Regulatory Alerts2024-10-24
Added
FEPD Circular No. 24: Usance import under purchases/sales contracts
Authorized Dealers in Foreign Exchange in Bangladesh may allow eligible importers to import admissible items through purchases or sales contracts on a usance basis under supplier’s or buyer’s credit, provided the usance period does not exceed limits prescribed in the Guidelines for Foreign Exchange Transactions-2018. The circular grants a general waiver from Section 13(1) of the FER Act, 1947 for issuing non-bank guarantees to foreign lenders or suppliers and permits usance facilities up to 60 days for commercial imports without Letters of Credits within the prescribed limit. Authorized Dealers must verify importer performance, obtain foreign supplier credit reports, collect settlement undertakings, and maintain records of maturity and settlement dates.