About Company (Guard Tech Group)

Guard Tech Group is an Engineering, Contracting and Service Provider Company and is one of
the leading Supplier of Choice for Fire Detection and Fire Protection Systems. They offer wide
range of services from design, supply, installation, maintenance, testing and commissioning of
fire detection and fire protection systems and also Generator, Lift and Escalator systems. These
services are well supported by their several departments from Service and Maintenance
Department, Engineering Department and Business Development Department.
Guard Tech Engineering Limited is a supplier, installer and contractor for diesel generators. The
company provides spare parts for all major brands of industrial diesel engines, generators,
control systems and peripheral equipment including Perkins, Cummins, Volvo and MTU.
They focus on providing customized solutions to meet their customers’ individual needs. From
designer lifts for luxury brand stores, standard lifts and escalators for commercial buildings to
home lifts for residential houses, they promise to provide the best solution for your project. All
their products are designed according to EN81 for lifts and EN115 standards for escalators. Each
individual component is subjected to tight quality control. Every lift and escalator model is
certified with TUV and CE marking to meet the strictest safety requirements.
Their customer service team will provide advice on each of their customer’s specific
requirements. They also arrange all freight, shipping and insurance as necessary for their
customers.

Supply Chain Process of Guard Tech Group:

Supply Chain Management:

Supply chain management (SCM) is the optimization of a product's creation and flow from raw
material sourcing to production, logistics and delivery to the final customer.
SCM encompasses the integrated planning and execution of processes required to manage the
movement of materials, information and financial capital in activities that broadly include
demand planning, sourcing, production, inventory management and storage, transportation or
logistics and returning excess or defective products.
In addition, supply chain sustainability which covers environmental, social and legal issues, in
addition to sustainable procurement and the closely related concept of corporate social
responsibility which evaluates a company's effect on the environment and social well-being are
areas of major concern for today's companies.

Logistics:
Logistics is a part of supply chain management that deals with the efficient forward and reverse
flow of goods, services, and related information from the point of origin to the point of
consumption according to the needs of customers.
Logistics management is a component that holds the supply chain together. The resources
managed in logistics may include tangible goods such as materials, equipment, and supplies, as
well as food and other consumable items.
Inbound Logistics: The process of receiving and storing goods from suppliers and vendors.
Outbound Logistics: The process of selecting, packing, and shipping products to customers.
Reverse Logistics: The process of returning goods from customers and redistributing them to
other customers or back to the supplier.
Third-Party Logistics: The outsourcing of logistics operations to a third-party provider.

Function of Procurement management:

 Identification and estimation of Materials and service.

 Procurement
 Stock, inventory and wastage control.
 Proper storage.
 Performance monitoring.
 Objective of Procurement Management:

The right item of the right quality in the right quantity at right price at right place at right time
and to monitor.

Why need for effective procurement management for Guard Tech Group?
 Massive volume of various kinds of materials.
 Time schedule of the project.
 Increasing competition.
 Fulfill customer requirement.
 Overall performance.

Details Procurement procedure of Guard Tech Group:

They are following many steps to identify potential customer. Such as:

 Marketing Research
 Marketing and Sells
 Finding Supplier.

Marketing Research:
Businesses team try to determine customer needs first and design the service or product
accordingly. Marketing team of Guard Tech Group is gathering information about a market
within an industry and try to identified potential customer. Potential customers of Guard Tech
Group are Ready Made Garments. In Bangladesh, Garments industry is the backbone of our
economy.
Study Competitor:
A business tries to offer better quality, discounts, and attractive offers to persuade potential
consumers away from their competition.
Marketing by Promotion and Advertising:
It highlights its usage, importance, price, value, and aspects that attract customers directly or
indirectly.
Finding Supplier and procurement process: According to the customer requirement, Guard Tech
Group contact with different supplier.

Material Procured by Guard Tech Group

 Fire Rated Door & Detection System:

Fire rated door and accessories, fire related glass door, fire detector and alarm system.
 Fire Protection & Hydrant System:
Fire standpipe, fire hydrant, sprinkle system, horizontal split case pump,
 CCTV, PA System, Emergency Lighting System:
CCTV, Integrated Security Solution, PA System, Emergency Light System.
 Emergency Voice Evacuation, Smoke System & Vehicle:
Emergency Voice Evacuation System, Smoke Management System & Vehicle.
 Guard Tech Elevator:
Elevator System, Panaromic, Hydraulic, Home Elevator, Escalator Elevator Cabins, Voltages
Stabilizer & UPS.
 Guard Tech Power Generation & construction:
Perkins Engine, Cummins Engine, Mitsubishi Engine, Volvo Engine & Diesel Generator.

Imports process of Guard Tech Group:

Steps of Importing

 Finding Buyer
 Select product for import
 Finding manufacturer
 Negotiation ( procurement) with manufacture
 Incoterms
 Manufacturing
  Opening LC
 Shipping agent
 Receiving documents from exporter
 Customs procedure ( C&F)
 Clearing Goods
 Ware House

The first step of the imports process of Guard Tech Group is finding buyers. According to buyer
requirements, they select manufacture and negotiation with imputer. Exporter and importer will
both make a contract form which is called FOB or CFR according to incoterms rules. After
receiving proforma invoice, the importer contacts a bank to open LC. The exporter bank will
inform the exporter if the importer opens any LC in favor of the exporter. Then the exporter
starts the production process, and the exporter or importers will contact the shipping agent for
shipment. After loading goods in vessel, the shipping agent provides a bill of lading to exporter,
and exporter representative bank sends all documents to importer bank. The importers collects all
documents from the bank, and they send C&F agent to clear goods from port. C&F will make
bill of entry for customs clearance. All documents are verified by customs authorities, and
provide clearance permission to import.

Steps by step description according to Import Process of Guard Tech Group:

Parties of Importer:
There are five parties of importer:
1. Importer
2. Supplier
3. Bank
4. Shipping agent
5. C&F

Government documents need to Import which fascinate to import.

 Trade License
 Tin Certification
 Membership certification
 Bank Account.
 IRC certificate
 VAT Certificate.
 Documents in Trade

Documents are key elements of international trade facilitation that are commonly used for
serving certain proposes to the trade parties and for releasing goods. The documents incomplete,
faulty or not given to the authorities on time may give rise to some risks in the products’ delivery
or during collection of the product costs. This may generate a prudential risk for the bank’s
business.

Category Why we need it Examples of Documents

Transport Documents
Insurance Documents
Financial Documents
Commercial Documents
Official Documents
Evidence of shipment
Cover against risk to the
goods during their carriage
Evidence of financial claim
Describing the goods
Evidencing compliance with
the requirements of the
country of export or the
country of import
Bill of Lading, Airway Bill,
Truck Receipt, Courier
Receipt etc
Insurance Policy, Insurance
Certificate, Declaration under
open Cover etc.
Bill of Exchange, Cheque,
Promissory Note etc
Commercial Invoice,
Inspection Certificate,
Packing list, Weight List
Certificate of Origin,
Legalized Invoice, Radiation
Certificate, Export License
etc.

Incoterms: It is a negotiation process. Incoterms specify who is responsible for paying for and
managing the shipment, insurance, documentation, customs clearance, and other logistical
activities. From the 1st January 2020, the ICC’s Incoterms® 2020 came into force. This is the
ninth revision of the Incoterms Rules, with the last revision dating back to 2010. Rules for use in
relation to any mode or modes of transport; and Rules for sea and inland waterway transport,
where the point of delivery and the place to which the goods are carried to the buyer are both
ports.
Free On Board (FOB ) : Free On Board means that the seller delivers the goods on board the
vessel nominated by the buyer at the named port of shipment. They are responsible for all costs
up until that point. Once the shipment is boarded, the buyer assumes risks and costs.

CFR Price: Cost and Freight” is an Incoterm that is exclusive to ocean freight shipping. It states
that the seller is not only responsible for delivering the goods to the port specified by the buyer,
but also bears the transportation costs of the goods to the destination port.
 Import Documentations before Opening LC :

Purchase Order : Purchase order is a documents which prepared by buyer and presented to
seller, containing details description of goods, price, delivery process.

Proforma Invoice :
A proforma invoice is a preliminary bill or estimated invoice which is used to request payment
from the committed buyer for goods or services before they are supplied. A proforma invoice
includes a description of the goods, the total payable amount and other details about the
transaction.
 Letter of Credit:
A letter of credit is a financial instrument that is commonly used in international trade
transactions. It is a guarantee from a bank to pay seller on the behalf of the buyer. It is reduced
risk for the both the buyer and the seller in a intentional trade.
Different type of LC:
Irrevocable LC: In this case it is not possible to revoked or amended a credit without the
agreement of the issuing bank, the confirming bank and the beneficiary.
Sight LC: It is provided for payment to be made to the beneficiary immediately after
presentation of the stipulated documents on condition that the terms of LC have been complied
with.
Revolving LC: It is type of LC that allows the buyer to make multiple shipments or transactions
under a single LC. The buyer and seller agree on a total amount of credit that can be used for
multilple transaction over a specified period of time.
Back to Back LC:
Back to Back LCs is issued on behalf of a customer against the security of Export LCs for
procurement of raw materials either locally or from abroad and makes timely shipments’

Shipping agent
Shipping agent communicate with manufacture or importer ( buyer or exporter have to give
bellow information):
 Location
 Gross weight
 Appearance
 Packing list
 Freight Charge ( Rent)
 Transit Time
 ETD

Shipping Container Analysis:

The shipping container highlights the market efficiency and security trade-off. The modern
version of the shipping container grew popular because it avoided costly and laborious repetition
when cargo had to be loaded and unloaded when moving from one mode of transport to another.
Three types of shipping container are mostly used:
Container Type Internal Dimensions Cubic Capacity
20FT L - 5.89M W - 2.35M H - 33 CBM
2.36M
40FT L - 12.05M W - 2.35M H - 66 CBM
2.36M
40FT High Cube L - 12.05M W - 2.35M H - 76 CBM
2.69M

Documents provide to buyer from supplier:

Supplier will send the documents to supplier representative bank, then supplier representative
bank send all documents to buyer representative bank.
Bellow documents will provide:
 Bill of lading
 Bill of exchange
 Commercial invoice
 Packing list
 Certificate of origin
Bill of lading: Bill of lading (BOL) is one of the most important documents in the shipping
process. To ship any goods, a bill of lading is required and acts as a receipt and a contract. A bill
of lading is a document that details the type, quantity, and destination of goods being shipped.
The bill of lading also serves as a receipt of shipment once the goods have been loaded onto the
vessel. It is issued by shipping agent.
Bill of exchange: A Bill of Exchange is an important document in export process that contains
reference details of an export shipment like amount of invoice from the buyer, time of payment,
bank details, etc. It is used in international shipping as a negotiable instrument. A bill of
exchange is a written order binding one party to pay a fixed sum of money to another party on
demand or at some point in the future.

Commercial Invoice: The commercial invoice is a legal document between the exporter and the
buyer (in this case, the foreign buyer) that clearly states the goods being sold and the amount the
customer is to pay. The commercial invoice is one of the main documents used by customs in
determining customs duties.
Packing list: A packing list refers to the form which describes the goods to be exported,
including quantity, box, weight, dimension, price, and related shipment information.
Certificate of Origin: A Certificate of Origin (CO) confirms the ‘nationality’ of a product and
serves as a declaration to satisfy customs or trade requirements. COs are mostly required for
customs clearance procedures to determine duties or legitimacy of imports. A certificate
regarding “country of origin” issued by the concerned Government agency, approved authority
or organization of the exporting country must be submitted, along with import documents to the
Customs Authority at the time of release of goods.
 Customs Clearing Process ( C&F):

After received all documents from supplier then importer has to endorsed all documents by bank,
and provide those documents to importer nominated C&F agent.

Bill of Entry make by C&F:

Bill of entry is a legal documents file with customs department. C&F will make this documents,
and send to Chittagong customs for customs clearness.
 Costing with C&F:

 Customs duties
 Shipping agent payment
 Port authority bill
 Labor charge
 C&F commission.

Customs Duty Payment: Customs authority will verify all documents, and then they will fixed
vat, tax, commission, documents fee, global tax, item tax, and send to the C&F. After
complecting all procedure of customs, then product can release from port.

Warehouse Process

Moves the vast majority of goods by truck. Guard Tech Group do not operate any large
warehouse. Goods are transported directly from the port to customer place. Then engineering
team setup, the machinery item according to customer requirement.

Recommendations

 Proper HS code has to mentioned in Invoice.

 Under-invoice and over-invoice are strictly prohibited.
 Exporters are liable to receive the full procedure of export from abroad. So all authentic
documents have to give to the customs authority.
[ Under-invoice: Exporting the goods with invoicing lower amount than market standard which
helps importer to sell the goods in the market and generate the funds.
Over-invoicing: Exporting the goods with invoicing higher amount through which importer transfer
the funds to exporter more than correct value.]