To buy cars, furniture or any other

Q: I am a merchant who imports goods from abroad, from places such as Europe, Japan and China. According to the commercial system, I have to deal with banks, so I deal with a Saudi bank in Al-Madinah Al-Munawwarah and Jeddah. Following is how I deal with it: I travel to Japan, for example, to contract agreements with the manufacturing company on the commodity type, price and delivery date. I then receive a price and type bill from the company and return to K.S.A. Where I give the bill to the bank which in turn sends a letter to the company of credit, i.e. indicating that the bank will pay the whole price on the company's delivering the commodity to steamers company, to be delivered to Jeddah Port for example. The company manufactures the commodity to order, approves it from relevant authorities and then delivers it to the streamers' company. On receiving a letter from the streamers company to the effect that it has received the commodity within a defined period and has delivered it to the Jeddah port customs, for example, the bank pays to Jeddah Port. (Here is the point of ambiguity.) Later, I go to settle it with the bank. If I pay the whole price, the bank takes a quarter riyal as interest per 100 riyals from me. If I do not pay the whole value, the bank takes an interest of 8 piaster's per 100 riyals for every month. Thereafter, the bank gives me a letter to the streamers company and another to Jeddah port to deliver the commodity to me after paying fees. However, without such a letter from the bank I cannot receive the commodity as it is in the name of the bank not in my name. Thus, I cannot receive (Part No. 13; Page No. 314) the commodity without the bank's two letters, one to the streamers company and another to Saudi customs. Only then can I receive the commodity after paying the defined fees and sale contract becomes perfect that I can dispose of the commodity. However, if a part of the commodity's price remains due to the bank, it takes as interest of 8 piaster's per 100 riyals for every month. In fact, this is how the bank deals with all merchants and importers in the Kingdom of Saudi Arabia as a whole. Please, be informed that no merchant may import commodities in large quantities except through a bank so that it is guaranteed that the commodity will be delivered untouched and correspondent to the terms agreed upon on ordering it be manufactured.Please respected sheikh, give me a Fatwa on doing so. Is the interest, i.e. A quarter riyal per 100 riyals in case I pay the price in cash and 8 piaster's per 100 riyals for each month on credit, taken from me by the bank Halal (lawful) or Haram (prohibited), bearing in mind that all the commodity's documents go to Europe in the name of the bank. May Allah protect you.

A: If this is the case that you make a contract with the bank to pay the price of the commodity in return for the abovementioned interest rate, which varies according to the amount you pay of the commodity price, it is Haram as it falls under Riba Al-Fadl (usury of excess, selling an item for another of the same type, on the spot, but in excess), Riba Al-Nasi'ah (usury of delay, conditional excess for delay of payment) and guaranteeing it for a recompense. (Part No. 13; Page No. 315)  May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.