FEPD Circular Letter No. 30: Regarding Approval of Bangladesh Bank for Revalidation of LCAF in case of Import under Long Term Buyer's/Supplier's Credit

Foreign Exchange Policy Department (Import Policy Branch) Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka Ref. No. FEPD(Import Policy)102/2016-30 Date: ----------------- October 06, 2016

To All Approved Dealer Banks engaged in Foreign Exchange Transactions Head Office / Principal Office.

Dear Sirs,

Regarding the need to obtain approval from Bangladesh Bank for the extension of the validity period of the Letter of Credit Approval Form (LCAF) for imports under long-term Buyer's/Supplier's Credit.

Reference is invited to paragraph 7.3.3(p) of the Foreign Exchange Manual.

This is to inform you that in the case of import of machinery and equipment under long-term Buyer's/Supplier's Credit exceeding one year, separate approval from Bangladesh Bank for the extension of the validity period of the relevant LCAF will not be required; the approval granted by the Bangladesh Investment Development Authority (BIDA) will be considered sufficient in such cases.

You are requested to inform all concerned parties about this matter.

Yours faithfully,

(Md. Zakir Hossain Chowdhury) Deputy General Manager Phone: 9530250