Bangladesh, situated in the northeastern corner of the Indian subcontinent, shares its borders with India and Burma.
With an estimated population of 165 million in 2021, as reported by the World Bank, Bangladesh stands as the eighth most populous nation globally.
In terms of population density, it is the most densely populated country after city-states.
As of 2021, Bangladesh ranked as the 32nd largest economy in the world based on its GDP (current US$).
In regards to GDP per capita (current US$), Bangladesh was positioned as the 133rd economy globally.
Bangladesh’s Foreign Trade:
In 2021, Bangladesh emerged as the 56th largest exporter in the world, with a total export value of $51.8 billion.
Over the course of the past five years, the country’s exports experienced a notable increase of $14 billion, rising from $37.8 billion in 2016 to $51.8 billion in 2021.
Bangladesh is one of the biggest textile exporters in the world.
The ready-made garment (RMG) industry remains a significant driving force behind Bangladesh’s economic growth, contributing substantially to its export sector.
The primary exports of Bangladesh are led by Knit T-shirts, accounting for $7.06 billion, followed by Non-Knit Men’s Suits ($6.68 billion), Knit Sweaters ($6.32 billion), Non-Knit Women’s Suits ($5.41 billion), and Knit Women’s Suits ($3.54 billion).
Among the various destinations for Bangladeshi exports, the United States holds the top position, importing goods worth $8.72 billion.
Germany follows closely behind at $8.36 billion, with Spain at $3.6 billion, the United Kingdom at $3.29 billion, and Poland at $2.94 billion being other significant export destinations for Bangladesh.
In 2021, Bangladesh ranked as the 48th largest trade destination in the world, with a total import value of $76.6 billion.
Over the past five years, the country’s imports have undergone a significant change, increasing by $34.1 billion from $42.5 billion in 2016 to $76.6 billion in 2021.
The primary imports of Bangladesh are dominated by Refined Petroleum, amounting to $5.48 billion, followed by Raw Cotton ($2.8 billion), Non-Retail Pure Cotton Yarn ($2.26 billion), Wheat ($1.92 billion), and Light Rubberized Knitted Fabric ($1.83 billion).
China stands out as the largest import partner for Bangladesh, with imports valued at $24.1 billion.
India follows closely behind at $14.1 billion, with Singapore at $3.53 billion, Indonesia at $2.92 billion, and the United States at $2.3 billion being other significant import partners for Bangladesh.
Letter of Credit Usage in Bangladesh:
By national law, all Bangladesh imports must be carried out against irrevocable letters of credit except for a small product group under certain circumstances.
Therefore, Bangladesh has been the leading country in terms of opening import letters of credit (L/C) for many years.
Bangladesh import letters of credit have certain characteristics:
- Bangladesh banks open letters of credit with excessive detail. A typical Bangladesh import L/C consists of 5-6 pages, requesting presentation of at least 8 different documents.
- Due to country risks most of the banks do not confirm Bangladesh L/Cs.
- CFR is the dominant Incoterms used in Bangladesh shipments. Chattogram Port is the main container port of the country. CFR Chattogram Port (Incoterms 2020) is the default Incoterms.
- Insurance covered locally in Bangladesh by importers. Shipment advice a document that is generally requested by Bangladesh banks.
- Bangladesh banks demand Beneficiary Certificates with different content under each letter of credit.
- Despite being members of the World Trade Organization, Bangladesh continues to enforce a trade ban with Israel. It is not possible to make shipments with an Israel flag vessel to Bangladesh. Some L/Cs demand vessel certificate to confirm that carrying vessel is not Israel flag.
What We Offer:
What we offer to our customers is a top class, reliable and cost-effective letter of credit consultancy and document preparation services.
All technical details of the export letter of credit transaction are handled by us.
You will save time and money.
- We Check the Letter of Credit:
Export letter of credit consultancy service starts with L/C check. Before shipment all potential troublesome points must be removed from the L/C.
If you want to check letter of credit by yourself, you can benefit from our related article above.
- We Prepare Draft Documents:
After shipment, we prepare letter of credit documents according to letter of credit terms and conditions.
Letter of credit documents change from one presentation to another, but you can find main document types from our related article above.
- Final Control of Documents:
Our customers send us back scanned version of all documents signed and stamped for final check before presentation them to the nominated or confirming bank.
After we make sure that documents are complying the presentation process of documents is completed.
You can find the most common discrepancies that definitely you must avoid under export letter of credit transactions.
- Presentation and Payment:
We will guide our customers until they receive their payments under the letters of credit.
You can understand different payment availabilities under letter of credit transactions from our related article above.
We have completed hundreds of presentations for the last 13 years and success rate is %100. All our customers received their payments under our services.
Here are some of our works. You can click heading parts for more details of each transaction.
Note: We do not share any details of our customers even their names. Only harmless data shared below.
Total letter of credit amount was USD 680.004,52. Letter of credit confirmed by JP Morgan Chase Bank, N. A., New York, USA. Beneficiary located in U.S.A. and applicant resident in India.
Total letter of credit amount was EUR 803.400,84. Letter of credit confirmed by Bred Banque Populaire Paris France. Beneficiary located in U.K, applicant in Senegal and manufacturer in Turkey.
Total letter of credit amount was EUR 57.605,67. Documents have been accepted by the issuing bank on first presentation.
Total letter of credit amount was USD 46.620,00. All presentations have been accepted by the issuing bank on first presentation.
Total letter of credit amount was USD 617.750,00. Although the exporter contacted us very late, we managed to put things in order and completed the transaction without any problem for each side.
Total letter of credit amount was USD 20.345,00. Documents have been accepted by the issuing bank on first presentation.
Total letter of credit amount was USD 109.186,09. The beneficiary completed shipments via 3 partial shipments.
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