Bangladesh Bank (BB) has introduced a comprehensive consolidated circular updating the country's foreign exchange regulations for export trade transactions. The new directive, FEPD-1 Circular No. 26, aims to simplify compliance, promote digital trade, and facilitate export earnings. This circular consolidates all instructions issued since July 2025 and will remain effective for one year.
Emphasis on Digitalisation
The circular places a strong emphasis on digitalisation by expanding the use of the Online Export Monitoring System (OEMS) for electronic submission of EXP Forms. Exporters are required to submit signed hard copies of electronically filed EXP Forms, along with certified Bills of Export and shipping documents, to Authorized Dealers (ADs) within 14 days of shipment. To support the growing digital economy, the central bank introduced detailed guidelines for freelancers and ICT service exporters.
Simplified Procedures and Pilot Frameworks
Authorized Dealers are now allowed to issue dual-currency "Freelancer Cards" to facilitate the receipt of export earnings. Software and ICT service exporters may retain up to 50 percent of their net export income in foreign currency accounts, while other eligible service exporters can retain up to 30 percent. The circular simplifies procedures for e-commerce exports, exempting Business-to-Consumer (B2C) and Business-to-Business-to-Consumer (B2B2C) exports conducted through internationally recognised online marketplaces with shipment values up to US$1,000 or equivalent from requiring an EXP Form, provided export proceeds are received before shipment.
In another significant step, Bangladesh Bank has launched a pilot framework for digital processing of trade documents under documentary collections and Letters of Credit (LCs), paving the way for paperless cross-border trade through approved trade corridors. The consolidated instructions also provide comprehensive guidelines for enterprises operating in Export Processing Zones (EPZs), Private EPZs, Economic Zones (EZs), and Hi-Tech Parks, including procedures for handling export proceeds and maintaining foreign currency accounts for different categories of enterprises.
Reaffirming regulatory compliance, the central bank said exporters must repatriate full export proceeds within the prescribed timeframe under the Foreign Exchange Regulation Act, 1947. The circular also reinforces Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements for all cross-border transactions. Bangladesh Bank directed all Authorized Dealers to immediately inform their clients of the updated regulations, saying the consolidated circular is intended to serve as a single reference point for exporters and banks, ensuring smoother trade operations, greater transparency, and more efficient foreign exchange management.
