FEPD Letter No. 220/2016-7374: Transfer of 0.03% of Export Proceeds from 100% Export-Oriented Garment Industries to Central Fund Account at Sonali Bank Ltd.

Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka.
Ref. No. FEPD(L)220/2016-7374
Date: August 28, 2016

To,
Managing Director/Executive Director
All Approved Dealer Banks engaged in Foreign Exchange Transactions Head Office/Principal Office.

Dear Sir,

Subject: Transfer of 0.03% of the total export value from the LC encashment of various industrial establishments of 100% export-oriented ready-made garment industries to the Central Fund (RMG Sector) Account No. 0442636001018 SNB, maintained at Sonali Bank Ltd., Ramna Corporate Branch, Dhaka.

Reference is invited to the DoP letter No. 40.00.0000.015.28.002.16.382 dated August 16, 2016, from the Ministry of Labour and Employment (copy enclosed) regarding the subject matter.

2. Through Circular Letter No. 18 dated June 12, 2016, instructions were issued to deduct 0.03% of the received and encashed export proceeds against every order of industrial establishments of 100% export-oriented ready-made garment industries for the formation of a Central Fund, and to transfer the deducted amount to the SNB account in favor of the Central Fund (RMG Sector) at Sonali Bank Ltd., Ramna Corporate Branch, Dhaka. It was also instructed to inform the Secretary, Central Fund Management Board, regarding the transferred amount.

3. It has been observed that the instructions provided in the aforementioned circular are not being properly complied with by banks other than those associated with 100% export-oriented ready-made garment industries. Some banks, while encashing the mentioned amount of LCs, have not submitted reports or ensured the deduction of the amount.

4. In this context, instructions are being issued to ensure that the amount deducted at the rate of 0.03% against the realized export proceeds of 100% export-oriented ready-made garment industries is regularly deposited into the Sonali Bank account, and the report of the deposited amount (or zero report if no deduction was made) is compulsorily submitted to the Secretary, Central Fund Management Board, Ministry of Labour and Employment by the 7th of the following month.

You are requested to issue necessary instructions to all your Approved Dealer Bank branches regarding the above matter.

Yours faithfully,

Enclosure: As above

(Jagannath Chandra Ghosh)
Deputy General Manager
Phone: 9530092

Very Urgent