FEPD Circular Letter No. 03: Regarding the compulsory checking of BERC Licence during LC opening for importation of Petroleum products like Paraffin (HS Heading No-27.10) and others (HS Heading No-27.09, 27.10, 27.11, 27.12, 27.13) following the IPO, 2012-2015

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka.
Ref. No. FEPD (Import Policy) 123/2014-19
12 Magh, 1422
Circular Letter No. FEPD (Import Policy) 123/2016-03 dated ------------------- 25 January, 2016

To
All Approved Dealer Banks engaged in foreign exchange transactions Head Office / Principal Office.

Dear Sir,

Context regarding the compulsory checking of BERC Licence during LC opening for importation of Petroleum products like Paraffin (HS Heading No-27.10) and others (HS Heading No-27.09, 27.10, 27.11, 27.12, 27.13) following the IPO, 2012-2015.

Reference is drawn to your attention regarding the letter of the Bangladesh Energy Regulatory Commission (BERC) of the Government of the People's Republic of Bangladesh, letter number BERC/LPP/Lub(Gadryan)/228/0135, dated 07/01/2016, the circular letter issued by Bangladesh Bank, number FEPD (Import Policy) 123/2014-19, dated 13/10/2014, and the letter sent by this department, number FEPD (Import Policy)/125/2015-8177, dated 13/09/2015 (copy enclosed).

The letter of the Bangladesh Energy Regulatory Commission mentions that the instructions regarding the opening of LCs before importing paraffin products (HS Heading No-27.10) are not being properly complied with by the approved dealer banks, which is undesirable. Therefore, in this regard, it is advised to re-instruct the relevant approved dealer branches to compulsorily check whether the relevant importer has obtained a license from the Bangladesh Energy Regulatory Commission under the Bangladesh Energy Regulatory Commission Act, 2003, in accordance with the previous advice given by Bangladesh Bank, for the establishment of LCs for the import of petroleum products included under HS Headings No-27.09, 27.10, 27.11, 27.12, and 27.13.

Please inform all concerned parties about this matter.

Enclosed: As above

Yours faithfully,

(Md. Zakir Hossain Chowdhury)
Deputy General Manager
Phone: 9530250

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka-1000.
Ref. No. FEPD (Import Policy) 123/2014-19
28 Ashwin, 1421
Circular Letter No. FEPD (Import Policy) 123/2014-19 dated: ------------------- 13 October, 2014

To
All Approved Dealer Banks engaged in foreign exchange transactions Head Office / Principal Office.

Dear Sir,

Context regarding the compulsory checking of BERC Licence during LC opening for importation of Petroleum products following the IPO, 2012-2015.

Reference is drawn to your attention regarding the letter of the Bangladesh Energy Regulatory Commission (BERC) dated 09/09/2014, reference number BERC/LPP/Lub(Gadryan)/228/2865 (copy enclosed) on the above-mentioned subject.

According to Sections 26(25), 27(g), and 27(h) of Chapter 6 of the Import Policy Order 2012-2015, private sector importers are required to obtain a license from the Energy Regulatory Commission under the Bangladesh Energy Regulatory Commission Act, 2003 for the importation of petroleum products. Furthermore, under Sections 27 and 28 of the Bangladesh Energy Regulatory Commission Act, 2003, no person/institution can engage in the business of storage, marketing, distribution, and supply of petroleum products without a license from the Bangladesh Energy Regulatory Commission.

In this context, advice is given to properly comply with the relevant instructions of the Import Policy Order 2012-2015 and the Bangladesh Energy Regulatory Commission Act, 2003 when opening LCs for the importation of petroleum products by any person/institution.

Please inform all concerned parties about this matter.

Yours faithfully,

Enclosed: As above

(Md. Zakir Hossain Chowdhury)
Deputy General Manager
Phone: 9530250