FEPD Circular Letter No. 30: Encashment of value added portion of repatriated export proceeds

Authorized Dealers may retain the value added portion of export proceeds in foreign exchange for a maximum period of 15 days to settle other import obligations of the same exporters. If the funds remain unused after 15 days, Authorized Dealers must compulsorily encash them into Taka, although earlier encashment is permitted upon the exporter's request. This directive amends previous instructions by introducing this specific retention window and mandatory conversion requirement.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular Letter No. 30 Date: August 03, 2022 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Encashment of value added portion of repatriated export proceeds Please refer to FE Circular Letter No. 17 of May 29, 2022 regarding encashment of value added portion after retention of the remainder for settlement of back to back import payments as per paragraph 42(i), chapter 7 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET).
02. To bring flexibility in trade transactions, it has been decided that Authorized Dealers
(ADs) may, on applications from exporters, retain value added portion of export proceeds in foreign exchange for a maximum period of 15 days. The fund so retained will be used through same ADs for settlement of other import obligations payable by same exporters within this period. In case of the fund remaining unused, ADs shall encash the same compulsorily in Taka just after expiry of 15 days. However, the unused fund can, on request from exporters, be encashed before this allowable time. Other instructions in this regard shall remain unchanged. You are advised to bring the content of this circular letter to the notice of your relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123

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Timeline

Amended 1 time · last 2022-09-06

2022-09-06BBFEPD Circular Letter No. 32: Settlement of import liabilities out of export proceedsamends

This document amends: Encashment of value added portion of repatriated export proceeds

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