Home » Bangladesh Publication » Department of Foreign Exchange Policy (FEPD) of Bangladesh Bank Circular No. 22, On “Foreign exchange transactions for merchanting trade” dated 14 September 2022

Department of Foreign Exchange Policy (FEPD) of Bangladesh Bank Circular No. 22, On “Foreign exchange transactions for merchanting trade” dated 14 September 2022
September 30, 2022Aiming 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.
RELATED EXPERIENCES
Related Articles
- Circular No. 03 dated 07 August 2023 issued by the Department of Financial Institutions and Markets of the Bangladesh Bank on “Taking Thumbprints on Loan-Related Charge Documents”
- September 6, 2023 - Circular No. 03 dated 9 August 2023 issued by the Foreign Exchange Operation Department of the Bangladesh Bank on the “Generation of the Forms “Information on freight charges on a prepaid basis against exports” and “Information on freight charges against FOB (or similar term) imports” by using the Bangladesh Bank’s Online Export Monitoring System and its Online Import Monitoring System”
- September 6, 2023 - Circular No. 05 dated 10 August 2023 issued by the Foreign Exchange Investment Department of the Bangladesh Bank on “Opening and Operation of Non-Resident Investors’ Taka Accounts for Non-Resident Bangladeshis through Authorized Dealers’ Online Interactive Web Platforms”
- September 6, 2023 - Circular No. 10 dated 20 August 2023 issued by the Department of Financial Institutions and Markets of the Bangladesh Bank on “Loan Rescheduling for the Shipbuilding Industry”
- September 6, 2023 - Circular No. 13 dated 24 August 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Export Subsidies/Cash Incentives for the Financial Year 2023-24”
- September 6, 2023