Shipping lines, air lines and multimodal transport operators licenced as freight forwarders by customs authorities can now open and maintain foreign currency accounts to facilitate their payments related to transportation of cargo to and from Bangladesh.
The accounts can be opened in US dollar or other freely convertible currencies with the authorised dealer banks in Bangladesh, in which their receipts in foreign currency against their handling of FOB (freight on board) export cargos from Bangladesh to be credited.
Funds from these accounts will be usable in foreign currency for payments abroad towards costs and charges relating to their handling of FOB imports into Bangladesh, according to a circular Bangladesh Bank issued yesterday. The new decision takes immediate effect.
For FOB imports the AD banks may, at request of their importer clients, make payments of freight charges in Taka or in equivalent foreign exchange to shipping lines, air lines and eligible licensed freight forwarders out of the total value of the LCAF issued for the import covering costs of goods and freight.
The receipts in foreign exchange will be used through the foreign currency accounts maintained by the shipping lines, air lines and eligible licenced freight forwarders.
Shipping lines and air lines may accept freight charges on FOB exports in foreign currencies from the eligible licenced freight forwarders. In such cases, the shipping lines and air lines will themselves submit necessary encashment certificates with routine monthly returns to Bangladesh Bank.
The banks will inform Foreign Exchange Operation Department (FEOD) at head office, or relevant area office of Bangladesh Bank immediately (by the next business day) as and when each such foreign currency account is opened.
All receipts and payments transactions through these accounts will have to be included in the monthly collection and disbursement statements routinely submitted to Bangladesh Bank by shipping lines/air lines through their banks.
Eligible licenced freight forwarders shall, through banks, also submit monthly statements to Bangladesh Bank of collections and disbursements against the handling of FOB exports and imports.
Transaction statements of these foreign currency accounts will also have to be submitted to Bangladesh Bank on a quarterly basis for post facto checking to satisfy that reasonable amounts from the foreign currency accounts have been encashed to Taka towards defraying of local costs and tax liabilities.