FE Circular No. 07: Application of appropriate Incoterms in respect of foreign trade

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Web site: www.bangladeshbank.org.bd FE Circular No. 07 Date: June 29, 2009 All Authorised Dealers of Foreign Exchange in Bangladesh Dear Sirs, Application of appropriate Incoterms in respect of foreign trade. Please refer to para 02 of FE Circular No. 02 dated March 2 5, 2008 regarding the applicable Incoterms to be used for export from Bangladesh. 02. Incoterms require LCs to be opened on FC A basis if goods are to be delivered by exporters to the buyer' s nominated person. Contrary to this, it has been observed that ADs are advising FOB stipulated LCs with condition to de liver the goods to th e carrier o r to the buyer’s nominated person prior to loading on board a vessel. In such cases exporters face a dditional risks and incur extra co sts. ADs are, therefore, advised to satisfy them selves that LCs reflect accurate terms and condi tions of the Incoterm s stipulations before advising the same to the benefici aries. Inconsistency, if any, should be informed immediately to the LC issuing bank for necessary amendment with intim ation to the benef iciary. ADs are also advised to keep their exporter cu stomers informed of the appropriate term s and conditions against applicable Incote rms for export so that they can insist forei gn buyers to get LCs issued accordingly.

3. Please bring these instructio ns to the notice of all c oncerned. Meanwhile please acknowledge receipt of it. Yours faithfully, (Khandaker Abdus Salim) General Manager (Current Charge) Phone: 7120375