FEPD Circular No. 29: Use of balances held in Foreign Currency (FC) accounts of Export Processing Zone (EPZ) and Economic Zone (EZ) enterprises

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 29 Date: 17/10/2018 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Use of balances held in Foreign Currency (FC) accounts of Export Processing Zone (EPZ) and Economic Zone (EZ) enterprises. Please refer to paragraph 30(i), chapter 13 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which balances held in FC accounts of EPZ enterprises are usable to meet all foreign payment obligations including import payment obligations of the unit and payment obligation in foreign exchange to Bangladesh Export Processing Zone Authority. Type A and B enterprises are allowed to access short term foreign currency loans from their subsidiaries/associates operating in EPZs in accordance with paragraph 17 (B) and (C), chapter 16 of GFET, which are usable for bonafide business transactions including import payments. Such transactions are permissible for EZ enterprises in terms of paragraph 4 and 8, chapter 20 of GFET. 2. Now it has been decided that 'C' type industries are also allowed to access short term foreign currency loans from their subsidiaries/associates operating in the same EPZ/EZ for the same purposes and in the same manner as applicable for Type A and B mentioned above, subject to the observance of the instructions stipulated in paragraph 28(A)(ii), chapter 13 of GFET-2018. Please bring the above instructions, effective immediately, to the notice of your concerned clientele.

Yours faithfully,

(Debashish Sarkar) Deputy General Manager Phone: 9530092