Legal Updates
Latest legal updates in Bangladesh
Commodity Exchange Rules introduced in Bangladesh
The Bangladesh Securities and Exchange Commission (BSEC) has recently issued a new notification (BSEC/CMRRCD/2009-193/65/PRD/147 dated October 2, 2023) for regulating the commodity exchange market in Bangladesh which is called ‘The BSEC (Commodity Exchange) Rules, 2023’.
Bangladesh Got Its First Regulations on Cosmetics
The Parliament of Bangladesh has recently enacted a new law known as the Drug and Cosmetics Act 2023 (the “Act”). While Bangladesh has previously had regulations pertaining to drugs, this new act marks the first comprehensive law addressing cosmetics within the country.
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).
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.
National Industrial Policy 2022 introduced
Government of Bangladesh has updated the national industrial policy by approving the “National Industrial Policy 2022” on August 11, 2022, which was subsequently gazetted on September 29, 2022. This policy document lays down a government’s roadmap aimed at accelerating industrialization, fostering innovation, and creating a dynamic economic landscape.
Ministry of Finance Issues New Directives for Overseas Equity Investment
On 16 January 2022, the Financial Institutions Division of Ministry of Finance issue a new regulation titled Capital Account Transaction (Overseas Equity Investment) Rules, 2022, providing guidelines on overseas equity investment.
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.
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.
Unpaid vat must be Paid: RJSC
On 20.04.2021, RJSC published a notice (the notice is undated) regarding the payment of unpaid VAT for services received from RJSC during the financial year 2014-15 to 2017-18. During this period, though there was provision for VAT on the services of RJSC under the VAT Act 1991 and VAT Rules 1991, RJSC did not impose the VAT on their machine-generated payment slip. Here, you should note that any person who (was and) is preparing and submitting the return of any company cannot generate payment slip on their own or put the amount. The payment slip (as well as the amount) is generated by the system implemented by RJSC. Thus, it was an oversight by RJSC themselves.
FRC expands the definition of public interest entities
The Financial Reporting Council (FRC), the newly established regulatory body has issued a notification on 11 Match 2020 (Gazette Published on June 29, 2020). By this notification, FRC extended the range of companies that will be considered as ‘Public Interest Entity’ in addition to what was initially defined in the Financial Reporting Act 2015. Section 2(8)(Ka) allows the FRC Act to make such determination.