Regulatory Alerts2021-05-02
Added
FEPD Circular No. 17: Remittance facilities to e-commerce traders
Authorized Dealers in Foreign Exchange in Bangladesh may allow annual remittance facilities of USD 10,000 or its equivalent to member firms of the e-Commerce Association of Bangladesh (e-CAB) for bonafide current expenses abroad. This limit includes aggregate refills to refillable international credit or pre-paid cards, which may be issued with up to USD 2,000 to a nominated official, and transactions must be executed by a single nominated AD bank branch. The authorization excludes outward remittances for royalty, technical knowledge, technical assistance, or franchise fees, which remain governed by separate BIDA guidelines.
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 eCommerce 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