BB eases import declaration rules for intercompany transactions
The directive also instructs Authorised Dealers (ADs) – licensed foreign exchange banks – to obtain the new declaration from importers before initiating transactions.
The Bangladesh Bank has eased import declaration requirements for intercompany transactions, allowing importers to conduct business with their parent companies, approved foreign subsidiaries and branch offices under enhanced transparency and compliance conditions.
The central bank issued the revised instructions through Foreign Exchange Policy Department today (4 August), amending the earlier requirement that importers must declare they have no direct or indirect connection or financial interest in foreign exporters, reports BSS.
The circular said the change was introduced in recognition of the fact that many international trade transactions are legitimately conducted between related companies.
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Under the revised rules, importers engaged in intercompany transactions must declare that the transactions are conducted on an arm's length basis at competitive market prices and comply with all applicable transfer pricing regulations, relevant laws and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards.
In such cases, the declaration previously required under clause 1(c) of the prescribed IMP Form regarding the absence of any relationship between the importer and the exporter will no longer be applicable. Bangladesh Bank has amended the IMP Form accordingly.
The central bank directed Authorized Dealers (ADs) to obtain the required declarations before processing import transactions.
