FEPD Circular Letter No. 23: Transactions against local deliveries in foreign exchange

Authorized Dealers in Bangladesh must accept delivery documents within the stipulated time and arrange payment on the due date of maturity for inland Back to Back Letters of Credit, usance LCs, and sight LCs, regardless of the availability of export proceeds. For sight inland Back to Back Letters of Credit under the Export Development Fund or sight LCs against advance export proceeds, Authorized Dealers are required to effect payments within the stipulated time against compliant documents without unnecessary delay. Branches and central processing centers are instructed to comply with these requirements, with failure to do so subject to action under BRPD Circular No. 06 of March 12, 2014.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
Circular Letter No. 23 Date: 17 June 2020
Head offices/Principal offices of all
Authorized Dealers in Bangladesh

Dear Sirs,
Transactions against local deliveries in foreign exchange Please refer to paragraphs 40(a), 40(b) and 40(c), chapter 7 of the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol-1 in terms of which local deliveries are permissible under inland Back to Back Letters of Credit (BBLCs)/usance LCs/sight LCs. Refinancing from Export Development Fund (EDF) is also permissible against inland BBLC at sight basis for such local transactions in accordance with paragraph 4(iv), FE Circular No. 45 of December 31, 2017.
2. In view of above instructions, Authorize Dealers (ADs) are advised to provide acceptance of
the delivery documents within stipulated time without any delay for complaint documents and arrange payment on the due date of maturity in terms of paragraph 41 chapter 7 of GFET, regardless of availability of export proceeds. In case of sight inland BBLC under EDF/sight LC against advance export proceeds, ADs shall exercise best practices to effect payments within the stipulated time against compliant documents without showing unnecessary excuses. Please inform all of your ADs branches and central processing centers for meticulous compliance of the above stated instructions, failure of which necessary actions shall be initiated, inter alia, in accordance with BRPD Circular No. 06 of March 12, 2014. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123

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Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works