Lodgement Of Import Documents

Lodgement Of Import Documents

If import documents found in order, it is to be made entry in the bill register & necessary voucher to be passed putting bill number on the documents, completing the necessary formalities. This process is called Lodgement. Documents must be lodged immediate after receipt of the same not exceeding seven working days.
 Proper lodgement is very much important to save the interest of the bank and the client.

Works related to lodgement

1. a) Maintenance of Register:

Bill Register should include date, serial no./Bill no., Bill of Exchange No, Amount, Name of negotiating Bank. B/L No. Date, Merchandise, retirement date & other particulars.
After lodgement, documents to be kept under lock & key until handing over the same to the party/C&F Agent at retirement stage.

1. b) Application of Rate: Foreign Currency would be converted at B.C. Selling rate ruling on the date of Lodgement.
2. c) Exchange control Form: IMP & TM form must be filled in & signed by the importer at the time of Lodgement/Opening L/C.
3. d) Endorsement of LCAF: LCAF must be endorsed showing utilization of shipment. The relative LCA form is to be endorsed with full particulars of Bill and the amount remitted just on the right side on the back of LCA form where endorsement was earlier made while opening the L/C. The L/C file is also stamped with Bill number and amount in Foreign Currency. The shipping documents marked with Bill number are then put into a separate cover marking Bill number and kept in safe custody for ultimate delivery to the importer on retirement of the import bill. The importer is then notified to retire the import documents by sending a cost memo indicating the amount payable by him under different heads.
4. e) Noting on the File: Utilized amount showing Bill No to be noted on the printed format of L/C files.
5. f) Intimation to the Importer: Importer is to be advised with full particulars of shipment to retire the documents on the date of lodgement.
6. g) Acceptance: Usance bill is to be presented to the importer for acceptance, if it is discrepant or received on collection under consignment basis. Upon receipt of acceptance, maturity date to be conveyed to the negotiating Bank. If it is not accepted due to discrepancies, disposal instruction of negotiating Bank to be asked.
7. h) Reminder to be issued to the client.
8. i) Discrepant Document not to be paid without importer’s acceptance.
9. j) L/C liability to be reversed and Bills liability to be created.

Accounting of Cash Bills Lodegment

a)   Reversal of Original Contra entry:
Dr. Bankers liability for L/C (Cash) (Foreign/Local)                                                           Tk.
Cr. Customers Liability for L/C   (Cash) (Foreign/Local)                                                                      Tk.
(b)     Dr.-   Murabaha Import Bills (MIB) (F.C multiplied by B.C Selling rate)                              Tk.
Cr.-    ETCA – HO- (Reimbursing Bank @ TT & OD)                                                           Tk.
Cr.-    Income A/C – Exchange Earnings                                                                            Tk.
Dr.-   Sundry Deposit A/C – Margin on L/C (Cash)                                                             Tk.
Cr.-    Murabaha Import Bills (MIB) (Foreign/Local for proportionate amount)                      Tk.
(c) Dr.- MIB (Profit portion for 12 months on total landed cost after deducting cash security)            Tk.
Cr.-  Profit receivable                   Tk.
Dr.- Profit receivable                    Tk.
Cr.-  Income A/C – (Realised monthly, on daily product basis)                                                 Tk.

IMPORT

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