Regulatory Alerts2023-10-08
Added
FEPD Circular Letter No. 16: Settlement of import liabilities out of export proceeds
Authorized Dealers (ADs) are informed that the 30-day retention facility for the value-added portion of export proceeds, applicable to exporters producing outputs against input procurement under back-to-back letters of credit (BBLCs) as per paragraph 42(i), chapter 7 of GFET, has had its transfer facility ceased by FE Circular Letter No. 09 of September 04, 2023. Paragraph 42(ii) and its subsequent circulars apply to exporters and eligible local suppliers producing outputs against bulk imports and/or local contents, including those producing intermediate goods by importing input contents under BBLC opened against inland BBLCs. The unencumbered balance retained under paragraph 42(ii) is usable for specified purposes through other ADs, as per FE Circular No. 10, dated April 15, 2018, and its amendments, while transactions through FC accounts for industrial enterprises in EPZs/EZs/HTPs remain unchanged.