Regulatory Alerts2025-01-08
Added
Issuance of Bank Guarantee/Standby Letter of Credit on behalf of importer in favor of foreign suppliers
Authorized Dealers may furnish bank guarantees or standby letters of credit in favor of foreign suppliers on behalf of importers to facilitate the import of emergency goods or services by Government competent authorities and entities under the power and energy sector, subject to approval from the concerned ministry. When issuing these instruments, Authorized Dealers must ensure that the underlying import transaction is executed under sales-purchase contracts. All other relevant instructions on import trade remain unchanged.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No.02 Date: January 08, 2025 All Authorized Dealers of Foreign Exchange in Bangladesh Dear Sirs, Issuance of Bank Guarantee/Standby Letter of Credit on behalf of importer in favor of foreign suppliers Please refer to paragraph 8, chapter 16 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET) and subsequent circulars regarding issuance of guarantees on behalf of residents in favor of non-residents. 02. To facilitate import of emergency goods/services by the Government competent authorities/entities under power and energy sector, it has been decided that Authorized Dealers (ADs) may furnish bank guarantee/Standby Letter of Credit in favor of foreign suppliers as payment security on behalf of importers subject to approval of concerned ministry. While issuing guarantees/Standby Letters of Credit, ADs shall ensure that the underlying import transaction will be excuted under salespurchase contracts. 03. All other relevant instructions on import trade shall remain unchanged. You are advised to bring the contents of this circular to the notice of your concerned constituents. Yours faithfully,
(Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123