In a significant move to ease import trade, Bangladesh Bank (BB) has announced revised limits of credit report for obtaining credit on foreign suppliers.
In a new circular, BB has informed all Authorized Dealers (ADs) in Foreign Exchange that the previous threshold for obtaining credit report has been raised substantially.
Under the updated guidelines, ADs are no longer required to procure credit reports for contracts exceeding $30,000 against proforma invoices from the previous limit at$10,000 issued directly from abroad.
Similarly, the threshold for indents issued by local agents has been raised from $20,000 to $40,000. This change aims to streamline the import process, allowing businesses greater flexibility while maintaining necessary oversight.
The circular emphasizes that while the limits have been increased, ADs must still verify that local agents regularly repatriate commission income before proceeding with transactions.
Furthermore, ADs are instructed to obtain credit reports during their validity and are limited to collecting a single report cost for each supplier, which can then be utilized across multiple transactions with the supplier for the duration of the report's validity.
In an effort to foster cooperation among dealers, ADs will now accept credit reports arranged by importers from other ADs, provided these reports are received directly from the originating dealer. This collaborative approach aims to enhance the efficiency and transparency of trade transactions, ultimately benefiting importers and suppliers alike.
All Authorized Dealers are urged to disseminate this information to their clientele to ensure compliance and support the facilitation of foreign trade.
