FEPD Circular Letter No. 22: Import of capital machinery on usance basis

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 22 Date: July 07, 2022 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Import of capital machinery on usance basis Please refer to FE Circular No. 16 of April 06, 2021 and Circular Letter No. 22 of September 01, 2021 in terms of which applications for extension of usance period/refinancing exceeding 360 days against permissible deferred imports under supplier’s/buyer’s credit by importers having registered with Bangladesh Investment Development Authority (BIDA) or with Department of Textiles (DOT) need to be submitted to BIDA. 02. ‘Scrutiny committee on foreign loan/supplier’s credit in private sector’ under BIDA has decided in its 166th meeting to accord general authorization for extension of usance period/refinancing for maximum 360 days from the maturity date against import of capital machinery by the industrial enterprises registered with BIDA and DOT under supplier’s/ buyer’s credit against LCs opened/to be opened or valid contracts initiated up to December 31, 2022, subject to extended period not exceeding December 31, 2024. The extension facility will be applicable for first time approval from existing authorized usance period of 360 days. Accordingly, Authorized Dealers may allow their eligible importers to extend the maturity period for import of capital machinery up to the authorized period inline with this decision. Please bring the contents of this circular letter to the notice of your eligible importer￾customers. Yours faithfully,

(Kazi Rafiqul Hassan) Director (FEPD) Phone: 9530123