National Bank

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Procedure 
After the export remittances have been released by the bank, the exporter will send application to the rebate section of the custom department. After carrying out assessment, the Cheque is issued by the treasury department of customs.

Now the government has announced t allow the commercial banks to process the duty drawback claims and make payments within the laid down parameters.
 

The steps involved in any international trade transaction are enumerated here.

  • The Pakistan Importer places an order with the 4.5 exporter and asked the American if he would be willing to ship under L/C.
  • The US exporter agrees to ship under a L/C and specifies relevant information such as prices and delivery terms.
  • Power Plants The Pak. Importer applies to MCB for a L/C to be issued in favor of the US exporter for the merchandise the importer wishes to buy.
  • MCB issues a L/C in the Pak. Importer’s favor and sends it to the US exporter’s bank, the Bank of New York.
  • The bank of New York advises the US exporter of the opening of a L/C in his favor.
  • The US exporter ships the goods to the Pak. Importers on a common carrier. An official of the carrier gives the exporter a bill of lading.

 

  • The US exporter presents a 90-days (suppox) draft drawn on MCB  in accordance with its L/C and the bill of lading to the bank of New York. The US exporter endorses bill of lading so title to the goods is transferred to the Bank of New York.
  • The Bank of New York sent the draft and bill of lading to MCB. MCB accept the draft taking possession of the documents and promising to pay the now accepted draft in 90-days.
  • MCB returns the accepted draft to the Bank of New York.
  • The Bank of New York tells the US exporter that it has received the accepted bank draft, which is payable in 90 days.
  • The exporter sells the draft to the Bank of New York at a discount from its face value and receives the discounted cash value of the draft in return.
  • MCB notifies the Pak. Importer of the arrival of the documents. He/She agrees to pay MCB  in 90 days. MCB releases the documents so the importer can take possession of the shipment.
  • In 90 days MCB receives the importer’s payment, so it has funds to pay the maturing draft.
  • In 90 days the holder of the matured acceptance (In this case, the Bank of New York) presents it to the MCB for payment. MCB pays.

 

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