It is a written undertaking by issuing bank (in our case by Dashen Bank) to be issued, at the request of an applicant (customer of the Dashen bank, who is buyer or importer), in favour of a beneficiary (who is seller/supplier/ exporter) to effect payment to the latter against presentation of shipping documents which comply to terms and conditions stipulated in the text of an L/C.
Documents required for Permit Approval
a) Import application form duly filled, signed & stamped.)
b) Proforma Invoice
c) Insurance Certificate
d) Copy of valid foreign trade, investment, industry, agriculture or mining licenses.
e) Tax registration certificate (TIN certificate).
f) Application letter for the transfer (i.e. for TT mode of payment.)
g) Original title certificate for used vehicles.
h) Third party original price confirmation for used commodities certified by Chamber of Commerce or equivalent institution.
i) NBE issues delinquent importers list periodically. Customer’s name should not appear in the delinquent importers list of NBE for the period. If the name appears, there should be subsequent list indicating the given customer has cleared all outstanding items at NBE.
What is expected from importers?
a) Importers should know foreign counter part as detail as possible with regard to financial soundness, reliability, integrity, full address, etc.
b) Sales/Purchase contract should exist between the two parties (importer and exporter) as L/C is only international regulation which protects interests of both parties only on arbitration level. Only contracts signed between parties can be enforceable by law at place and country of jurisdiction (if specified.)
c) Banks deal only in shipping documents but not in physical movement of commodities.
d) Follow up regarding status of shipment , timely delivery of shipping documents by exporter and prior arrangement of unpaid margin (if L/C facility is granted by the bank) to collect documents, as soon as received by Dashen Bank, remain the full responsibilities of importers.