01 Regulatory Framework & UCP 600 Governance
In international bulk commodity exports, payment security and documentary compliance are paramount. Over 85% of Fibrana Bio Corporation’s global shipments operate under Irrevocable Letters of Credit at Sight.
All Letters of Credit issued in favor of Fibrana Bio Corporation must be subject to the Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication No. 600 (UCP 600) and interpreted in line with International Standard Banking Practice (ISBP 821).
Core Banking Principle
Under UCP 600 Article 4, banks deal exclusively with documents and not with the underlying goods, services, or performance to which the documents may relate. Precise documentary alignment is non-negotiable.
02 Mandatory Pre-Issuance Vetting Workflow
To prevent expensive bank amendment fees (typically $150–$300 per amendment) and vessel booking delays, all trade partners must follow our structured pre-issuance protocol:
- Proforma Invoice Execution: Buyer signs and confirms Proforma Invoice (PI) detailing exact commodity specifications, unit pricing, Incoterms 2020 delivery point, and shipment window.
- Draft Swift MT700 Transmission: Prior to official issuance, the Buyer’s issuing bank or procurement team transmits an unconfirmed draft of the Swift MT700 via email to
trade-finance@fibranabio.com.
- Fibrana Bio Trade Desk Review: Our trade finance officers verify all fields against Bangladesh Bank statutory rules, feeder vessel schedules ex-Chattogram, and inspection mandates within 24 business hours.
- Final Operative Issuance: Upon written clearance from our desk, the issuing bank transmits the operative Swift MT700 through our nominated Advising Bank in Dhaka/Chattogram.
03 Swift MT700 Field-by-Field Specification
Please instruct your issuing bank to construct the Swift MT700 message using the exact parameters tabulated below:
| Swift Field |
Field Name |
Required Wording / Value |
| :40A: |
Form of Documentary Credit |
IRREVOCABLE |
| :31D: |
Date and Place of Expiry |
Date: Minimum 21 days after latest shipment date.
Place: BANGLADESH (At the counters of the Beneficiary’s Advising Bank). |
| :50: |
Applicant |
Buyer’s full corporate legal name, physical address, registration number, and tax/VAT identifier. |
| :59: |
Beneficiary |
FIBRANA BIO CORPORATION
Agrabad Commercial Area, Chattogram 4100, Bangladesh. |
| :32B: |
Currency & Total Amount |
USD (or EUR/GBP as agreed) followed by total contractual value. Must specify tolerance: ±5% in quantity and amount under Field :39A:. |
| :41D: |
Available with... By... |
ANY BANK IN BANGLADESH by PAYMENT AT SIGHT (or nominated Advising Bank). |
| :42C: |
Drafts at... |
AT SIGHT for 100% of Commercial Invoice Value. |
| :43P: |
Partial Shipments |
ALLOWED (or Prohibited only if single FCL). |
| :43T: |
Transshipment |
ALLOWED (Mandatory: ocean vessels ex-Chattogram connect via feeder vessels through transshipment hubs). |
| :44A: |
Port of Loading |
CHATTOGRAM PORT (PORT OF CHITTAGONG), BANGLADESH (UN/LOCODE: BDCGP) or MONGLA PORT, BANGLADESH (BDMGL). |
| :44B: |
Port of Discharge |
Named international seaport of destination (e.g., Rotterdam, Jebel Ali, Houston, Santos, Chittagong to Alexandria). |
| :44C: |
Latest Shipment Date |
Agreed production date + vessel sailing window (standard: 30 to 45 calendar days after LC operative date). |
| :45A: |
Description of Goods |
Exact commercial description as per Proforma Invoice: e.g., "New Heavy Cee B-Twill Jute Sacks, 44"x26.5", 2.25 lbs, treated with food-grade vegetable oil (hydrocarbon-free IJSG 98/01)". |
| :48: |
Period for Presentation |
21 DAYS from the date of issuance of the Bill of Lading, but within the validity of the credit. |
| :71B: |
Charges |
All banking charges outside Bangladesh are for Applicant's account. All banking charges within Bangladesh are for Beneficiary's account. |
04 Standard Document Suite (:Field 46A:)
To ensure pristine documentary compliance without discrepancies, field :46A: of the Swift MT700 must specify the exact set of eight (8) standard export documents:
✓
1. Signed Commercial Invoice (3 Originals + 3 Copies)
Certifying goods origin Bangladesh, indicating exact contract number, Proforma Invoice reference, HS Code (e.g. 6305.10 for sacking or 5303.10 for raw fiber), container numbers, and seal numbers.
✓
2. Full Set 3/3 Original Clean "On-Board" Ocean Bills of Lading
Issued by an internationally recognized shipping line, marked "FREIGHT PREPAID" (for CFR/CIF) or "FREIGHT COLLECT" (for FOB), made out to order of the issuing bank and notify applicant.
✓
3. Detailed Packing List & Weight Specification (3 Originals + 3 Copies)
Indicating individual bale numbers, pieces per bale, gross weight, net weight, certified tare weight deduction, and cubic measurement (CBM).
✓
4. Certificate of Origin (1 Original + 2 Copies)
Issued by the Dhaka Chamber of Commerce & Industry (DCCI), Chittagong Chamber of Commerce & Industry (CCCI), or Export Promotion Bureau (EPB) of Bangladesh.
✓
5. Pre-Shipment Inspection (PSI) Certificate (1 Original + 2 Copies)
Issued by an independent inspection authority (SGS Bangladesh Ltd., Bureau Veritas, or Intertek) certifying quality, bale weight, moisture percentage, and container stuffing conformity.
✓
6. Phytosanitary Certificate (1 Original + 2 Copies)
Issued by the Plant Quarantine Station, Department of Agricultural Extension (DAE), Ministry of Agriculture, Government of Bangladesh at Chattogram Seaport, certifying natural plant material free from quarantine pests.
✓
7. Fumigation Certificate (1 Original + 2 Copies)
Issued by a licensed pest control operator, detailing dosage of Methyl Bromide or Phosphine treatment, exposure duration, and gas concentration.
✓
8. Beneficiary Certificate (1 Original + 1 Copy)
Certifying that one complete set of non-negotiable shipping documents was dispatched to the Applicant via email or courier within three (3) business days of vessel sailing.
05 Mandatory Clauses for Field :47A: (Special Conditions)
The following contractual protective covenants must be incorporated in Field :47A: to avoid technical discrepancies caused by banking conventions:
"A tolerance of plus or minus 5 percent in quantity and amount is acceptable.""Third-party documents (excluding Commercial Invoice and Drafts) are acceptable.""Spelling or typographical errors in non-essential words that do not affect the commercial meaning shall not be considered a discrepancy in terms of ISBP 821 paragraph A23.""Discrepancy fee of maximum USD 75 to 100 shall be deducted from beneficiary's account only in the event of an authentic non-waived discrepancy.""Transport documents bearing charter party conditions are acceptable if ocean shipping line bills of lading are issued."
06 Bangladesh Bank EXP Form Regulatory Mandates
Bangladesh Bank exercises strict exchange control regulations on all commodity exports under the Foreign Exchange Regulation Act (FERA), 1947:
- Statutory Repatriation Deadline: Under Bangladesh Bank regulations, full export proceeds must be repatriated into the country within one hundred and twenty (120) days from the date of shipment. Consequently, deferred payment / usance LCs exceeding 90 days are subject to special central bank permission.
- Online EXP Certification: The Seller's AD bank must certify the online EXP form in the central bank portal before Chattogram Customs releases the "Bill of Export" (Shipping Bill). The EXP form cannot be certified unless the LC is irrevocable and in full operative force.
07 Common Discrepancy Traps to Avoid
| Discrepancy Trap |
Why It Fails |
Proper Solution |
| Prohibiting Transshipment |
Chattogram is a riverine feeder port; almost all containers must be barged or shipped via feeder to Singapore/Colombo. |
Always mark Field :43T: as ALLOWED. |
| Port of Loading Ambiguity |
Using colloquial names like "Bangladesh Port" without specifying the official seaport. |
Always specify "Chattogram Port (Port of Chittagong), Bangladesh" (UN/LOCODE: BDCGP). |
| Short Presentation Window |
Specifying 10 or 14 days for document presentation under Field :48:. |
Field :48: must state 21 DAYS to allow for PSI certification and chamber origin attestation. |
| Excessive In-Line Inspections |
Demanding inspection certificates issued by unauthorized destination bodies before loading. |
Inspection must be designated to SGS, Intertek, or Bureau Veritas at the loading port / mill. |