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Short definitions of the trade terms that come up when buying from Bangladesh: Incoterms, payment methods, minimum order quantities, product classification, quality inspection, and the export registrations and trade bodies Bangladeshi suppliers mention. Each entry explains what the term means, how it affects an order and where the definition comes from, for buyers and suppliers who want a quick reference.
11 articles
FOB is an Incoterms® 2020 rule for sea shipments. The seller's job ends when the goods are on board the vessel at the named port; freight, insurance and import costs are the buyer's.
Under CIF the seller pays freight and minimum insurance to the destination port, yet the risk moves to the buyer at loading in the port of shipment. Here is what that means on an order from Bangladesh.
EXW puts the least on the seller and the most on the buyer. On an order from Bangladesh, that includes export clearance, which a buyer based abroad has to arrange through someone on the ground.
The smallest quantity a supplier will accept, how it is counted, and how it connects to quantity price tiers on Exportain listings.
The World Customs Organization's product classification code, where it appears in an order from Bangladesh, and why your duty depends on it.
A letter of credit moves the payment promise from the buyer to a bank, on one condition: the seller's documents must comply with the credit. Here is how that plays out on an order from Bangladesh.
TT is the plain bank transfer behind many supplier payment terms. The transfer itself is simple. The risk depends on when you send it.
Before a Bangladeshi company can ship your order, its bank needs to see that it is a registered exporter. That registration is the ERC.
A Bangladeshi garment supplier will often mention BGMEA or BKMEA. Here is what each association is, what membership tells you, and how to check a claim in their member directories.
A pre-shipment inspection is your last practical chance to find problems while the goods are still at the factory. Here is what inspectors check and what to agree with the supplier first.
AQL is the figure you will see on inspection bookings and reports. It decides how strict the sampling is, but it does not promise a defect-free shipment.
