Regulatory Alerts2020-07-26
Added · Updated
FEPD Circular No. 31: Outward remittances on account of shipment tracking charges
Authorized Dealers in Foreign Exchange in Bangladesh may effect outward remittances for shipment tracking charges from globally recognized service providers, provided they maintain tie-up arrangements and receive information through secure channels. Remittance requests must be supported by invoices, and all applicable taxes, levies, and AML/CFT standards must be complied with. To reduce transaction costs, Authorized Dealers may establish tie-ups with other Authorized Dealers to access these services, with inter-bank payments settled in Taka.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 31 Date: July 26, 2020 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Outward remittances on account of shipment tracking charges Please refer to paragraph 32(b) and 32(c), chapter 10 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 in terms of which Authorized Dealers (ADs) may remit their own subscriptions to international financial news/transactions service providers. Paragraph 34 ibid also permits ADs to remit their charges payable to foreign banks. In the context of international trade, ADs support importers and exporters to execute the transactions for which they need to avail shipment tracking services from global service providers to be satisfied with the underlying transactions. 02. To facilitate payment against such services, it has been decided that ADs may effect remittances on account of shipment tracking charges; subject to observance of the following instructions: a) ADs shall have tie-up arrangements with globally recognized shipment tracking service providers; b) ADs shall receive shipment tracking information through secure communication channels/automatic system generated paths; c) Remittance requests from service providers abroad shall be supported by invoices; d) Regulations regarding payment of tax at source, value added taxes and other levies applicable on the payments need to be complied with. 03. To economize transaction costs, ADs may establish tie-up arrangements with other ADs having arrangements with shipment tracking service providers abroad, for receiving the particular services. Payments between them will be settled in Taka. Service providing ADs may remit, in accordance with 2 above, the payments abroad payable against the services rendered to other ADs. As usual, ADs shall observe due diligence regarding AML/CFT standards, reporting routine to Bangladesh Bank and so on. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123