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Foreign owned companies allowed to avail interest free loans from parent companies for one year

Bangladesh Bank on 12 March, 2014 through FE Circular No. 13 informed that foreign owned companies may from now on access interest free loans from parent companies/shareholders abroad for up to one year without any prior approval of Bangladesh Bank.

The company availing such loan must report to the Foreign Exchange Policy Department, Bangladesh Bank through their authorized dealer banks within one week of availing each such loan. Repayments of these loans will not require any prior approval.

If the tenor of the loan is more than one year, BOI’s approval will be required as usual.

Service Sectors’ Companies allowed to remit cost of training and consultancy services

Bangladesh bank on 18 February, 2014, through FE Circular No. 08 notified that from now on companies engaged in service sector (within the purview of Industrial Policy) may remit through their nominated authorized dealers up to 1% of annual sales as declared in their previous years’ income tax return towards costs of training and consultancy services as per relevant contract with the foreign trainer/consultant.

Previously this facility was only available for companies engaged in manufacturing or processing or assembling.

Bangladesh Bank suggests FATCA reporting by local banks

Bangladesh Bank has advised local banks in Bangladesh who have accounts of US taxpayers to report to the Internal Revenue Service (IRS) of USA. Through BRPD Circular Letter No-01, issued on 16 January 2014, Bangladesh Bank advised to do so pursuant to the Foreign Account Tax Compliance Act (FATCA) of the United States.

The circular highlights the fact that Government of Bangladesh has not yet decided to execute an inter-governmental agreement with the US. However local banks should register and sign Participation Agreements with the IRS and report under the FATCA. National Board of Revenue (NBR) has also consented in this regard.

[Read more…] about Bangladesh Bank suggests FATCA reporting by local banks

Bangladesh enacted geographical indication act

Recently the parliament has passed the Geographical Indicative Products (Registration and Protection) Act, 2013.

Pursuant to the act, a geographical indication unit under the Department of Patents, Designs and Trademarks will be opened, with the chief of the unit being the registrar.

To register a product, the association or the co-operative for a product will have to apply; apparently no individual can register a product. The validity of a particular registered GI product will remain for five years. The producer would have to apply for re-registering after the validity expires.

According to the law, if persons or associations that are not the real owners of the GI goods and try to get the certificate, they will be punished with a maximum of three years of imprisonment and/or a fine of Tk 2 lacs. The same punishment will be applicable for any misuse of the law.

A committee has been formed to draft GI rules under the act.

Download: ভৌগোলিক নির্দেশক পণ্য (নিবন্ধন ও সুরক্ষা) আইন, ২০১৩

Update 02/08/2014: Government recently published an English translation of the act. You can download the English translation from the following link.

 GEOGRAPHICAL INDICATION OF GOODS (REGISTRATION AND PROTECTION) ACT, 2013