FEPD Circular No. 10: Payment of Cash Incentive against Export of Crushed Bone under Sales Contract or Advance T.T.

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka.
Ref. No. FEPD-CMD-10-101/2015/101

Bhadra 04, 1422
FEPD Circular No.-10 Date: -----------------
August 19, 2015

To
All Authorized Dealers engaged in Foreign Exchange Transactions.

Dear Sir,

Regarding the payment of cash incentives in the context of repatriation of export proceeds through sales contracts along with Letters of Credit (LC) or against advance T.T. in the crushed bone export sector.

Reference is invited to FEPD Circular No. 25, dated December 12, 2002, issued on the subject matter, to inform you that cash incentives will be payable for exports made through sales contracts along with Letters of Credit in the crushed bone export sector. Cash incentives shall be paid against the repatriation of export proceeds via advance T.T. subject to the following conditions:

(a) The percentage of advance payment via T.T. must be explicitly mentioned in the Letter of Credit/Sales Contract;

(b) In the case of exports against Letters of Credit/Sales Contracts mentioning advance payment via T.T., the authorized dealer bank must be fully satisfied regarding the credibility/trustworthiness of the foreign buyer, the accuracy of the price, and the receipt of advance export proceeds against actual exports, based on the T.T. advice and other documents;

(c) Advance payment via T.T. must be made directly through banking channels (excluding Exchange Houses) to the exporter or importer, and the source of import-related information must be mentioned in the T.T. advice;

(d) The aforementioned instructions shall apply to goods shipped from the date of issuance of this circular.

All concerned parties are requested to be informed accordingly.

Yours faithfully,

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