Critical analysis on import mechanism

Abstract

Bangladesh's textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation's number one export earner, accounting for $21.5 billion in 2013 – 80% of Bangladesh's total exports of $27 billion. Bangladesh is 2nd in world textile exports, behind China, which exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since 2004. Chittagong Denim Mills Ltd is the world class latest denim fabric producer in Bangladesh. It was incorporation in 2005 and start Commercial operation in 2007. We produce a wide range of denim fabric like classical INDIGO, BLUE BLACK as well as BLACK. Our total land area 10 Acres and Covered area (Production/Storage) is 185,072 sq Chittagong Denim Mills Ltd has an ETP to treat the waste water and save the environment. We have our in house power plant to produce enough electricity to have uninterrupted production facility. Chittagong Denim Mills Ltd does not employee any person under the age of 18. For export denim fabrics we must import from local and foreign market. As per Bangladesh government policy we must import local/foreign goods only by Letter of Credit (LC) mechanism. Without LC mechanism it is not possible to doing export/ import business. For import yarns, chemicals, machineries, and spare parts open different types of LC. We also open Foreign Telegraphic Transfer (FTT) for transfer the currency for open FTT. All the import mechanism must be done with the use of banking mechanism. We mainly open Back to Back (BTB) LC’s, At Sight or Cash LC’s, very few of deferred etc. All the commercial letter of credits, where export related documents such as Invoice. B/L etc are required to present with the Bill of Exchange. By negotiation with party they issue a Proforma Invoice eith certain conditions, then with supporting documents likes LCAF and Application we apply to bank for opening a LC, bank issue this LC and transmit this LC to advising bank with the help of SWIFT. Party received this LC from their bank. After receiving this LC they ready the goods and made shipment and send documents to the issuing bank for release the goods from customs. We endorse this document by the bank officers and send it to our authorised C&F for discharge these goods from port. After receiving these goods we make payment according to LC conditions. If this LC is BTB LC then generally we made payment 120 days later from issuing Bill of Lading (BL), If it is Cash LC then payment made when we received the documents from bank. Before made payment we give acceptance to the party using banking mechanism. LC mostly used in doing national and international business like import and export, this is mostly risk free mechanism. Chittagong Denim Mills Ltd achieved global standards in quality, cost, service and scale of operation. We are focused on using innovative processes, technologies & machines to manufacture the finest products at a reasonable cost. Chittagong Denim Mills Ltd has become one of the most preferred fabric suppliers of the leading global Market.