INDEPENDENT UNIVERSITY, BANGLADESH

SEMESTER: SPRING 2021

Submission From
Name Ahmad Imtiaz Sobhan
Roll No. 2010510
Date of Submission May 6, 2021

Submission To
Name Prof. (Adj.) Dr. Md. Mahbub Alam
Course Name International Business
Course Code MBA 514
Section 03

Individual Assignment- “An International Trade Transaction

(export) of your company or a company you know”
 1. Introduction:
Handicrafts are mostly defined as item made by hand often with the use of simple tools and are
generally artistic and traditional in nature. Handicrafts are unique expressions representing a
particular culture or community through artisans and materials. It’s a part of much larger home
accessory market which includes handcrafted and machine made goods.

In Bangladesh handicraft product was introduced in the market after 1970. And in 80s the product
got market acceptance ,and this become its growth period .In 90s it become slow growth .After
2000 the sale of product decreased because of old design and poor quality. Now a days it is
increasing because of customer choice and demand in cultural and artistic product.

Bangladesh is one of the important supplier of handicraft to the world market. The Bangladeshi
handicrafts industries is highly labor intensive and is a cottage base industry. It is highly
decentralized, being spared all over the country in rural and urban areas. Handicrafts often being
located in the rural areas. It creates employment of women and thus help empowerment of women
in society. It will improve the standard of living of poor people of rural areas. It helps to improve
traditional skills and creative talents of individuals as an artisan.

2. History of Satranji:
Shataranji is a creative art of weaving and technically it is similar to modern tapestry. In the past,
Shataranji was considered as a status symbol of aristocratic families. This very attractive and
colorful fabric was used to make seat cover, bed sheet and wall mat for interior decoration of their
houses. Even extra-large size shataranjis were produced and used to cover a place of big public
gathering to hold meetings or music conferences. Now-a-days, shataranji is used to make
diversified creative products like coin purse, ladies hand bag and table mat.

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During the British rule in India, the diversified usage of shataranji in the upper class society was
very much common. Hunter in an article in the Rangpur Gezetteer published in 1912 referred to
the quality artisanship of shataranji weavers of Rangpur and the marketing aspect of their products.
He wrote that collector of Rangpur district Mr. Nisbet volunteered himself to be the lead patron of
the local shataranji weaving artisans in 1880. There was a village named Peerpur and in that village
artisans used to produce colorful shatranji. Mr. Nisbet helped these villagers to produce quality
products and make them possible to trade in international market. Later, due to his contribution
this village named after him and people started to call this place as Nisbetganj- epicenter of shatraji.

Picture of some Shatranji

3. About Karupannya Rangpur:

In 1991 an entrepreneur named Mr. Shafiqul Alam Selim started a venture in Rangpur targeting
the product Shatranji. Currently this company has 5 factories and give employability to 6000
individuals. The raw materials they use in this company are jute, textile, waste fabric, waste cotton,
coir, sisal, grass. And the process they follow to manufacture their products are Hand Spinning,
Dyeing, Weaving, Backcoating. Most popular items they manufacture are good range of hand
crafted and hand loomed area rugs, Table mats, Floor mats, Indoor & Outdoor mats. Bedside Mat,
Wall mat made out of jute, cotton or recycled pieces of ready-made garments. Their hand loomed
products are distinct and exceptional each captures the special touch of individual artisans
sensibility and knowledge of few generations. Target market of this products are in Europe, Asia,
& North America and currently in 36 countries export is taking place. In the following paper I will

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describe how this Karupannya’s product shipped to North America and bearing the flag of
Bangladesh at International stage.

Picture of Karupanya Rangpur Limited (Front of Factory)

4. Import- Export Business of Karupannya Rangpur:

According to Bangladesh Small & Cottage Industries Corporation (BSCIC), 60% of items that
Bangladesh exports belongs to Shatranji of Rangpur. On an average this product is bringing around
USD 40lac to our country. In reference to this statement, Karupannya Rangpur received a
requisition to export 1lac floor mats in various sizes in France. The buyer from France ordered
environment friendly products to promote the ancient heritage in his country. Following points are
important:

 Exporter : Karupannya Rangpur Limited

 Required Quantity : 1 lac
 Importer : Buyer from France
 Exporter Bank : BRAC Bank
 Importer Bank : Bank of Paris

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To perform this import-export activities the concern company & the individual needs to perform
certain activities. Since the buyer from France ordered 1lac floor mats to Karupannya Rangpur
Limited through mail and as a result the management of Karupannya Rangpur expressed their
interest to complete this shipment.

In this connection, French importer will open a Letter of Credit to import this shipment.
Accordingly, he approached to Bank of Paris to open LC and while opening the LC importer needs
to provide specific documents. In this scenario, Bank of Paris works on behalf of the importer and
Bank of Paris will deal with the bank whose name will be nominated by the exporter.

When the formalities of Bank of Paris will be completed then the authority of importer’s bank will
communicate with the bank nominated by the Karupannya Rangpur. In this scenario the seller
from Bangladesh nominated a bank named BRAC Bank Limited. When BRAC Bank Limited got
the confirmation about the letter of credit then the bank inform Karupannya Rangpur to ship the
products which were ordered.

Subsequently, Karupannya Rangpur will ship the required products along with a bill of exchange
for cargo shipped. BRAC Bank will endorse the bill of exchange within 120 days payment
instruction and share it with the Bank of Paris who is the representative of importer.

Accordingly, Bank of Paris accepted the draft and BRAC Bank pay money to the Karupannya
Rangpur for the products. Meanwhile, Bank of Paris informed the importer that bill of exchange
as arrived and he requires to pay the money to the bank. Importer pays all the dues to Bank of Paris
and BRAC Bank present the matured bill of exchange and gets the payment done from Bank of
Paris. It is important to mention here about the bill of lading which is issued by the common carrier
transporting the shipment. In this import- export scenario the most important point is about the
timing of arrival of the product.

5. Conclusion:
In conclusion it is can be said that Karupannya Rangpur Limited performed all the required task
for exporting goods to Franch. It is a great learning scope for me to describe the whole process and
while doing this assignment I come across the local heritage and crafts which are valuable for our
culture, locality. I wish all the very best for the businessmen, entrepreneurs’ who are in this sector.

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