Rules relaxed to ease online import of software

Khairul Islam | Published: July 23, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The central bank has relaxed its foreign exchange regulation allowing purchase of software through eDelivery without prior permission, sources said.
In the past, foreign exchange (FX) regulation required prior approval from the Bangladesh Bank (BB) to remit payment against online purchase of software.
"This practice entails the software purchase to approach Bangladesh Bank twice, requiring much time for early disposal of the remittance application," the BB said in a recent circular.
The central bank's decision came after the ICT division approached the regulator to ease online import of software for research and development unit of Korean electronics giant Samsung.
The fresh guideline issued by Foreign Exchange Policy Department, signed by deputy general manager Md Abdul Mannan, said the central bank considers the applications for such payment subjected to the condition that applications have arranged customs assessment of the software and made payment of duties or taxes accordingly.
To ease the situation and ensure genuineness of the purchased software, the regulator has fixed a set of conditions including authentication certification from the Bangladesh Association of Software and Information Services (BASIS).
The guidelines said that authorised dealers (ADs) may allow their customers to arrange customs assessment of the software after being satisfied form the certification issued by BASIS to the effect that the purchase of software is genuine and sourced from reliable suppliers.
Regarding the outward remittances, it said on receipt of customs assessment order and documentary evidence of payment of duties/taxes, ADs may effect payment against the purchase of software subjected to compliance of some conditions.
These conditions are: ADs shall be satisfied with the certification/licence issued by the supplier that the software has already been received by the purchasers.
Besides, the dealers shall observe due diligence and comply with the Anti Money laundering (AML) and counter terrorism financing (CFT) regulations in respect of the transactions.
The authorised dealers are also urged to submit report of authenticated copy of the certification/licence issued by the supplier and report the transactions to the central bank on a monthly basis.
However, the circular made it clear that application for remittance without the stated procedures will require prior approval of the Bangladesh Bank.
The central bank in a separate letter, sent to the ICT division, said it doesn't find any problem to release necessary amount for the Samsung R&D unit employees to attend trainings and seminars abroad.
The regulator has assured the ICT Division of taking necessary measures, if any problem arises with regard to release of money for Samsung officials in case of overseas training.
According to the Bangladesh Bank rules, an individual can conduct international transaction worth $100 daily online and no more than $1,000 annually.
But Samsung said this amount is "very low" for the company officials as they frequently require getting licences and buying research-related materials from abroad.
According to the BB's guidelines, for overseas workshops, seminars and trainings, an individual can spend daily $200 (in SAARC countries including Myanmar) and $250 (rest of the world) for their expenditures. Â
Terming the initiative positive, IT expert Mustafa Jabbar said it will significantly help reduce online cross boarder payment for software.
He, however, called upon the central bank to strictly monitor such transactions to avoid potential capital flight. "Some dishonest people might take the advantage of new rules," he noted.
Mr Jabbar also opposed the provision of certification from the BASIS for such online payment. "The government shouldn't depend on only a single private entity like BASIS for such an important mater," he said.
Â Â Â khairulislamdu@gamil.com