Trade Finance Services

1. Letter of Credit (Inland and Foreign)

A letter of Credit issued by a bank to another bank (locally or in a different country) to serve as a guarantee for payments made to a specified person under specified conditions. Being an Islamic Bank, LC is always issued under a Shariah compliant arrangement.

2. Import Contract Registration

A Contract is an agreement between two parties in exchange of goods and services. Contract will be honored by the issuing bank if documents against it are presented as per the terms and conditions. However, the issuing bank is not liable for payment in case the applicant defaults or fails to honor the payment under contractual obligation. BankIslami opens bank contracts under URC-522 and within SBP regulations.

3. Import Open Account

An Import Open Account is a transaction where Exporter of the goods dispatches the document to the Importer without opening of Letter of Credit. The goods along with all the shipping documents are dispatched to the Importer and the Importer approaches the bank to initiate payment for the goods received. BankIslami facilitates its clients to fulfill their eligibility criteria of the Import Open Account as per the SBP regulations.

4. Imports Advance Payment

Import Advance Payment is a pre-payment method in which, an importer makes the payment for the items to be imported in advance (prior to the shipment of goods). BankIslami is facilitating importers to fulfill their eligibility criteria of the Import Advance Payment as per the SBP regulations.

5. Shipping Guarantee

Issuance of Shipping guarantee is done either through endorsement of Air Way Bill (AWB) or issuance of guarantee in favor of respective shipping company. Shipping guarantee is required by a customer when goods have arrived at port of discharge or airport and the underlying shipping / transport documents have not been received by the LC issuing bank. In order to avoid demurrage & other port/airport charges, a customer approaches the bank for issuance of guarantee in favor of respective shipping company or Endorsement of AWB along with their undertaking that “they will accept the documents despite any discrepancy(ies) therein”.

Funded facilities provided to exporters by BIPL:

1) Export Finance Scheme (EFS) & Shariah compliant Alternative of Rupeebased Bill Discounting (RBD) under EXIM Bank: Export Finance Scheme and Shariah compliant Alternative of Rupee based Bill Discounting are schemes provided by EXIM Bank which are concessional & short term financing facilities provided to exporters through banks for exports of eligible items and services especially value-added products. The bank offers these facilities using different Shariah Compliant modes of financing approved by Shariah Board.

2) Shariah Compliant Financing Alternatives for Exporters: In order to fulfill the liquidity requirements of exports, BankIslami offers different Shariah Compliant alternatives of Bill Discounting and FE 25 Financings. The bank offers these facilities using different Shariah Compliant modes of financing approved by Shariah Board.

Non funded services provided to Exporters by BIPL

1) Export Bills against Letter of Credit: We are providing the speedy services to exporters for processing of their export bills against Letter of credit where in customers do not required funded facility. Shipping documents are dispatched to the LC Issuing Bank and upon receipt of proceeds, the exporters account is credited on the same day, subject to negotiation of FX rates.

2) Export Bills on Collection: Exports under firm contract (C.A.D/DP) and usance basis are being facilitated to exporter, Shipping documents are dispatched their Drawee’s Bank and subsequently, upon receipt of proceeds exporter’s account is credited on same day, subject to negotiation of FX rates.

3) Export Advance Payment: The safest mode of payment against export wherein exporters get payment before shipment from their buyers. Payments are processed on fast track and exporter get their payment in their accounts.

4) Export Under Open Account basis: Exporters are being facilitated through open account mode of transport.  They are allowed to ship their goods any time directly to their buyers and later on the shipping documents submitted at our counter. Upon receiving of proceeds their against were credited to same day in exporters.

5) Export LC Advising: Wherein Exporters sell their goods under Letter of credit upon receiving of L/Cs from their buyers. We facilitate them to advise their L/cs.

1. گارنٹی لیٹر

A Letter of Guarantee is an agreement by the Bank to effect payment to another party (beneficiary or oblige) if  Bank’s customer (the principal) defaults in his debt or obligation (a job contact etc.) to the oblige. The parties to Guarantees are:

Surety – The surety is the party that issues the guarantee.

Principal Debtor – The person in respect of whose default, the guarantee is issued, is called the principal debtor.

Creditor – The person to whom the guarantee is given is called the creditor (beneficiary).

The Pakistan Single Window is one of the most significant initiatives taken by Govt. of Pakistan to reduce the time and cost of doing business by digitalizing Pakistan’s cross border trade and eliminating paper based manual processes. Further, this facility / initiative aims to provide an integrated electronic platform that allows parties involved in international trade and transport to lodge standardized information and documents with a single-entry point to fulfill all import, export, and transit regulatory requirements, where various stakeholders including Pakistan Custom, and Other Government Authorities (OGAs) involved in foreign trade regulations as well as transportation along with connecting port authorities, commercial banks, traders, freight forwarders and transporters etc. on a digital platform. For further detail please Click Here For Further Details