Lesson 14 of 42 · Part D · Level 2 · Explained
Documents, deadlines and early money
On open account, whose name goes on the transport document, how and where the export documents travel, the 14-day deadline, and how a bank may pay the exporter early from its own funds.
In Lesson 13, Open account: when it's allowed, Evelyn learned that she may ship T-shirts to her Hamburg buyer on open account, as long as a designated institution abroad stands behind the buyer with a payment undertaking. Now the first open account shipment is packed, and a pile of new questions sits on her desk next to the carton samples.
Tanvir, her export assistant, scratches his head. "Under the LC, the bank handled the documents. Now the buyer wants the bill of lading in his own name, and the papers sent straight to him. Is that allowed? And who sends them, and by when?"
Evelyn calls Habib at her bank. Habib says, "Come over tomorrow. And bring Tanvir. I've asked someone who knows ships better than anyone."
That someone is Iyan, who once ran operations for a shipping line and a freight forwarder. Iyan sips his tea and smiles. "Every shipment has two journeys," he says. "The boxes sail across the sea. The papers travel too, and they have their own timetable. Miss the paper's train and the money waits on the platform."
Today: the documents, the deadline, and a way for Evelyn to get her money early.
Issuance and handling of transport documents
In plain words
Under an LC, the bank usually holds the documents tightly. On open account, D-5 gives more room. It has three parts:
1. How the transport document is issued. ADs may allow transport documents to be issued in line with the underlying arrangements among the parties. In other words, what the buyer, the exporter and the designated institution agreed decides how the document is made out.
2. The importer's name on it. Sometimes the transport document is issued in the name of the importer or another nominated party, as per the arrangements. In that case, ADs may give instructions to the carrier companies, as per Appendix-10 of the circular. D-5 points to Appendix-10 for this but doesn't repeat what it says.
3. How the documents travel. The export invoices, bills and documents can be sent abroad:
- through the banking channel,
- through an electronic platform, or
- through other suitable arrangements,
directly to the designated institutions, the importers or other relevant parties, as the underlying arrangements require.
Think of it like sending a wedding card. The card can go by post, by hand or on WhatsApp, and to the bride's family or straight to the guest. What matters is what the families agreed.
At the desk
Evelyn's open account arrangement says the bill of lading must name the Hamburg buyer, and the documents go electronically to the foreign bank that gave the payment undertaking. Iyan explains how the carrier issues the bill in the buyer's name. Habib allows it and gives the carrier company instructions as per Appendix-10. Tanvir, relieved, uploads the documents on the agreed platform.
Key words
- Transport document
- A document issued by a carrier, such as a bill of lading or an airway bill, showing that it has taken the goods for carriage.
- Bill of Lading (B/L)
- Shipping document for sea cargo: the carrier's receipt for the goods and, when negotiable, the document of title that lets the holder claim them.
- Carrier
- The company that actually carries the goods, such as a shipping line or an airline.
Read the rule as written (Para D-5)
ADs may allow transport documents to be issued in accordance with underlying arrangements among the parties. In case of issuance of transport documents in the name of importers or other nominated parties as per arrangements, ADs may give instructions (as per Appendix-10) to carrier companies. Export invoices/bills/documents can be sent abroad through banking channel/ electronic platform/suitable arrangements directly to designated institutions/importers/other relevant parties as per requirement of the underlying arrangements.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part D, paragraph 5 (page 23). The original circular is the authority.
Timeline for submission of export documents
In plain words
D-6 puts a clock on the paper's journey.
The 14-day rule. The process of sending the export invoices, bills and documents abroad, as described in paragraph 5 (that is, D-5 above), must be completed within 14 days from the date of shipment.
The exporter's homework. Within the same 14 days, the exporter must give the AD a full set of export documents, including the signed EXP form. This is for regulatory compliance, as referred to in paragraph 19, Part-A of the circular. D-6 points there but doesn't repeat the details.
So two things race against the same clock:
- the documents must go abroad, to whoever the arrangements name; and
- a full set, with the signed EXP form, must reach the AD at home.
Even if the papers go straight to the buyer, the AD still needs its own full set, for regulatory compliance. D-6 doesn't say who must do the sending abroad; the arrangements decide the route.
A simple tip: count from the shipment date, not from the day the boxes left the factory gate or the day Tanvir finally found the stapler.
At the desk
Evelyn's T-shirts are shipped on 3 March. Iyan reminds Tanvir to circle 17 March on the calendar: the process of sending the documents abroad must be completed within 14 days of shipment. Tanvir also brings Habib the full set of export documents, with the EXP form signed, on 10 March, well inside the same 14 days.
Key words
- EXP form
- The export declaration form. Every export, unless exempt, must have one.
- Full set of export documents
- All the export documents for a shipment. D-6 says the set given to the AD must include the signed EXP form.
Read the rule as written (Para D-6)
The process to send the export invoices/bills/documents abroad as noted at paragraph 5 above needs to be completed within 14 days from the date of shipment. Within this period, exporters shall submit a full set of export documents, including signed EXP Form to ADs for regulatory compliance as referred to paragraph 19, Part-A of this circular.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part D, paragraph 6 (page 23). The original circular is the authority.
In plain words
If someone pays Evelyn early, they will want the buyer's money when it finally arrives. D-8 makes that possible.
When the early payment option is used, the relevant portion of the export proceeds may be assigned to the designated institutions or designated financiers abroad, as per the arrangements.
This is done in terms of paragraph 31, Part-A of the circular. D-8 points to that paragraph for the rules on assignment but doesn't repeat them.
Note the words "relevant portion". Only the part of the proceeds linked to the early payment is assigned, not necessarily everything. It is like lending your cousin money against his bonus: when the bonus comes, the part he owes you comes to you, and the rest stays with him.
At the desk
A designated financier abroad pays Evelyn early on one of her open account bills. When the Hamburg buyer pays on the due date, the relevant portion of the proceeds is assigned to that financier, as their arrangement says and in line with paragraph 31, Part-A. Habib explains to Tanvir why the full amount doesn't land in Evelyn's account: she has already been paid that part.
Key words
- Assignment
- Transferring your right to receive money to someone else.
- Proceeds
- The money received from a sale, here the payment for exported goods.
Read the rule as written (Para D-8)
In case of exercise of early payment option, relevant portion of export proceeds may be assigned to designated institutions or designated financiers abroad as per arrangements in terms of paragraph 31, Part-A of this circular.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part D, paragraph 8 (page 23). The original circular is the authority.
Putting it together
So far: on open account, transport documents may be issued as the parties agreed, even in the importer's name, with the AD instructing the carrier as per Appendix-10, and the documents may go abroad by bank, electronic platform or other suitable route, straight to whoever the arrangements name. That sending must be done within 14 days of shipment, and in the same 14 days the exporter gives the AD a full set with the signed EXP form. An AD may pay the exporter early, without recourse, from its own uncommitted funds, against the payment undertaking and within the all-in cost limit; the relevant portion of the proceeds may then be assigned abroad under paragraph 31, Part-A.
Next: Lesson 15, Checks and safety nets.