In a bid to streamline import processes for related companies, Bangladesh Bank (BB) has eased import declaration requirements. This change acknowledges the prevalence of legitimate transactions between parent companies, foreign subsidiaries, and branch offices. Effective immediately, importers will no longer need to declare the absence of any relationship with foreign exporters, as long as transactions adhere to competitive market prices and applicable regulations.
The revised instructions, issued through the Foreign Exchange Policy Department (FEPD-1), eliminate the previous requirement that importers declare no direct or indirect connections with exporters. Instead, importers must confirm that transactions are conducted on an arm's length basis and meet transfer pricing regulations, relevant laws, and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards.
Authorized Dealers (ADs) have been tasked with obtaining necessary declarations and verifying the legitimacy of the importer-exporter relationship through appropriate documentation. These new measures are also applicable to export transactions, amending previous provisions. BB has updated the IMP Form to reflect these changes and has directed ADs to inform clients of the updated instructions.
By relaxing these declaration requirements, BB aims to foster smoother international trade while maintaining robust compliance standards. This adjustment is expected to benefit businesses engaged in intercompany trade, ensuring they can conduct transactions with greater ease while adhering to necessary regulations.
The simplified rules are part of ongoing efforts to enhance transparency and efficiency in Bangladesh's import and export framework, facilitating smoother cross-border business operations.
