FE Circular No. 52: Business-to-Consumer export through sales orders received on internet

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 52 Date: December 21, 2020

All Authorized Dealers in Foreign Exchange in Bangladesh

Dear Sirs, Business-to-Consumer export through sales orders received on internet In order to promote Business-to-Consumer export by hosting goods on e-Commerce website accessible through internet to foreign buyers, Bangladesh Bank has issued policy guidance vide FE Circular No. 17, dated 11 June 2018, including electronic option to declare on EXP Form, the goods sales of which has been concluded on e-Commerce website, as per FE Circular No. 22, dated 19 May 2019. Export proceeds under the framework have been allowed to be realized through settlement on internet. This is to clarify that settlement may be executed by way of international cards, online payment gateway service providers, digital wallets and other legitimate payment systems licensed by the concerned regulatory authorities. Authorized Dealers (ADs) shall observe due diligence for secured arrangements with foreign counterparts by which the payments so received need to be credited in their nostro accounts before making the fund available to customers. 02. To bring wider scope for Business-to-Consumer export, it has been decided that ADs may allow such exports of each sales on e-Commerce website up to USD 500 or equivalent under cash on delivery/payment on shipment terms subject to: (a) ADs shall have counterparty arrangements with foreign payment service providers to realize the payments by debit their foreign currency accounts or Taka accounts maintained with ADs in terms of paragraph 1(i), chapter 13 and paragraph 8(b), chapter 14 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1. (b) Overdraft facilities will be allowed for the accounts so maintained in Bangladesh provided that ADs shall have payment guarantees, from banks acceptable to them, for the adequate amounts based on the transaction flows. All other relevant instructions contained in FE Circular No.17/2018 pertaining to Business-to-Customer export shall remain unchanged. Please bring the above instructions to the notice of all your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123