The central bank has relaxed its foreign exchange policy for industrial enterprises operating in the Domestic Processing Areas (DPAs) of Economic Zones (EZs).
With the relaxation, authorised dealer (AD) banks have been allowed to process outward remittances for royalty, technical know-how and technical assistance fees beyond the existing ceiling, subject to prior approval from the Bangladesh Economic Zones Authority (BEZA).
The Bangladesh Bank (BB) on Monday issued a notification, amending the existing framework for foreign exchange remittances by DPA-based enterprises.
Under the previous policy, AD banks could facilitate outward remittances from taka accounts for royalty, technical know-how and technical assistance fees only within prescribed limits.
For new projects, the remittance could not exceed 6.0 per cent of the cost of imported machinery, while the ceiling was 6.0 per cent of the previous year's sales as declared in income tax returns for ongoing concerns.
With the latest notification, these limits may now be exceeded provided the enterprises obtain prior approval from BEZA, according to BB officials.
The central bank also stipulated that outward remittances for other similar legitimate expenses, regardless of the amount involved, will likewise require prior approval from the authority, they added.
Business insiders, however, believe that the revised policy will facilitate cross-border transactions by DPA-based enterprises and attract greater foreign investment by easing procedural requirements for technology-related payments.
siddique.islam@gmail.com
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