Shippers, airlines allowed to open FC accounts

Siddique Islam | Published: February 25, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

The central bank has allowed shipping lines, airlines and multimodal transport operators to open and maintain foreign currency (FC) accounts with the banks to facilitate foreign trade, officials said.
"We've relaxed our foreign exchange regulations to facilitate foreign currency payment for handling FOB (free on board) imports from their receipts in foreign currency against handling of FOB exports," a senior official of the Bangladesh Bank (BB) told the FE.
He said it will also help reduce import cost.
Bangladesh Freight Forwarders Association (BAFFA) welcomed the BB's latest move, saying this relaxation of payment system will facilitate their business activities.
"We expect that such relaxation will help increase the country's remittance inflow," Mahbubul Anam, president of the BAFFA, told the FE.
Following the relaxation, the shipping lines, airlines and multimodal transport operators, licensed as freight forwarders by customs authorities, have been allowed to open and maintain accounts in the US dollar or any other freely-convertible currency with authorised dealer banks in Bangladesh, in which their receipts in foreign currency against handling of FOB export cargos will be credited.
"Funds from these accounts will be usable in foreign currency for payments abroad towards costs and charges relating to their handling of FOB imports into Bangladesh," the central bank said in a circular, issued Monday.
For FOB imports, the banks, at request of their importer clients, may make payments of freight charges in the local currency or in equivalent foreign exchange to the shipping lines/ airlines/ eligible licensed freight forwarders, out of the total value of the LCAF (letter of credit authorisation form) issued for the import covering costs of goods and freight, according to the circular.
"The receipts in foreign exchange will be used through the foreign currency accounts, maintained by the shipping lines/ airlines/ eligible licensed freight forwarders."
The circular also said the shipping lines or airlines may accept freight charges on FOB exports in foreign currencies from the eligible licensed freight forwarders.
In such cases, the shipping lines or airlines will submit necessary encashment certificates with routine monthly returns to the BB.
The banks will inform the Foreign Exchange Operation Department (FEOD) of head office, or relevant area office of BB immediately (by the next business day) when such foreign currency accounts are opened, it added.
The central bank said all receipts and payment transactions through these accounts will have to be included in the monthly collection and disbursement statements, routinely submitted to the BB by the shipping lines or airlines through their authorised dealer banks. Â
"Eligible licensed freight forwarders will also submit, through authorised dealer banks, monthly statements to the BB of collections and disbursements against the handling of FOB exports and imports."
Transaction statements of these foreign currency accounts will also have to be submitted to the FEOD at head office or relevant area office of the central bank on a quarterly basis for post facto checking.
It will ensure that reasonable amounts from the foreign currency accounts have been encashed to Bangladesh Taka (BDT) towards defraying of local costs and tax liabilities, the circular added.