Description of all the documents that are needed for garments import

 In order to import products from one country to another, the products must go through several procedure. To pass through those process and checkpoints, the products must have all the documents ready. Here are the description of all the documents needed for import (may vary from country to country):

Trade license:

Trade license is a must for every business entity. It is issued by the local government. If a company is operating in multiple places, then it must obtain trade license from each local government. 

The process of getting a trade license is-

·         Procure a proper form from proper office.

·         Get certification from local ward commissioner.

·         Collect license book and submit application with all the other supporting documents at the DCCS zonal office.

·         Wait for the inquiry by licensing supervisor (LS).

·         Pay the fee and collect trade license.

·         Pay the signboard fee.

Certificate of registration:

An official document stating that a person or a company has provided all the necessary information for an official or government record.

Bond license:

In order to get all the bonded warehouse facilities, interested firms will have to take a bond license from the ‘Customs Bond Commissionerate’. Bond Licenses are issued and maintained as per the Bonded Warehouse Licensing Rules, 2008.

In order to achieve a bond license a company should have  

• Complete a bond license application.

• Submit the application with all the necessary documents and application fee.

• Submission mission have to be done to the respective Bond Commissionerate.

       

BGMEA membership certificate:

• In order to run to the business in a more sustainable way, one must have ‘BGMEA membership certificate’.

• A company that has BGMEA membership can run the export, import operation quite easily, they easily get visa approval, can maintain industrial relationship easily and they are trusted by the government, so it is easier for them to get loans.

There are 2 types of BGMEA membership:

1. Provisional membership.

2. Regular membership.

Fire license:

Fire license is a document that is required by all the factories in Bangladesh. It is set out by ‘Fire Prevention and Fire Fighting Act, 2003.’

This act focuses on –

• All the measures in regard to prevention.

• Successful extinguishing.

•  Reduction of damage and consequences of fire.

In order to achieve a fire license a company has to-

• Collect an application form from ‘Fire service and civil defense’ head office.
• Fill up the form and submit it with all the necessary documents.
•  Inspection by the officers.
• Demand note is issued and all the fees are paid.
•  Officers revisit the factory for another inspection. 
•  If all the requirements have been met, then fire license will be issued.

Certificate of incorporation:

• Certificate of incorporation is an important legal document.

• It is a license that states that the corporation is issued by state government or in some jurisdictions, by non-governmental entity/corporation.

• Its precise meaning depends upon the legal system in which it is used.

Insurance coverage:

• Insurance coverage means the amount of risk and liability that is covered for an individual or an entity by an insurance service.

• Insurance policy depends on the type of business. There are currently 666,849 businesses categorized under the NAICS (North American Industry Classification System) Manufacturing Industry Sector.

There are also different coverage options that can be added to the business insurance plan. Such as-

1. Product liability insurance: This coverage is designed to cover the business against lawsuits brought on by product malfunctions.

2. Inland marine insurance: This is designed to cover the finished product while it is in transit to distribution centers.

3. Equipment breakdown coverage: This insurance provides coverage for damage, repairs, and even rental equipment in case extensive repair times are necessary.

4. Business income interruption insurance: This coverage is designed to provide a company with continued income for up to 12 months or longer while repairs and replacements are made.

Also read: International commercial term (INCOTERM)

Filled up L/C application form:

• Letter of Credit (LC) is a payment mechanism where the issuing bank (buyer’s bank) gives an undertaking that they are going to pay for the goods to the seller’s bank if all the terms and conditions are properly followed and all the necessary documents are properly submitted.

• This is used in international business and it is an economic guarantee from the buyer to the seller.

• It is collected from the international trade department or commercial section of a reputed bank.

Demand promissory note:

• It is a financial instrument in which there is a written promise by one party to another party (The note issuer or maker to the note payee).

• The promise is to pay a definite sum of money, either on demand or at a specific future date.

• A promissory note typically contains all the terms pertaining to the indebtedness, such as the principal amount, interest rate, maturity date, date and place of issuance, and issuer's signature.

Pro forma invoice:

• It is a preliminary bill of sale that is sent to the buyer by the seller before the shipment of goods.

• There is no predefined proper format of pro forma invoice, is varies from company to company.

• Pro forma invoices provide the buyer with a precise sale price. It also includes an estimate of any commissions or fees, such as applicable taxes or shipping costs.

• The invoice will typically describe the purchased items and other important information, such as the shipping weight and transport charges.

• Invoices often come into play with international transactions, especially for customs purposes on imports.

Taxpayer identification number (TIN):

• TIN number is a unique 12 digit (for Bangladesh) to identify the tax paying organization.

• It is monitored by NBR (National Board of Revenue). Although the monitoring figure will vary depending on the country.

It contains the following information:

1.       Person’s name/ Name of the company

2.       Father’s name/ Husband’s name (Applicable for person only)

3.       Address

4.       Type of business

5.       Taxpayer identification number (TIN)

6.       Business identification number (BIN)

Import registration certificate:

• Every importer must have ‘Import registration certificate’ (IRC) before importing any item.

• With this certificate importer can import permissible items without any value and quantity restriction or without any permission from any authority.

To get the certificate, following documents are required:

1. Trade license.

2. Membership certificate from recognized Chamber / Trade Association.

3. Tex identification number (TIN)

4. Bank certificate.

5. Memorandum and Articles of Association and Certificate of Incorporation (in case of limited company)

• These documents have to be submitted to ‘Office of Chief Controller of Imports and Exports

 

Authority to debit account:

• Here the organization authorizes a bank to debit a said account for the service charges payable.

• It must include detailed information about the company, name and address of the bank, the bank account number, transit number, detailed contact information, the amount.

 

Filled up amendment request form:

This amendment request form is used to for a participant’s request to amend protected business health information or records in a designated records sets.

There are several types of  amendment form depending on the type of business. They are-

For BSA (Business software alliance) amendment:

Section A: Amendment to accounts accessible through BSA

Section B: Amendment to BSA nominated users.

For BTB (Business to business) amendment:

Section A: Accounts matters

Section B: Relating to delegate’s service assess.

Section C: Addition and amendment on BTB delegate.

Section D: Funds transfer to own account(s).

Section E: Funds transferred to non-designated 3^rd party payers.

Section F: Details of designated 3^rd party payers.

For BIB (Back in business) amendment:

Section A: Company/Business setup

Section B: Password matters.

Section C: Security device matters.

Section D: Accounts matters.

IMP (International Marketing Plan) form:

• IMP Form for payment against imports must be submitted in duplicate by the importer or their authorized agent.

• Foreign Exchange Policy Department takes care of IMP form relate activities. So form should be collected from their office.

Insurance cover note and money receipt:

• It is an insurance document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.

• It includes the name of the insured, the insurer, the coverage, and what is being covered by the insurance.

Membership certificate:

• A membership certificate is needed for importing goods from other country.

• Membership certificates are issued to those company who have an ownership interest in an LLC (Limited Liability Company). An ownership interest in an LLC is referred to as a membership interest.

• It is not a legal requirement to have a membership certificate but it is advised to do so.

There are 3 types of LLC membership certificates. They are-

1. Certificate of Organization.

2. Member Certificates.

3. Certificates of Goods Standing.

 

Rate fluctuation undertaking:

• In International trades rates fluctuate constantly and it is a risk that every organization has to bear. 

• Rate fluctuation undertaking is a written document that the company will take the risk associated with rate fluctuation.