Open Trade Bangladesh
Home / Export room / Part J
Lesson 29 of 42 · Part J · Level 2 · Explained

Cash on delivery, small-value sales and selling through partners abroad

Three more ways to sell goods online to shoppers abroad: cash on delivery for sales up to USD 500, small parcels up to USD 1,000, paid before shipment, without an EXP form, and the B2B2C route through warehouses and marketplaces abroad. Plus the electronic EXP form that ties them together.

J-3J-4J-5J-6

In Lesson 28, Selling online to shoppers abroad: advance orders and marketplaces, Tasnim learned how to sell her nakshi kantha and jute bags through her own website and through a well-known online marketplace, with the buyer paying first. Business is growing. So are the questions.

"Three new problems," Tasnim tells Eliana at the export desk, counting on her fingers. "One: a shopper in Canada wants to pay only when the parcel reaches her door, like ordering a shirt from an online page in Dhaka. Two: most of my parcels are small, a few hundred dollars. Must I do full export paperwork for every single bag? Three: a marketplace says I can keep stock in a warehouse abroad, so buyers get their bags in two days. Is that even allowed?"

Eliana smiles. "All three are in Part J. But parcels, couriers and warehouses are not my home ground." So she has invited Iyan. He ran operations at a shipping line and at a freight forwarder for many years. He has seen more parcels than Tasnim has seen stitches. Iyan laughs. "A parcel is easy to send. The hard part is making sure the money follows it home. Let's look at each road."

This lesson covers J-3 to J-6: the electronic EXP form, cash on delivery sales, small-value sales without an EXP form, and the Business to Business to Consumer (B2B2C) framework.

Para J-3

Electronic declaration for E-Commerce export

In plain words

J-3 is short but useful. It says an exporter may submit the EXP form electronically, following the relevant instructions. ADs that provide acquiring services for bringing home the money from goods sold on an e-commerce website shall accept that electronic EXP form.

Remember Lesson 25? Under I-2 in Part I, an AD may give an acquiring service to exporters of goods sold through cross-border e-commerce, with the details in paragraph 1, Part-J. Lesson 28 covered that paragraph (J-1), where the AD credits the proceeds on receipt of the electronic EXP form. J-3 confirms the same idea for the AD's side: an electronic EXP form is acceptable.

In simple words: an online shop works online, so its export declaration can be online too. No need to run to the bank with paper for every order.

J-3 doesn't describe the steps for submitting the electronic form. It only says the declaration must follow the "relevant instructions".

At the desk

Tasnim ships three jute bags to a buyer who ordered on her website, and sends her EXP form electronically to Eliana's bank, which gives her the acquiring service. "Do I need to bring a paper copy too?" she asks. Eliana shakes her head. "Your electronic EXP form, submitted under the relevant instructions, is acceptable to us under J-3."

Key words
EXP form
The export declaration form. Every export, unless exempt, must have one.
Acquiring service
The service an acquiring bank gives a seller: accepting card or digital-wallet payments that customers make, online or in shops, and bringing the money to the seller's account.
Electronic declaration
Filling in and submitting a form, such as the EXP form, online instead of on paper.
Read the rule as written (Para J-3)

Electronic declaration of EXP Form by exporters submitted in accordance with relevant instructions shall be acceptable to ADs providing acquiring services for repatriation of proceeds against export of goods concluded on E-Commerce website.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part J, paragraph 3 (page 41). The original circular is the authority.

Ask about this paragraphReport a mistake
Para J-4

Business-to-Consumer export through sales orders against cash on delivery/payment on shipment terms

In plain words

Many shoppers like to pay only when the parcel arrives. J-4 allows this for exports too, with clear limits.

What is allowed. ADs may allow business-to-consumer exports on an e-commerce website under cash on delivery or payment on shipment terms. The limit is up to USD 500 or equivalent for each sale.

But who pays the exporter when the money is collected far away? J-4 answers with two conditions:

(a) Counterparty arrangements. The AD must have arrangements with foreign payment service providers. These providers keep foreign currency accounts or Taka accounts with the AD, under general authorisation. The AD realises the payment for the exporter by debiting those accounts.

(b) Overdraft, with a guarantee. Those accounts in Bangladesh may be allowed an overdraft (they may go below zero for a while). But only if the AD holds payment guarantees from banks acceptable to it, for adequate amounts based on the transaction flows. More sales flowing through means a bigger guarantee is needed.

Think of it like this: the foreign provider collects from the shopper abroad, and the AD pays the exporter from the provider's account here. The guarantee makes sure the bank is not left holding an empty account.

J-4 doesn't say more about the paperwork for these sales, such as the EXP form.

At the desk

A shopper in Canada orders a nakshi kantha worth USD 180 and wants to pay on delivery. Eliana checks that her bank has an arrangement with a foreign payment service provider that keeps an account with the bank. The provider's account is in overdraft this week, but that is allowed, because her bank holds a payment guarantee from a bank it accepts, big enough for the flow of sales. "Then the parcel can go," says Iyan. "Your side has the money covered. Mine is getting the kantha to her door."

Key words
Cash on delivery
A payment term under which the buyer pays when the goods are delivered, not before.
Overdraft
Permission for an account to pay out more than it holds, so the balance goes below zero for a time.
Payment guarantee
A bank's written promise to pay if the party it backs does not. Under J-4, it must cover adequate amounts based on the transaction flows.
General authorisation
A standing permission. The bank does not need to ask Bangladesh Bank case by case, as long as it follows the rules.
Read the rule as written (Para J-4)

ADs may allow business-to-consumer exports of each sale on E-Commerce website up to USD 500 or equivalent under cash on delivery/payment on shipment terms subject to:

(a) ADs shall have counterparty arrangements with foreign payment service providers to realize the payments by debit their foreign currency accounts or Taka accounts maintained with ADs in terms of general authorization.

(b) Overdraft facilities will be allowed for the accounts so maintained in Bangladesh provided that ADs shall have payment guarantees, from banks acceptable to them, for the adequate amounts based on the transaction flows.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part J, paragraph 4 (page 41). The original circular is the authority.

Ask about this paragraphReport a mistake
Para J-5

Small value export under Business-to-Consumer on E-Commerce website without EXP

In plain words

Here is good news for small online sellers. For a small value export up to USD 1,000 or equivalent sold on an e-commerce website, a declaration on the EXP form to Customs is not required, provided the payment was received before shipment. Lesson 28 met this rule already: J-2(1)(d) points to it for marketplace sales. In return, the AD must follow nine provisions:

(a) The exporter's declaration. The AD takes a declaration from the customer that it will (i) export at fair value, (ii) give shipment details such as online orders, Bill of Export and courier receipts immediately from the date of shipment, (iii) give details of its nominated express/courier service providers with valid licences from the competent authority, and (iv) follow the FER Act, 1947 and circulars under it.

(b) The courier's job. The nominated courier completes the formalities with Customs and arranges the Bill of Export for each shipment.

(c) Money waits. Advance remittances, received through legitimate channels, stay in a margin account in the exporter's name until the Bill of Export and other documents arrive.

(d) Money released. On receipt of the Bill of Export, the AD credits the customer in equivalent Taka, except the retention portion, which may go to the ERQ account if the exporter chooses.

(e) Reporting. The AD reports to Bangladesh Bank's reporting system under E-Commerce, quoting the Bill of Export taken from the customs electronic system.

(f) Home delivery. The AD may allow sales on a home delivery basis (DDP term), if enough money is collected from the consumer abroad to cover the courier's costs at the destination, plus transport and other charges.

(g) Checks first. Customer due diligence, KYC and AML/CFT checks before onboarding the exporter.

(h) Records. Customer-wise electronic records, ready for Bangladesh Bank or its inspection team when asked.

(i) Tell Bangladesh Bank. Within 7 days of allowing an exporter to use this framework, send details of the customer and its couriers to Foreign Exchange Policy Department-1 and Foreign Exchange Operation Department-2, Bangladesh Bank, Head Office.

At the desk

A buyer in Australia pays USD 650 in advance for four kanthas. The money arrives through a legitimate channel, and Eliana parks it in Tasnim's margin account. Two days later, Tasnim's licensed courier sends the Bill of Export. Eliana credits the Taka equivalent to Tasnim's account and, since Tasnim asks for it, puts the retention portion in her ERQ account. Iyan nods. "No Bill of Export, no money out. That one rule keeps the parcel and the payment walking together."

Key words
Bill of Export
The exporter's declaration of the goods to Customs, usually filed through a C&F agent. Once Customs clears it, the goods may be shipped.
Margin account
An account where money is held aside and not paid out until a condition is met. Under J-5(c), advance receipts wait there until the Bill of Export arrives.
ERQ
Exporters' Retention Quota: the share of export earnings an exporter may keep in foreign currency, in an ERQ account.
DDP
Delivered Duty Paid: the home delivery term in J-5(f). The goods go to the consumer's door, so the costs payable at the destination must be collected from the consumer.
Read the rule as written (Para J-5)

Declaration on EXP Form to Customs Authority will not be required for small value export up to USD 1,000or equivalent concluded on E-Commerce website against payment received prior to shipment. In this context, ADs shall observe following provisions:

(a) ADs shall obtain a declaration from their customers executing export under Business-to-Consumer on E-Commerce website to the effect that (i) they will export goods at fair value, (ii) they will provide shipment details like online orders, Bill of Export, courier receipts, etc. immediately from date of shipment, (iii) they will give details of nominated express/courier service providers having valid licenses from competent authority, and (iv) they will observe relevant provisions of the FER Act, 1947 and circulars issued thereunder;

(b) Nominated express/courier service providers shall observe formalities with Customs Authority and arrange issuance of Bill of Export against the relevant shipments;

(c) Inward remittances received prior to shipment through legitimate channels against orders concluded at website need to be retained in margin accounts in the name of exporters till receipt of Bill of Export and other relevant documents;

(d) On receipt of Bill of Export, ADs shall make fund available to customers' accounts in equivalent Taka excluding retention portion which may be credited in ERQ accounts at the option of exporters;

(e) ADs shall report the transactions to Bangladesh Bank reporting system under E-Commerce with reference to Bill of Export extracting from customs electronic system;

(f) ADs may allow export under Business-to-Consumer on home delivery basis (DDP term) provided that sufficient amount payable to nominated express/courier service providers on account of relevant costs at destinations along with transport and other charges are realized from consumers abroad;

(g) ADs shall make customers' due diligence including compliance with KYC norms and AML/CFT standards before onboarding exporters;

(h) ADs shall maintain customer-wise electronic records of transactions which need to be made available to Bangladesh Bank or its inspection team as and when asked for; and

(i) ADs shall intimate details of E-Commerce customers including express/courier service providers to Foreign Exchange Policy Department-1 and Foreign Exchange Operation Department-2, Bangladesh Bank, Head office within 7 days of allowing exporters to execute export under this framework.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part J, paragraph 5 (page 41). The original circular is the authority.

Ask about this paragraphReport a mistake
Para J-6New to the master circular

Exports of goods under Business to Business to Consumer framework

In plain words

Some sellers don't post every parcel from Bangladesh. They send stock in bulk to a warehouse abroad, and a marketplace sells it to shoppers from there. That is the Business to Business to Consumer (B2B2C) framework: the exporter (a business) ships to another business abroad, which then serves the ultimate buyer (the consumer). ADs may allow their exporter-customers to export this way, selling through globally recognized online platforms/marketplaces. Four instructions apply:

(a) Registration. The AD obtains, among other things, documentary evidence of the exporter's registration with the globally recognized platform, marketplace or warehouse.

(b) Open account exports. Goods go to consignees who are not the ultimate buyers but give warehousing or other facilitating services. The AD may let shipping documents be made in their name. Consignees may be the online platforms/marketplaces, legitimate subsidiaries/branches of the exporter, or third-party warehousing service providers.

  • Usually no traditional sales contract exists between exporter and consignee, so the exporter may declare the fair value on the basis of proforma invoices.
  • Shipping documents may go directly to consignees or their authorised agents. For this, the AD issues a certificate (as per Appendix-10) to the carriers: shipping lines, airlines, trucking companies, railways and so on.
  • The AD also obtains copies of the contracts/agreements between the exporter and the consignee on warehousing services.

(c) Bringing the money home. Proceeds can come through traditional banking channels, including legitimate payment service operators abroad, as outlined in paragraph 9, Part-A of the circular.

(d) Settling shipments. One payment from a marketplace may cover many shipments under different EXP forms, so one-to-one matching may not be possible. The AD may settle proceeds from a platform against shipments on a First-in, First-out (FIFO) basis: earlier shipments are settled first. The AD may also permit proceeds above the declared value, subject to due diligence and proper documentary evidence.

At the desk

Tasnim sends 200 jute bags to a third-party warehouse abroad that serves a well-known online marketplace. The shipping documents name the warehouse as consignee, the value is declared on a proforma invoice, and Eliana issues the Appendix-10 certificate to the airline. A month later, one payment arrives from the marketplace covering this shipment and an earlier one. Eliana settles the older shipment first. Iyan smiles. "First in, first out, just like the warehouse shelves."

Key words
B2B2C
Business to Business to Consumer: the exporter ships to a business abroad, such as a marketplace or warehouse, which then sells or delivers to the ultimate buyer.
Consignee
The party named in the shipping documents to receive the goods. Under J-6, it is not the ultimate buyer but a party that gives warehousing or other facilitating services.
Proforma invoice (PI)
The seller's advance quote: what will be sold, at what price and on what terms. Not a bill for payment.
FIFO
First-in, First-out: settling money against the earliest shipments first, then later ones.
Read the rule as written (Para J-6)

To facilitate exports of goods from Bangladesh, ADs may allow their exporter-customers to execute exports under Business to Business to Consumer (B2B2C) framework for sales to ultimate buyers through globally recognized online platforms/marketplaces. In this context, the following instructions need to be followed by ADs and respective exporters:

(a) Customer registration with platforms: ADs shall obtain, among others, the documentary evidence of exporters' registration with globally recognized online platforms/marketplaces/ warehouse.

(b) Exports of goods under open account: Exports under this framework shall be made to 'consignees', who are not the ultimate buyers of the goods but provide warehousing or other facilitating services. ADs may permit exporters to prepare shipping documents in the name of such consignees, which may include online platforms/marketplaces, legitimate subsidiaries/ branches of exporters, or third-party warehousing service providers. As a customary practice of B2B2C framework, traditional sales contracts are not executed between exporters and consignees. Exporters may, therefore, declare the fair value of exports on the basis of proforma invoices. Shipping documents may be dispatched directly to consignees or their authorized agents. For this purpose, ADs shall issue a certificate (as per Appendix-10) to carriers (shipping lines, airlines, trucking companies, railways, etc.). ADs shall also obtain copies of contracts/agreements executed between exporters and consignees regarding the provision of warehousing services.

(c) Method of realization of export proceeds: Export proceeds can be repatriated through traditional banking channels including legitimate payment service operators abroad as outlined at paragraph 9, Part-A of this circular.

(d) Settlement of export shipments: In case of sales through platforms/marketplaces, export proceeds received may correspond to multiple shipments under different EXP Forms. As such, one-to-one matching may not be possible. ADs may, therefore, settle export proceeds realized through a specific platform/marketplace against shipments made for sales by following the First-in, First-out (FIFO) principle (i.e., earlier shipments to be settled first). ADs may also permit realization of proceeds in excess of the declared value, subject to due diligence and appropriate documentary evidence.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part J, paragraph 6 (page 42). The original circular is the authority.

Ask about this paragraphReport a mistake
Putting it together

So far: an AD giving acquiring services must accept an electronic EXP form for e-commerce sales (J-3). Cash on delivery or payment on shipment is allowed up to USD 500 per sale, through foreign payment service providers whose accounts with the AD may run an overdraft only against bank guarantees (J-4). Sales up to USD 1,000 paid before shipment need no EXP form to Customs, but the courier arranges the Bill of Export, the money waits in a margin account until then, and the AD keeps checks, records and reports (J-5). Under B2B2C, goods go to consignees abroad on open account, and proceeds are settled first in, first out (J-6).

Next: Part J is now complete. Part K, on foreign exchange transactions by freelancers and individual service exporters, starts in Lesson 30, Freelancers: who counts, getting paid and the checks.

Check yourself

30 questions, in 3 sets of up to 10. Nobody sees your answers but you.

Set 1 of 3

1. What does J-3 say about the EXP form for goods sold on an e-commerce website?
2. True or false: under J-3, an AD that provides acquiring services may accept an exporter's electronic EXP form for goods sold on an e-commerce website.
3. Tasnim submits a properly filed electronic EXP form to her bank for a website sale. A new officer insists on a paper form. What should Eliana tell him?
4. Under J-4, what is the most an AD may allow for each business-to-consumer sale on cash on delivery or payment on shipment terms?
5. Which payment terms does J-4 cover?
6. Under J-4(a), with whom must the AD have counterparty arrangements?
7. Under J-4(a), how does the AD realise the payment for the exporter?
8. True or false: under J-4, a foreign payment service provider's account with the AD may run an overdraft even if the AD holds no payment guarantee.
9. A shopper abroad wants to pay on delivery for a USD 650 order of kanthas. Can Eliana's bank handle it as one cash on delivery sale under J-4?
10. Under J-5, up to what value may a small e-commerce export be sent without an EXP declaration to Customs?

Set 2 of 3

11. Which condition must be met for a J-5 sale to go without an EXP form?
12. Under J-5(b), who handles the Customs formalities and arranges the Bill of Export?
13. Under J-5(c), where is an advance remittance kept until the Bill of Export arrives?
14. Under J-5(e), what reference does the AD quote when reporting the transaction to Bangladesh Bank under E-Commerce?
15. Which of these is NOT part of the exporter's declaration under J-5(a)?
16. Under J-5(a), what kind of courier must the exporter nominate?
17. True or false: under J-5(d), the retention portion may be credited to the exporter's ERQ account if the exporter chooses.
18. True or false: under J-5(g), an AD may onboard a new e-commerce exporter first and do the KYC and AML/CFT checks later.
19. Tasnim's buyer pays USD 800 in advance. The money is in her margin account, but the Bill of Export has not arrived yet. Tasnim asks for the money now. What should Eliana do?
20. A buyer wants Tasnim's USD 300 parcel delivered to her door on DDP terms. What must happen before Eliana's bank allows it under J-5(f)?

Set 3 of 3

21. Eliana's bank has just allowed Tasnim to export under the J-5 framework. What must the bank do within 7 days?
22. A Bangladesh Bank inspection team visits Eliana's branch and asks for Tasnim's small-value e-commerce sales. What should the branch be able to show?
23. A shopper wants to pay for a USD 900 order only on delivery. Can Tasnim use J-5 to skip the EXP form?
24. Under J-6, what does B2B2C stand for?
25. Under J-6(b), who are the consignees of B2B2C exports?
26. Since no traditional sales contract exists in B2B2C, on what basis may the exporter declare the fair value?
27. Tasnim's B2B2C shipment of jute bags is going by air, and the airline will send the shipping documents straight to the warehouse abroad. What does Eliana's bank issue to the airline?
28. True or false: under J-6(d), an AD may permit B2B2C proceeds above the declared value, subject to due diligence and proper documentary evidence.
29. One payment arrives from a marketplace. It covers sales from Tasnim's March, April and May shipments under different EXP forms. How may Eliana settle it?
30. Tasnim wants to start B2B2C exports through a globally recognized marketplace and its warehouse abroad. What must Eliana obtain from her, among other things, under J-6(a) and (b)?
Found this useful? Pass it on.

Brain feeling full? Take a tea break.