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Import & Export in

Bangladesh
Regulations-Monitoring-Compliances

Md Mokaddem Ahamad
Deputy Director
Foreign Exchange Operation Department
Bangladesh Bank
Scopes of Discussion
 Introduction to Foreign Exchange & International
Trade
 Role of Bangladesh Bank in Export & Import
 Introduction to FX Monitoring System
 Regulations related to Import and Export
 General Import & Export Procedure in Bangladesh
 Monitoring through Online Foreign Exchange
Transaction Monitoring System
 Compliance issues regarding Import and Export
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Foreign Exchange vs
International Trade
 International Trade
 Exchange of goods and services across
international borders or territories.
 Foreign Exchange
 Exchange/Conversion of One Currency to another
 Integral Part of International Trade

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Foreign Exchange vs
International Trade
International
Border
Goods and Services

Exporter Importer

Foreign Currency Local Currency


Economic
Border
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International Trade (Contd..)
Cash In Advance

Trade Payment Open Account


Documentary Collection

Documentary Credit
International Import Finance
Trade Trade Finance
Export Finance
Forex Market
Foreign Exchange Rate Mechanism
Exchange
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Convertibility
Role of Bangladesh Bank
 Established under Bangladesh Bank Order, 1972
 Article 7A
 (b) to formulate and implement intervention policies in the
foreign exchange market;
 (d) to hold and manage the official foreign reserves of
Bangladesh;
 Article 63
 Establish and maintain Export Credit Fund(EDF) to
facilitate export and import through medium & long term
loan under re-finance scheme
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Role of Bangladesh Bank
(Contd..)
 Import Policy Order 2015-18
 Several articles e.g. LCA Form, Incoterms, Payment
methods etc. are on Bangladesh Bank’s discretion.
 Export Policy 2015-18
 Several articles e.g export regulations, Cash Incentives,
Value addition etc. are related to Bangladesh Bank.

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Online Foreign Exchange
Transaction Monitoring System
 Monitoring foreign exchange transactions of Bangladesh
through 7 individual Monitoring system namely,
 Foreign Exchange Transaction Monitoring Dashboard
 Online Export Monitoring System
 Online Import Monitoring System
 Online Inward Remittance Monitoring System
 Online TM Form Monitoring System
 International Card Monitoring System
 Online Money Changer Monitoring System
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Online FX Transaction
Monitoring System (Contd..)
Dashboard

Export Import
Outward
Remittances

Inward Money
Remittances Changers
International
Money Cards
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Foreign Exchange Transaction
Monitoring Dashboard

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Reporting of FX Transactions

Goods & Export EXP Form


Service related
to delivery of
Goods
Import IMP Form
FX
Transactions
Inward
Services non- Remittances C Form
related to
delivery of
goods Outward
Remittances TM Form

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Import vs Export:
Definitions
 Import
 Bringing into Bangladesh any physical or non-physical goods
or services (Ref: Article 2(fff), Foreign Exchange Regulation Act, 1947)
 Export
 (i) Sending of goods, physical or non-physical or both, from
Bangladesh to a place outside Bangladesh;
 (ii) Providing services by persons resident in Bangladesh to
any person outside Bangladesh; or
 (iii) Selling Bangladeshi goods or raw materials or nonphysical
contents to the enterprises in EPZs, Special Economic Zones
and Hightech parks of Bangladesh against payment in foreign
currency. (Ref: Article 2(bbb), Foreign Exchange Regulation Act, 1947)

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General Import Procedure
Trader gets Permission for import (IRC) from
competent authority (CCI&E)
Importer/Buyer signs purchase contract with
exporter/seller
Importer Applies to local bank with the contract for
LC
Local bank allocates foreign currency against the
import
Local bank opens LC based on the contract and
sends to foreign bank i.e. bank of the seller

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General Import Procedure
(Contd..)
After receiving LC, seller ships goods on agreed terms
and conditions
Seller sends the shipping documents to the importer’s
bank
Importer’s bank makes payment on the basis of the
documents found in order and notifies importer
Importer releases documents from the bank
Importer releases goods from port after paying
proper duties and taxes
Importer informs the bank about release of the goods
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General Import Procedure
(Contd..)
CCI&E
2) Purchase Contract

1) IRC
Importer Exporter
8) Shipping
LCAF 3) Application for opening LC Documents
4) Allocation of FC 6) Notification of
11) Notification of Goods LC 7) Shipment of
10) Release of Release Goods
Documents
IMP From Foreign
Local Bank
Bank
Bill of 9) Making Payments
5) Opening &
Entry Sending LC
11) Release of Goods
LC Port/
Customs
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Regulations for Import
 Local
 Foreign Exchange Regulation Act, 1947 (FERA)
 Import and Export Control Act, 1950
 Customs Act, 1969
 Importers, Exporters & Indentors (Registration) order, 1981
 Guidelines for Foreign Exchange Transactions, 2009 (GFET)
 Import Policy Order, 2015-18 (IPO)
 FE Circulars and Circular Letters by Bangladesh Bank
 Statutory Rules and Order (SRO) by National Board of
Revenue
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Regulations for Import
(Contd..)
 International
 General Agreement on Tariffs and Trade (GATT)
 Uniform Customs & Practice for Documentary Credits (UCP-
600)
 Uniform Rules for Bank-to-Bank Reimbursements under
Documentary Credits (URR- 725)
 Uniform Rules for Collections (URC-522)
 Incoterms 2010

 Local regulations generally prevails on international regulations


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Monitoring Import Transactions
 Reports to be monitored
 LCAF Information (LC/Contract not reported)
 LCAF List (Shipment Date Before LCA Date)
 LC Information (LC Date wise)
 BILL OF ENTRY FOUND FROM CUSTOMS BUT LC IS NOT
REPORTED BY BANK
 LC_WISE_LC_IMP_BE_AMOUNT
 Bill of Entry Information
 IMP Report(E2/P2)

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Monitoring Import Transactions
(Contd..)
 Reports to be monitored
 Import Status(Based on Transaction Date)
 AD BRANCH WISE IMPORT STATUS (Based on Txn DATE)
 Outstanding (Non-Overdue) Imp Information
 Overdue Bill of Entry Information
 Overdue (Partial) with less Bill of Entry Amount of matched
IMPs
 Excess amount of Bill of Entry than IMP amount of Matched
IMPs
 IMP Information (Based on Payment Date)
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Monitoring Import Transactions
(Contd..)
 Reports to be monitored
 Importer wise Import Overdue
 Importer(IRC) wise Import Performance
 Importer(Name) wise Import Performance
 Bill of Entry Reported After IMP Overdue LC wise
Short/Excess Payment Report

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