FEPD Circular No. 39: Repatriation of proceeds against service exports and method of receipts

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 39 Date: November 18, 2021 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Repatriation of proceeds against service exports and method of receipts Please refer to paragraph 13, chapter 8 of the Guidelines for Foreign Exchange Transactions￾2018, Vol-1 (GFET) and its subsequent instructions in terms of which export proceeds need to be repatriated within the statutory period, unless extension- specific or general is granted by Bangladesh Bank, through permissible method of proceeds repatriation as outlined at paragraph 5 ibid. 02. This is to clarify that the instructions as noted above are equally applicable for repatriation of export proceeds against services as defined at Section 2(bbb) of the Foreign Exchange Regulation (FER) Act, 1947. 03. Paragraph 23, chapter 8 of GFET outlines operational modalities on services delivered in non-physical form relating to ICT and other businesses. Service exporters can maintain notional/merchant accounts to repatriate their income through concerned Authorized Dealers in Bangladesh as per FE Circular No. 44 of December 28, 2017, FE Circular No. 33 of October 18, 2021 and subsequent circulars. Excepting these authorized accounts, retention of export proceeds abroad in any form without limiting to equity/portfolio investment, purchase of physical assets/virtual assets, maintenance of accounts regardless of currencies including cryptocurrencies constitutes contravention of Section 5(1)(e)(i) of the FER Act, 1947 and is subject to cognizance under Section 23(1) of the said Act as per SRO No. 59-LAW/2021 dated March 08, 2021. Please bring the contents of this circular to the notice of your clientele concerned. Yours faithfully, (Kazi Rafiqul Hassan) General Manager Phone: 9530123