FEPD Circular Letter No. 31: Receipts of advance remittances against exports

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 31 Date: September 25, 2025 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Receipts of advance remittances against exports Please refer to paragraph 21 of FE Circular No. 31, dated July 31, 2025, regarding receipts of advance remittances against exports. To facilitate the bonafide needs of exporters and ensure alignment with their operational requirements, it has been decided to substitute instructions 1-7 of paragraph 21 with the following:

1. The exporter has received irrevocable LC/contract to execute export against advance payment;
2. The previous export performance of the exporter is satisfactory and the exporter shall have adequate capability to execute the export order;
3. The payment in advance shall not bear any interest;
4. Export needs to be executed within a period not exceeding one year from the date of receipt of advance payment. However, this instruction will not be applicable for advance payment received against performance bonds or bank guarantees/ standby LCs;
5. In case of non-execution of export including issuance of EXP Form against advance payment, ADs may allow refund of advance payment. In this case, ADs shall utilize funds from Exporters’ Retention Quota (ERQ) account first and remainder from Taka accounts. ” All other instructions in this regard shall remain unchanged. ADs are advised to bring the contents of this circular letter to the notice of their exporter-customers. Yours faithfully, (Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123 “