(Bangladesh Bank FE Circular No. 33, Dated 4 September, 1989)
Attention of the authorized dealers is invited to FE Circular No. 25 dated 16.07.89.
02. The following instructions are issued in cancellation of the instructions contained at item (b) of the 1st paragraph of the Circular referred to above:
Type-B industries (joint venture) of EPZs other than garments industries shall be allowed to deposit 70% of each of their exports earnings in their foreign currency account without prior permission of the Bangladesh Bank and the remaining 30% will be encashed at SEM rate and deposited in their local currency accounts. The foreign currency so purchased by the authorized dealers will be sold to be the SEM fund of the Bangladesh Bank as per instructions contained in para (3) of FE Circular No.15, dated 17 March,1988.
In case, expenses representing the cost of imported raw materials, spares and other foreign exchange overheads applicable to each export consignment exceed 70% of the export proceeds of the related consignment, applications may be submitted to the Bangladesh Bank with relevant documents for purchasing funds at SEM rate out of the remaining 30% of export proceeds encashed at SEM rate. In case of Type-B garments industries in the EPZs, 75% of the export proceeds will continue to be credited to their foreign currency accounts as per provisions of FE Circular No. 66, dated 23.8.84 and the remaining 25% will be credited to their local currency accounts. For encashment of 25% of the export proceeds in these cases, the instructions contained in FE Circular No. 15, dated 17.3.88 will apply.