Central bank eases export trade
FE Report | Monday, 4 October 2021
Exporters are now allowed to directly dispatch shipping documents of their export consignments to their foreign buyers, as a further measure for facilitating Bangladesh's external trade.
Bangladesh Bank Sunday issued a circular to this effect, asking for bringing the contents of this circular to the notice of the ADs (authorised dealers) constituents concerned.
Currently, the ADs are required to pass all shipping documents covering exports from Bangladesh as per declaration on EXP Form within 14 days from the date of shipment as par the chapter 8 of the Guidelines for Foreign Exchange Transactions-2018 (GFET).
According to the circular, it has been decided that ADs may allow exporters to dispatch export documents (excluding original transport document of title to cargo) directly to importers or their agents abroad through secure media.
It says the underlying sales contracts/letters of credit provide for such direct dispatch of export documents, and ADs shall be satisfied with the arrangement of realisation of export proceeds within statutory period.
ADs shall endorse original transport document retained with them on receipt of payment against relevant export.
"ADs shall, within 14 days from the date of shipment, obtain EXP Form from exporters to comply with regulatory instructions including reporting routine to Bangladesh Bank," it stated.
"This is to clarify that export documents may also be dispatched by exporters against full export payment realised in advance. However, ADs shall obtain relevant export documents to adjust advance payment with related exports," according to the circular.
In terms of FE Circular No. 17, dated April 23, 2019, exporters are required to report transport/shipping information immediately in BB online reporting portal, and submit relevant documents within 14 days from the date of shipment, inter alia.
Exporters should adhere to the instructions to observe regulatory compliances as required under the Foreign Exchange Regulation Act 1947.
Accordingly, ADs shall follow up with exporters to expedite the process. Other instructions with regards to export transactions shall remain unchanged, the circular mentioned.
It is believed that the latest measures are in continuation of facilitating export-oriented industries and manufacturing concerns in the backdrop of ease of doing business and promoting export growth and will further contribute to improving economic outlook of the country.