Draft Of LC

 Formatted outgoing message ADV Issuance to advising bank / SWIFT                                   Viewer Hardcopy

Filename: \\se000000012001\bt_datisstf\data\DOCS\200703\00240815.TXT

Correspondents BIC / TID                       :IO:              CITIBDDXXXX BIC identified as:

                                                                               CITIBANK NA

                                                                               122 124 MOTIJHEEL COMMERCIAL AREA

                                                                               DHAKA

SWIFT Message Type                           :700:            700 Issue of Documentary Credit

Sequence of Total                                 :27:              1/1

Form of Documentary Credit                  :40A:            IRREVOCABLE TRANSFERABLE

Documentary Credit Number                  :20:              001007LI00006

Date of Issue                                        :31C:           13.03.2007

Applicable Rules                                  :40E:            UCP LATEST VERSION

Date and Place of Expiry                      :31D:            13.06.2007 BANGLADESH

Applicant                                             :50:              META APPAREL SPA

                                                                               VIA L. GALVANI 28/A

                                                                               52100 AREZZO

Beneficiary Customer                            :59:              LIBERTY KNITWEAR LTD

                                                                               331 TONGI DIVERSION ROAD

                                                                               MOGHBAZAR DHAKA 1217

                                                                               BANGLADESH

Currency Code and Amount                   :32B:            USD 375,000.00

Percentage Credit Amount Tolerance      :39A:            3/3

Available with ... By ..                          . :41A:           TOSCIT3F100 BIC identified as:

                                                                               AREZZO CAPOGRUPPO

                                                                               VIA ROMA 31

                                                                               52100 AREZZO

                                                                               BY PAYMENT

Partial Shipments                                  :43P:           ALLOWED

Transshipment                                      :43T:            ALLOWED

Port of Loading/Airport of Departure         :44E:            ANY PORT IN BANGLADESH

Port of Discharge/Airport of Destination    :44F:            LA SPEZIA PORT ITALY

Latest Date of Shipment                         :44C:           31.05.2007

Description of Goods and/or Services      :45A:           + 100PCT COTTON FLEECE MEN'S JACKET NO. 20136 PCS

                                                                              100PCT COTTON JERSEY MEN'S POLO/T-SHIRT NO. 12576 PCS

                                                                                         100PCT COTTON PIQUET MEN'S POLO SHIRT 10500 PCS

                                                                                                       GOODS RENDERED CFR LA SPEZIA PORT ITALY

Documents Required                               :46A:           A) SIGNED COMMERCIAL INVOICE IN QUINTUPLICATE

                                                                   B)PACKING/WEIGHT/MEASUREMENT LIST (ONLY ONE DOCUMENT) IN

                                                                                         QUINTUPLICATE

                                                         C)FULL SET CLEAN ON BOARD OCEAN BILL OF LADING ISSUED TO ORDER

                                                   OF NEGOTIATING BANK AND ENDORSED TO THE ORDER OF BANCA TOSCANA

                                                                      SPA NOTIFY META APPAREL SPA -VIA GALVANI 28/A -52100 AREZZO

                                                                          ITALY TEL +39 0575 98671 FAX +39 0575 986745 MARKED FREIGHT

                                                                                          PREPAID

                                                                D)ORIGINAL OF CERTIFICATE OF BANGLADESH ORIGIN OF THE GOODS

                                                                                            ISSUED BY COMPETENT AUTHORITIES

                                                                      E)ORIGINAL OF CERTIFICATE OF BANGLADESH ORIGIN GSP FORM A

                                                                                           ISSUED BY COMPETENT AUTHORITIES

Additional Conditions                         :47A:        A)ALL DOCUMENTS MUST INDICATE THIS CREDIT NUMBER.

                                                                                       B)ALL DOCUMENTS MUST BE IN ENGLISH LANGUAGE.

                                                                     C) US 80.00 WILL BE DEDUCTED FROM PROCEEDS FOR EACH SET OF

                                                              DISCREPANT DOCUMENTS IF DISCREPANCY/IES WILL BE RELEASED AND

                                                                                   DOCUMENTS ACCEPTED AND USD 30.00 FOR SWIFT CHARGES

                                                                D)THIS CREDIT MAY BE TRANSFERRED AT ADVISE THROUGH BANK CARE

                                                                                   UNDER ADVICE TO US OF NEW BENEFICIARY'S NAME

Details of Charges                               :71B:                ALL CHARGES AND COMMISSIONS

                                                                                               OUTSIDE ITALY INCLUDING

                                                                                               REIMBURSEMENT CHARGES FOR

                                                                                                BENEFICIARY'S ACCOUNT

Period for Presentation                          :48:                   WITHIN 13 DAYS FROM SHIPMENT DATE

                                                                                               BUT WITHIN CREDIT VALIDITY

Confirmation Instructions                       :49:                   WITHOUT

Inst/Paying/Accpt/Negotiate Bank          :78:                 +SENT DOCUMENTS IN TWO LOTS TO:

                                                                                          BANCA TOSCANA SPA - VIA ROMA 31-52100 AREZZO ITALY

                                                             +UPON RECEIPT OF DOCUMENTS IN GOOD ORDER AT OUR COUNTERS WE

                                                                                    SHALL CREDIT AT SIGHT THE REMITTING BANK AS PER THEIR

                                                                                                  INSTRUCTIONS

Sender to Receiver Information                :72:                 ADVISE THROUGH:

                                                                                                UNITED COMMERCIAL BANK LTD

                                                                                               BANGSHAL BRANCH 32/3 MALITOLA

                                                                                                 ROAD DHAKA BANGLADESH

                                                                                               SWIFT: UCBL BD DH

Trailer_

  

Commercial Learning

Freight Calculation:

C/O

DEFINATION: It meaning “Certificate of Origin”. This paper is wanted by BUYER. This paper is as certification of a country.

TYPE: This is two type: 1. C/O of yarn

                                          2. C/O of garments.

1. C/O of yarn: This paper is used for incentive purpose. This paper is given by BTMA.

2. C/O of garments: This paper is used for BUYER and GSP.

Type of garments C/O:  

                                    1. Metropolitan chamber of commerce.

                                    2. Dhaka                          “

                                    3. SHIPPER

                                    4. BKMEA

                                    5. BGMEA

1. Metropolitan chamber of commerce: It is depend on BUYER requirement.

2. Dhaka chamber of commerce:  It is depend on BUYER requirement.  

3. SHIPPER: It is given on shipper pad for GSP. It S/B submitted in EPB with BKMEA.

4. BKMEA: Its give two type of C/O for garments and fabric supply.

5. BGMEA: It gives for only garments.

PAPER REQUIRED FOR C/O:

1. Commercial Invoice.

2. Packing list.

3. BL (Bill of landing) or AWL.

4. Bill of ENTRY (Import) or shipping bill(Export).

SHIPPING BILL: Its amount depend on Commercial invoice amount. Shipper have to pay shipping bill at rate of .20-.23 TK./ USD. The amount of commercial invoice is 3122 USD. Then

                                SHIPPING BILL = 3122 @ .2 = 624 TK.

5. C/O Form Rate: 30-50TK. It is available in JANATA BANK. Then approved C/O Form from EPB, BGMEA, BKMEA- 400TK.(Salad) otherwise 3 or 4 days delay. It you do not five salad.

6. Cash or Bank Draft Form for CO Form approved charge: 200TK. for all above enterprise. It is noted that BUYER want GSM for getting some tax free for ECC, BUYER get 13% tax free. GSP is one type C/O.

For FOB & C&F Order Shipper get Original BL. But for GSP purpose SHIPPING LINE give you NON neogosetatable BL copy which is submitted EBP. For payment shipping line original BL after 3 or 4 days from shipment.

SEA FREIGHT & AIR FREIGHT CALCULATION

1. Container Specification:

    Type of container: 1.Steel dry cargo container

                                  2. Flat rack (platform)

                                  3. Open top container

                                  4. REFER STAINLESS STEEL container.

In garment sector generally  steel dry cargo container

SPECIFICATION  -  20”(NORMAL)   -  20” HI-CUBE   -    40” NORMAL  -  40” HI-CUBE

                    

LENGTH                         20”                             20”                          40”                              40”

WIDTH                              8                                 8                              8                                 8

HIGHT                            8”6                               8”6                          8”6                             9”6   

      

AIR CAPACITY       

HOLD CAPACITY

G . W                           30490KG

PAYLOAD  

    

Main classes of A “ L/C ”:

1. 27: Sequence of total (NO OF PAGES)

2. 20/21 Document Credit no.

3. 31C: Date of Issue

4. 31D: Date and Place of Expirity

5. 32B: Currency Code / Amount

6. 40A: Form of Document Credit (Like at sight)

7. 43P: Part Shipment

8. 43T: Trans Shipment

9. 44A: On Board/AISP/Taking change of/f (A part of side)

10. 44B: For Transportation to

11. 44C: Latest date of shipment

12. 45A: Description of goods &/or services.

13. 46A: Documents required (1) B/L (2) C/O (3) IC (4) GOP (5) EXP

14. 47A: Additional conditions

15. 48: Period for presentation: 10 days or 21 days (15 best)

16. 49: Confirmation Instruction.

17. 50: Application

18. 59: Beneficiary

     57D: Advise through Bank: Name & address.

     71B: Charges: All banking charges are Applicant account / Beneficiary 

     78: Instructions to paying / Acc tg / Nego tg.

 BANK LOAN

If any body take loan from any bank & he will not pay interest following in the bank rules:

1. Classified: If any body not pay interest within 6 month end of that period is called classified.

In this period bank calculate interest as a bank profit. It never been reduced.

2. Suspension: The period after 6 months of classified is called suspension. Bank show interest in lager. Its have chanced to reduce 50% depend on customer actual situation.

3. Bed loan: The period after 6 months of suspension is called Bed loan period. Bank don’t show interest in lager. It can reduce 100% but depend on customer actual situation.

 SHIPPING TERMS

1. CM- cost of making / cutting & making.

2. FOB- free on board / freight on bord.

3. C& F- cost & freight / clearing & forwarding.

4. CIF- cost, insurance & freight.

5. CIFI- cost, insurance, freight & interest.

6. CIFE- cost, insurance, freight & exchange.

7. COD- cash with order

8. CWO- cash on delivery

9. FOW- free on wagon.

10. Franco- Exporter bear the transportation cost  from Exporter store to              

      Importer store.

11. CRF- clean report of finding

12. HS CODE- Harmonic system code.

CARGO BOOKING

Require paper: 1. commercial invoice.

                        2. packing list (with Gross weight & Net weight) CBM

1. Berthing: shipping line knows an inform when the ship loading.

    Cut off: 12 hours before sailing is called cut off.

    Special sailing: when the ship leave in port permission we take for putting the container in ship before 6 hours from sailing.

 BANK INTEREST SYSTEM

If interest 14.5% & quarter system dt. 31/3/2002, 30/6/2002, 30/9/2002, 33/12/2002.

If any one pick money from bank then interest counting system given below:

12 days>31 days.

Draw dt. 20/01/02 – 20.02.02         interest- 2463TK

               20.03.02 – 29.04.02             “         4926 “

 BB L/C Charges

1. Advising charge     = 500

2. Stamp(150+35)       = 185

3. Postage                   = 150

4. Bank  commission  = .8%  (BBL/amount)

 Acceptance charge     =.8%  (BBL/amount)

 B/L:

 For FOB:

1. THC (The terminal handing charge):

               L/CL : 170TK/CBN

               FCL : fixed for 20’ container

                                        40’       “

2. B/L charge: 600-1500 (including stamp)

             P & Q  600 (without stamp)

10 CBM – 20/150TK, 40/600TK, 40 HQ/600TK Revised stamp.

CONTAINER SPECIFICATIONS
(A)  20 Feet Container:
Length; 228"xWidth; 84"xHeight; 94"
225x84x94 = 1, 288 cubic inch
1800,288/39.37x39.37x39.37=29.50CBM.
A 20 Feet container has an air capacity of 29.50 CBM, but when you
ship goods packet in cartons or wooden crates, it can hold about
25-27 CBM.
( B)  40 Feet Container (standard):
Length;474"xWidth;84"xHeight;94"
474x84x94 = 3,742,704 cubic inch
3,742,704/39.37x39.37x39.37 = 61.32 CBM.
A 40 Feet container has an air capacity of 61.32 CBM, but when you
ship goods packet in cartons or wooden crates, it can hold about
55-57 CBM.
( C)  40 Feet High Cube Container:
Length;474"xWidth;84"xHeight;106"
474x84x106 = 4,220,496 cubic inch
4,220,496/39.37x39.37x39.37 = 69.15 CBM.
A 40 Feet container has an air capacity of 69.15 CBM, but when you
ship goods packet in cartons or wooden crates, it can hold about
65-67 CBM.

Fashion House BD
DETAIL PACKING LIST
MAIN MARKS							SIDE MARKS
PO # 7005						PO #	:7005
BUYERS: WAL-MART						BUYER	: WAL-MART
DESCRIPTION: 100% COTTON KNIT BOXER						SIZE	:S-L
QUANTITY: 54 PCS						QUANTITY	:54PCS
MADE IN BANGLADESH						G.W	:10.50
CARTON # 01  OF 353						N.W	:6.00
Assortment: Assort colour and assort size pack.						MEAS	:40X30X45CM
CTN #	TTL CTN	STYLE #	COLOUR	SIZE RATIO			QTYXCTN		t.Qnty
				S	M	L
		2211	WHITE	6	6	6	54X353=19062		19062
1-353	353	2212	BLACK	6	6	6
		2213	BLUE	6	6	6
TTL   CTN      353    PCS                                     TTL QUANTITY  19,062 PCS

COLOUR AND SIZE WISE QUANTITY BREAKDOWN
STYLE #	COLOR	S	M	L	TOTAL
2211	WHITE	2118	2118	2118	6354
2212	BLACK	2118	2118	2118	6354
2213	BLUE	2118	2118	2118	6354
TOTAL		6354	6354	6354	19062
TOTAL QUANTITY		:	1588.5 DZN       19062 PCS
TOTAL CTN		:	353      CTN
TOTAL N. WT		:	2118    KGS
TOTAL G. WT		:	3706.5 KGS
TOTAL CBM		:	19       CBM

Fashion House BD
Detail Packing List
Main Mark						Side Mark
PO	:	2159				PO	:	2159
Buyer	:	J.C Penny				Buyer	:	J.C Penny
Description	:	Men's L/S Shirt				QTY/CTN	:	30 Pcs
Assortment	:	Solid Colour Solid Size				Size	:	S, M, L, XL
QTY/CTN	:	30 Pcs				G. W.	:	14.00 Kg
Country of origin         :						N. W.	:	10.00 Kg
Carton	#					Ctn Meas	:	60X45X65 cm
Destination	:	New York
Ctn #		COLOUR	Assortment				QTY Per Ctn Pcs	TTL	Total
			S	M	L	XL
01-07		Black	30				30	7	210
08-25		Black		30			30	18	540
26-35		Black			30		30	10	300
36-50		Black				30	30	15	450
Sub Total								50	1500
51-70		Blue	30				30	20	600
71-100		Blue		30			30	30	900
101-150		Blue			30		30	50	1500
151-170		Blue				30	30	20	600
Sub Total								120	3600

Colour & size wise break down
COLOUR	Assortment				Total
	S	M	L	XL
Black	210	540	300	450	1500
Blue	600	900	1500	600	3600

MAIN MARKS						SIDE MARKS
PO  #	3005					PO  #	:          3005
STORE	: WAL-MART					STORE	:          WAL-MART
DESCRIPTION : 100% COTTON MEN'S T- SHIRT						SIZE	:          S  -  L
STYLE #	COLOUR	ITEMS #				QUANTITY :     48 PCS
2305	WHITE	M - 7700				G. W.	:         14.50 KGS
QUANTITY	: 48 PCS					N. W.	:         11.00 KGS
MADE IN BANGLADESH						MEAS	:          55X40X70XCM
CARTON  #	01 OF 500
Assortment	: Solid Colour & Assort Size
CTN  #	TTL  CTN	STYLE  #	COLOUR	SIZE RATIO			QTY X CTN = TTL
				S	M	L
1-125	125	2305	WHITE	16	16	16	48 X 125 = 6000 PCS
126-245	120	2306	BLACK	16	16	16	48 X 120 = 5760 PCS
246-375	130	2307	BLUE	16	16	16	48 X 130 = 6240 PCS
376- 500	125	2308	STONE	16	16	16	48 X 125 = 6000 PCS
TTL
TTL CTN	500			TTL QUANTITY    24000 PCS

COLOR AND SIZE WISE QUANTITY BREAK DOWN
STYLE  #	COLOUR	S	M	L
2305	WHITE	2000	2000	2000
2306	BLACK	1920	1920	1920
2307	BLUE	2080	2080	2080
2308	STONE	2000	2000	2000
TOTAL		8000	8000	8000
TOTAL QTY		:       2000 DZ        24000 PCS
TOTAL CTN		:       500   CTNS
TOTAL  N. WT		:       5500  KGS
TOTAL  G. WT		:       7250  KGS
TOTAL  CBM		:       77      CBM

20ft	L	W	H	CUFT	CUM
CONTAINER   SPC	20'	8'	8' 6"
CONTAINER	19'4 1/4"	7' 8" 5/8	7' 10"	1165
	5.899 mm	2.325 m	2.386 m
40ft	L	W	H	CUFT	CUM
CONTAINER   SPC	40'	8"	8' 6"
CONTAINER	39' 5 5/8"	7' 8 5/8"	7' 10 1/4"	2392
	12.02 mm	2.34 mm	2.39 mm
40ft	L	W	H	CUFT	CUM
CONTAINER   SPC	40'	8'	9' 6"
CONTAINER	39' 5"1/2	7' 8"1/2	8' 10 1/4"	2696
	12.02 mm	2.35 m	2.69 m

Sea Freight and Air Freight:

Although most orders for garments are placed by buyers on FOB basis, with buyers to pay for freight at the shipping destination, it is still necessary for the shipper or the agent to know how to calculate sea freight and air freight as buyers always need to know how much freight the merchandise cost per dz. If you are required to sell on CIF basis, (with the shipper to prepay for freight at the shipping port) you will need to calculate the freight accurately for your own costing.

 1.     Sea freight:

Sea freight is usually charged based on volume—how much per CBM (cubic meter)—very rarely by weight as “density cargo”. In fact ANERA (Asia North America eastbound rate agreement) has designed the freight tariff more based on the usual value of the type of goods, than the usual weight of them, taking into consideration that for low value merchandise they should give a low freight rate in order to make it possible for the importers to buy goods overseas. However, for high value merchandise, they should charge a high freight rate, as it is believed that the buyer can afford to pay more on freight. The have designed the freight tariff in such a way that everybody can do business and there is sufficient profit for the shipping lines.

Container size	Calculated Capacity	Practical capacity	Container FCL rate	FCL rate for CBM	LCL Rate per CBM
20” Capacity	29.5 CBM	27 CBM	3500	130	160
40” Normal	61.32 CBM	54 CBM	5000	92	160
40” Hi Cube	69.15 CBM	62 CBM	6500	92	160

 Note: FCL: Full container Loading

         LCL: Loose container Loading

 If you ship very heavy goods as loose cargo because the size of the shipment is very small, the shipping lines will charge you by weight or by volume whichever is higher.

 1 CBM (100 cm X 100 cm X 100 cm) = 1000 Kg

 2. Air freight:

Unlike sea freight, the airlines have decided to charge for the heavy merchandise (high density goods) by weight, and lightweight merchandise (low density goods) by volume. However, as airplanes can take less weight than ocean liners, the way they

Set the standard, in the garment industry, when you ship goods by air, you have a 70% chance to be charged by weight, about 30% chance by volume.

 The followings are the relationship between weight and volume as set by IATA ( International air transport association).

a.     From most shipping locations in the Far east to the U.S. destinations and Canada 7000 cubic cm =  1 kilo.

b.    From certain locations in the Far east to the U.S. destinations and Canada 6000 cubic cm = 1 kilo

 Therefore when you have low density goods to ship by air, in order to determine if you should try to make the cartons as small as possible to save freight. First you check with the local air forwarding agent by asking him in the country where you are, how many cubic cm is considered 1 kilo in weight. They will tell you either 7000 or 6000. This is the answer you need.

 Then you physically check the weight and measurements of the good s packed for the air shipment. Now we have the 3 answers as follows, for example:

a.     The country is Bangladesh and the formula is 6000 cubic cm = 1 kilo

b.     The measurements of the cartons are 50cmX 60cmX 40cm

c.     The gross weight of the cartons are 16 kilo per carton.

Now let us find out if we should try to make the cartons smaller to save air freight by doing the following calculation,

     Multiply 5 by 60 by 40 = 120000 cubic cm.

     120000 cubic cm divided by 6000= 20 kilo

Now you know, by volume the one carton is of 2 kilo, but by actual weight the carton is of only 16 kilo. You also know the airline will charge whichever  is higher, in this case, they will charge you for 20 kilo, by volume. If the air freight rate is 2.80 per kilo this carton will cost you                    $ 56.00.

Now, in order to save some money, let us try to make the carton smaller, usually by cutting the height of the carton. Lets say we have succeeded in cutting down the height by 5 cm, and see how much money we can save.

 ** Original size of the carton: 50 X 60 X 35 cm (=20 kilo)

 ** Now cut down to 50 X60 X 35 cm= 105000 cubic cm.

     105000 / 6000 = 17.5 kilo

 Now by using the new carton, we have saved 2.5 kilo and this carton will cost only $ 49.00 (17.5 Kilo X 2.80)

 Shipping Terms

1.     CM: Cost of making/ cutting and making

2.     FOB: Freight on board

3.     C & F: Cost and freight / Clearing and forwarding

4.     CIF: Cost, insurance and freight

5.     CIFI: Cost, insurance, freight and interest

6.     CIFE: Cost, insurance, freight and exchange

7.     COD: Cash on delivery

8.     CWO: Cash with order

9.     FOW: Free on wagon

10. Franco: (…Named Port of Shipment)

11. FOB: Free on Board (…Named Port of Shipment)

12. CFR: Cost and Freight (…Named Port of Destination)

13. CIF: Cost, Insurance and Freight (…Named port of Destination)

14. CPT: Carriage Paid To (…Named Place of Destination)

15. CIP: Carriage and instruction paid to (…Named Place of Destination)

16. DAF: Delivered at frontier (..Named Place)

17. DES: Delivered Ex Ship (…Named Port of Destination)

18. DEQ: Delivered Ex QUAY (…Named Port of Destination)

19. DDU: Delivered Duty Unpaid (…Named Place of Destination)

20. DDO: Delivered Duty Paid (…Named Place of Destination)

 Country and port:

Country	Port & price	Buyer
Sweden	Hamburg	New Wave Mode Lab
Sweden	Gothenburg	Cellbes Post Order AB
Spain	Barcelona (1500)	Geologistics Barcelona S.A.
Italy	Genova	Samar Spa
Sweden	Barcelona	Rueca Europea S. L.
France	Leharve (1200)
U.K.	Liverpool (1400)
Germany	Quaken Bruech (1645)	Centerline mode Vertriebs GMBH
Netherlands	Rotterdam

FREIGHT

Both air transportation and sea transportation used in delivering goods from one country to another. However, the calculation for the changes of air freight and sea freight are different, as following:

 1. Sea Freight

Sea freight is changed on a volume (cubic meter or CBM) basis. Firstly, the volume of a carton is calculated by multiplying the length by the width by the height of the carton. Secondly, the freight charges for the deliver merchandise can be calculated by multiplying the volume of a carton by the number of needed cartons by the price charged per cubic meter (CBM).

 Sea Freight Charges:

= Volume per carton in CBM x number of cartons x cost of sea freight per    (CBM).

Where

Volume per carton (CBM)

     Length(cm) x Width(cm) x Height(cm)

 = --------     --------         --------

        100              100                 100

        Length(cm) x Width(cm) x Height(cm)

 =  --------------------------------- 

                  1728 x 35.32