Cenbank raises credit report limit
Import transaction costs will reduce
The central bank has increased the import limit for submitting credit reports, which will reduce costs for small importers.
Bangladesh Bank's foreign exchange policy department (FEPD) issued a circular to all banks on Tuesday.
According to the circular, credit reports for foreign suppliers will not be required for imports up to $30,000 against proforma invoices issued directly from abroad. Such reports will not be necessary for imports up to $40,000 provided that indents are used by local agents. Earlier, the limit was $10,000 and $20,000 respectively.
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Bangladesh Bank also asked banks that a credit report regarding a supplier will be obtained one time during its validity. Banks cannot remit more than one time as collection cost for the report. According to the circular, banks shall use the report for all their importers importing from the same supplier.
Banks shall set reasonable service charges attributable to respective importers, it quoted. Credit reports are arranged by importers from other banks.
In another circular, Bangladesh Bank gave guidelines regarding operations of inland transactions by back-to-back LCs. The directive asked banks to introduce electronic options with regard to communication relating to LCs such as transmission, advising, presentation, acceptances and all subsequent communications under mutually agreed systems with counterpart banks.
A senior official of the central bank said that enhancement for a limit of credit reports and multiple uses thereof will decrease import costs since each report requires payment of more than $200. The inland trade framework will streamline process flows that will promote backward linkage industries.
