(Bangladesh Bank FE Circular No. 15, dated 17 March, 1988)
Attention of the authorized dealers is invited to our F.E Circular No. 37 of 1983 and 66 of 1984 regarding the foreign exchange transactions of the industrial units in the Export Processing Zones (EPZs).
02. It has been decided that henceforth the SEM rate will be applied instead of official exchange rate, for all encashment for export receipts of the industrial units in the EPZs. The SEM rate will also be applied for encashment of funds brought in from abroad by the units in EPZs for meeting their local expenses.
03. Foreign exchange funds representing (both compulsory and optional encashment) should be sold by the authorized dealers in the SEM fund in the Bangladesh Bank, through their Head Offices / Principal Offices at Dhaka (Funds should be tendered to the Bangladesh Bank in amounts rounded to the nearest US$ 5000 or £3000. Amounts smaller than US$ 5000 or £3000 need not be tendered). It will not, however, be compulsory for the authorized dealers to sell to the SEM fund the foreign exchange representing encashment of other receipts of the EPZ units (such as encashment of funds brought in from abroad for meeting local expenses, foreign exchange loans brought in by them with the prior approval of the Bangladesh Bank etc.); The authorized dealers may retain such funds with them subject to general instructions regarding holding of foreign exchange outside exchange position.
04. If any portion of the Taka funds enchased at SEM rate by a Type -A EPZ unit is found remittable at the year and (excess rate amount after all local expenses have been met in foreign exchange / in local Taka obtained from encashment), reconversion of the same to foreign exchange will be admissible only at the SEM rate.
05. It may be mentioned here that no XPB is admissible to EPZ units for their exports.