Voice of International Business

BIDA Approval Process for Outward Remittances due to Payment of Royalty, Fees for Technical Knowledge or Technical Assistance and Franchise Fees: Do you know that you will need  BIDA approval for payment of Royalty and Technical Fees  to make outward remittance?  Yes. Industrial enterprises in Bangladesh registered with Bangladesh Investment Development Authority (BIDA) need approval from BIDA for payment of royalty, fees for technical know-how and assistance and franchise fees. But, almost every business entity, especially industrial enterprises, needs to make payments abroad for those purposes. So, we will outline here the application and approval process from BIDA in detail. However, please note that Section 18 of the BIDA Act, 2016 has imposed this requirement. This requirement is not from the central bank of Bangladesh neither from the Foreign Exchange Regulation Act 1947. Please refer to Chapter 10, Para 25 of Guidelines for Foreign Exchange Transaction ( GFET ), 2018, Vo

Sample Process Flow of Export: Many newbies in the International Trade arena want to know about Export. In this article, we will discuss a sample process flow of Export for them. It will help new professionals, including new bankers working with commercial issues, understand the basic Export process.   Let us discuss first what Export is? Export is the process of selling goods to other nation or country. Selling within the country is also considered as an Export. However, we call this process a “Deem export” or “Local export”. Local export is much an easier process than foreign Export or Final Export. We will cover here a sample process of “Final export” or “Export”. One thing you should keep in mind that this sample process is a Basic process. So, there may be some differences in a real-life scenario. Don’t be disheartened. We will also focus on Local Export in a later section of this article.   Parties Involved in Export: The actual process of the Final Export is more

  The Central Bank of Bangladesh has made further simplification of the process of Foreign Investment in the country. They have clarified the simplification by their latest publication, FE Circular Letter No. 11, date: 17.05.2021, from Foreign Exchange Policy Department, Bangladesh Bank, Head Office.   With this publication, both bankers and foreign investors will be pleased to know that now they do not have any further barriers to open a temporary FDI account through an online application. This policy change will surely ease both the Authorized Dealer (AD) banks in Bangladesh and the potential foreign investors.   Simplification of Account Opening Procedures:   The Central Bank of Bangladesh has recently allowed banks in Bangladesh to open accounts through online applications. They published a circular letter from their Banking Regulation and Policy Department (BRPD), Head Office on 11.03.2021 (Circular letter no. 16) in this regard.   Previously a customer had to ph

The government of Bangladesh provides various facilities to exporters to promote export-oriented industries of the country. As part of the Export facilitation, it extends the cheapest export loan facility to the manufacturer exporters through the Central Bank of Bangladesh. Officially this loan is called EDF Loans.   History of Export Development Fund (EDF) and Its Objective: The Government of Bangladesh Established the Export Development Fund (in short EDF) in 1989 with the support of the International Development Association (IDA). The primary size of this fund was USD31.2 million. The good news is, Bangladesh Government is increasing Export Development Fund to USD5.50 billion, The Daily Star, 28.03. 2021. Though the government established EDF to promote non-traditional manufactured items export business of Bangladesh, it is now not limited to that concept. This EDF loan intends to ensure access to finance in Foreign Currencies/ Foreign Exchange for the manufacturer exporters