FEPD Circular No. 08: Bank guarantee by exporters to competent authorities/agencies in the country of import

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 08 Date: January 22, 2019 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Bank guarantee by exporters to competent authorities/agencies in the country of import

Please refer to paragraph 8(iii), chapter 16 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which Authorized Dealers (ADs) are permitted to issue performance bonds/guarantees in favor of overseas importers on account of Bangladeshi exporters. It is observed that exporters need to furnish guarantees to quality standard authorities/agencies in the country of import as a commitment to comply with their specified quality standards. To facilitate the transactions, it has been decided that ADs may, on account of Bangladeshi exporters, issue guarantees in favor of such competent authorities/agencies in the country of import for the purposes stated above, subject to usual norms, and export performance of the exporter and potential export expectation. Please bring the contents of this circular to the notice of all your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123