Regulatory Alerts2019-03-28
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FEPD Circular Letter No. 08: Import of industrial raw materials on usance terms on behalf of exporters
Authorized Dealers in Bangladesh are permitted to open usance letters of credit on behalf of manufacturer-exporters for the import of industrial raw materials. This authorization is granted in terms of paragraph 33(a), chapter 7 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1. The circular clarifies that this facility aligns with the Export Policy 2018-21, which stipulates providing back to back LCs and usance LCs for all export products.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. www.bb.org.bd FE Circular Letter No. 08 Date: 28 March 2019 Head Offices/Principle Offices of All Authorized Dealers in Bangladesh Dear Sirs, Import of industrial raw materials on usance terms on behalf of exporters
Please refer to section III, chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which Authorized Dealers (ADs) are permitted to issue back to back LCs for input procurement on behalf of exporters. Export Policy 2018-21 stipulates to provide facilities for back to back LCs/usance LCs to all export products. In the context of usance LCs, this is to clarify that ADs can open usance LCs on behalf of manufacturer-exporters for import of industrial raw materials in terms of paragraph 33(a), chapter 7 of GFET. Please bring the contents of this circular letter to the notice of all your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123
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