Regulatory Alerts2022-01-18
Added
FEPD Circular Letter No. 03: LC opening without renewed IRC
All Authorized Dealer Banks are instructed to ensure the collection of a valid and updated Import Registration Certificate (IRC) when accepting the LCA form and before establishing a Letter of Credit. This measure aims to prevent complications in providing preferential facilities during consignment clearance, which has led to financial losses for industrial establishments and hindered overall investment when LCs were opened without a valid IRC.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. www.bb.org.bd
Date: 04 Magh 1428 18 January 2022
FE Circular Letter No. 03
To: Head Offices/Principal Offices of all Authorized Dealer Banks engaged in foreign exchange transactions.
Dear Sir/Madam,
Subject: Regarding the establishment of Letters of Credit without a validly renewed (updated) IRC.
Your attention is drawn to sub-paragraph (আ) of clause (ক) of sub-article (16) of article-8 of the Import Policy Order, 2015-2018, regarding the above subject.
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It has been observed that some commercial banks are opening Letters of Credit without a valid and updated Import Registration Certificate (IRC), which is creating complications in providing preferential facilities during the clearance of consignments. Industrial establishments are suffering financial losses due to their failure to present an updated industrial entrepreneur IRC, leading to the denial of preferential facilities and delays in consignment clearance, which is hindering overall investment.
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In the described context, you are hereby instructed to ensure the collection of a valid and updated IRC certificate at the time of accepting the LCA form and before establishing a Letter of Credit.
Yours faithfully,
(Signature) (Kazi Rafiqul Hasan) General Manager Phone: 9530123