FEPD Circular No. 17: Cash incentives against the export of leather & leathergoods

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ashwin 20, 1422 FEP Circular No. -17 Date: ------------------- October 05, 2015

To All Approved Dealers in Foreign Exchange Transactions.

Dear Sirs,

With reference to the provision of cash incentives against export earnings received through the advance TT method alongside Letters of Credit for the export of leather and leather goods.

In this regard, attention is drawn to FE Circular No. 05 dated 04/05/2011 issued on the subject matter. It is informed that under paragraph (b) of the said Circular, the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) will also be authorized to issue certification certificates for the payment of cash incentives against the export of leather and leather goods via the advance TT method. Accordingly, the instructions mentioned in paragraph (b) below shall be replaced as follows:

(b) The condition of advance payment by TT must be explicitly stated in the export Letter of Credit/Contract. In case of receiving advance payment by TT, it must be supported by a certification certificate issued by the Export Promotion Bureau / Bangladesh Finished Leather, Leathergoods and Footwear Exporters Association (BFLLFEA) / Bangladesh Tanners Association (BTA) / Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) regarding the correct value and quantity of the relevant exported product and the authenticity/credibility of the foreign buyer.

All concerned parties are requested to take note of this.

Yours faithfully,

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