ROLE OF BANKS IN IMPORT EXPORT

BUSINESS

What is Import??

What is Export??

For Import BusinessNo person can import goods into Pakistan unless he

is registered with the Export Promotion Bureau, under the Registration (Importers and Exporters) Order, 1993 or exempted from the provisions of the said Order

How to start an Import Export Business??

For Export BusinessUnder the Registration (Importers and Exporters)

Order, 1993, as amended from time to time, no person can export any goods from Pakistan unless he is duly registered as an exporter with the Export Promotion Bureau.

How to start an Import Export Business??

Régulations for Import Export Business

• Import Trade Control• Modes of payments for imports.

– Letter of credit– Registration of contract– Clean Remittance

• Prohibition to open Letters of Credit for Import from Certain Countries

• Import of Unlawful object

How Letter of Credit works??

Lets do some healthy Exercise

• Advising Bank• Applicant (Importer/ Buyer)• Beneficiary (Exporter/ Seller)• Confirming Bank

Parties Involved in Import Export Business

After a contract is concluded between buyer and seller, buyer's bank supplies a letter of credit to seller.

Seller’s Bank Buyers’s Bank

BuyerSeller

Carrier

Seller consigns the goods to a carrier in exchange for a bill of lading

Seller’s Bank Buyers’s Bank

BuyerSeller

Carrier

Seller provides bill of lading to bank in exchange for payment. Seller's bank exchanges bill of lading for payment from buyer's bank. Buyer's bank exchanges bill of lading for payment from the buyer.

Seller’s Bank Buyers’s Bank

BuyerSeller

Carrier

Buyer provides bill of lading to carrier and takes delivery of goods.

Seller’s BankBuyers’s Bank

BuyerSeller

Carrier

Thank You !