(Bangladesh Bank FE Circular No. 37, dated 10 May, 1983)
By an act of Parliament, namely, the Bangladesh Export Processing Zones Authority Act, 1980 (Act. No. XXXVI of 1980), Export Processing Zones shall be established in Bangladesh under the auspices and supervision of the Bangladesh Export Processing Zones Authority.
The board features relating to the operation of the industrial enterprises in the zones are contained in the Principles and Procedures governing setting up of industries in EPZs issued by the Export Processing Zones Authority.
3. Repatriation of Export Proceeds:
Exports made from the zones shall be declared to the customs on EXP forms in 6 copies as in the case of ordinary exports from Bangladesh. However, for the purpose of indemnifications, these export forms should be rubber stamped or over printed with the words 'Export from EPZ' in bold letters to distinguish these exports from the ordinary ones.
4. Release of Foreign Exchange to the Enterprises against Exports:
The following procedure shall apply to release of foreign exchange by the Bangladesh Bank against exports made from the zones:
Application for the purpose should be submitted to the Bangladesh Bank indicating the cost of production in local currency and foreign currency duly supported by Proceeds Realisations Certificate from an authorized dealer in the prescribed form and other documents as may be required by the Bangladesh Bank.
Pending the Bangladesh Bank's approval, the authorized dealer through whom the export proceeds are realised shall retain the foreign exchange on its own account outside the regular exchange position.
(iii) Type-C industry (100% locally owned) shall also repatriate the export proceeds through an authorized dealer within 4 months as per usual Exchange Control Regulations. The industry shall submit an application to Bangladesh Bank in the manner indicated in 4 (ii) above for allowing transfer to a foreign currency account the FOB value of the cost of goods exported that represents the cost of imported inputs used by it. The said account may also be used for crediting the proceeds of loans etc. obtained in foreign currency. The balance in this account can freely be used for importation of raw materials, capital and other machinery, spares etc. required by the industry as also for repayment of loans, if any, taken from overseas sources.
5. Sale of Bangladeshi Goods to EPZs:
Sale of Bangladeshi goods or raw materials to the enterprises in the EPZs against payment in foreign currency as explained in the annexed regulations shall be treated as exports from Bangladesh and normal exchange control regulations concerning declaration of the exports on EXP forms and repatriation of proceeds within 4 months shall be applicable to these exports.
6. Remittance of Dividends:
For joint venture enterprises (Type-B industries) the Bangladesh Bank shall allow remittance of dividends to the foreign partners / collaborators on submission of the Audited Balance Sheet and Profit & Loss Account etc. as per existing Exchange Control Regulations.