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The Bangladesh Bank (BB) Saturday asked all the commercial banks not to open any fresh letters of credit (LCs) against imports without settling the previous import-related matters, official sources said.
In all cases of remittances of imports, an importer must submit within four months from the dates of remittances the relevant exchange control copies of the customs bill of entry and certified invoices, the sources added.
The central bank took the move to ease the pressure on foreign exchange in the market through curbing fake imports by implementation of the existing rules and regulations tightly, the sources noted.
The country's banking sector watchdog issued a circular Saturday in this connection and directed the commercial banks to follow the new regulations for opening fresh LCs against import of any commodity.
Under the new regulations, the commercial banks will refrain from opening fresh LCs for those who failed to maintain the existing rules and regulations properly.
In cases of new importer, the banks have to procure and file previous import-related docu ments issued to the client by any other banks before opening fresh LCs against import.
The BB will detect discrepancies if any from quarterly statements from commercial banks on the bill of entry and remittances, If necessary the central bank will instruct not to open fresh LCs for concerned importers.
Under the existing guidelines on foreign exchange transactions (GFET), the central bank is prepared to consider applications for extension of the time limit beyond four months for genuine cases such as delay in the arrival of the ship or difficulties in clearing the goods already landed at a port in Bangladesh etc.
According to the GFET, cases with material discrepancy between the particulars of merchandise for which remittance was made and the merchandise actually received as evidenced by the exchange control copy of bill of entry/customs certified invoice within four months should be reported to the area office of central bank quarterly.
The cases of non submission of bill of entry/customs certified invoice within the period of remittance should also be reported to the area office.
The dealer banks should also follow up with the importers the cases of material discrepancies and of non-submission of bills of entry and customs certified invoices within the stipulated time.
"We always encourage the genuine importers to run their business smoothly but they have to abide by the laws of the land," a BB senior official told the FE Saturday, adding that the central bank wants to check fake imports through strict application of its rules and regulations.
The value of opening LCs against import stood at US$ 7.01 billion in the first half of the current fiscal, a record high growth at 24.7 per cent over the same period of the previous fiscal.
The LCs were worth $5.62 billion during July-December in fiscal 2003-04.
Earlier, the central bank asked all commercial banks to confirm the entry of the imported products into the country even after payment made against them.
The BB also directed the banks to collect all the business-related information of the importers before issuing any letter of credit (LC) for import, sources in the central bank said.
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