Bangladesh Bank (BB) has issued a comprehensive circular consolidating and revising foreign exchange regulations related to outward remittances for transportation services, aiming to simplify and accelerate international financial transactions.

The updated guidelines are intended to facilitate smoother outward remittances for foreign airlines, shipping companies, freight forwarders, courier operators and other entities involved in international transportation services, said the BB circular issued today.

The central bank has brought together existing provisions from the Guidelines for Foreign Exchange Transactions-2018 (GFET) and subsequent circulars into a unified framework with necessary modifications.

Earlier instructions on the matter have been repealed, although monthly reporting requirements under GFET Volume-2 will continue to remain effective.

Under the revised regulations, foreign airlines and shipping companies operating in Bangladesh will be allowed to remit surplus earnings to their respective head offices abroad after adjusting local operational expenses and applicable taxes.

However, the circular requires that a minimum provision equivalent to 10 percent of actual collections be retained to meet refund obligations for unavailed passenger journeys.

To support international trade and transport operations, shipping companies, airlines and licensed freight forwarders have also been permitted to maintain and operate accounts in US dollars or other freely convertible foreign currencies.

These foreign currency accounts may be used for settling expenses related to handling Free on Board (FOB) imports and may also receive proceeds from online ticket sales made through international payment cards.

As part of the updated regulatory framework, Bangladesh Bank will strengthen oversight through several digital platforms, including the Online Inward Remittance Monitoring System, the Online Export Monitoring System (OEMS), and the Online Import Monitoring System (OIMS).

These systems will be used to monitor freight-related charges, inward earnings and outward remittance transactions more effectively.

The circular also introduced new provisions for tour operators. Under the new rules, Bangladeshi nationals travelling abroad will be able to purchase tour packages from member firms of the Tour Operators Association of Bangladesh (TOAB) using up to 90 percent of their annual foreign currency travel entitlement.

The revised instructions apply to a broad range of transportation-related entities and services, including Bangladesh Shipping Corporation, Biman Bangladesh Airlines, private airlines and shipping companies operating international routes, chartered foreign aircraft and vessels, courier service operators, foreign railway companies, and multimodal transportation agencies or freight forwarders.

All authorized dealers in foreign exchange have been instructed to comply with updated reporting formats and submission schedules. Most reports are required to be submitted monthly or quarterly to the Foreign Exchange Operation Department-2 (FEOD-2) of Bangladesh Bank.

The circular stated that the new instructions will remain effective for one year from the date of issuance. Bangladesh Bank issued the directives under powers conferred by Section 20(3) of the Foreign Exchange Regulation Act, 1947.