FEPD Circular Letter No. 22: Export under open account credit terms against payment undertaking/payment risk coverage with option of early payment arrangement on non-recourse basis

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 22 Date: June 19, 2025 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Export under open account credit terms against payment undertaking/payment risk coverage with option of early payment arrangement on non-recourse basis Attention of Authorized Dealers (ADs) is invited to FE Circular No. 25 of June 30, 2020 regarding export of goods on sales contracts under open account credit terms against payment undertaking/payment risk coverage with early payment option from international factoring companies/foreign banks/foreign financial institutions/trade financiers/insurance entities, inter alia. The circular allows early payment to be arranged on non-recourse basis from designated institutions or designated financiers. 02. Paragraph 13, chapter 10 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 and its subsequent paragraphs and circulars permit remittances against export claims. In case of trade disputes requiring settlement through remittances, this is to clarify that ADs may exercise the above stated authorization of GFET; against exports executed with financing under early payments framework as per FE Circular No. 25/2020. While effecting remittances, ADs shall utilize foreign currency fund available in their ERQ accounts and remainder, if any, from Taka accounts. Other instructions shall remain unchanged. Please bring the contents of this circular letter to the notice of your relevant clientele. Yours faithfully

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