FEPD Circular No. 04: Realization of export proceeds

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 04 Date: March 06, 2023 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Realization of export proceeds Attention of Authorized Dealers (ADs) is invited to paragraph 13, chapter 8 of the Guidelines for Foreign Exchange Transactions (GFET)-2018, Vol-1 regarding prescribed period of four months to realize export proceeds and relevant other instructions thereof. 02. To bring discipline in realization of export proceeds, it has been decided to initiate appropriate measures in cases where export proceeds are not realized within prescribed period. In cases of delayed realization, ADs shall apply prevailing exchange rate for encashment into Taka but shall make payments to exporters applying the rate on the date at which the export proceeds should have been realized as per above regulatory instructions. Operational procedures in this regard are as follows: (a) The above decision will be applicable in case of adverse exchange rate difference between ‘due date’ and ‘realized date’ during the period. (b) The difference between Taka proceeds of current rate and previous rate needs to be retained in separate subsidiary ledgers of ADs. (c) ADs shall submit monthly reports with regards to the amount retained in subsidiary ledgers as per Annexure-A to Bangladesh Bank within 10 days of the following month. 03. The above procedures will, in case of delayed realization, equally be applicable for encashment of unused value added portion of export proceeds as per FE Circular Letter No. 32, dated September 06, 2022. 04. ADs shall utilize the amount held in subsidiary ledgers in accordance with the instructions from Bangladesh Bank. Other relevant instructions shall remain unchanged. ADs are advised to bring the above instructions, effective immediately, to the notice of their relevant customers. Yours faithfully, (Md. Sarwar Hossain) Director (FEPD) Phone: 9530123

Annexure-A Monthly statement of collections from exporters against delay in realization of export proceeds Name of Bank: Address: Sl No. Name and address of exporter EXP No and date EXP Value (in invoice currency) Shipment date Due date of realization Exchange rate on due date of Realization Actual realized Export proceed (in invoice currency) Actual Date of Realization Exchange rate on actual date of Realization Number of Days Realization Delayed Amount collected and retained in subsidiary ledger (in BDT) Remarks 1 2 3 4 5 6 7 8 9 10 11 12 13 Signature:........................................................................ Name:.............................................................................. Designation..................................................................... PA No............................................................................. Date:................................................................................