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    Scm450 Group7 LC Tti

    Uploaded by

    Fariha Mehzabin Noshin 1821468030
    1) The document is a letter of credit application from Salim Sadman to import 1000 OnePlus smartphones from China. 2) The LC amount is USD 650,000 for shipment by 26 April 2021, with documents to be presented within 10 days. 3) An analysis calculates the Total Tax Incidence (TTI) in Bangladesh for importing the 1000 OnePlus phones as 73,841,625 BDT based on applicable duties like customs duty, regulatory duty, VAT, and others.

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    © All Rights Reserved
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    Scm450 Group7 LC Tti

    Uploaded by

    Fariha Mehzabin Noshin 1821468030
    38 views5 pages
    1) The document is a letter of credit application from Salim Sadman to import 1000 OnePlus smartphones from China. 2) The LC amount is USD 650,000 for shipment by 26 April 2021, with documents to be presented within 10 days. 3) An analysis calculates the Total Tax Incidence (TTI) in Bangladesh for importing the 1000 OnePlus phones as 73,841,625 BDT based on applicable duties like customs duty, regulatory duty, VAT, and others.

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    Scm450 Group7 Lc Tti

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    1) The document is a letter of credit application from Salim Sadman to import 1000 OnePlus smartphones from China. 2) The LC amount is USD 650,000 for shipment by 26 April 2021, with documents to be presented within 10 days. 3) An analysis calculates the Total Tax Incidence (TTI) in Bangladesh for importing the 1000 OnePlus phones as 73,841,625 BDT based on applicable duties like customs duty, regulatory duty, VAT, and others.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views5 pages

    Scm450 Group7 LC Tti

    Uploaded by

    Fariha Mehzabin Noshin 1821468030
    1) The document is a letter of credit application from Salim Sadman to import 1000 OnePlus smartphones from China. 2) The LC amount is USD 650,000 for shipment by 26 April 2021, with documents to be presented within 10 days. 3) An analysis calculates the Total Tax Incidence (TTI) in Bangladesh for importing the 1000 OnePlus phones as 73,841,625 BDT based on applicable duties like customs duty, regulatory duty, VAT, and others.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    SCM450 LC and TTI

    Section- 1, Group-7
    Submitted to- Md. Mofassel Hossain
    Lecturer, North South University
    Name ID
    Ahnaf Nurul Azim 1811977630

    Akib Zabed 1812088030

    Salim Sadman Mozumder 1812516030

    Md. Rafiur Rahman Rahi 1812822630

    Fariha Mehzabin Noshin 1821468030

    A. M. Abrar Uddin Abir 19119050030


    SCM450

    Letter of Credit

    Foreign Exchange Branch

    L/C No.12345678

    Date : 12/04/2021

    Application and Agreement for Irrevocable Letter of Credit


    I/We would request you to please open an irrevocable Letter of Credit through your correspondent
    by o Mail/Air Mail o Wire in full o Wire in brief, details by mail, Airmail as follows:
    Beneficiary’s Name : Address : 72, SHANTINAGAR, DHAKA-1217
    MODERN IMPORTS LTD.

    By order of and for account of: Address : Do


    SALIM SADMAN

    LC amount: USD 650,000 o At sight: o CFR o FOB 0 By Negotiation


    0 By Acceptance
    In words : Six Hundred Fifty o Days Usance o CIF o
    0 By Payment
    Thousand Dollars Only
    For Shipment of: 1000 PIECES ONE PLUS PHONE Country of Origin
    SMARTPHONE CATEGORY CHINA
    (Please specify commodity only. Omit details as to grade, quality, price etc.)

    Documents required as Indicated by CHECK (X)


    0 Commercial Invoice in Sextuplicate 0
    Special Customs Invoice in Dyplicate
    0 Packing List in Sextuplicate
    Certificate of Origin Issued by
    XINYOUGHAI CO
    0 Pre-shipment Inspection Certificate Issued by MF CORPORATION
    0 Other Documents N/A
    (Specify the name of the Issuer)
    0 Full set of clean "Shiped on Board" Ocean Bill of Lading/Airway Bill/Truck Receipt/other documents relating to
    shipments drawn or endorsed to the order of Shahjalal Islami Bank Limited showing freight pre-paid/freight to
    pay marked notify us and your Bank.
    0 Shipment from CHINA to BANGLADESH by AIR

    Name and Address of the Insurance Company


    NATIONAL LIFE INSURANCE CO.
    KAWRAN BAZAR, DHAKA
    Part shipment 0 Allowed O Prohibited Transhipment O Allowed O Prohibited
    Last date of Shipment: Date of Expiry: Time period for presentation of
    26/4/2021 26/4/2021 Documents 10 days

    Other terms and conditions, if any

    The Security Agreement on the reverse is hereby unconditionally acceptable to the undersigned and made
    applicable to this application and the Letter of Credit
    Helal uddin Salim Sadman 14200054321
    Signature of Guarantor (if any) Signature of Applicant (s) Account No.
    BANK USE FOR ONLY

    LC Amount Margin Signed by


    SCM450

    TTI Calculation

    Total Tax Incidence (TTI) for OnePlus phone

    Description H.S. Quantity Price Per Total

    CODE Unit Amount

    Telephone sets, including Telephones for 8517.12.11 1000 $650 $650,000

    cellular network or for other wireless

    networks, such as voice, image or other data

    including apparatus for (such as local or wide

    area network) other than transmission or

    reception apparatus…

    The above harmonize system code as

    mentioned for the items: smartphone

    Brand: OnePlus

    OnePlus, product place of origin China, SRO-ref: Cellular (mobile/fixed) set display 4.5” up to

    (8GB ROM + 1GB RAM).

    Port of lading: Any port of China, by air.

    Port of discharge: Dhaka Hazrat Shahjalal Airport.

    Transshipment: Allowed.
    SCM450

    All the frightening charges of the goods will be taken care and the liabilities by the beneficiary

    company before entering Bangladesh ground. No third-party involvement allowed.

    Total amount in BDT (650,000$ * 85 BDT)

    = 55,250,000 BDT.

    Duty Calculation of importing OnePlus Phone

    Duty structure of Synthetic materials (Cellular/ Smart Phone) or HS code: (8517.12.11)

    according to the Bangladesh customs:

    CD (Custom Duty) 25%

    RD (Regulatory Duty) 3%

    SD (Supplementary Duty) 0%

    VAT (Value Added Tax) 15%

    AIT (Advance Income Tax) 2%

    ATV (Advance Trade VAT) 5%

    Now,

    • AV or Assessable Value is 55,250,000 BDT.

    • CD= AV*10% = (55,250,000 * 10%)

    = 5525000 BDT.

    • SD=(AV+CD+RD) *0% = 0 BDT.


    SCM450

    • RD= AV*3% = (55,250,000 * 3%)

    = 1657500 BDT.

    • VAT=(AV+CD+RD+SD) *15%= (55,250,000 + 5525000 + 1657500 + 0) *15%

    = 62,432,500 BDT.

    • AIT= (AV*2%) = (55,250,000*2%)

    = 1,105,000 BDT.

    • ATV= (AV+CD+RD+SD) *5%= (55,250,000+5525000+1657500+0) *5%

    = 3,121,625 BDT.

    Therefore, TTI (Total Tax Incidence)

    =(CD+RD+SD+VAT+AIT+AT)

    = (5525000 + 1657500 + 0 + 62,432,500 + 1,105,000 + 3,121,625

    = 73,841,625 BDT.

    So, the TTI for 1000 OnePlus phone is 73,841,625 BDT.

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