Relaxation of foreign exchange regulations for trade transactions - extended facilities

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 12 Date: March 24, 2021 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Relaxation of foreign exchange regulations for trade transactions – extended facilities Please refer to FE Circular No. 43 of October 06, 2020 in terms of which relevant policy supports have been extended till March 31, 2021. 02. Given the ongoing situation due to COVID-19, it has been decided to continue the policy supports till June 30, 2021 for the following counts: (a) Advance payment up to USD 500,000.00 or equivalent for import of coronavirus related life-saving drugs, medical kits/equipment and other essential medical items as per FE Circular No. 15 of March 23, 2020; (b) Usance period up to 360 days instead of 180 days for input imports by industrial importers as per paragraph 33(a)(ii), chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 and FE Circular No. 16 of March 23, 2020 depending on the actual needs of the concerned clients; and (c) Usance periods up to 360 days instead of 180 days against imports of agricultural implements and chemical fertilizers admissible under paragraph 33(a)(iv), chapter 7 of GFET and Circular Letter No. 18 of April 26, 2020. 03. For allowable additional time in settlement of import payments, separate permission to extend the validity of LCAF, in case of exceeding the stipulated period, will not be required. As usual relevant instructions with regards to trade transactions shall remain unchanged. Please inform all your concerned constituents accordingly. Yours faithfully, (Md. Ali Akbar Faraji) General Manager Phone: 9530123