FEPD Circular No. 13: Foreign Exchange Transactions by the Enterprises of Economic Zones (EZs) in Bangladesh

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 13 Date: 05 June, 2018 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Foreign Exchange Transactions by the Enterprises of Economic Zones (EZs) in Bangladesh Chapter 20 of Guidelines for Foreign Exchange Transactions Vol. 1 (GFET), 2018 outlines procedures of foreign exchange transactions by the EZ enterprises. Paragraphs 5 and 6 of the said chapter of GFET have stipulated that sales from EZ enterprises to Tariff Area of Bangladesh in foreign exchange and vice versa are treated as export and import respectively. 02) National Board of Revenue (NBR) vide its order no. 288/2017/Customs/529 dated December 21, 2017 effects relevant amendment in the Customs (Economic Zones) Procedures, 2017 to waive export/import formalities for transactions between enterprises operating in Domestic Processing Area (DPA) of EZs and in Tariff Area (TA) of Bangladesh. In accordance with the revised order, it has been decided to allow such transactions to be settled in Taka without observance of regulatory procedures such as EXP Form for export and IMP Form for import. To support the transactions by EZ enterprises irrespective of their ownership status, their liabilities for imports and other permissible expenses may be settled out of the fund held in their Taka accounts. Accordingly, the restrictions to use AD’s own fund for import settlement as mentioned in Paragraph 7, Chapter 20 of GFET will not be applicable for EZ enterprises operating in DPA. 03) Other instructions mentioned in Chapter 20 of GFET, 2018 will remain unchanged. The definitions of DPA and TA are as similar as mentioned in Customs (Economic Zones) Procedures, 2017. Please bring the above instructions to the notice of your concerned clientele. Yours faithfully, (Md. Abdul Mannan) Deputy General Manager Phone: 9530319