Bangladesh Bank announces commodity trade policy

| Updated:
September 15, 2022 10:35:39

The Bangladesh Bank has announced a commodity trade policy to diversify exports.

Like Hong Kong and Singapore, Bangladeshi traders can now buy goods or services from another country and export them to third countries.

The Bangladesh Bank’s Foreign Exchange Policy Department issued a circular in this regard and sent it to authorized dealers on Wednesday for immediate execution, UNB reports.

The central bank circular stated: “In accordance with current export policy, trade in which goods or services purchased from one country are shipped or delivered directly to a third country is defined as ‘merchandising trade’. To facilitate the transactional services of DAs to their “merchandising, commerce” clients, it was decided to formulate a set of operational guidelines. »

This type of business is gaining popularity all over the world. Specific policies in this regard were needed for Bangladesh. Due to the new policy, the export trade will expand. Now traders from countries like Hong Kong and Singapore can do business. It will bring in a lot of foreign currency.

According to the policy, “merchandising, trading” is defined as “purchasing goods and services from another country and shipping goods and services from that country directly to buyers in a third country. “.

According to the circular, the EXP form will not be required for export activities under the merchandising trade. Similarly, the IMP form applicable to imports will not be required when purchasing goods from different countries.

Import expenses can be covered by income from foreign sources. At the same time, the possibility of meeting import expenses under the buyer’s credit received from abroad has been maintained in the circular. However, in this case, the bank cannot guarantee payment.

The circular stated that there should be sufficient room for local expenses and profits after paying the debts of export earnings.