Encashment of Foreign Exchange by the Industrial Units in EPZs: Application of Seem Rate

(Bangladesh Bank FE Circular No. 15, dated 17 March 1988)
1. Attention of the authorized dealers is invited to our F.E Circular No. 37 of
1983 and 66 of 1984 regarding the foreign exchange transactions of the
industrial units in the Export Processing Zones (EPZs).
2. It has been decided that henceforth the SEM rate will be applied instead of
official exchange rate, for all encashment for export receipts of the industrial
units in the EPZs. The SEM rate will also be applied for the encashment of
funds brought in from abroad by the units in EPZs for meeting their local
expenses.
3. Foreign exchange funds representing (both compulsory and optional
encashment) should be sold by the authorized dealers in the SEM fund in
the Bangladesh Bank, through their Head Offices / Principal Offices at
Dhaka (Funds should be tendered to the Bangladesh Bank in amounts
rounded to the nearest US$ 5000 or £3000. Amounts smaller than US$ 5000
or £3000 need not be tendered). It will not, however, be compulsory for the
authorized dealers to sell to the SEM fund the foreign exchange representing
encashment of other receipts of the EPZ units (such as encashment of funds
brought in from abroad for meeting local expenses, foreign exchange loans
brought in by them with the prior approval of the Bangladesh Bank etc.);
The authorized dealers may retain such funds with them subject to general
instructions regarding holding foreign exchange outside exchange
position.
4. If any portion of the Taka funds enchased at SEM rate by a Type -A EPZ
unit is found remittable at the year and (excess rate amount after all local

expenses have been met in foreign exchange / in local Taka obtained from
encashment), reconversion of the same to foreign exchange will be
admissible only at the SEM rate.
5. It may be mentioned here that no XPB is admissible to EPZ units for their