Shipping, airlines allowed to open FC accounts

February 25, 2014

Shipping lines, airlines and multimodal transport operators licensed as freight forwarders by Customs Authorities will now be able to open and maintain accounts in US dollar or other freely convertible currencies with authorised dealer banks to receive payments in foreign currency against their handling of FOB export cargos from Bangladesh. Funds from these accounts will be usable in foreign currency for payments abroad towards costs and charges relating to their handling of Free-on-Board imports into Bangladesh, said Bangladesh Bank in a circular on Monday.
For FOB imports, the AD banks may at request of their importer clients make payments of freight charges in the taka or in equivalent foreign exchange to shipping lines, airlines, eligible licensed freight forwarders, out of the total value of the Letter of Credit Authorisation Form issued for the import covering costs of goods and freight, it said.
The BB said the receipts in foreign exchange would be used through the foreign currency accounts maintained by shipping lines, airlines and eligible licensed freight forwarders.
Shipping lines, airlines may accept freight charges on FOB exports in foreign currencies from the eligible licensed freight forwarders, it said, adding that in such cases, the shipping lines, air lines will themselves submit necessary encashment certificates with routine monthly returns to BB.
The AD banks will inform Foreign Exchange Operation Department at head office, or relevant area office of BB immediately (by the next business day) as and when each such foreign currency account is opened, the BB said.
It said all receipts and payments transactions through these accounts would have to be included in the
monthly collection and disbursement statements routinely submitted to BB by shipping lines and air lines through their AD banks.
Eligible licensed freight forwarders shall, through the AD banks, also submit monthly statements to BB of collections and disbursements against the handling of FOB exports and imports.
The central bank said transaction statements of these foreign currency accounts would also have to be submitted to the FEOD at head office or relevant area office of BB on a quarterly basis, for post facto checking to satisfy that reasonable amounts from the foreign currency accounts have been encashed to the taka towards defraying of local costs and tax liabilities.

-With New Age input

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