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Friday, July 30, 2021

Central Bank allows e-CAB members to remit abroad $10,000 annually

Country’s Central Bank allowed the e-Commerce Association of Bangladesh (e-CAB) members to remit abroad US$10,000 in a year each to meet their legitimate current expenses.

“To facilitate e-commerce trade in the country, it has been decided that Authorized Dealers (ADs) may allow annual remittance facilities of $10,000 or its equivalent to a member firm of e-CAB for meeting bonafide current expenses abroad through traditional banking channel or card channel. In this case, ADs may issue refillable international credit or pre-paid card with USD 2,000 to the nominated official of the remitter within the limit,” said a Bangladesh Bank (BB) circular.

Aggregate refills in cards and remittances by banking channel shall not exceed the total limit of $10,000 in a calendar year, the circular added.

The circular restricted payments of royalty, technical knowledge or technical know-how fee, technical assistance fee, and franchise fee under the limit.

As per the circular, remittance for such expenses would be guided by the guidelines issued by Bangladesh Investment Development Authority.

Besides, e-CAB members are asked to remit funds abroad within the limit for legitimate purposes through a specific AD.

In the case of changing AD, the relevant files will be transferred directly to the new AD branch on written request by eligible firms.

Meantime, AD banks were asked to comply with relevant foreign exchange regulations, deduction and payments of applicable taxes at sources, VAT and other levies.

An official of the central bank said that the remittance facilities for e-CAB member firms would facilitate e-commerce activities of the country.

Apart from the e-CAB members, members of the Bangladesh Association of Software and Information Services are allowed to remit abroad $30,000 in a calendar year each to meet their business purpose.

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