Definition of Exporter
The importers and exports trade of the country is regulated by the Imports Exports Control Act 1950. No person /firm is allowed to export any thing from Bangladesh unless he is registered with CCI and E under the registration order (Importer and Exporter) 1952. To become an exporter an ERC (export Registration Certificate) must be obtained from the office of CCI & E.
Procedure for Obtaining Export Registration Certificate (ERC):
For obtaining Export Registration Certificate (ERC), intending Bangladesh Exporters are required to apply to the CCI & E authority in the prescribed from along with the following documents:
a) Nationality Certificate.
b) Copy of valid Trade License.
c) Income Tax Certificate.
d) Bank Certificate.
e) Copy of rent receipt of the business firm.
f) Registered Partnership Deed in case of partnership concerns.
g) Memorandum of Articles & Association and Incorporation certificate in Case of Limited Company.
Different Types if Export
A. Export under L/C
Exporters are allowed to export the commodity under irrevocable letter of credit. Under this type of export, exporter will ship the goods as pr terms of the credit and will get payment as per arrangement of the credit.
b. Consignment basis export:
Exports are allowed against firm contract. As per contract, importer will ship the goods and the buyer will make payment after selling the consignment.
c. Export against advancement payment:
Sometimes exporter receives payment in advance. In that case Authorized Dealer should obtain a declaration from the exporter on the “Advance receipt voucher” certifying the purpose of the remittance. Then the exporter will export the goods against the advance payment.
General Rules for Export
There are some rules, which are mandatory for export of any goods form Bangladesh. The rules are as under:
(1) No Person can export any goods from Bangladesh, unless he is duly registered as an exporter with the CCI & E.
(2) All export must be declared on the EXP form, which is consisting of 4 copies.
(3) Export mush is against any of the following:
a) Export L/C.
b) Firm Contract.
c) Advance Payment.
(4) Transport documents related to land route or sea and any other Author8ized Dealer. The Airway Bill and any other documents of title to car4go may be drawn to the order of a Bank in the country of import. However in case of advance payment, transport document may be drawn to the order of Foreign Importer Bank endorsement of transport documents is prohibited. Directions under Sl. No. shall not apply in the following cases:
a) Export of Trade sample.
b) Personal Effects.
c) Goods shipped under the order of Govt.
d) Export of fresh fish, vegetable and fruits.
e) Gift package for less than Tk. 50/-.
SWOT Analysis is an important tool for evaluating the company’s Strengths, Weaknesses, Opportunities and Threats. It helps the organization to identify how to evaluate its performance and understand the macro environment, which in turn would help the organization to navigate in the turbulent ocean of competition.
Strength and weakness are internal attributes. Which can addressed by analyzing the organization’s values, norms, operational procedures, working environment, reward and punishment systems, quality and experience of employees, financial soundness, quality and experience of management, reputation and loyalty of customers and so on.
Opportunity and threat are external attributes. These arise from the environment in which the organization operates. External environment consists of the legal and regulatory requirements, competitive situation and position in the industry life cycle, growth of the industry, strength and weaknesses of the competitors and other macroeconomic factors.
Overall, the mix is exciting. We live in an age of growth, change, and business revolution. The globalization offers us opportunities and threats. We need to make our dealing with it one of our biggest strength, to minimize our weakness. The SOWT analysis of IBBL is presented below:
Strengths are the internal resources and capabilities that allow an organization to achieve better performance than its competitors. The salient strengths of IBBL are:
- Adequate internal fund: IBBL maintains adequate retained earnings and general reserve. So it does not need to borrow money from Bangladesh Bank or any other banks.
- More funds for Investment: For adequate financial ability, more paid up capital, and financial solvency, IBBL can provide more investments to clients relative to competitors.
- Honest and Reliable Employees: The employees of IBBL are reputed for their honesty and reliability. They always devote themselves to be efficient and provide better customer service.
- Experience management team: the management team is skilled and experienced and it always followed its vast (27years) experience since its establishment.
- Research division: To keep pace with the competitors and introduce innovative and developed products IBBL has a research division.
Weaknesses are the internal problems and lacking that restricts an organization to achieve performance as its competitors do. The salient Weaknesses of IBBL are:
- Centralized decision making: In the organization, decision-making is more or less centralized at the top of the organization. A group of senior managers make all significant operating decisions and then communicates to the managers at lower level. This trend is common to almost all banks which make managers reluctant to change and innovation.
- Lack of diversification: the investment condition of IBBL is not diversified in terms of sector as well as customer. Sometimes proper procedures like collateral and documentation are not complied so there is high exposure to risk.
- Lack of skilled manpower: Islamic Banking is a new subject to general people and adequate knowledge and skill about Islamic Banking is not easily available. in some instances employees also do not possess proper knowledge in many aspects.
- Poor salary structure: IBBL poor salary structure relative to its competitors. As a result employees do not have tendency to provide highest effort and thinks to switch to competitor banks.
Opportunities are the external possibilities that may allow an organization to achieve better performance than its competitors in the future. The salient Opportunities of IBBL are:
- Emergence of E-banking: Emergence of E-banking has opened more scope for IBBL. It will help the customers know their account information from their home personal Computer.
- Increase distributional network: It has financial capabilities to increase its distributional network in uncovered area or network.
- Increasing interest for Islamic banking: Most of our people are pious; they want to deposit their fund in interest free organization. For this reason, IBBL have enough opportunity for deposit mobilization and also for strong base of equity IBBL can disburse large scale of Investment, which can help to achieve more profit and poverty elevation.
- Strong customer loyalty: IBBL enjoys strong customer loyalty. It can further increase its brand loyalty through increasing awareness of Islamic Banking.
Threats are the external possibilities that may restrict an organization to achieve better performance as its competitors may do in the future. The salient Threats of IBBL are:
- Regulatory environment: The rules and regulations about financial system in Bangladesh are not favorable for IBBL. Therefore, they have to face various problems to operate their activities according to Islamic Shari’ah.
- Inappropriate Islamic banking by competitors: Inappropriate Islamic banking by competitors causes people to have misconceptions about IBBL. This may have significant impact on its operations.
- Exchange rate risk: Frequent taka devaluation and foreign exchange rate fluctuation is causing excessive Exchange rate risk.
- Increasing competitors: Many new banks are coming in the scenario with new services. Many Islamic Banks are coming forward to operate their business and some conventional Banks are opening their Islamic Banking Branches. Therefore, there is increased competition in the market for public deposits.
Bangladesh is not a full-fledged Islamic country; not all activities are operating according to the Shari’ah of Islam. However, the IBBL is trying to operate their activities conform to Islamic Shari’ah as much as possible. From the long and rigorous study and close observation, we got some findings about IBBL that are presented below:
- Islamic Banking is a new phenomenon in our country during last two decades. Therefore, majority of our people do not have proper knowledge about the harmful impact of interest and the activities of IBBL as well as its investment mechanisms, which hamper large scope of investment of IBBL.
- Most of the people in our country have a bad misconception about IBBL’s operations. According to them IBBL generates interest calling it profit which is nothing different from interest. And so there is no difference between investment of IBBL and loan / Credit / advance of conventional banks. For this reason, they are not too much interested to make investment with IBBL.
- Because of improper & insufficient application of Islamic Banking in our country, by the insolvent banks to avoid bankruptcy or the conventional banks to earn more profit through introducing total Islamic banking or Islamic banking branch, the operations of IBBL cannot be run smoothly and the misconceptions are strengthened.
- IBBL is committed to avoid interest so cannot invest the permissible part of its statutory liquidity Reserve and short Term liquidity surplus in those securities. As a result profitability is affected. Islamic money market instruments are required to be introduced to improve profitability.
- This Bank cannot invest in all economic sectors, goods, and services which are prohibited by the law of Islam so are deceived of many profitable investment opportunities.
Bangladesh is a developing country. Without developing banking sector, this country’s business sector is not possible to progress rapidly. In such condition, IBBL is trying to develop banking sector through ensuring welfare oriented servicing to the people. Islami Banking is not possible to establish without Tauhid, Reshalat and trust of Akhirat.
Interest free banking system is no more a concept. It is now a reality, a dynamic system, embodying a set of superior banking mechanism. More than 300 Islamic bank and financial institutions are operating in different countries throughout the world. With a marked success from this inception in our country in 1983, IBBL has been operating with real confidence in co-operation with other conventional banks. Bringing a new concept in such business sector, which is growing so rapidly in the world, is really a bold step. As the largest Islamic commercial bank, Islamic bank took various steps to create employment opportunities and socio-economic development for the poor through Islamic Shari’ah and an overall climate for the introduction of large scale Islamic banking in Bangladesh.
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- Business plan in unique super shop
- Internship Report on Marketing Implications of Popular Developers Limited
- Report on Bangladesh energy drink market
- Marketing Activities of Rahim Afrooz Golbatt Limited
- Promotional Strategy of a Sub-Brand of Robi Udoy Postpaid