Regulatory Alerts2011-08-01
Added · Updated
FEOD Circular Letter No. 01: Payment of 0.50% Freight Brokerage Charge to Shippers' Council of Bangladesh (SCB) by Shipping Companies/Shipping Agents
Approved Dealer Banks must ensure that a 0.50% freight brokerage charge paid by their shipping company or shipping agent clients is remitted to the Shippers' Council of Bangladesh (SCB) and reported as 'excluded income' to the principal abroad. Banks are required to submit documentary evidence of this payment to the Bangladesh Bank during quarterly income-expenditure audits, settle any outstanding amounts in the subsequent quarter, and transfer blocked funds held for this purpose to the SCB's valid account with supporting documentation. These instructions are effective immediately and must be communicated to all relevant dealer branches.
Foreign Exchange Operations Department Bangladesh Bank Head Office Dhaka. Website: www.bb.org.bd Circular Letter No. 01 Date: 17 Shraban, 1418 01 August, 2011 To All Approved Dealer Banks Head Office / Principal Office Dear Sir, Regarding the payment of 0.50% freight brokerage charge to the Shippers' Council of Bangladesh (SCB) by shipping companies/shipping agents.
With reference to the circular letter no. 10 dated 2nd Baisakh, 2016 (corresponding to 2011) on the subject mentioned above, after careful consideration of the matter, the following instructions are hereby issued:
(a) Approved Dealer Bank branches shall ensure that the 0.50% freight brokerage charge shown in the expenditure details paid by their client shipping companies/shipping agents is paid to the Shippers' Council of Bangladesh (SCB) in accordance with regulations and report it as 'excluded income' to the principal. Additionally, when submitting the quarterly income-expenditure statement to the Bangladesh Bank for post-event verification, they shall submit the necessary documentary evidence regarding the payment of the freight brokerage charge.
(b) If any Approved Dealer Bank branch has previously been sending the 'excluded income' of its client shipping company/shipping agent to the non-resident principal without deducting the 0.50% freight brokerage charge, it shall pay the outstanding amount to the Shippers' Council of Bangladesh (SCB) by adjusting it in the calculation of the subsequent quarter.
(c) Approved Dealer Bank branches that have kept the freight brokerage charge payable to the Shippers' Council of Bangladesh in 'blocked accounts' shall submit the necessary documents to this department to obtain prior approval for payment. After obtaining prior approval, they shall inform this department with documentary evidence that the updated freight brokerage charge (including VAT) has been transferred to a valid account operated by the Shippers' Council.
- It is advised to inform your respective Approved Dealer branches about the above instructions.
These instructions shall come into force immediately.
Please accept the assurances of our highest consideration.
Yours faithfully, Signed (A.K.M. Mostafizur Rahman) Deputy General Manager Phone: 9564800
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