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Bangladesh Bank now requires inclusion of Value, Unit Price, and Quantity in Pro Forma Invoice/Indent.

As per the Guidelines for Foreign Exchange Transactions, Volume-1, Chapter-7, Section-2, Para-20, Authorized Dealer banks are required to verify the importer-exporter’s details, the country of origin of the goods, and the competitive price of the respective goods in the international market before opening any Letters of Credit (LCs).

By FEPD Circular Letter No. 10 dated September 18, 2023, to verify the prices of imported goods in alignment with international market rates, Bangladesh Bank now instructed AD banks to require the following details in the Purchase Invoices (PI) from exporters or indents:

  1. Comprehensive product descriptions, including quality, brand, date of manufacture, packaging information, and any applicable product grade that allows for the product’s quality to be distinguished, along with price and quantity per unit.
  2. In cases of importing multiple products under the same PI, each product should be described separately, including value, brand, date of manufacture, packaging information, and any distinguishing characteristics, such as tags, that relate to the product’s quality, price, and quantity per unit.
  3. For multiple goods imported under a single PI, present all the goods based on their natural units without the need for specific unit measurements like kilograms, liters, or pieces.
  4. Compliance with International Chamber of Commerce (ICC) approved incoterms and accurate documentation of transport charges when applicable.
  5. Precise specification of the first two digits (a total of 8 digits in full) of the HS code for the specific identification of the imported goods.

FDI report must be submitted within 20 days after each quarter.

On 16 February 2023 Bangladesh Bank issued SD Circular No. 02/2023 informing all AD banks and their offshore unit about the change.  

What has changed?  

  • The circular requires all FDI receiving companies to submit the FDI reporting form (Form Fl-1) along with supporting documents to their authorized dealer bank within 20 days instead of one month after each quarter. Similarly, outward FDI sending companies are required to submit the FDI reporting form (Form F1-2) with relevant documents within the same time frame. 
  • Additionally, all FDI receiving and outward FDI sending organizations are required to submit the FDI reporting forms (Form FI-1 and Form FI-2) through the Rationalized Input Template (RIT) on the Web Portal within one month instead of 15 days after the next quarter. Hard copies of the reporting forms should also be submitted to the FIED Management Cell of the Statistics Department of Bangladesh Bank. 

Regulations for speedy release and disposal of perishable goods introduced

Government has introduced Perishable Goods Speedy Release and Disposal Regulations 2021 through a notification being SRO No. 269-Ain/2021/44/Customs dated August 8, 2021 (Gazette published on August 11, 2021). 

As per the regulations, if everything is in order, the process of customs clearance of perishable goods should be completed within 48 hours. This timeframe can be extended; subject to the permission of the concerned commissioner. Any importer or exporter or their agent may submit a bill of entry to any system within 24 hours if they desire.

Pursuant to the regulations, each Commissioner in each customs house has to form a special committee of not more than five members for the management of the perishable goods expediently. If an importer does not release the goods within the stipulated time, the special committee will dispose of the goods through auction or if not possible, through destruction.

There are 63 types of goods listed as perishable in the regulation and the Joint Commissioner or other senior customs official has the power to declare any goods as perishable. 

The list includes ivestock, birds and animals, ducks, chicken and poultry, frozen fish, fish fry, yeast, plants and seedlings, mushrooms, fresh flowers, fresh fruits, fresh capsicum, pickles, dried fruits, tea leaves, coffee, betel nut, coconut, ghee, butter oil, molasses, nuts, fertilizers, rawhides, beets, raw rubber, sugar, black salt, common salt, testing salt, milk and dairy products, frozen and processed meats, poultry eggs, chocolate, biscuits, vermicelli, chips, noodles, chanachur, onions, garlic, chillies, ginger, raw turmeric, fresh and frozen vegetables, tamarind, all food and cosmetics for a period not exceeding six months, medicines and medicinal raw materials and edible oils.

Download: পচনশীল পণ্য দ্রুত খালাস ও নিষ্পত্তিকরণ বিধিমালা, ২০২১

Duty Drawback Regulations 2021 introduced

From now on, export-oriented companies will only get refunds of customs and regulatory taxes from the Director General, Duty Exemption and Drawback Office (DEDO). All exporters have to apply for refund of taxes within six months after export.

Recently, the National Board of Revenue (NBR) has issued the Duty Drawback Regulations 2021. According to the regulations, the duties will be refunded under these rules. NBR reimburses the export-oriented companies for the various products, including raw materials and goods in the supply chain. Exporters will have to apply for a refund at the Director General.

Exporters have to apply in a specific form with proof within six months of exporting the goods to get the import duty refunded. After the submission of the application form and documents of the applicant, Director General will take necessary steps to verify and select it. If necessary, on-the-spot inspection will also be done. Within 21 working days of inspection or within 15 working days if inspection is not required, Director General will issue the refund as a cheque in favor of the applicant’s account.

Download: শুল্ক প্রত্যর্পণ বিধিমালা, ২০২১