FEPD Circular Letter No. 15: Remittance on account of freight charges against FOB imports

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No.15 Date: October 02, 2024 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sir, Remittance on account of freight charges against FOB imports In terms of paragraph 16, chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1, freight/transportation charges are payable in Taka or in equivalent foreign exchange against FOB imports to shipping companies/airlines/eligible licensed freight forwarders, out of the total value of imports covering costs of goods and transportation charges. Paragraph 12, chapter 10 ibid permits remittances for payment of freight charges to foreign ship-owners for ships chartered by importers in Bangladesh. 02. In case of import on FOB basis, overall price becomes more competitive since importers can negotiate freight charges separately with career companies. To economize import costs, remittances are admissible on account of freight charges as per references outlined above. Despite, Authorized Dealers (ADs) are reported to have been reluctant to execute transactions on account of freight charges. 03. In view of the situation stated above, ADs are advised to facilitate freight transactions against FOB imports within the regulatory framework without fail. Please bring the contents of this circular letter to the notice of all your AD branches, Central Processing Centers and your concerned constituents. Yours faithfully,

(Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123