BB eases foreign remittance rules for Hi-Tech Park firms

Bangladesh Bank (BB) has allowed Authorized Dealers (ADs) to remit money from Taka accounts on behalf of industrial enterprises in Hi-Tech Parks (HTPs) to meet their foreign payment obligations related to royalty, technical know-how and technical assistance fees.

The central bank issued a circular today, saying the outward remittances can be made without prior permission from the central bank or Bangladesh Hi-Tech Park Authority (BHTPA), provided the payments remain within the prescribed limits. 

Under the existing rules, for new projects, such fees and related expenses cannot exceed 6 percent of the cost of imported machinery. 

For ongoing concerns, the ceiling is 6 percent of the previous year's sales as declared in income tax returns. 

The circular said ADs, before making such remittances, must ensure that the concerned industrial enterprises have no sources of income in foreign currency and that applicable taxes and VAT have been duly deducted and paid. 

For fees exceeding the prescribed limits, prior specific approval from BHTPA will be required. Such approval will also be necessary for outward remittances related to other similar legitimate expenses, irrespective of the amount. 

ADs have also been instructed to comply with the Foreign Exchange Regulation Act, 1947, including due diligence on KYC and AML/CFT requirements, as well as applicable reporting requirements to Bangladesh Bank and BHTPA.