Attention of the Authorized Dealers (ADs) is invited to FE Circular No. 09, dated February 24, 2014, read with subsequent circular letters regarding freight transactions through foreign currency accounts.
- It has been decided that licensed freight forwarders may pay freight charges to airlines/shippinglines in Taka in respect of exports made on FOB basis subject to observance of following terms and conditions:
(a) Freight forwarders will provide encashment certificates (Annexure-1) issued by the designated AD Bank of the concerned freight forwarder to airlines/shippinglines in support of freight charges recovered from the overseas importer through their counterpart freight forwarders abroad and repatriated the same to Bangladesh through normal banking channel. ADs shall issue encashment certificates in support of inward remittances as per Annexure-1 and instructions therein.
(b) Transactions of licensed freight forwarders will be channeled through one AD bank branch designated by licensed freight forwarder. In case of changing AD bank, the relevant file of licensed freight forwarder shall be transferred direct to new AD bank branch with immediate intimation to Bangladesh Bank.
- ADs may, in addition to charges against imports on FOB basis, effect outward remittance on account of profit share/service charges payable to counterpart freight forwarders.
- Licensed freight forwarders shall arrange with their foreign counterpart freight forwarders to receive their receivables in such a manner so as to match the credit line extended to them by airlines/shippinglines locally. The same arrangement shall be made with importers for settlement of charges with counterpart freight forwarders against FOB imports.
- Freight forwarders shall, through their designated ADs, report (as per Annexure-2, 3 & 4) their transactions to Foreign Exchange Operation Department, head office/respective area office of Bangladesh Bank by 20th day at the close of the month.
Please bring the above instructions, effective from April 01, 2016, to the notice of your concerned constituents.
The instructions of this circular have been issued under Section 20(3) of the Foreign Exchange Regulation Act, 1947 and are without prejudice to permissions/approvals, if any, required under any other law.