FEPD Circular No. 17: Remittance facilities to e-commerce traders

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No. 17 Date: May 02, 2021
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
Remittance facilities to e-commerce traders
Please refer to paragraph 39, chapter 10 & paragraph 11, chapter 19 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET) and its subsequent circulars regarding annual remittance facilities to BASIS member firms for meeting bonafide current payments, including transactions by international cards. The transactions are subject to compliance with applicable instructions, including recommendation of BASIS.
02. To facilitate e-commerce trade in the country, it has been decided that Authorized Dealers
(ADs) may allow annual remittance facilities of USD 10,000 or its equivalent to a member firm of e￾Commerce Association of Bangladesh (e-CAB) for meeting bonafide current expenses abroad through traditional banking channel or card channel. In this case, ADs may issue refillable international credit/pre-paid card with USD 2,000 to the nominated official of the remitter within the limit. Aggregate refills in cards and remittances by banking channel shall not exceed total limit of USD 10,000 in a calendar year.
03. Outward remittances on account of royalty, technical knowledge/technical know-how fee,
technical assistance fee and franchise fee shall be guided by the guidelines of BIDA circulated vide FE Circular Letter No. 07 of April 11, 2021; and authorization as noted at 2 above will not be applicable for these purposes.
04. Transactions under the authorization at 2 above shall be executed by a single AD bank
branch nominated by remitters. For any intended change of AD branch, the relevant files shall be transferred direct to the concerned new AD branch on written request by eligible firms.
05. As usual, ADs shall comply with relevant instructions of GFET including deduction and
payments of applicable taxes at sources, VAT and other levies, recommendation from e-CAB, reporting routine to Bangladesh Bank and so on. Please bring the above instructions, effective immediately, to the notice of your concerned clientele. Yours faithfully, (Md. Shahidul Islam) General Manager (Current Charge) Phone: 9530123