Regulatory Alerts2024-10-17
Added
Remittance of aircraft lease rental by airlines incorporated in Bangladesh
Authorized Dealers may now effect remittances for aircraft lease rentals by Bangladeshi airlines up to guaranteed hours without specific prior approval from Bangladesh Bank, subject to verifying bonafides. This process requires submission of an application, operational permissions, valid agreements, invoices, audited financial statements, tax proof, and a repatriation undertaking. Authorized Dealers must ensure applicants are regular in reporting and repatriating surplus earnings, utilize foreign currency funds first, maintain separate files for inspection, and report transactions to the concerned area office. Remittances are restricted to designated branches with intimation to the head office or area office.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 21 Date: October 17, 2024 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Remittance of aircraft lease rental by airlines incorporated in Bangladesh Attention of Authorized Dealers (ADs) is invited to the present practice regarding the cases of remittances of Aircraft lease rentals by airlines incorporated in Bangladesh wherein specific approval from Bangladesh Bank is required for remittances on case to case basis. It has now been decided that ADs may effect remittances on account of lease rentals by the airlines incorporated in Bangladesh up to the guaranteed hours subject to bonafides according to the following drill: (A) Application and required documents: i) Application of the applicant company; ii) Permission letter of competent authority allowing to operate the rental aircraft in favor of the applicant company; iii) Copy of valid agreement; iv) Copy of invoices v) An audited statement showing the opening balance, earning, expenditure and net amount (surplus/deficit) pertaining to the operation of rental aircraft; vi) Proof of challans pertaining to payment of all applicable taxes or certificate of exemption issued by relevant tax authority; vii)An undertaking from the applicant company to the effect that, in case of wrong or excess remittance, the amount remitted will be repatriated to Bangladesh immediately on demand. (B) Examination and processing by AD: (a) ADs shall ensure that the applicant is regular in submission of returns to Bangladesh Bank and repatriation of surplus earnings in accordance with FE Circular No. 21, dated July 18, 2018 and its subsequent circulars. (b) After scrutinizing the application along with the supporting documents submitted and establishing the bonafides, AD shall effect the remittance. In this case, ADs shall utilize first foreign currency fund, if any, in their foreign currency account and later remainder from Taka accounts. Cont’d to page-2
-2- (c) ADs shall maintain separate file for each company for verification by Bangladesh Bank inspection team and report the transactions to the concerned area office of Bangladesh Bank.
- Remittances under authority of this circular may only be made through an AD branch designated by the remitters for the purpose with intimation to Bangladesh Bank, head office/concerned area office of Bangladesh Bank. Please acknowledge receipt and bring these instructions to the notice of all concerned. Yours faithfully, (Md. Harun-Ar-Rashid) Director (FEPD) Phone: 9530123