Import And Export In Bangladesh 4t5y2r

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 Import and Export in Bangladesh

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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 Foreign Currency

Import and Export in Bangladesh

Importer Local Currency

Economic Border -4-

International Trade (Contd..) Cash In Advance Trade Payment

Open Documentary Collection

Documentary Credit International Trade

Trade Finance

Import Finance Export Finance Forex Market

Foreign Exchange Import and Export in Bangladesh

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Exchange Rate Mechanism

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 Import and Export in Bangladesh

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Role of Bangladesh Bank (Contd..)  Import Policy Order 2015-18  Several articles e.g. LCA Form, Inco, 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.

Import and Export in Bangladesh

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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 Remittances

Money Changers International Money Cards

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Foreign Exchange Transaction Monitoring Dashboard

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Reporting of FX Transactions Goods & Service related to delivery of Goods

FX Transactions Services nonrelated to delivery of goods

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Export

EXP Form

Import

IMP Form

Inward Remittances

C Form

Outward Remittances

TM Form

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)

Import and Export in Bangladesh

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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 Import and Export in Bangladesh

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General Import Procedure (Contd..) After receiving LC, seller ships goods on agreed 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 Import and Export in Bangladesh

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General Import Procedure (Contd..) CCI&E

2) Purchase Contract

1) IRC

Importer LCAF

Exporter 8) Shipping Documents

3) Application for opening LC 4) Allocation of FC 10) Release of Documents

6) Notification of LC

11) Notification of Goods Release

IMP From

Local Bank Bill of Entry 11) Release of Goods

5) Opening & Sending LC

LC

Import and Export in Bangladesh

9) Making Payments

Port/ Customs -15-

Foreign Bank

7) Shipment of Goods

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 (U600)  Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits (URR- 725)  Uniform Rules for Collections (URC-522)  Inco 2010  Local regulations generally prevails on international regulations Import and Export in Bangladesh

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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) Import and Export in Bangladesh

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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) Import and Export in Bangladesh

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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

Import and Export in Bangladesh

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