FEOD Circular No. 02: Submission of Monthly/Quarterly statement by Local agents of Foreign Courier Service Companies

Foreign Exchange Operation Department Bangladesh Bank Head Office Dhaka. www.bb.org.bd.

FEOD Circular No-2 Date: January 06, 2019 All Authorized Dealers of Foreign Exchange in Bangladesh.

Dear Sir, Submission of Monthly/Quarterly statement by Local agents of Foreign Courier Service Companies . Please refer to Paragraph-2(C), Chapter-10, Volume-1 of the Guidelines for Foreign Exchange Transactions (GFET), 2018. 02. Foreign courier service companies/their local agents operating in Bangladesh shall submit monthly statements as per Attachment-1 to their respective ADs along with Annexure-A and other Supporting documents annexed herewith for remitting the surplus earnings to their Head Office/Principal abroad. ADs shall examine the submitted documents meticulously while ascertaining surplus earnings. They shall also make sure that due VAT and income taxes are paid complying the VAT and income tax act. After ascertaining the surplus earnings, the ADs shall approve form TM and remit surplus earnings to concerned Head office/Principal abroad. After effecting remittance, the ADs shall forward one full set of all papers including copy of approved form TM to the concerned Head Office/Branch office of Bangladesh Bank for post-facto examination within 15(fifteen) days of the following month. 03. Courier service companies that operate on behalf of their foreign principal on Free Delivery basis and do not remit surplus earnings to their Head office/Principal abroad, are instructed to submit quarterly statements as per Attachment-2 to Bangladesh Bank through their respective AD's along with Annexure-B and other supporting documents annexed herewith. 04. Besides submission of Monthly/Quarterly statement, courier service agents are instructed to submit Annual Audited Financial Statement through their ADs. 05. Other instructions contained in Paragraph-2C, Chapter-10 of the Guidelines for Foreign Exchange Transactions (GFET), 2018 (Volume-1) shall remain unchanged. ADs are advised to bring the above instructions, effective immediately, to the notice of all concerned constituents. Yours Faithfully (Md. Shakhawat Hossain) Deputy General Manager Phone: 9530478

Attachment-1 Supporting documents to be submitted along with monthly statement of courier service companies(Annexure-A). • Remittance Application. • Invoices issued by head office/principal abroad for the claimed amount. • Approved Form TM mentioning TM ID and remittance information. (APP.5/9 of GFET-2018); • Sales Summary Report of Inbound & Outbound Revenue.(Appendix-1); • Computation of Tax. (Appendix-2) ; • Tax Challan copy in support of payment of tax. • Auditors' Report certified by a registered chartered accountant. (Appendix-3) • Undertaking. (Appendix-4) • Statement of Commission Earned. (Appendix-5); • Statement of Air Freight Charges (Supported by invoices raised by Freight Forwarder/Airlines). (Appendix-6) ; • Statement of Professional/Audit and Tax consultancy Fee. (Appendix-7); • Copy of Encashment Certificate. (if any); • Invoices issued by Audit Firm or Tax consultancy Firm. • Copy of AIT and VAT challan in support of payment of Audit or Tax consultancy fees. • Supporting documents in support of payment of VAT received from clients against Outbound Shipment.

Attachment-2 Supporting documents to be submitted along with Quarterly Statement of courier service companies operating on Free Delivery basis and does not remit surplus earnings to their Head office/Principal abroad (Annexure-B). • Application of the Client. • Sales Summary Report of Inbound & Outbound Revenue.(Appendix-1); • Statement of Air Freight Charges (Supported by invoices raised by Freight Forwarder/Airlines). (Appendix-6) ; • Statement of Professional/Audit and Tax consultancy Fee. (Appendix-7); • Invoices issued by Audit Firm and Tax consultancy Firm. • Copy of AIT and VAT challan in support of payment of Audit and Tax consultancy fees. • Computation of VAT. (Appendix-8) ; • Challan copy and "Moshuk-19" in support of payment of VAT. • Undertaking. (Appendix-9) • Copy of Encashment Certificate in support of inward remittance. (if any); • Income Tax Certificate and Tax return copy of the Agent. • Agent can pay tax on yearly basis.Tax Challan Copy in support of payment of Tax. • Annual Audited Financial Statement of the agent.

Annexure-A

Statement of Income and Expenses For the month of------- Principal:---------------- Agent:--------------- Particulars Amount(TK) A.Income SL.NO Particulars

1. Inbound Revenue (Charges Collect)
2. Outbound Revenue (Prepaid)
3. Inward Remittance(If Any) Total Income B. Expenses
4. Commission/Service Charge/Delivery Charge On Inbound and Outbound Shipment
5. Air Freight (If Any)
6. Audit/Professional Fees
7. Legal or Tax Consultancy Fees
8. Other Expenses(If Any) Total Expenses Remitable Amount Before Tax (A-B) Income Tax Remitable Amount After Tax

Annexure-B

Statement of Income and Expenses For the Quarter of------- Principal:---------------- Agent:--------------- Particulars Amount(TK) A.Income SL.NO Particulars

1. Outbound Revenue.
2. Local Collections.
3. Inward Remittance(If Any) Total Income B. Expenses
4. Inboud document/Parcel delivery charge
5. Air Freight(If Any)
6. Audit/Professional Fees
7. VAT Paid
8. Other Expenses Total Expenses Profit Before Tax Tax Payable Profit After Tax

Appendix-1 Sales Summary Report of Inbound & Outbound Revenue For the month of----------- S.L Product Name Product Type Number of Shipment Weight (Kg) Rate Revenue (Taka) Appendix-2 Computation of Tax under Income Tax ordinance 1984. For the month of---------- Total Remittable Amount Rate of Tax Amount of Tax

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Encl.: Photocopy of Challan No: ---------- aggregating to Taka -------- for payments under Income Tax Ordinance 1984. Appendix-3 Auditors' Report We have examined the books and records relating to the transactions of (Principal Company's Name) in Bangladesh carried on by their agent (Agent's Name) for the month of ------------------. We certify that the attached computation of remittable amount is found to be correct and it truly reflects the revenue of Tk.--------------(in word) only as per the books and records and as confirmed by the invoices raised by (Principal Company's Name). Auditor's Signature With date

Appendix-4 UNDERTAKING We do hereby undertake in connection with our advice for remitting the surplus earnings of BDT-------------- (in words) equivalent to USD/any other Foreign Currency only for the month of ------------------that if excess remittance is made or due taxes are unpaid anyhow or any kind of irregularities/ discrepancies are found by Bangladesh Bank/ Authorized dealers/ Auditors or any other competent authority during the subsequent scrutiny, the excess remittance shall be repatriated/ adjusted by us forthwith as may be required. We shall also be accountable for the irregularities/ discrepancies found. Signature by Authorized person of the Agent With date Appendix-5 Statement of Commission Earned For the month of---------- Particulars Commission Percentage (%)/ Rate Amount of Commission(BDT) Total Outbound Total Inbound Total Appendix-6 Statement of Air Freight Charges For the month of---------- Name of Airlines Destination Weight/Volume Rate Freight Charges

Appendix-7 Statement of Professional/Audit and Tax consultancy Fee For the month of---------- Particulars Amount (BDT) Professional/Audit Fee Add: VAT Tax consultancy Fee(If any) Add: VAT Total

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Appendix-8 Computation of VAT under VAT Act 1991. For the month of---------- Particulars Amount Rate of VAT Amount of VAT Total Outbound Revenue -------- --------- ----------- Total Local Sales -------- ---------- -----------

Encl.: Photocopy of Challan No: ---------- aggregating to Taka -------- for payments under VAT Act 1991. (f¨vU cwi‡kv‡ai ¯^c‡ÿ gymK-19 vwLjc‡Îi Kwc I Pvjv‡bi Kwc AÎ wefv‡M vwLj Ki‡Z n‡e| Appendix-9 UNDERTAKING We do hereby undertake that if any kind of irregularities/discrepancies are found in the submitted documents by Bangladesh Bank/Authorized dealers/Auditors or any other competent authority during the subsequent scrutiny or due taxes/VAT are unpaid, we shall accountable for the irregularities/discrepancies found or be liable to pay due taxes/VAT.