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C HAP T E R 8

S E CT I O N- I

EXPORTS
1. Export

Govt. Notifications No. 1(6)/ECS/48 and 1(7)/ECS/48 dated 1st July, 1948 issued pursuant to
Section 12 of the FER Act, 1947 prohibit export of any goods directly or indirectly to any place
outside Bangladesh, unless a declaration is furnished by the exporter to the Customs Authority or
to such other authority as Bangladesh Bank may specify in this behalf that foreign exchange
representing full export value of the goods has been or will be disposed of in a manner and
within a period specified by the Bangladesh Bank.
2. Export exempted from repatriation of export proceeds
The prohibition mentioned above does not apply to the export of:
(i) bonafide trade samples sent by registered exporter upto the value prescribed in the Export
Policy in force;
(ii) personal effects, whether accompanied or unaccompanied, of travellers;
(iii) ships stores and transhipment cargo;
(iv) goods shipped under the order of the Government of Bangladesh or of such officers as may
be appointed by the Government in this behalf or of the Military, Naval or Air Force authorities
in Bangladesh for Military, Naval or Air Force requirements.

In the case of export by Post, a certificate signed by a Gazetted officer or by any person entitled to
use service postage stamp should be pasted on the outer cover of the parcel to the above effect;

(v) gift packets where they are accompanied by a declaration by the sender that the contents of
the packet are less than the value as prescribed in the Export Policy in force and that the despatch
of the packet does not involve any transaction in foreign exchange; and

(vi) where the packet is covered by a certificate issued by the Bangladesh Bank to the effect that
the export of the parcel does not involve any transaction in foreign exchange.

Exemptions as above will be allowed by the Customs Authorities after being satisfied that the
relative exports qualify for such exemptions.

3. Export Trade Control Regulations

Foreign exchange regulations regarding exports cover all goods exported to all destinations
regardless of whether they are subject to Export Trade Control Regulations. Similarly, nothing in
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the foreign exchange regulations relieves the exporters from the necessity of complying with the
Export Trade Control Regulations prescribed by the Government, including the necessity of
obtaining export licences in case of goods the export of which requires such licence.
4. Prescribed form for declaring exports
All exports to which the requirement of declaration applies, must be declared on the EXP Form
(Appendix 5/31). These forms will be supplied by the ADs to their exporter clients.
5. Method of receiving payments against exports
Payment for goods exported from Bangladesh should be received through an AD in freely
convertible foreign currency or in Taka from a non-resident Taka Account. Receipts against
exports under various barter and bilateral arrangements should be settled as per instructions
issued by Bangladesh Bank from time to time.
6.(a) Registration of exporters : The ADs should, before certifying any EXP form, ensure that
the exporter is registered with the CCI&E under The Importers, Exporters and Indentors
(Registration) Order 1981. The registration number should be quoted on the relative EXP forms.
(b) Online reporting: In addition to other reporting requirements to Bangladesh Bank, ADs
shall report export transactions to the 'Online Export Monitoring System' of Bangladesh Bank on
regular basis.
7. Certification of EXP Forms by ADs
(a) Before lodging the EXP forms with the Customs/Postal Authorities, the exporter should get
copies of the forms certified by an AD. After receipt of the EXP forms from the exporters for
certification purposes, the ADs will see and ensure that each set of the forms is duly filled in.
Thereafter, they will record full particulars of the forms in the Export Register to be maintained
as per proforma at Appendix 5/32 and assign a number for each set of the EXP forms in the
following manner, which is to be inserted in the space provided at the top of each form:

AD’s Code Serial Number Year

EXP NO.

The first four boxes of EXP number will bear the branch code prescribed by the Bangladesh
Bank for each AD branch and the next 5 boxes are meant for mentioning the serial number of the
Export Register (Appendix 5/32) of the branch and the last two boxes are meant for mentioning
the last two digits of the year of registration. The ADs will also have to complete the forms
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themselves by mentioning all the required information/particulars/code number etc. in the forms
at the appropriate places and certify the forms in the manner prescribed therein under seal and
signature of the authorised official of the AD. These forms may be generated through 'Online
Export Monitoring System' also. However, ADs may maintain EXP Register in electronic form
with data backup as per IT Security Policy of the bank concerned.

(b) In order to avoid any loss of foreign exchange to the country, ADs shall not certify any EXP
form unless they have satisfied themselves with regard to the followings:

(i) arrangements made for realisation of export proceeds within the prescribed period;

(ii) arrangements have been made for receipt of title to goods like Bill of Lading, Airway Bill
etc. by the AD on shipment of the underlying goods;

(iii) the EXP form is signed either by the exporter or one holding valid legal power of attorney
from the exporter and the terms of the power of attorney are such that both the exporter and the
attorney may be held responsible jointly and severally for repatriation of export proceeds;

(iv) Bonafides of the buyers/consignees abroad and their credentials etc. where necessary, ADs
should make discreet enquiries in this regard through their correspondents abroad etc., greater
care should be taken particularly in cases of shipments against contract alone and shipments on
CAD/DA basis. Where ADs doubt the bonafides and standing of the buyers/consignees abroad or
where owing to common interest or otherwise they suspect collusion with the intent of' delaying
or avoiding repatriation of export proceeds ADs should report such cases promptly to
Bangladesh Bank. Similarly, ADs should report to Bangladesh Bank cases where it comes to
their knowledge that the exporters are directly or indirectly connected with or have any financial
or other interest in the buyer/consignee abroad. Where felt necessary, discreet enquiry about the
bonafides and credentials of the charter party should also be made in case the shipment is to be
against a charter party Bill of Lading so as to avoid loss of cargo/foreign exchange.

(c) For delay in repatriation or non-realisation of export proceeds, the exporters will render
themselves liable to punitive action under the FER Act.,1947. Besides, in the event of non-realisation
or short realisation of export proceeds against shipment within the stipulated period, ADs shall
obtain from the exporter(s) and furnish to Bangladesh Bank full explanation as to the circumstances
resulting in non-realisation/short realisation. Therefore, in their own interest, both exporters and the
ADs should be alert and active in ensuring timely repatriation of export proceeds.

8. Making out and delivery of shipping documents

In exercise of the powers vested in the Bangladesh Bank under Section 20(3) of the FER Act,
1947 all carriers whether common or private (Railway, Shipping or Airline companies) and their
agents are directed as under:
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(i) That in respect of export of goods from Bangladesh (excepting export from Type A industrial
units located in the EPZs/EZs) to foreign countries by land route or by sea, the Railway Receipts,
Bills of Lading and any other documents of title to cargo should be drawn only to the order of an
AD designated for this purpose by the respective exporters and delivered to the authorised
representatives of the ADs concerned and to none else. However, in case of export of goods, full
payment for which value has been received by the exporter in advance through the AD, the Bill
of Lading and other documents may be endorsed by the AD in favour of foreign importers and
the same may be sent directly to the importers abroad by the AD. There may be cases where
goods shipped from Bangladesh to the neighbouring countries by land route or even by cargo
vessels reach the beneficiary earlier than the relative Bill of Lading, Truck receipts etc. This
causes inconveniences and involves payment of demurrage at the port of destination due to delay
in receipt of shipping documents. To overcome this problem, Shipping Companies may, at the
request of the negotiating bank in Bangladesh, issue Telegraphic Delivery Orders on their agents
in the relevant center directing them to deliver the goods to the order of the AD bank's
correspondents in the buyers' country. A copy of the telegram/telex/SWIFT message, duly
authenticated by the Shipping Company/Agent, should be passed on to the relevant AD who
would send his own tested cable /telex/SWIFT instructions to his overseas correspondent asking
the latter to hand over the Delivery Order to the consignee and stating the amount to be realised
from the consignee before the Delivery Order is released. The usual shipping documents namely,
invoice, bill of lading etc. may be despatched to the correspondent bank as usual.
(ii) In respect of export of goods from Bangladesh (excepting exports from Type A industrial
units located in the EPZs/EZs) to foreign countries by air, the Airway Bills and any other
documents of title to cargo should be drawn to the order of a bank in the country of import
nominated by the AD designated for this purpose by the respective exporters and delivered to the
authorised representative of the AD. However, in case of export of goods, full payment for which
has been received by the exporter in advance through the AD, the AD may allow the Carrier
Company to draw the documents to its own (AD's) order and then endorse the documents
including the Airway Bill in favour of the foreign importers. The same may be sent directly to
the importers abroad by the AD. The above directions shall not apply to exports exempted from
repatriation of export proceeds and listed in Para 2 of this Chapter. Exports of fresh fish,
vegetables, fruits, poultry and other goods of perishable nature are also exempted from this
direction. The documents of title to cargo like Bill of Lading, Airway Bill in respect of goods
shipped from the fully foreign-owned enterprises (Type A industries) in the EPZs/EZs may also
be drawn in favour of the consignee/LC opening bank.
(iii) In case of negotiation of export bills by using FCRs or HAWBs issued by the freight
forwarders, the following additional conditions are to be fulfilled :

(a) the export letter of credit and the export sale contract specifically provide for negotiation of
export bill against FCR/HAWB ( as the case may be) issued by a freight forwarder;
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(b) The freight forwarder issuing the FCR/HAWB is operating in Bangladesh with licence from
National Board of Revenue (Customs Authority);
(c) ADs will be responsible for satisfying themselves about the arrangement for timely
repatriation of proceeds of export bill negotiated against FCR/HAWB.
9. Endorsement of shipping documents by the ADs
The ADs to whose order the relative Railway Receipts, Bills of Lading etc. are drawn shall
endorse the same to the order of their foreign correspondents but in no case they shall make any
blank endorsement or endorse it to the order of the consignee unless they have obtained specific
or general approval of the Bangladesh Bank thereof. However, in the cases of export from Type
A industrial units located in EPZs/EZs, Bill of Lading/Airway Bill/other documents of title to
cargo drawn to the order of the AD may be blank endorsed or endorsed in favour of the
consignees as per terms of the export LC/export contract.
10. Disposal of EXP Form
(i) The EXP Forms are in two sets viz. First Original and Second Original. In all cases the forms
will be completed and signed by the exporter or his authorised agent
(ii) After completing the filling up of EXP forms the exporter should submit all copies to the AD
for certification. After the forms are certified by the AD, these should be submitted to the
Customs/Postal Authorities alongwith the shipping bill at the time of shipment. The Customs
Authorities after filling in the portion relating to them and affixing therein their seal and signature
will return the Second Original copy to the exporter/his authorised agent. The First Original copy
will be forwarded by the Customs Authority to the respective office of the Bangladesh Bank.
(iii) Submission of export documents to the ADs
(a) The exporter shall submit Second Original copy of the EXP form alongwith the invoice etc. to
the AD through whom payment for the goods exported is to be received. An extra copy of the
shipper's invoice must be attached to the Second Original copy of the EXP form. In the event of
payment being received through an AD other than the one who certified the EXP forms, the AD
negotiating or collecting the export documents should convey the particulars of the EXP form to
the AD that had originally certified the EXP form to enable the latter to make a suitable note in
the relative export register.
ADs shall arrange to pass all shipping documents covering goods exported from Bangladesh and
declared on EXP form within the period of 14(fourteen) days of shipment and report the same to
the 'Online Export Monitoring System' of Bangladesh Bank. ADs shall continue to hold the
Second Original EXP form until the full proceeds are realised. During the non-realisation stage
of export proceeds, ADs shall, on demand, submit the EXP form and full set of export documents
to Bangladesh Bank.
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(iv) Scrutiny of documents

On receipt of the EXP form and the documents covering the exports the ADs should compare the
signatures appearing on the bills of lading with the specimen signatures of the duly authorised
officers of the shipping company on record to ensure genuineness of the documents. The AD
should also compare the relative bill and/or documents with the relative form and satisfy itself
that the declaration made on the form is correct and the method of finance stated thereon is a
permitted one and that the amount for which the bill is drawn or the invoice is written is not less
than the invoice value stated on the form. The invoice value should also be checked against the
Taka value taken for customs purposes as shown on the form, against Taka value under the space
for the shipping bill number. In no case the invoice value should be less than the value declared
for customs purposes. Special care should be exercised in the checking of the invoices with a
view to detecting undervaluing of exports. Any suspicious circumstance should be reported to
the Bangladesh Bank.
(v) If the difference between the value stated on the EXP form and the amount of the bill/invoice
is small and accounted for by legitimate trade charges etc., the AD may accept the bill
/documents for negotiation/collection. The details of such adjustments must be given on the
relative form and must be authenticated by the AD under its stamp and signature.
(vi) After negotiation of the bill or acceptance of the documents for collection, the ADs should
complete the certificates in this behalf in the space provided on the Second Original copy of the
EXP form to the effect that they have negotiated bills/received shipping documents for collection
for the value stated on the form.
(vii) After realisation of export proceeds in foreign currency or by debit to a non-resident Taka
account, ADs shall certify on the reverse of the Second Original EXP form and shall report the
same to 'Online Export Monitoring System' of Bangladesh Bank. As usual ADs shall, without
attachment of EXP Form, report the realisation of export proceeds in relevant schedule of
monthly returns to Bangladesh Bank. Afterwards, ADs shall retain Second Original EXP form
with them for record and eventual inspection for a period of 5(five) years. However, in respect of
cases which are under investigation by Bangladesh Bank inspection team/other Government
agencies, the EXP form and full set of export documents shall be disposed of only after obtaining
clearance from the inspection team/Government agency concerned.
(viii) Exports subject to receipt of advance payments or confirmed and irrevocable LC
In the case of commodities export of which is subject to receipt of advance payment or
confirmed and irrevocable LC (such as raw jute), shipments will be allowed by the Customs only
on the basis of the certificate of the AD on the EXP forms to the effect that either advance
payment or confirmed and irrevocable LC has been received covering export of the goods
mentioned on the EXP form.
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11. (a) Deduction of commission, brokerage or other trade charges : Commission, brokerage
or other trade charges due to be paid to foreign importers or agents by exporters in Bangladesh
relating to the particular shipment may be deducted from the relative bill amount or the amount
of the sale proceeds or remitted from Bangladesh after the full proceeds have been realised only
upto a maximum of 5(five) percent of the value of the goods. In exceptional cases or where it is
customary in any particular trade to pay commission in excess of 5(five) percent by deduction
from the invoice value of exports, the Bangladesh Bank may consider applications by exporters
through their banks and may grant a standing authority to permit payment of commission in
excess of 5(five) percent of the invoice value. While applying to Bangladesh Bank for such
permision, AD shall attach application of exporter along with information to be provided in
format at Appendix 5/33 without attaching supporting documents which shall to be preserved by
AD upto prescribed period for delivery to Bangladesh Bank/inspection team as and when
required.
b) In the case of export of books, journals and magazines published in Bangladesh, the exporters
can allow without prior approval of the Bangladesh Bank discount upto 33.5 (thirty three and a
half) percent in all of the invoice value. For allowing discount in excess of the 33.5 (thirty three
and a half) percent of the invoice value, the exporters may approach to Bangladesh Bank for
prior approval.
12. Using appropriate incoterms
In EXP form, ADs shall use appropriate incoterms issued by the International Chamber of
Commerce. ADs are allowed to use any of the terms as EXW, FCA, FOB, FAS, CFR, CIF, CPT
and CIP provided those are stipulated in the relevant LCs or sales contracts. ADs are however,
strongly advised to inform the exporters about the risk and responsibility involved in such cases.
While certifying the EXP forms, the ADs must show the FOB or its equivalent value and cost of
freight, insurance and other charges separately on the EXP forms. The ADs, while certifying
realisation of the export proceeds will in addition to the certificate in the appropriate column,
also indicate on the reverse of the Second Original EXP form the FOB equivalent value,
insurance and freight separately. For this purpose they may use a rubber stamp as appropriate.
This is to mention that, FCA incoterm will be used in LC/contract if goods are to be delivered by
exporters to the buyer's nominated person prior to loading on board a vessel. Exporters may face
additional risks and incur extra costs if FOB term is used in such cases instead of FCA. ADs are
therefore, advised to satisfy themselves that contracts/LCs reflect accurate terms and conditions
of the Incoterm stipulations before advising the same to the beneficiaries. Inconsistency, if any,
should be informed immediately to the LC issuing bank for necessary amendment with
intimation to the beneficiary. ADs shall also keep their exporter customers informed of the
appropriate terms and conditions against applicable Incoterms for export so that they can insist
foreign buyers to get LCs issued/contract accordingly.
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13. Prescribed period within which payment should be received

(a) The period prescribed by the Bangladesh Bank within which full foreign exchange proceeds
of exports must be received by exporters is four months (Vide Bangladesh Bank Notification No.
FE 1/77-BB dated 16th April, 1977, Appendix 3/5). If the receipt of the full proceeds of any
shipment is delayed beyond this period without a special or general authorisation from
Bangladesh Bank, the exporter will be liable to action under the FER Act, 1947.
(b) Permissible period for repatriation of export proceeds against export to EPZs/EZs :
Permissible period for repatriation of export proceeds against export to EPZs/EZs through land
route shall be countable from the date of onboard land transport specified in transport receipt.
Accordingly, ADs shall, while EXP reporting, report this date of transport as 'date of shipment' to
'Online Export Monitoring System' of Bangladesh Bank.
14. Export of raw jute and jute goods on usance basis
General authorisation has been accorded to ADs for allowing exports of raw jute and jute goods
on upto 360(three hundred sixty) days usance basis against irrevocable LCs confirmed at buyer's
cost from first class international banks abroad. This requirement of third bank confirmation may
be waived if the AD is satisfied about the prospect of receiving payment in time, taking into
account the country risk, the counterparty risk (the reputation and financial standing of the
buyer) and the reputation and standing of the LC opening bank as ascertained from standard
reference sources and/or foreign correspondents of the AD. The AD should also satisfy itself that
the export price quoted is internationally competitive and that the usance interest loaded is at a
rate commensurate with the prevailing interest rate in the concerned currency.
15. Reporting of overdue cases
(a) Head Offices/ Principal Offices of the ADs will submit to the FEOD, Bangladesh Bank, Head
Office monthly statements showing the total figures of all export bills including partly unrealised
relating to all their AD branches outstanding at the end of each month in the proforma prescribed
(See Appendix 5/34) by the 10th of the month following the month to which it relates.
(b) Area/Principal Offices of the ADs are required to submit monthly statements of particulars of
export bills outstanding beyond the prescribed period of realisation as at the end of each month to
the concerned area offices of Bangladesh Bank in the prescribed proforma (See Appendix 5/35).
The statement should be prepared as per instructions contained in the reverse of the proforma. The
ADs should quote the reference number and date of Bangladesh Bank's permission in the remarks
column in case any extension of time for repatriation of export proceeds has been allowed by
Bangladesh Bank. The statement should be submitted within 10(Ten) days from the date of the
releveant month closes. ADs should ensure timely submission of the statement and should also
ensure inclusion of all overdue export cases in the statement without any omission.
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16 (i) Part drawings and advance remittances

If it is customary in any particular trade for exporters to draw bills for only a percentage of the
invoice value, the balance to be paid after arrival of goods at destination, the ADs may negotiate
bills in the part amount provided they obtain an undertaking from the exporters that they will
realise the balance within the prescribed period. The ADs should report such part receipts to the
Bangladesh Bank on 'Online Export Monitoring System' and on the appropriate return & schedule.
It is the responsibility of the ADs to follow up each such case and to ensure that the balance
amount is also realised within the prescribed period. This exemption will not, however, apply in
the case of shipments of those goods which are subject to either 100(hundred) percent advance
remittance or to the opening of confirmed or irrevocable LC for the full amount of the export.
(ii) Partial receipt of advance remittance
Where part of the invoice value has been received in advance by the shipper, the AD while
negotiating/collecting documents for the balance, should certify on the Second Original copy of
the EXP Form that part of the amount has been received by them in advance quoting reference to
the return on which the receipt was reported on an "Advance Receipt Voucher" (Appendix 20,
GFET, Vol-2). The Second Original copy of the EXP form should be kept outstanding by the AD
until the full value of the exports has been received. For reporting advance remittance on export
please see Para 20 below also.
17. Short shipments
Where a portion of a consignment is short shipped and the exporter consequently draws a bill or
writes an invoice for a quantity less than that entered on the original copy of the relative EXP
Form submitted to the Customs, he must make a declaration on the remaining copy of the form
submitted to the bank negotiating the bills that the shipment was partially shut out specifying the
quantity short shipped.
In all cases of short shipments, the exporters should give notice of short shipment on the
prescribed form in duplicate to the Customs who will forward a certified copy of the notice to the
Bangladesh Bank. This notice should bear the number and date of the relative EXP form in
respect of which goods have been short shipped.
18. Shipments shut out entirely
Where a shipment to be made by a particular vessel is entirely shut out and re-shipped by another
vessel, the exporter should apply on the prescribed form in duplicate to the Customs for
permission to alter the name of the vessel on the relative EXP form and the shipping bill, stating
on the application the number and date of the relative EXP form to which the application relates.
The Customs will forward a verified copy of the application to the Bangladesh Bank.
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Where a shipment is entirely shut out and is not being re-shipped immediately by any other
vessel, the exporter should give notice accordingly in the prescribed form in duplicate. The
Customs will forward a verified copy of the notice in respect of the shipment entirely shut out to
the Bangladesh Bank in order that the relative EXP form may be treated as cancelled.

19. Shipments lost or damaged in transit

If shipments from Bangladesh are lost in transit for which payment has not already been received
either by a direct remittance or by negotiation of bills under an LC, the AD must see that an
insurance claim is made as soon as the loss is known. The Second Original copy of the relative
EXP form should contain a statement on the reverse thereof, under the stamp and signature of the
AD that the shipment has been lost, together with the following particulars regarding the
insurance covering the shipment:
(a) Amount of insurance (including currency in which drawn).

(b) Name of the Insurance Company.

(c) Place where the claim is payable.

Where the claims are payable in a currency other than Taka, they should be realised through the
AD who had certified the Second Original copy of the relative EXP form and who, on
satisfaction of the claim, should certify on the Second Original copy the particulars of the amount
collected by itself and preserve the same by itself.

20. Receipts of advance remittances against exports

Before paying out money against remittances received from abroad, whether against purchase of
foreign currency or debit to a non-resident taka account of a foreign bank in case where purpose
of the remittance is stated to be advance receipt for goods to be exported from Bangladesh, the
AD should obtain a declaration from the beneficiary on the "Advance Receipt Voucher"
certifying the purpose of the remittance with report to the 'Online ARV Reporting Module'.

21. Shipments on FOB basis

In cases, where exporters arrange insurance cover and freight in Bangladesh but prepare invoices
on FOB basis, the ADs should verify from the bills of lading that freight has not been prepaid in
Bangladesh. All cases where freight or insurance has been paid in Bangladesh but export
documents are on FOB basis should be reported to Bangladesh Bank.

22. Export proceed realisation certificate against direct and deemed exports
Sometimes exporters are required to submit evidences of export and realisation of export
proceeds to various government agencies against direct and deemed exports. In such cases, ADs
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may issue Proceed Realisation Certificate (PRC) against direct and deemed export (as the case
may be) after being confirmed about the realisation of such proceeds. ADs shall use separate
proforma for issuance of direct export PRCs and deemed export PRCs.

ADs shall follow the instructions in case of issuance of PRCs as under:-

a) ADs shall use prescribed proforma in Appendix 5/36 to issue PRCs for proceeds realised
against direct exports while prescribed proforma in Appendix 5/37 shall be used to issue PRCs
for proceeds realised against deemed exports.

b) ADs shall issue original PRC for the requiring government authority as usual while another
copy stamped/typed in bold 'Verification Copy' at the top of the prescribed proforma is to be
issued for onward submission to the concerned Area Office of Bangladesh Bank.

c) In case of issuance of PRC against deemed exports, ADs are required to submit additional
information such as beneficiary's name, bill reference, paying bank branch's name, realised
amount, date of realisation etc. with the monthly returns in support of the transactions to be
reported as per Para 13(a), Chapter 2 of the GFET (Vol-2).

d) ADs shall submit monthly statement embodying a list of issued PRCs with corresponding
reporting reference enclosing 'Verification Copy' of PRCs and copy of relevant schedules and
additional information as mentioned in above para for post facto checking/verification to the
Area Offices of Bangladesh Bank by 15th of the following month. A 'Verification Copy' has to be
preserved by the ADs for eventual inspection by Bangladesh Bank inspection team and for
verification by other government agencies.

e) Head Office/Principal Branch of the AD shall send updated list of its officials along with their
specimen signatures, PA nos. and phone numbers who are authorised to sign PRCs to the Offices
of the 'Bond Commissionarate' and 'Duty Exemption and Drawback Office (DEDO)' from time
to time for verifying the genuineness of issued PRCs.

ADs are advised to exercise utmost caution in issuing PRCs to avoid any possible misuse. Any
irregularity shall be treated as violation of Bangladesh Bank's instructions. ADs are also advised
to extend their full co-operation to different government agencies regarding verification of any
PRC, if approached.

23. Export of software, data entry/processing and other services

Foreign exchange earnings from export of computer software, data entry/data processing and
other services through compact disk, flash drive, V-Sat, Internet or other electronic/magnetic
media shall be realised and reported to Bangladesh Bank by AD as per following guidelines :
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a) Where export is undertaken in physical form :

As in the case of merchandise exports, EXP procedure as described in para 7 shall be followed
where export is undertaken in physical form, that is, where computer software and data
entry/data processing services are exported in compact disk, flash drive, tape etc.
b) Where export is undertaken in non- physical form
EXP procedure will not be applicable for export undertaken in non-physical form such as V-Sat,
Internet or other electronic media. For collection of proceeds against exports in non-physical
forms, instruction mentioned in sub para (1), (2), (3) & (4) shall have to be followed by ADs and
exporters concerned.
(1) Export on non-physical form : Business Process Outsourcing
Firms/companies/individuals may provide services outsourced by non-residents through internet
like data processing, data entry, etc. rendered from Bangladesh in non-physical form, against
which payments in foreign exchange are received through ADs. The payment against these
services are normally due on delivery of the services and it may not necessarily require
documents for collection of export proceeds. In these cases, ADs are free to credit the receipts in
foreign exchange to the account of the relevant service exporter in equivalent local currency
and/or in ERQ account [upto admissible portion as mentioned in Para 27(c,d), Chapter 13]
maintained in the name of the respective exporter subject to observance of the following terms
and conditions :
(i) ADs shall satisfy themselves on examination of the relevant documents (such as e-mail
communication) and the message (such as SWIFT) relating to the inward remittance that the
payment has been received from the respective non-resident customers to whom services have
been delivered in accordance with specific arrangements;
ii) ADs shall ensure that the individual beneficiaries have necessary capacities to provide the
underlying services;
iii) ADs shall encash the inward remittance on receipt of Form C (Appendix 5/10 or 5/11 as the
case may be) duly filled in from the beneficiaries. To mention, separate Form C (Appendix 5/11)
shall be used for reporting inward remittance on account of ICT related services for easy
codification of the purpose and usual report to Bangladesh Bank in relevant statement/schedule
and online reporting module. ADs are instructed to adhere to the instructions enumerated in the
Form (Appendix 5/11) while reporting inward remittances on account of ICT related services.
However, inward remittance upto USD 10,000 (ten thousand) or equivalent against service
exports may be credited in the respective accounts of service exporters without obtaining
declaration on Form C. In this context ADs shall satisfy themselves bonafide of the transactions
with the notation of the relevant SWIFT message. In case of non-availability of required
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information, ADs shall contact the beneficiaries through e-mail about the purpose of
transactions;
iv) ADs shall ensure deduction of applicable taxes, if any;
v) ADs shall exercise due diligence in respect of the transactions and comply with foreign
exchange regulations, AML/CFT standards and other relevant laws/regulations in force; and
vi) ADs shall keep records in support of the transactions and report the same in relevant monthly
schedules/statement to Bangladesh Bank.
There are other service exports such as business services, professional/research and advisory
services, etc. rendered from Bangladesh against which payments in foreign exchange are
received through ADs. Remittances from abroad as payments against these and all other
non-agency service exports in non-physical form may also to be credited to local currency
accounts and ERQ accounts in the names of the concerned exporters, subject to observance of
the same instructions as stated above.
(2) Repatriation of export proceeds through OPGSPs
ADs are allowed to offer the facility of repatriation of remittances against small value service
exports in non-physical form such as data entry/data process, business process outsourcing etc.
through the OPGSPs, subject to compliance of the following instructions:
(i) ADs shall enter into standing arrangements with internationally recognised OPGSPs and
maintain separate Nostro collection account for each OPGSP to repatriate the above mentioned
service export related payments. Service exporters availing of this facility shall open notional
accounts with the OPGSPs. It is to be ensured that no funds are retained in such accounts and all
receipts should be automatically swept and pooled into the Nostro collection account maintained
by the ADs.
(ii) This facility shall only be available for service export in non-physical form of value not
exceeding USD 5000 (USD five thousand).
(iii) The following debits will only be permitted to the Nostro collection account opened and
maintained under this arrangement:
a. Repatriation of funds representing service export (as mentioned above) proceeds to
Bangladesh for payment to service exporters;
b. Payment of fee/commission to the OPGSP as per the predetermined rates/
frequency/arrangement; and
c. Charge back to the service recipient/importer where the service exporter has failed in
discharging the obligations as per specifications.
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(iv) ADs shall repatriate the balances held in the Nostro collection account and arrange to credit
the respective exporter's account with a bank in Bangladesh on being confirmed that the export
proceeds have been swept and pooled into the Nostro collection account from the exporter's
notional account.
(v) ADs shall satisfy themselves as to the bonafide of the transactions on examination of relevant
documents and credit the amount, repatriated from the Nostro collection account, to the
exporter's account on receipt of Form-C duly filled in (if applicable). However, ERQ account of
the exporter may be credited up to the permissible limit of the total proceeds in accordance with
the instructions laid in chapter 13, section IV of this Guidelines. ADs shall also ensure deduction
of applicable taxes, if any and payment thereof.
(vi) Besides reporting the transactions to Bangladesh Bank in monthly schedules/statements,
ADs shall submit all the relevant information/documents relating to any transaction under this
arrangement to the Bangladesh Bank, as and when advised to do so.
(vii) Each Nostro collection account shall be subject to reconciliation and audit on a quarterly
basis in terms of Para 7, Chapter 4 of this Guidelines.
(viii) Resolution of all payment related complaints of exporters/service providers in Bangladesh
shall remain the responsibility of the OPGSP concerned.
(ix). ADs entering into arrangement(s) with any OPGSP(s) shall report to FEPD, Bangladesh
Bank, Head Office, Dhaka with necessary details.
(x) ADs shall exercise due diligence in respect of the transactions with OPGSPs and comply with
the foreign exchange regulations, AML/CFT acts/regulations and any other relevant
laws/regulations in force.
(3) Repatriation of ICT related service income through international card
ADs may provide facilities to credit inward remittances received in international card
number/account against the services provided by individual developers/freelancers of mobile
Apps and Games having acknowledgements/training/boot-camps/hackathons/course
participation certificates on mobile application development arranged by government authority/
BASIS, or its member organisation and any other recognised training/academic institutes. In this
context, ADs shall issue to individual developers/freelancers international cards (termed as
'Freelancer Card') having duel currency units with features of being prepaid from abroad and
observe the following instructions:
(a) On receipts of the payment, up to eligible ERQ portion (Section-IV, Chapter 13) may be
credited at the options of beneficiaries in foreign currency unit of the card, the remainder
mandatorily in local currency unit after conversion at prevailing exchange rate.
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(b) The balance held in foreign currency unit of the card as ERQ is usable for payment, through
usual banking channel, on international current account transactions for bonafide business
expenses including legitimate expenses for personal purposes. The cards may be used for
permissible online transactions from Bangladesh mentioned in Para 40, Chapter 10, Para 9,
11(B)(ii) & 12(only visa processing), Chapter 11, Para 28(i), Chapter 13, Para 16&17, Chapter
19. Outward remittances from foreign currency balance are subject to fulfillment of taxes
payment obligations, if any.
(c) Inward receipt exceeding USD 10,000(Ten thousand) or equivalent is subject to declaration
on Form-C (ICT), Appendix 5/11.
(d) ADs shall report the transactions to Bangladesh Bank in relevant statement/schedule and
online reporting system mentioning appropriate code relevant to ICT/computer services.
(4) Receipt of payment through acquiring banks
In addition to transmission of IT enabled products through V-Sat, Internet or other electronic
media, IT/Software exporting firms may sell their products/services to the customers abroad
through web/internet. In the context of web based trade, ADs may work as 'Acquiring Banks' for
realisation of internet/web generated payment through International Credit Card favoring BASIS
member IT/Software firms registered and operating in Bangladesh subject to compliance with
following terms and conditions:
i) ADs shall have the merchant agreements with the beneficiaries;
ii) ADs shall have to be satisfied that the beneficiaries have necessary arrangement for safe
internet transactions;
iii) ADs shall have to be ensured that the beneficiaries have necessary approval, where
applicable, from the competent authorities for conducting the business and are member firms of
BASIS.;
iv) ADs shall have to be satisfied that online payment is relevant with the nature of business of
the beneficiaries;
v) ADs shall make the payment, credited to their nostro accounts, available to beneficiaries'
accounts on receipt of Form-C (ICT), Appendix 5/11 duly filled in from the beneficiaries. The
ERQ accounts of the beneficiaries may be credited to the extent of permissible limit from the
total payment provided that the transactions deserve such credits as per instreuctions mentioned
in Chapter 13, Section IV.
vi) ADs shall comply with the relevant instructions contained in paragraph 23(b)(1) above;
vii) ADs shall keep records of the transactions with documentary evidence in support of the
payment.
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viii) ADs shall have to comply with the applicable regulations of foreign exchange transactions,
AML/CFT, payment and settlement systems and other relevant laws/regulations in force and
report the transactions with monthly returns to Bangladesh Bank in the relevant
schedules/statements.

c. Time limit for repatriation of export proceeds

Unless specific approval is obtained from Bangladesh Bank, the entire export proceeds in case of
export in physical form must be repatriated within four months of export as usual. Particulars of
overdue exports in physical form shall be reported as per Appendix 5/35.

24. Export Development Fund (EDF)

AD banks can borrow US Dollar funds from the EDF administered by Bangladesh Bank against
their foreign currency loans to manufacturer-exporters for input procurements. The details
operational procedures are available in the relevant FE Circulars/Circular Letters issued by
Bangladesh Bank from time to time.

25. Discounting of direct and deemed export bills in foreign exchange

Beneficiaries of usance export bills against direct and deemed exports of products produced in
Bangladesh may arrange to discount bills for immediate financing through their own AD banks
subject to compliance of the following instructions:

a) ADs shall have to be ensured that the usance bills presented for discounting are out of
bonafide direct/deemed export transactions;

b) ADs may arrange fund against the discounting of usnace bills in foreign exchange through
their own OBUs/correspondent banks, financial institutions abroad or international financing
institutions;

c) Expenses of the customers for discounting bills shall not exceed 6% (all in cost) including all
types of commissions/charges/fees/interests;

d) AD banks shall submit statement(Appendix 5/38) to FEPD, Bangladesh Bank, Head Office of
discounting of direct/deemed export bills in foreign exchange on monthly basis by 15th day of
the following month.

However, proceeds from such discounting (after payment of BTB LCs of concerned exports)
may be retained in single pool as per instruction mentioned in Para 42(i), Chapter 7 for future
import payments including BTB liabilities.

Type C units of EPZs and EZs can avail this facility under the stipulations as mentioned in Para
23, Chapter 16.
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26. Re-export and Entre-port Trade

Re-export and Entre-port trade by the exporters of Bangladesh are subject to the guidelines of
Ministry of Commerce disseminated through Import Policy Order and Export Policy in force
published from time to time. However, ADs will abide by the following instructions in
conducting foreign exchange transactions in such cases :
a. Compliance with relevant instructions of Ministry of Commerce including prescribed
minimum value addition requirement is to be ensured;
b. In case of re-export, import value (including freight) will be met from repatriated export value
only. Besides, usual IMP and EXP procedure will have to be followed in import (including
freight) and export of goods respectively;
c. In case of entre-port, import value (including freight) will be met from repatriated export value
only. Declaration in 'Form C' and 'Form TM' shall be used for reporting receipts of export value
and making import payment (including freight) respectively.