What counts as jewellery, who may export gold and silver jewellery, how back-to-back imports of gold, silver and stones work, how much money must come home when the buyer pays for the inputs, and when Bangladesh Bank must say yes first.
In Lesson 36, Taking foreign exchange, Taka and securities out of Bangladesh, Tamim learned what a traveller may carry out of Bangladesh, and how foreign securities may leave only with Bangladesh Bank's permission.
This week something shinier is leaving. Rumi runs a small family jewellery workshop in Tanti Bazar, Old Dhaka. Her grandfather beat gold into bangles in the same narrow lane, and the little hammers still ring there from morning till late evening. Now a buyer abroad has seen Rumi's filigree earrings online and wants a proper order. On Tuesday she walks up to the export desk with a notebook full of questions.
"Eliana," she says, "can a workshop like mine export gold? Where do I get the gold? And if the buyer pays for the gold himself, do I still have to bring the whole price home?"
Eliana smiles. "Good questions, and you are lucky today." The branch has a guest that week: Shely, a retired Commissioner of Customs, who has watched a great many jewellery parcels pass through customs checks. Eliana invites Rumi to sit in.
"Gold is small, heavy and very valuable," Shely says. "So the rules around it are short, but each word matters. First, let's agree on what the circular means by jewellery."
This lesson closes Part N, with valuable things leaving Bangladesh as an export: gold and silver jewellery.
Before any rule, the circular sets out what jewellery and precious stone mean. The two terms are treated as including:
all articles made wholly or mainly of gold, platinum, diamonds of all kinds, precious or semi-precious stones, or pearls, whether or not mounted, set or strung;
articles set or mounted with diamonds, precious or semi-precious stones or pearls.
So a loose pearl, a string of pearls, a plain gold chain and a silver-framed ring set with a ruby can all fall inside the meaning. "Mainly" matters: the article does not have to be 100% gold or stone to count.
One small thing to notice: silver is not named in this list. N-6, however, names silver jewellery directly when it sets the export rules, so silver jewellery exports follow N-6. The circular doesn't say more about silver in N-5.
At the desk
Rumi shows Eliana three samples: a gold chain, a string of freshwater pearls with no clasp yet, and a silver ring set with a small garnet. "Is only the chain jewellery?" she asks. Shely turns the pearls over in one hand. "All three fit the meaning: the chain is mainly gold, pearls count even if not strung, and the ring is set with a semi-precious stone."
Key words
Jewellery and precious stone
Under N-5, all articles made wholly or mainly of gold, platinum, diamonds, precious or semi-precious stones or pearls (mounted, set or strung or not), and articles set or mounted with diamonds, stones or pearls.
Semi-precious stone
A gemstone of lower value than the most prized stones, such as a garnet or an amethyst.
Mounted or set
Fixed into a metal frame or holder, as a stone is fixed into a ring.
Read the rule as written (Para N-5)
The terms jewellery and precious stone are deemed to include all articles made wholly or mainly of gold, platinum, diamonds of all kinds, precious or semi-precious stones, pearls, whether or not mounted, set or strung and articles set or mounted with diamonds, precious or semi-precious stones or pearls.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 5 (page 52). The original circular is the authority.
Who may export, and how. Exporters registered with the office of the CCI&E may export gold jewellery and silver jewellery from Bangladesh under the normal EXP procedure. No special form: the same EXP route as any other export.
Importing the raw materials (back-to-back). Jewellery makers often need imported gold, silver and stones. ADs may open back-to-back import LCs for gold, silver and precious stones, to make and export jewellery, when all of this is true:
the exporter is a registered jewellery exporter;
it operates under the bonded warehouse system;
it has received an export LC;
it meets the minimum domestic value addition set in the Jewellery Export Policy of the Ministry of Commerce:
10% for gold jewellery;
15% for stone-studded gold jewellery;
25% for silver jewellery.
Without an export LC. Back-to-back imports may also be made against a firm export order, but only in two cases:
the import costs are met out of advances received from the foreign buyer; or
the foreign buyer settles the import payment abroad directly.
Think of it this way: either the buyer's bank has promised payment (the export LC), or the buyer's own money is already paying for the gold. Either way, the gold is not bought on hope alone.
At the desk
Rumi's buyer has sent an export LC for stone-studded gold earrings, and her workshop is a registered jewellery exporter under the bonded warehouse system. She asks Eliana for a back-to-back LC to import gold and stones. Eliana checks that the order meets the 15% minimum domestic value addition for stone-studded gold jewellery before she proceeds. Shely nods. "The bond keeps the gold under watch; the value addition keeps the work in Bangladesh."
Key words
CCI&E
Office of the Chief Controller of Imports and Exports. Issues trade registrations (ERC, IRC) and public notices.
Back-to-back LC
An import LC opened on the strength of an export LC, common in garments.
Bonded warehouse system
A customs arrangement under which an export-oriented factory keeps its imported inputs in a licensed warehouse under customs watch, to be used for making export goods.
Domestic value addition
The part of an export's value that is added inside Bangladesh, such as local work, skill and materials, rather than imported.
Read the rule as written (Para N-6)
Export of gold jewellery and silver jewellery from Bangladesh may be effected by exporters registered with the office of the CCI&E as per normal EXP procedure. Back to back import LCs may be established by ADs for import of gold, silver and precious stones for manufacture and export of jewellery against export LCs received by registered jewellery exporters operating under the bonded warehouse system, subject to observance of the minimum domestic value addition requirement prescribed in the Jewellery Export Policy formulated by the Ministry of Commerce (10% for gold jewellery, 15% for stone- studded gold jewellery and 25% for silver jewellery). Back to back imports may also be effected against firm export orders in cases where import costs are met out of advances received by the exporter from the foreign buyer, or where the import payment is settled abroad directly by the foreign buyer.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 6 (page 52). The original circular is the authority.
Sometimes the foreign buyer pays for the imported inputs (the gold, silver or stones) in advance abroad, or the inputs are paid for out of advances the buyer sent to the exporter. That part of the value has already been paid for by the buyer, so the exporter is not asked to bring it home as well.
So in these cases the exporter must repatriate the export proceeds only to the extent of the local value addition: the part of the value created in Bangladesh.
Example (illustrative only): the jewellery is invoiced at USD 10,000. The buyer has already paid USD 8,500 abroad for the gold, the only imported input. Rumi must bring home the remaining USD 1,500, the local value addition.
The AD has a record-keeping duty too. During EXP reporting, the AD must keep the total export value and the cost of imported inputs as separate records. That way, anyone checking later can see why less money came home than the full invoice value, and that the gap is exactly the buyer-paid inputs.
At the desk
Rumi's EXP shows USD 10,000, but only USD 1,500 arrives, because the buyer paid USD 8,500 for the gold directly abroad. Eliana does not chase the "missing" USD 8,500. She records the total export value and the cost of imported inputs separately in the EXP reporting, so the file explains itself.
Key words
Local value addition
Under N-7, the part of the export value created in Bangladesh, which is the amount the exporter must repatriate when the buyer has paid for the imported inputs.
Imported inputs
The materials brought from abroad to make the export goods, here gold, silver or precious stones.
Proceeds
The money received from a sale, here the payment for exported goods.
Read the rule as written (Para N-7)
If the cost of imported inputs is prepaid abroad by the foreign buyer or met out of advances received from the foreign buyer, exporters shall be required to repatriate export proceeds to the extent of the local value addition only. In such cases, ADs shall maintain the records of the total export value and the cost of imported inputs separately during the EXP reporting.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 7 (page 52). The original circular is the authority.
Two ways of selling jewellery abroad need prior permission from Bangladesh Bank:
export on a consignment basis: the jewellery is sent abroad first and sold there later, so the price is not fixed when it leaves; and
export for sale in exhibitions abroad: the pieces travel to a fair or show and are sold there.
In both cases the goods leave before a buyer has firmly agreed to pay. So the AD cannot handle these on its own; Bangladesh Bank must say yes before the jewellery goes.
The circular doesn't list what the application must contain; it only says prior permission is required.
At the desk
Rumi is invited to a jewellery fair abroad and wants to take forty pieces to sell at her stall. "Can I just fill in an EXP form?" she asks. Eliana explains that sale in an exhibition abroad needs Bangladesh Bank's prior permission first. Shely adds, "Get the yes before the suitcase is packed, not after."
Key words
Prior approval
Permission from Bangladesh Bank that a bank must get before it acts, case by case.
Exhibition abroad
A trade fair or show in another country where goods are displayed and may be sold.
Read the rule as written (Para N-8)
Prior permission of Bangladesh Bank will be required for export of jewellery on consignment basis or for sale in exhibitions abroad.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part N, paragraph 8 (page 52). The original circular is the authority.
So far: jewellery and precious stone cover articles made wholly or mainly of gold, platinum, diamonds, stones or pearls, and articles set with them. CCI&E-registered exporters export gold and silver jewellery under the normal EXP procedure, and ADs may open back-to-back import LCs for gold, silver and stones for bonded jewellery exporters with export LCs, if the minimum domestic value addition is met (10%, 15% or 25%), or against firm orders paid by buyer advances or settled abroad by the buyer. When the buyer pays for the inputs, only the local value addition must come home, and the AD keeps the export value and input cost separately. Consignment exports and exhibition sales need Bangladesh Bank's prior permission.
Next: Lesson 38, The ERQ account: how much exporters may keep, opens Part O: how much of their export earnings exporters may keep in foreign currency.
Check yourself
30 questions, in 3 sets of up to 10. Nobody sees your answers but you.
Set 1 of 3
N-5 includes articles made wholly or mainly of gold, platinum, diamonds, precious or semi-precious stones or pearls. (N-5)
False. N-5 includes pearls whether or not mounted, set or strung. (N-5)
N-5 covers articles made wholly or mainly of gold. (N-5)
N-5 also includes articles set or mounted with diamonds, precious or semi-precious stones or pearls. (N-5)
N-5 includes articles set or mounted with precious or semi-precious stones, whatever the base metal. (N-5)
True. N-5 names diamonds of all kinds. (N-5)
N-6 allows export by exporters registered with the office of the CCI&E. (N-6)
N-6 says export is effected as per normal EXP procedure. (N-6)
N-6 gives 10% for gold jewellery. (N-6)
N-6 gives 15% for stone-studded gold jewellery. (N-6)
Set 2 of 3
N-6 gives 25% for silver jewellery. (N-6)
N-6 says the requirement is prescribed in the Jewellery Export Policy formulated by the Ministry of Commerce. (N-6)
N-6 allows back-to-back LCs against export LCs received by registered jewellery exporters operating under the bonded warehouse system. (N-6)
N-6 allows it where import costs are met from the buyer's advances or where the buyer settles the import payment abroad directly. (N-6)
False. N-6 also allows them against firm export orders where import costs are met from the buyer's advances or the buyer settles the import payment abroad directly. (N-6)
N-6 sets 25% minimum domestic value addition for silver jewellery. (N-6)
N-6 allows back-to-back imports against firm export orders where import costs are met out of advances from the foreign buyer. (N-6)
N-6 allows export of gold and silver jewellery by exporters registered with the office of the CCI&E. (N-6)
N-7 applies where imported input costs are prepaid abroad by the buyer or met out of the buyer's advances. (N-7)
N-7 requires repatriation to the extent of the local value addition only. (N-7)
Set 3 of 3
N-7 asks ADs to keep records of the total export value and the cost of imported inputs separately. (N-7)
False. N-7 requires repatriation only to the extent of the local value addition. (N-7)
Only the local value addition must come home: USD 10,000 less the USD 8,500 of buyer-paid inputs. (N-7)
N-7 requires ADs to keep total export value and imported input cost separately during EXP reporting. (N-7)
Where inputs are met out of the buyer's advances, N-7 requires repatriation of the local value addition only. (N-7)
N-7 says ADs shall maintain these records separately during EXP reporting. (N-7)
N-8 requires prior permission for export of jewellery on consignment basis or for sale in exhibitions abroad. (N-8)
True. N-8 requires prior permission for sale in exhibitions abroad. (N-8)
N-8 requires Bangladesh Bank's prior permission for export of jewellery on consignment basis. (N-8)
N-8 requires Bangladesh Bank's prior permission for export of jewellery for sale in exhibitions abroad. (N-8)
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