Outward remittance facilities for exporters

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 07 Date: February 15, 2018 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Outward remittance facilities for exporters Paragraph 29(i), chapter 13 of the Guidelines for Foreign Exchange Transactions-2009 (GFET), Vol-1 accords general authorization to exporters for payment abroad out of balance held in Exporter’s Retention Quota (ERQ) accounts of bonafide current business expenses, with advance payment facilities without repayment guarantee upto USD 25,000 in terms of FE Circular No. 5, dated February 05, 2017. 02. To facilitate export trade in meeting urgent needs, it has been decided that ADs may allow remittance facilities to exporters for bonafide service payments to beneficiary's bank account abroad upto USD 5,000 or equivalent, subject to observance of following instructions: (a) The facility will be useable provided that adequate fund is not available in ERQ account; (b) Requests from the exporter are supported by invoices specifying details of services and deduction & payment of applicable taxes thereon; (c) The foreign exchange so remitted under this facility shall be adjusted with subsequent export proceeds by deduction from retainable amount in ERQ/margin account and encashment the same in Taka account of the exporter. Please bring the above instructions, effective immediately, to the notice of your concerned clientele. Yours faithfully, (Jagannath Chandra Ghosh) Deputy General Manager Phone: 9530092