Bangladesh Bank issues new directive revising previous circular on cash incentives for export of frozen shrimp and other fish.

Bangladesh Bank has issued a new directive revising the previous circular related to cash incentives for the export of frozen shrimp and other fish. According to the new directive, export proceeds must be repatriated from the same country to which the goods were exported. However, if the proceeds are repatriated from a different country, cash incentives may still be provided subject to certain conditions.

The directive was issued on Thursday (September 25) by the Foreign Exchange Policy Department of Bangladesh Bank.

The directive states that the previous circular regarding the disbursement of cash incentives against advance export payments for frozen shrimp and other fish has been amended. Now, export proceeds must be repatriated from the country to which the products were exported. Nevertheless, if the export proceeds are received from a different country, cash incentives will be provided subject to the following conditions:

• It must be confirmed that the proceeds have been received either from the buyer who issued the export order or from a source with a specific business relationship with the export order issuer (excluding exchange houses).
• Before processing the application for cash incentives, the exporting bank must verify the export of goods through an approved tracking system or the Export General Manifest (EGM) from customs authorities, and this information must be attached with the application.

This circular will be effective for goods shipped on or after the date of its issuance. It will not apply to unresolved matters or audit objections relating to previous exports.