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. 13 Date: March 19, 2020
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
Relaxation of foreign exchange regulations for trade transactions – extended facilities Attention of Authorized Dealers (ADs) is invited to prevailing regulations as contained in the Guidelines for Foreign Exchange Transactions-2018 (GFET), Vol-1 and in relevant FE Circulars/Circular Letters regarding trade transactions.
02. To facilitate trade transaction for containment of unavoidable situation, it has been decided that:
(a) ADs may allow exporters to extend the tenure of realization of export proceeds up to 60 days, as additional time from specified period of 4 months from the date of shipment, for bonafide grounds. ADs shall immediately intimate Foreign Exchange Operation Department/respective area offices of Bangladesh Bank with details of extension allowed by them such as names of exporters, EXP Nos., time extended including expected date of realization of payments, reasons for extension and so on. (b) ADs may allow importers to extend the tenure of submission of bill of entry up to 60 days, as additional time from specified period of 4 months from the date of payments, for bonafide grounds. ADs shall immediately intimate Foreign Exchange Operation Department/respective area offices of Bangladesh Bank with details of extension allowed by them such as names of importers, IMP Form Nos., time extended including expected date of submission of bill of entry, reasons for extension and so on. (c) Usance period of back to back LCs opened under supplier’s/buyer’s credit can be extended on banker-customer relationship within the admissible rate of interest up to 180 days, as additional time from permissible period of 180 days, for bonafide grounds required to settle the payments. (d) Bangladesh Bank will consider applications for extension of EDF loans up to 180 days from prevailing extendable tenure of 90 days, to settle the payments against such loans for bonafide grounds. (e) ADs may allow exporters to repatriate export bills at discounted price for bonafide grounds up to 10 percent of FOB value without prior approval of Bangladesh Bank. ADs shall immediately intimate Foreign Exchange Operation Department/respective area offices of Bangladesh Bank with details of discount allowed by them such as names of exporters, EXP Nos., amount of discount, date of realization of discounted proceeds, reasons for discount and so on. Within 15 days from repatriation of discounted export proceeds, ADs shall apply to Bangladesh Bank in accordance with paragraph 18, chapter 10 of GFET.
03. The facilities as stated at 2 above shall be applicable till September 30, 2020.
Other instructions with regards to trade transactions shall remain unchanged. Please bring the contents of this circular to the notice of all your concerned clientele. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123