Collection of Demurrage, Detention, Handling or equivalent charges by the foreign shipping lines/ their agents as source of fund for calculation of their remittable surplus

Please refer to chapter 10 of the Guidelines for Foreign Exchange Transactions’ 2009

(GFET) in terms of which surplus earnings of foreign shipping lines working in Bangladesh/their agents are remittable without prior approval of Bangladesh Bank. While arriving at remittable surplus, only freight charges collected in Bangladesh are considered as source of fund.

It is observed that the legitimate charges (Charges of Demurrage, Detention, Handling or equivalent charges) in addition to freight are collectable in Bangladesh. Such charges have been declared taxable in Finance Act’ 2017 through amendment of Section 102 of Income Tax Ordinance,1984. In view of scope of wider sources of fund in Bangladesh, it has now been decided that these charges shall be considered for calculation of remittable surplus of foreign shipping lines/their agents working in Bangladesh subject to deduction of taxes and commission. Accordingly the quarterly returns of foreign shipping lines/their agents will be submitted to Bangladesh Bank incorporating these charges.

To bring transparency in transactions, existing Form Shipping-I(Appendix 5/34 of
GFET’ 2009 (Vol-1)) has been amended as per attached with this circular. Foreign shipping
lines/their agents in Bangladesh shall incorporate these charges in revised Form Shipping-I and submit to Bangladesh Bank with their usual periodic returns. Import/export manifests/Bill of Lading Statements shall also be prepared specifying these charges and attached with revised Form Shipping-I.

Please bring the above instructions to the notice of your concerned clientele.

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