FEID Circular Letter No. 02: Waiver of regular submission of some quarterly statements under Section 18A and 18B of FER Act-1947

Foreign Exchange Investment Department
Bangladesh Bank
Head Office
Dhaka.
Ref. No. 09.00.0000.002.01.001.10-145

09 Agrahayan 1417 Bang
FEID Circular Letter No. 02 Date: ---------------------- 23 November 2010

To All Authorized Dealer Banks
Head Office / Principal Office.

Regarding the waiver of regular submission of quarterly commission details of authorized local agent persons/institutions under Sections 18A and 18B of the Foreign Exchange Regulation Act, 1947, to Bangladesh Bank, and expense details of domestic branches and liaison offices of foreign institutions.

1. (a) With regard to the submission of details regarding the accrual and repatriation of commission/fee/service charges etc. from foreign principals by authorized local agent persons and institutions under Section 18A of the Foreign Exchange Regulation Act, 1947, to the Retail Section of this department in accordance with Circular Letter No. 5/77, 5/78, 5/79 and 5/80 of the Foreign Exchange Regulation Act, 2009, the concerned banks and authorized local agent persons and institutions are hereby granted exemption.

(b) The matter of accrual and proper repatriation of commission/fee/service charges etc. from foreign principals/principals in accordance with contracts concluded by authorized local agent persons and institutions under the aforementioned section of the Act is now to be ensured by the concerned authorized dealer bank itself. In case of any violation of rules, the authorized dealer bank shall immediately inform this department with necessary documents.

(c) Authorized local agent persons and institutions under the aforementioned section of the Act (e.g., Buying Agent/Buying House, Indenting Agent, Local Agent, Freight Forwarding Agent, Courier Service Agent etc.) who receive inward remittances only by operating as agents of foreign principals will continue to be exempt from submitting commission details to the Retail Section of this department. However, those local agent persons and institutions through whose operations both inward and outward flow of foreign currency (in any form including commission) occur (e.g., Local Agent, Local Satellite Channel Distributor, Local V-Sat Service Provider, Local Shipping Agent, General Sales Agent, Courier Service Agent etc.) will continue to submit details regarding their accrued commission repatriation and outward flow of foreign currency to the Remittance Section of the Foreign Exchange Operations Department in due course in accordance with the terms of their authorization.

(d) In the case of applications for renewal of permission granted in favor of authorized local agent persons and institutions under the aforementioned section of the Act or for inclusion of new principals, the authorized dealer bank shall send the application to this department with a recommendation clearly mentioning the details of accrual and repatriation of commission/fee/service charges etc. in accordance with contracts concluded between the local agent persons and institutions and foreign principals/principals, attached in Annexure-'A'.

(e) In the case of change of authorized dealer bank by authorized local agent persons and institutions under the aforementioned section of the Act, the new authorized dealer bank shall submit a certificate (issued on the bank branch's own letterhead) regarding the repatriation of commission/fee/service charges etc. in accordance with contracts concluded with foreign principals/principals, and a no-objection certificate from the previous bank regarding the change of bank. In the case of renewal of permission granted in favor of authorized local agent persons and institutions or inclusion of new principals, the said no-objection certificate shall be submitted to this department along with the application.

(f) The authorized dealer bank shall properly preserve the details and documents regarding accrual and repatriation of commission/fee/service charges etc. of local agent persons and institutions and related documents for inspection by the inspection team of Bangladesh Bank, and shall supply them as required by the inspection team.

2. (a) With regard to the submission of details regarding the drawing and expenditure of all office expenses by domestic branches and liaison offices of foreign institutions under Section 18B of the Foreign Exchange Regulation Act, 1947, from the foreign parent institution to the Retail Section of this department, the concerned banks and domestic branches and liaison offices are hereby granted exemption.

(b) The matter of drawing and expenditure of all office expenses by domestic branches and liaison offices of foreign institutions under the aforementioned section of the Act from the foreign parent institution is now to be ensured by the concerned authorized dealer bank itself. In case of any violation of rules, the authorized dealer bank shall immediately inform this department with necessary documents.

(c) In the case of applications for renewal of permission granted in favor of domestic branches and liaison offices of foreign institutions under the aforementioned section of the Act, the authorized dealer bank shall send the application to this department with a recommendation clearly mentioning the details of drawing and expenditure of all office expenses by domestic branches and liaison offices of foreign institutions from the foreign parent institution, attached in Annexure-'B'.

(d) In the case of change of authorized dealer bank by domestic branches and liaison offices of foreign institutions under the aforementioned section of the Act, the domestic branches and liaison offices shall submit a certificate (issued on the bank branch's own letterhead) regarding the drawing and expenditure of all office expenses from the foreign parent institution, and a no-objection certificate from the previous bank regarding the change of bank to the new authorized dealer bank. In the case of renewal of permission granted in favor of authorized domestic branches and liaison offices, the said no-objection certificate shall be submitted to this department along with the application.

(e) The authorized dealer bank shall properly preserve the details and documents regarding the drawing and expenditure of all office expenses by domestic branches and liaison offices of foreign institutions from the foreign parent institution for inspection by the inspection team of Bangladesh Bank, and shall supply them as required by the inspection team.

3. Furthermore, the submission of all other types of details/information/documents currently existing in this department, the Foreign Exchange Policy Department, the Foreign Exchange Operations Department and other departments and branches, and other offices of Bangladesh Bank, shall continue in due course.

These instructions shall come into force immediately.

Kindly acknowledge receipt and inform all parties.

Yours faithfully,
(A. N. M. Abul Kaseem)
Deputy General Manager
Phone: 7125024.

Annexure-'A'
Name and Address of Authorized Dealer Bank and Branch: ----------------------------------------------- Certificate regarding accrual and repatriation of commission/fee/service charges etc. in accordance with contracts concluded between local agent persons and institutions and foreign principals/principals.
Name and Address of Local Agent Person/Institution: ----------------------------------------------- Number and Period of Permission Granted by this Department: --------------------------------------------- (In Taka/Foreign Currency Amount)

Name of Foreign Principal	Initial Balance of Commission/Fee/Service Charges etc.	Amount of Commission/Fee/Service Charges etc. Due as per Contract (from the date of previously submitted details)	Amount of Commission/Fee/Service Charges etc. Repatriated to the Country during the Relevant Period	Total Balance of Commission/Fee/Service Charges etc. Due as per Contract till the Last Quarter	Reason if any Commission/Fee/Service Charges etc. Remain Accrued	Total =

• This certificate shall be submitted by the authorized dealer bank along with the application in the prescribed format during renewal of permission/inclusion of principal.
• Quarterly means March, June, September and December.
  Signature of Competent Authority of Authorized Dealer Bank: ---------------------------- Name: --------------------------------------------------------------------------------- Designation: ------------------------------------------------------------------------------- Seal: ---------------------------------------------------------------------------

Annexure-'B'
Name and Address of Authorized Dealer Bank and Branch: ----------------------------------------------- Certificate regarding drawing and expenditure of all office expenses by domestic branches and liaison offices of foreign institutions from the foreign parent institution.
Name and Address of Branch and Liaison Office: ----------------------------------------------------- Number and Period of Permission Granted by this Department: ----------------------------------------------

Name of Branch and Liaison Office of Foreign Institution	Total Foreign Currency Amount Drawn for Office Expenses till the Last Quarter (including equivalent Taka amount)	Total Amount Expended during the Relevant Period (in Taka)	Total Amount of Remittance Surplus in the Last Quarter (Forwarded Abroad) (in Taka)

Note

• This certificate shall be submitted by the authorized dealer bank along with the application in the prescribed format during renewal of permission.
• Quarterly means March, June, September and December.
  Signature of Competent Authority of Authorized Dealer Bank: ---------------------------- Name: --------------------------------------------------------------------------------- Designation: ------------------------------------------------------------------------------- Seal: ---------------------------------------------------------------------------