FEPD Circular No. 25: Operations of Taka Accounts for enterprizes of Export Processing Zones (EPZs) and Economic Zones (EZs)

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 25 Date: 14 June, 2017 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Operations of Taka Accounts for enterprizes of Export Processing Zones (EPZs) and Economic Zones (EZs). Paragraph 31 (i), chapter 13 of the Guidelines for Foreign Exchange Transactions-2009 (GFET), Volume-1 permits Type A industrial units in EPZs to retain 100% of their repatriated export proceeds in Foreign Currency (FC) Accounts. The balances held in FC accounts are usable for utilization of all foreign payment obligations and encashable for local currency disbursements or for crediting Taka accounts to meet payment obligations in Taka. This paragraph also stipulates operational instructions of Taka accounts to credit payment received in Taka against specified sales subject to approval from Zone Authority, payment of duties/taxes etc. 02. Paragraph 31 (ii), chapter 13 of the GFET, Volume-1 permits Type B and Type C industrial units in EPZs to retain specified portion of their repatriated export proceeds in FC accounts and the remainder in Taka account after encashment. This is to clarify that besides encashment from FC accounts, Taka accounts of Type B & Type C industrial units may also be credited with authorized payment received in Taka in accordance with same instructions as stipulated in paragraph 31(i) ibid. This clarification is also applicable for FE Circular No.21, dated 11 May 2017, to execute transactions in Taka accounts by Type B and Type C enterprizes of EZs. Please bring the above clarification to the notice of all your concerned constituents. Yours Faithfully, (Jagannath Chandra Ghosh) Deputy General Manager Phone: 9530092