1. Export Transactions
- Receipt of payment in advance for exports.
- This method of payment can be considered as credit extended by an overseas buyer to an exporter.
- This is the most preferred method of payment for exports.
- Required Documents: Advance payment receipt (Incoming Telegraphic Transfer) advice or customs declaration along with bank advice for the sale of the Cash Notes to the Bank. (If deposited in Foreign Currency Cash Notes), commercial invoice, sales contract, License & TIN certificate.
Letter of Credit (L/C)
- Export on consignment basis is applicable to perishable items.
- Required Documents: Commercial Invoice, sales contract, License, TIN certificate & undertaking letter to repatriate the proceeds timely (additional documents may be requested as and when situations demand)
Cash Against Document (CAD)
- An export letter of credit is an instrument issued by a foreign bank on behalf of its importing customer favoring an exporter who is customer of BIB.
- Required Documents: Authenticated L/C (SWIFT MT 700), Commercial Invoice, Sales contract, License and TIN certificate (additional documents may be requested as and when situations demand).
- Exporters may ship their goods to buyers abroad on collection bases at sight or on acceptance bases.
- Required Document: Commercial Invoice, Sales contract, License, undertaking letter and TIN certificate (additional documents may be requested as and when situations demand).
2. Import Transactions
Letter Of Credit (L/C)
- This mode of payment is appropriate for imports of small items for values not exceeding USD 5,000.00or its equivalent in other foreign currencies.
- Required Documents: Performa Invoice, License, Insurance cert./policy,undertaking letter for the entry of goods, beneficiary's Bank and A/C details and TIN certificate (additional documents may be requested as and when situations demand).
Cash Against Document (CAD)
- An import letter of credit is an instrument issued by BIB to one of our correspondent banks on behalf of our importing customer to guarantee payment if all terms, conditions, and documentations are incompliance with the L/C terms and condition, UCP 600 rules, NBE Directives and the Bank’s Policies and Procedures.
- Required Documents: Performa invoice, Insurance cert./policy, License, L/C application form and TIN certificate (additional documents may be requested as and when situations demand).
- The importer needs to have purchase order approved by BIB before shipment of goods.
- Required Document: Purchase order, performa invoice, insurance cert./policy, License & TIN Certificate (additional documents may be requested as and when situations demand).
(Note: For all import & export transactions, import/export permit duly filled, signed and stamped is mandatory with NBE A/C number). The Bank doesn't provide foreign trade services for Customers under NBE's delinquency list until they clear their commitments or bring waiver letter from NBE.
3. Foreign Banking Guarantee
Bid Bond GuaranteePerformance Bond GuaranteeThis guarantee serves the purpose of securing claims of the party inviting tenders against any withdrawal or change of bid by the bidder until the opening of the bid.The Guarantee will cease to be valid after fixed expiry date or if the applicant refuses to sign the contract after the contract has been awarded.Advance Payment GuaranteeThis type of guarantee secures performances of all contractual obligations of the seller towards the buyer. It guarantees the broadest possible scope of obligations among all types of guarantees.Advance payment guarantee secures buyers against the seller regarding repayment of an advance payment on the purchase price of goods or services made by buyers to sellers (before delivery of the goods) in the event that delivery is made only partly or not at all. The guarantee provides a security to buyers to be entitled for the advance payment in case of failures of suppliers in fulfilling their obligation as agreed upon.
4. Foreign Exchange Service
Purchase and Sales of Foreign Currency (F/CY) Cash Notes
Purchase and Sales of Travelers’ Checks
- Forex bureaus of the Bank buy FCY Cash Notes at the prevailing exchange rate.
- Forex bureaus may also sell FCY Cash Notes for Holiday travel expenses, Business travel allowance, medical expense, Educational expenses and General transfers as per NBE’s Directives and the Bank’s Policies and Procedures.
- Travelers’ checks are payment instruments issued by Travelers’ Check Issuing Financial Institutions.
- BIB holds Travelers’ Checks against payment of foreign exchange or in trust on behalf of issuing financial institutions
- Foex bureaus of the Bank sell and purchase travelers Checks to /from customers in addition to FCY Cash Notes in accordance with applicable Directives of NBE and the Bank’s Policies and Procedures.
5. Foreign Exchange Remittances
BIB provides reliable and efficient incoming transfer services through its wider ranging correspondent Banking network and foreign money transfer companies.
- BIB makes foreign currency transfers to foreign beneficiaries on behalf of local customers against foreign exchange permit approved by the Bank
- Outgoing transfers are made only via SWIFT or Demand Drafts.
- BIB Cashes or negotiates foreign checks/bills (such as Drafts, Checks drawn on foreign banks, Travelers’ checks. etc.).
- The Bank handles foreign checks on the bases of outward bills purchased (OBP) or outward bills for Collection (OBC).
6. Foreign Currency Account
Non-Resident Foreign Currency Accounts (NR-FCY)
BIB opens and maintains accounts denominated in foreign currency that provides the Account Holders the privilege to instruct transfer of funds aboard without foreign exchange permit approval or make local payments in Birr.
Non-Resident Transferable Birr A/Cs (NR/T)BIB opens and maintains accounts denominated in Birr but provide the eligible Account Holder the privilege to draw in foreign currency without foreign exchange permit approval.
Non -Resident Non-Transferable Birr A/Cs (NR/NT)BIB opens and maintains accounts denominated in Birr that can only be operated in local currency unless foreign exchange permit approved by the Bank is obtained.
Diaspora AccountsBIB opens and maintains Foreign currency current and/or time deposit accounts to non-resident Ethiopians and foreign citizens of Ethiopian origin.
Retention AccountsBIB opens and maintains Foreign currency accounts for exporters and frequent recipients of foreign exchange remittance to enable retain all/portion of their export earnings and inward remittances.
7. Correspondent Banking Network
The Bank is expanding its network with prominent and credit worth banks globally. The bank maintains account relationship with the following banks that operate through out the world.
Correspondent Bank list
|Bank Name||Currency||Account No||Commercial Payment||Foreign Exchange||Money Market|
|1.||COMMERZBANK AG FRANKFURT,am main,Germany||EUR||400870012201EUR|
|2.||Deutsche Bank Trust Company Americas, New York||USD||04446480|
In addition, the Bank has established Relationship Management Authorization (RMA) for communication of authenticated SWIFT message with major banks in the international banking arena. BIB has over 50 active RMA establishments with the following banks and their subsidies/branches globally.
Banks with active RMA with BIB
|Bank Name||Country||Swift Address|
|1.||ARAB BANK(SWITZERLAND) LTD||CH(SWITZERLAND)||ARBSCHZZ|
|2.||BANKQUE DE COMMERCE ET DE PLACEMENTS||CH(SWITZERLAND)||BPCPCHGG|
|3.||BANCO SANTANDER, S.A. SINGAPORE BRA||SINGAPORE||BSCHSGSG|
|4.||CAC INTERNATIONAL BANK||DJIBOUTI||CACDDJJD|
|CITIBANK N.A.||GREAT BRITAIN||CITIGB2L|
|6||COMDIRECT BANK AG DUBAI BRANCH||UNITED ARAB EMIRATES||COBAAEAD|
|COMDIRECT BANK AG||GERMANY||COBADEHD|
|COMINVEST ASSET MANAGEMENT S.A.||LUXEMBURG||COBALULU|
|COMMERZBANK (BUDAPEST) RT.||HUNGARY||COBAHUHX|
|COMMERZBANK (EURASIJA) SAO||RUSSIA||COBARUMM|
|COMMERZBANK AG||CZECH REPUBLIC||COBACZPX|
|COMMERZBANK AG||GREAT BRITAIN||COBAGB2X|
|COMMERZBANK AG||HONG KONG||COBAHKHX|
|COMMERZBANK AG (BANKING COMMUNICATION)||GERMANY||COBADEFF|
|COMMERZBANK AG KANTOOR AMSTERDAM||NETHERLANDS||COBANL2X|
|COMMERZBANK AG TOKYO||JAPAN||COBAJPJX|
|COMMERZBANK AG,SINGAPORE BRANCH||SINGAPORE||COBASGSX|
|COMMERZBANK AG, WUPPERTAL (ZW.117)||GERMANY||COBADEDH|
|COMMERZBANK AG, CAYMAN ISLANDS BRANCH||KENYA||COBAKYKX|
|COMMERZBANK AG , THE, BRUSSELS BRANCH||BELGIUM||COBABEBX|
|COMMERZBANK EUROPE (IRELAND)||IRELAND||COBAIE2X|
|EUROPEAN BANK FOR FUND SERVICES GMB||GERMANY||COBADEMX|
|7.||CREDIT SUISSE AG||CH(SWITZERLAND)||CRESCHZZ|
|8.||DEUTSCHE BANK (CHINA) CO. LTD.||CHINA||DEUTCNSH|
|DEUTSCHE BANK (MALAYSIA) BERHAD||MALAYSIA||DEUTMYKL|
|DEUTSCHE BANK A.G. AMSTERDAM||NETHERLANDS||DEUTNL2A|
|DEUTSCHE BANK A.G.||GERMANY||DEUTDEDD|
|DEUTSCHE BANK A.G.||HK||DEUTHKHH|
|DEUTSCHE BANK A.G.||INDIA||DEUTINBB|
|DEUTSCHE BANK A.G.||SINGAPORE||DEUTSGSG|
|DEUTSCHE BANK A.G.||U.S.A.||DEUTUS33|
|DEUTSCHE BANK A.G. ZURICH BRANCH||CHINDIAA||DEUTCHZZ|
|DEUTSCHE BANK A.G., BANGKOK BRANCH||THAILAND||DEUTTHBK|
|DEUTSCHE BANK ISTANBUL||TURK||BKTRTRIS|
|DEUTSCHE BANK S.P.A||ITALY||DEUTITMM|
|DEUTSCHE BANK TRUST COMPANY AMERICA||U.S.A.||BKTRUS33|
|9.||FIRSTRAND BANK LTD HEAD OFFICE INCL||SOUTH AFRICA||FIRNZAJJ|
|11.||HABIB BANK AG ZURICH||UNITED ARAB EMIRATES||HBZUAEAD|
|12.||THE BANK OF NEW YORK MELLON, FRANKF||GERMANY||IRVTDEFX|
|13.||NATIONAL BANK OF ABU DHABI||AE(ARAB EMIRATE)||NBADAEAA|
This level of network with international banks has enabled our bank to facilitate international trade and remittance service without difficulty as well as make FOREIGN EXCHANGE trade and money market deals smoothly.