FEOD Circular No. 02: Simplified Remittance and Reporting for Foreign Airlines and Shipping Companies in Bangladesh

Foreign Exchange Operation Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FEOD Circular No-2 Date: May 20, 2024 All Authorized Dealers in Foreign Exchange and Airlines/Shipping Companies/General Sales Agents in Bangladesh Dear Sirs, Remittances of surplus earnings and submission of monthly/quarterly statement by foreign airlines as well as foreign shipping companies operating in Bangladesh. Please refer to paragraphs 1 and 2(A), 2(B) of chapter 10 and relevant appendices of the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol-1, FEOD Circular Letter No-1, dated November 28, 2018, SPA Circular No-3, dated August 09, 2023 and subsequent circulars regarding the captioned subject. 02. To simplify further, the transaction modalities of foreign airlines and shipping companies, it has been decided that they shall retain documents [airway bill, bill of lading, import/export freight manifest, Form FF, Form FF- Export Prepaid, Form FF- Import Collect specified in paragraph 2(A)(iii), 2(A)(iv), 2(A)(v) and 2(B)(ii), 2(B)(v) of chapter 10 of GFET-2018, FEOD Circular Letter No-1/2018 and SPA Circular-3/2023] at their end for further examination or other legal/regulatory requirements instead of submitting those documents along with the monthly/quarterly statements/applications for remittance of surplus earnings 03. Foreign airlines and Non-IATA airlines are hereby instructed to submit Annexure-FA(I) instead of appendix-5/45 and system generated passage sales statement supported by bank statements instead of appendix-5/44 of the GFET-2018 respectively. 04. Foreign shipping companies are instructed to submit Annexure-FS(I), Annexure- FS(II), Annexure-FS(III) and Annexure-FS(IV) instead of appendix-5/50, appendix-5/53 of the GFET￾2018. They shall retain bills/vouchers in support of expenses shown in Annexure- FS(II) at their end for further examination or other legal/regulatory requirements instead of submitting those documents (except appendix-5/61) along with the quarterly statements. All collections and expenditures of foreign shipping companies are required to be reflected in bank statements. Cont’d to page-2

-2- 05. ADs shall obtain declaration from airlines/shipping companies/agents as per Annexure-1 and shall submit the declaration as well as a certificate as per Annexure-2 along with monthly/quarterly statements of foreign airlines and shipping companies. 06. All other instructions at chapter 10 of GFET-2018 and its subsequent circulars shall remain unchanged. ADs shall maintain KYC and AML/CFT standards, follow usual reporting routine to Bangladesh Bank, and ensure compliance of regulations for duties/taxes (if any) applicable to the transactions mentioned above. This circular shall come into retrospective effect from the monthly/quarterly statement of January 2024. Please bring the above instructions to the notice of your constituents concerned. Yours faithfully, (Md. Bayazid Sarker) Director Phone: 9530127 Encl. As stated

Annexure-FA(I) Statement of Freight Collections by the foreign airlines for the month of…… Name of the foreign airline Name and Address of the agent Signature and Stamp of the Airline/Agent with Date Signature and Stamp of the official of AD with Date S.L Name of Freight Forwarder Name of Shipper Name of Exporter Name of Consignee Port of Departure Port of Destination MAWB EXP number Freight Collections from Export Freight Collections from Import Encashment ID number Form FF-Export Prepaid reference number Form FF-Import Collect reference number Remarks No Date Prepaid Collect Freight Other Charges Total Amount Freight Other Charges Total Amount USD BDT USD BDT

Annexure-FS(I) Form Shipping-I Statement of Freight/Passage Collections by the foreign shipping companies for the quarter of…… Name of the foreign shipping company Name and Address of the agent S.L Vessel No Vessel Name Name of Freight Forwarder Name of Exporter Name of Importer Name of Shipper Name of Consignee Port of Loading Port of Destination MBL Freight Collections from Export Freight Collections from Import Container. Detention /Demurrage/ Handling Amount Passage Others Encashment ID number Form FF￾Export Prepaid reference number Form FF￾Import Collect reference number Remarks No Date Prep aid Collec t Freight Other Charges Total Amount Freight Other Charges Total Amount no Arrival date. Unstaffing date. USD BDT USD BDT USD BDT Signature and Stamp of the Shipping Company/Agent with Date Signature and Stamp of the official of AD with Date

Annexure- FS(II) Form Shipping-1V Statement of Expenditure of foreign shipping companies for the quarter of…… Name of the foreign shipping company Name and Address of the agent S.L Vessel No Vessel Name Port Charges Customs Charges Cargo Handling Costs Victualling and Store Supplied Repairs Other Vessel related Expenses Freight and Passage Brokerage Agency fees and Commission Miscellaneous Expenses Income Tax Provisions for disbursement due but not yet paid Refund/Cancellation Gross Total Expenses Add/Subtract: Adjustments for provision made under 14 in previous period Total Expenditure 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Signature and Stamp of the Shipping Company/Agent with Date Signature and Stamp of the official of AD with Date

Annexure- FS(III) Form Shipping-V1 Statement of Commission and Income Tax for the quarter of…… Name of the foreign shipping company Name and Address of the agent Freight Collections from Export (USD) Freight Collections from Import (USD) Commission on Export Revenue (USD) Commission on Import Revenue (USD) Total Agency Commissio n (export + import) (USD) Total Agency Commission (export + import) BDT Income Tax (BDT) Vessel No Prepaid Collect Total Prepaid Collect Total Total Commissiona ble Freight Prepaid Commission Total Commissionable Freight Collect Commission Total Commission Total Commissionable Freight Prepaid Commission Total Commissionable Freight Collect Commission Total Commission Signature and Stamp of the Shipping Company/Agent with Date Signature and Stamp of the official of AD with Da

Annexure- FS(IV) Form Shipping-VII Statement of Income and Expenditure of foreign shipping companies for the quarter of…… Name of the foreign shipping company Name and Address of the agent SL No Particulars Amount in Taka Amount in Taka Amount in USD

1. Balance Brought Forward Freight and Passage Collections: (a) Export from Bangladesh (b) Import into Bangladesh (c) Detention/Demurrage/Handling/Other Charges (d) Passage (e) Other Collections
2. Total Collections:
3. Inward Remittance Received (if any)
4. Inter agent Transfer (receipts)
5. Outstanding Passage/freight relating to previous period realized in cash during the quarter A Total Income (2+3+4+5)
6. Total expenditure as per statement of expenditure (Annexure- FS(II))
7. Outstanding Passage/freight on credit relating to the collections of current quarter not yet realized.
8. Inter agent Transfer (Payment)
9. Other expenses B Total Expenditure (6+7+8+9) C Remittable Amount (A-B) D Remitted Amount E Balance Carried Forward (C-D) Signature and Stamp of the Signature and Stamp of the Shipping Company/Agent with Date Official of AD with Date

Annexure-1 Declaration by Airline/Shipping Company/Agent We do hereby declare that the statement furnished above is complete and factually correct pertaining to operations for the month/quarter of …………….. We do undertake to be held responsible for false statement/declaration, if detected. Signature: Name of designated official of Airline/Shipping Company/Agent: Designation: Date:........................ Annexure-2 CERTIFICATE BY AD BANK We do hereby certify that we have verified Form FF/Form FF-Export Prepaid/ Form FF Import Collect from Bangladesh Bank Online Inward Remittance Monitoring System/ Online Export Monitoring System/Online Import Monitoring System and found all the relevant information in order. During the reporting month/quarter we have effected outward remittance ………………. (amount in foreign currency). Necessary taxes of BDT ......................................... as declared by customers have been deducted/paid. Signature : ............................................................................... Name of designated official: .................................................. Designation: ........................................................................... Date:........................................................................................