FEPD Circular No. 04: Foreign investment in EPZ enterprises and repatriation procedures

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 4 Date: 30/01/2020 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Foreign investment in EPZ enterprises and repatriation procedures Please refer to chapter 20 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 and FE Circular No. 21 dated 16 May 2019 outlining operational procedures of foreign investment in 'Type A' and 'Type B' Units of Economic Zones (EZs) and Hi-Tech Parks (HTPs), outward remittance on account of dividend to non-resident shareholders, repatriation of disinvestment proceeds, inter alia. 02. To bring uniformity in regulations between enterprises of EZs/HTPs and EPZs, it has now been decided that: (a) for issuance/transfer of shares of 'Type A' and 'Type B' enterprises of EPZs, Authorized Dealers (also Offshore Banking Units for ‘Type A’ enterprises) shall report to Foreign Exchange Investment Department, Bangladesh Bank as per paragraph 2, chapter 9 of GFET, including investment reporting to Statistics Department, Bangladesh Bank in accordance with paragraph 25, chapter 2, GFET (Vol-2). (b) for remittance on account of dividend to non-resident shareholders of 'Type A' and 'Type B' enterprises of EPZs, instructions of paragraph 9, chapter 20 of GFET/paragraph 8 of FE Circular No. 21 dated 16 May 2019 shall be applicable. (c) repatriation of sales proceeds of shares held by non-resident investors of EPZ enterprises not listed with the stock exchange(s) is subject to compliance with the instructions stipulated in FEID Circular No. 1, dated May 06, 2018. Please bring the contents of the circular to the notice of your concerned clientele. Yours Faithfully, (Mohammad khurshid Wahab) General Manager Phone: 9530123