Bitumen to Chittagong Bangladesh
For the past 10 years we have been active in the export of Bitumen to Chittagong Bangladesh. Our company has come to appreciate the close cooperation it has with the Bangladeshi people. Bangladeshi bitumen importers normally work through a respectable broker whom they trust. This trustee handles the entire bitumen procurement process for the buyer. Therefore; it is important to respect their position and rights. Most of them are also responsible for doing the banking procedures for their clients as well.
How many metric tons is each order to Chittagong Bangladesh?
Most orders for road bitumen from Bangladesh are 500 metric tons. Some are 1,000 metric tons. Some clients purchase several thousand metric tons at once but they break them into smaller orders. We believe this is due to their limitations on their import permits.
Payment to Chittagong Bangladesh and Discrepencies
When dealing with Bangladesh the only form of payment is a letter of credit. This is because their import laws commands this. It is said that each company can only import 25,000 USD annually worth of products through Telegraphic Transfer. If imports exceed this figure the rest has to be imported via a LC.
Disceprencies on the Letter of Credit
Bitumen exporters who have dealt with Bangladesh’s banks have become accustomed to experiencing unwelcomed and often unjustifiable discrepancies. The main reason for these discrepancies in the LC are aimed at delaying their payment. The norm with the top banks of the world to process a payment is maximum two weeks. The purpose of these discrepancies are to avoid payment before the goods have reached Chittagong. Some Bitumen exporters believe that this mechanism is used to reserve their foreign currency until it is truly needed to be released. Others claim it is so that the goods can safely arrive first. We also have our own theory: this is a safety mechanism used to block unwanted bitumen qualities from being accidentally bought. We believe the goods are checked first through a special cooperation between the client, customs and the bank. If everything is in accord, then the payment is released to the seller.
Bitumen Shipments to Bangladesh
Unlike most countries, in Bangladesh bitumen shipments must include destination handling charges DTHC. The payment as discussed above is released once the goods have arrived in their port. Because the bitumen clients in Bangladesh have a limmited time to clear their goods from customs ( 4 days) once the goods arrive the payment is usually made within 24 hours.
Drums weight for Chittagong
Even though it costs bitumen importers from Chittagong Bangladesh an average of 15.00 USD/MT to secure 145 +/- 2 Kg drums they usually avoid purchasing 180 Kg drums. The reason 145 Kg also known as 150 Kg drums cost higher is due to the fact that less weight can be shipped. An average of 16 metric tons versus 20 metric tons can be shipped when using the smaller sized drums than the standard 180 Kg packaging.
Our suggestion to the Bangladesh bitumen importers
Please don’t make the same mistake as one of your neighboring countries has made and allow low quality mixed bitumen to enter your market and prevail. More and more each day we see buyers focusing on prices from Bangladesh more than quality and service. By doing so they are risking securing undesired quality bitumen. Even certain healthy exporters from Iran in order to compete have found themselves accidentally purchasing mix bitumen at competitive prices. However them have found themselves losing greatly when their quality was rejected in Bangladesh and their money blocked and returned to the buyer.
30.00 USD fee per container charged by the shipping lines for Bitumen to Chittagong Bangladesh
Shipping lines are charging 30.00 USD per container under the header of Insurance fees. However we have learned that these fees are aimed at restoring the condition of the containers. So far our company noticed several shipping companies charging their clients and it appears that for the time being this unwanted fee is unavoidable.
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