman Group follows long process in operation of Latter of Credit Operations.

5 . 1 . R E C O M M E N D AT I O N S

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The time of working at Noman Group, Motijheel Branch, I have attained to some kind of
experiences. By analyzing the various data and findings the following recommendations can
be recommended:

The import department sometimes performs informal activities. The informal

activities should be stopped. The formal working procedures should be maintained
strictly.
As garment industries are more flexible, it is the major exportable product of our
country. So, The company should concern export L/C for garment exporters;
In case of exports L/Cs, the government encourages exporters by offering different
facilities such as tax-cuts. The company should also concern of this field to compete
with other countries exports;
Increase the Limit on L/C Value that means to import a large amount of raw materials
that will minimize extra pressure;

The NG should reduce the amount of margin of opening Latter of Credit;

Increasing the Number of Workforce especially in Import department;
Different training courses should be arranged for the up lifting and improving the
quality of employees’ skills.
To ensure better performance of employees the organization should arrange some
facilities like fringe benefits.

Yearly financial report has to be published only for export & import activities in
details;
The Noman Group should introduce New Branches. and
Employees should be paid extra for the work which they done after working hours.

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 5.2: CONCLUSIONS

Noman Group of Industries is one of the leading groups in Bangladesh. The system, the
management style, the policies & decentralized decision making environment is really
remarkable. This report is basically an attempt to identify the areas which need to be
improved.

In this era of technology, the “Information” is the key to success in the business. This means
that the successful businessman will be who will have the right information at the right time.
This comment leads to the conclusion that the Information Sharing Process should really be
improved.
　
The overall analysis especially on international trade is indicating that the company’s
progress has mainly attained through dedication of employees. The effectiveness of its
management, their willingness to take advantage of opportunities and face challenges of
changing economic picture, this all contributes to the very much improved and sound
position of company. This is really appreciable for the devotion and hard work of all the
employees of the company.

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 BIBLIOGRAPHY

Annual Reports of Noman Group-2011, 2012, 2013.

Bangladesh Gadgets-2012, 2013.

Different articles & journals of Noman Group.

Essentials of Supply chain management , Michael H Hugos, Jhon Weily & Sons,
January-4, 2010

Foreign Exchange and Financing of Foreign Trade. By Syed Asraf Ali.

ICC Uniform Customs and Practice for Documentary Credit 1993 Revision in force
as of January 1, 2007(UCP-600).
Supply Chain Management- Best practices, David Blanchard.

Statistical data are collected from annual Reports of Noman Group of Industries.

Several Booklets of Noman Group.

Websites:
http://www.nomangroup.com
www.znzfab.com
www.google.com
http://en.wikipedia.org/wiki/International_trade
http://en.wikipedia.org/wiki/Uniform_Customs_and_Practice_for_Documentary_Cre
dits

48 | P a g e
 Acronyms

DD Demand Draft

PO Payment Order
PI Proforma Invoice
DP Deferred Payment
CC Cash Credit
DC Documentary Credit
CAMEL Capital, Assets, Management, Equity, Liquidity
SWIFT Society for Worldwide Inter-bank Financial Telecommunication
CIBTA Computerized Inter Branch Transaction Account
CA Credit Advice
H.S CODE Harmonized Code
FDBC Foreign Document Bills for Collection
ISBP International Standard of Banking Practice
PAD Payment Against Document
LIM Loan Against Import Merchandise
LTR Loan Against Trust Report
IRC Import Registration Certificate
ERC Export Registration Certificate
CCI & E Chief Controller of Import & Export
INCO TERM International Commercial Term
LCA Letter of Credit Authorization

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AD Authorized Dealer

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