FE Circular No. 48: Calculation of Remittable Surplus for Demurrage, Detention, Handling or Equivalent Charges

Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No.48 Date: November 17, 2020 All Authorized Dealers in Foreign Exchange in Bangladesh and All foreign shipping lines & their agents operating in Bangladesh Dear Sirs, Collection of Demurrage, Detention, Handling or equivalent charges by the foreign shipping lines/their agents for calculation of their remittable surplus Please refer to the FE Circular No. 43 of December 14, 2017 regarding calculation of remittable surplus, in consideration of Demurrage, Detention, Handling or equivalent charges, of foreign shipping lines/their agents working in Bangladesh subject to deduction of taxes and commission. 02. It has now been decided that the above mentioned charges collected prior to financial year 2017-18 shall be considered for calculation of surplus earnings provided that: (a) The charges shall be shown in a supplementary statement showing deduction of appropriate taxes, including necessary assessment thereon, and payment thereof as per Finance Act’ 2017 through amendment of Section 102 of Income Tax Ordinance, 1984 and Income Tax Paripatra No. 19 of 2017-18 of the National Board of Revenue. (b) The amount so ascertained as per supplementary statement shall be shown in the revised App-5/34 (as per enclosure of FE Circular No. 43/2017). 03. Other relevant instructions contained in chapter 10 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1, FE Circular No. 43/2017 and subsequent circulars shall remain unchanged. Please bring the above instructions, effective immediately, to the notice of your concerned constituents. The instructions of this circular have been issued under Section 20(3) of the Foreign Exchange Regulation Act, 1947 and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123