Department of Foreign Exchange Policy (FEPD) of Bangladesh Bank Circular No. 22, On “Foreign exchange transactions for merchanting trade” dated 14 September 2022September 30, 2022
Aiming to facilitate transactional services by Authorized Dealers (ADs) to their merchanting traders’ customers, The Bangladesh Bank published some guideline. According to the circular, “merchanting trade” is defined as “procurement of goods and services from another country and shipment of goods and services from that country directly to buyers in a third country. As per guideline,
- Export permission form (EXP) – which needs to be furnished by exporters before shipment of goods – will not be required for export activities under the merchanting trade.
- Similarly, the IMP forms applicable for imports will not be required in the case of procurement of goods from different countries.
- Bank payments for import-leg are to be met out of payments received from export-leg.
- It also allowed for payment at the import-leg under short term buyers’ credit from external sources for which merchants can assign the receivables from the export-leg.
Banks are restricted to issue any forms of payment undertaking commitments or acceptance for the credits.