Step 1: IRC & BGAPMEA Renewal
IRC and BGAPMEA membership renewal are required to make raw material Zero.
Mr. Bkash is coordinating with the BIDA officer. After approval from the Japanese side, we may also communicate with BIDA directly. A declaration on BDT 300 stamp paper is required, confirming that Bangladesh Naxis will continue export operations properly.
The process may take about 1 month, with a government fee of approximately BDT 50,000 and membership fee 28000. The management fee is not yet negotiated.
Step 2 & 3: Bond Audit & General Bond Process
After IRC and membership renewal, the Bond Audit will begin. First, an application must be submitted to the Bond authority (processing time: approx. 1 week). All required documents, already available with Mr. Bkash, will be submitted.
The authority will then schedule a factory inspection. For proper audit completion, a management fee of approximately BDT 10–15 lakh will be required.
General Bond:
This approval confirms that the company is eligible for export. It depends on the bonded raw material inspection. If any raw materials are found expired, a time extension must be applied for.
After the audit, the General Bond application will be submitted and processed in parallel with the Bond Audit. The management fee is included within the Bond Audit cost.
Total Time is 2 months.
Step 4 : Time Extension for Expired Raw Materials
During the General Bond process, if any raw materials are found expired, B. Naxis will need to apply for a time extension.
A re-inspection by the Bond authority will be required. At that stage, an approximate management fee of BDT 1 lakh will be applicable.
The required documents include a formal application needed, supporting documents, which are already available with Mr. Bkash.
Step 5 ,6, & 7 : Back-to-Back LC Purchase, Payment & Raw Material Adjustment
At this stage, B. Naxis needs to arrange Back-to-Back (B2B) LCs from approximately 20 export-oriented garment companies to adjust bonded raw materials amounting to USD 1,390,000. After approval from the Japanese side, Mr. Bkash will coordinate with these companies.
For USD 139,000, an additional charge of approximately BDT 30 lakh BDT will be required (approximate).
Example Calculation (USD 6,000):
Raw Material Value: 6,000 × 123 = BDT 738,000
Extra Cost: 6,000 × 20 = BDT 120,000
Total Cost: BDT 858,000
The raw material value (BDT 738,000) must be withdrawn from the Naxis bank account and deposited into the LC provider’s bank account. The extra cost (BDT 120,000) is payable in cash only (no bank transaction).
After completion, Naxis will process the Challan and Bill of Entry. Subsequently, the LC amount will be credited back to the Naxis bank account, thereby adjusting (zeroing) the bonded raw materials.
Making Raw Materials Zero:After LC processing and receipt of payment from the respective factories, Naxis bank will receive the transaction copies, and the bonded raw material balance will be adjusted accordingly.
All costs are approximate.