How much of their export earnings zone enterprises may keep in foreign currency (100% for Type A; up to 80%, or 75% in garments, for Types B and C), what their dollar and Taka accounts may be used for, what may be credited to them, share purchases, foreign equity and loans, and cards for business travel.
In Lesson 39, Using ERQ money: currencies, payments, deposits and cards, Evelyn learned what her ERQ dollars may pay for. An ordinary exporter keeps only a slice of its export money in foreign currency, between 10% and 50% depending on the kind of export, as Lesson 38 showed.
Inside the specialized zones, the slices are much bigger. Back in Lesson 10, Zones and who's who, Eliana's very first file on the export desk was a Korean-owned sweater factory inside an EPZ. Paragraph B-3 said its export money is released to its foreign currency accounts "in accordance with Part P", and that lesson promised we would reach Part P later. Today we do.
Two finance people are waiting at Eliana's desk. Mehnaz is the finance manager of that same sweater factory. "We have USD 200,000 coming in from a buyer," she says. "Must we change any of it into Taka? And we sold our waste yarn locally for Taka. Can that go into our Taka account?" Next to her sits Sabrina, finance head of the shoe factory in the Chattogram EPZ, whom Sadia's import desk met in Import Lessons 29 and 30. "Our factory is part foreign, part local," Sabrina says. "Do we get the same deal?"
Eliana smiles and calls in an old friend of the desk: Dr Omar, the economist and former Chairman of the Bangladesh Investment Board who taught her about zones on her first day. "Remember the three types of factory?" he asks. "This is where the type really matters. Each factory has two pockets: a dollar pocket and a Taka pocket. Part P tells you what goes into each one, and what may come out."
This lesson covers P-1, the only paragraph of Part P: releasing foreign exchange to zone enterprises against their exports.
P-1 sets the rules for releasing foreign exchange to enterprises in specialized zones against their exports. It has five parts.
(a) Type A enterprises (100% foreign owned).
How much to keep:100% of repatriated export proceeds of a Type A industrial enterprise may be kept in foreign currency accounts in its name, with ADs or OBUs in Bangladesh.
Dollar pocket, going out: the balances may freely be used for all foreign payment obligations, including import payments and payments in foreign exchange to the zone authority.
Dollar pocket into Taka: the balances are freely encashable for local spending, or to credit the Taka account for Taka bills such as wages, rents, rates and taxes.
Taka pocket, coming in: a Type A enterprise's Taka account may be credited only with encashments from its foreign currency accounts or other inward remittances from abroad. Two extras are allowed:
Taka from selling factory refuse and the unusable part of raw materials, if the AD is shown the zone authority's permission letter for the sale and evidence that duties/taxes on the sale proceeds were paid;
legitimate receipts, in the foreign currency or Taka accounts, against short weight claims, quality claims, sample freight charges, insurance claims, reimbursement of sample expenses from buyers or parent companies, etc.
When crediting accounts on these grounds, ADs shall observe due diligence under KYC and AML/CFT standards, based on documentary evidence.
Taka pocket, going out: these Taka balances cannot be converted into foreign exchange, and may only be used for local expenses. It is a one-way door: dollars may become Taka, but nothing in this Taka account, wherever it came from, can become dollars again.
(b) Type A share purchases. A Type A enterprise's foreign currency balances may be used to buy shares in Bangladesh, inside or outside the zones. The AD receiving the money follows chapter 9 of GFET-2018 and later circulars, including issuing a certificate and reporting. Dividends from such investments, and disinvestment proceeds (if any) approved by Bangladesh Bank where required, may also be credited to the foreign currency accounts, subject to regulatory compliance, including tax rules.
(c) Type B and Type C enterprises.
How much to keep:up to 80% of repatriated export proceeds, with their ADs; but up to 75% for a Type B or Type C enterprise in the garments sector.
The rest should be encashed to Taka at the prevailing exchange rate.
Their Taka accounts may also be credited with authorized Taka payments, under the same instructions as (a).
Dollar pocket, going out: all foreign payment obligations, including import payments and foreign loan repayments. A Type B enterprise may also pay its foreign exchange obligations to the zone authority from this account. P-1(c) names Type B for this; it doesn't say the same about Type C.
The balances are freely encashable to Taka for local spending.
(d) Money from investors and lenders abroad.Equity from foreign shareholders of Type A and Type B enterprises, and authorized loans received in foreign currency by Type A, B and C enterprises, may be credited to the zone enterprise's foreign currency accounts. Issuing shares to foreign shareholders follows chapter 9 of GFET-2018 and later circulars.
(e) Cards for business travel. To help officials of zone enterprises travel abroad on business, the foreign currency account balances may also be used through international debit or prepaid cards, under FE Circular No. 37, dated September 30, 2025, and later circulars.
One more thing to notice: (a) lets Type A keep its accounts with ADs or OBUs, while (c) speaks of Types B and C keeping theirs with their ADs. The circular doesn't say more about OBUs for Types B and C.
At the desk
Mehnaz's sweater factory is Type A, so all of its USD 200,000 may stay in its foreign currency account. To pay this month's wages, she encashes part of it into the factory's Taka account. Then Eliana checks the waste-yarn sale: the Taka can go into the Taka account because Mehnaz brings the zone authority's permission letter for the sale and proof that duties and taxes on the proceeds were paid. "But remember," Dr Omar adds, "that Taka can't turn back into dollars." Sabrina's shoe factory is Type B and not in the garments sector, so of USD 100,000 (pretend figures) it may keep up to USD 80,000 in foreign currency, and the rest should be encashed to Taka. "Shoes, not shirts," Sabrina laughs. "So 80, not 75."
Key words
Type A enterprise
A zone factory that is 100% foreign owned, including one owned by Bangladeshis who normally live abroad.
Type B enterprise
A zone factory owned jointly by foreign owners and Bangladeshi owners living in Bangladesh.
Type C enterprise
A zone factory 100% owned by Bangladeshis living in Bangladesh.
OBU
Offshore Banking Unit of a bank.
Encashment
Converting foreign currency received into Taka.
Factory refuse
Waste left over from making goods, such as cut-offs and scraps.
Dividend
A share of a company's profit paid to its shareholders.
Disinvestment
Selling an investment, such as shares, and taking the money out.
Equity
Money the owners put into a business in return for a share of its ownership.
Read the rule as written (Para P-1)
The following procedures shall apply to release of foreign exchange to the enterprises against exports made from specialized zones:
(a) 100 (hundred) percent of repatriated export proceeds of a Type A industrial enterprises in specialized zones may be retained in foreign currency accounts in the name of the enterprises with ADs or OBUs in Bangladesh. Balances in foreign currency accounts may freely be used to meet all foreign payment obligations including import payment obligations of the enterprise and payment obligations in foreign exchange to respective zone authorities. Balances from foreign currency accounts will also be freely encashable for local disbursements or for crediting Taka account maintained with ADs for meeting Taka payment obligations like wages, rents, rates, taxes etc. Taka accounts maintained with ADs by Type A enterprises in specialized zones may be credited only with encashments of funds from foreign currency accounts or of other inward remittances from abroad. However, receipts from Taka sales of factory refuses and of unusable portion of raw materials of Type A enterprise may be credited to Taka accounts provided the permission letter of respective zone authorities for the sale and evidence of payment of duties/taxes on sale proceeds are produced to the AD. In addition, ADs may credit legitimate receipts against short weight claim, quality claim, freight charge of sample, insurance claims, reimbursement of expenses for samples from buyers or parents etc. received in foreign currency or local currency accounts of the enterprises. ADs shall observe due diligence in compliance with KYC, AML/CFT standards while crediting accounts under the above mentioned grounds based on documentary evidences. Balances in these Taka accounts cannot be converted to foreign exchange and may only be used for meeting local expenses.
(b) Balances held in foreign currency accounts of Type A industrial enterprises of specialized zone may be used for purchase of shares in zone areas or outside zone areas in Bangladesh. ADs receiving funds on account of share purchase shall observe all instructions including issuance of certificate and reporting routine contained in chapter 9 of GFET-2018 and its subsequent circulars. As such, dividend income out of such investment, and disinvestment proceeds (if any) approved by Bangladesh Bank, where required, may also be credited to their foreign currency accounts, subject to regulatory compliances including taxes regulations.
(c) Up to 80 (Eighty) percent of the repatriated export proceeds of Type B and Type C enterprises other than those in the garments sector may be retained in foreign currency accounts maintained in the names of the enterprises with their ADs; for a Type B or Type C enterprise in the garments sector, up to 75 (Seventy five) percent of the repatriated export proceeds may be credited to foreign currency accounts maintained in the name of the enterprises with ADs. The remainder of the export proceeds should be encashed to taka at the prevailing exchange rate. Besides, Taka accounts of Type B and Type C industrial enterprises may also be credited with authorized payment received in Taka in accordance with same instructions as stipulated in paragraph 1(a) of this part. All foreign payment obligations of Type B and Type C enterprises including import payment and repayments of foreign loans may be met out of the balances in their foreign currency accounts; payment obligations in foreign exchange of a type B enterprise to respective zone authority may also be settled from balances in its foreign currency account. Balances in foreign currency accounts of Type B and Type C enterprises are freely encashable to Taka for local disbursements.
(d) Equity from foreign shareholders of Type A and B enterprises and authorized loan received in foreign currency by Type A, B and C enterprises may be credited in foreign currency accounts of enterprises of specialized zones. Issuance of shares to foreign shareholders is subject to compliance with the provisions of chapter 9 of GFET-2018 and its subsequent circulars.
(e) To facilitate business travel abroad by the officials of enterprises located in specialized zones, balances of such accounts may be used through international debit/pre-paid cards also as per relevant provision of FE Circular No. 37, dated September 30, 2025 and subsequent circulars.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part P, paragraph 1 (page 56). The original circular is the authority.
So far: a Type A zone enterprise may keep 100% of its repatriated export proceeds in foreign currency accounts with ADs or OBUs, use them freely for all foreign payments, and encash them freely for local costs; its Taka account takes only encashments and remittances from abroad, plus permitted sales of factory refuse and unusable raw materials and documented claim receipts, and that Taka can never be converted back. Type A balances may buy shares in Bangladesh, with dividends and approved disinvestment proceeds credited back. Type B and Type C enterprises may keep up to 80% (75% in the garments sector) and should encash the rest; their foreign currency balances pay all foreign obligations, including loan repayments. Foreign equity of Type A and B, and authorized foreign currency loans of all three types, may be credited to these accounts, and officials may use the balances on international debit or prepaid cards for business travel.
Next: Lesson 41, Foreign currency-Taka swaps: what they are and how long they run, opens Part Q, the last Part of the export circular.
Check yourself
30 questions, in 3 sets of up to 10. Nobody sees your answers but you.
Set 1 of 3
P-1(a): 100% of repatriated export proceeds of a Type A industrial enterprise may be retained in foreign currency accounts. (P-1)
P-1(a) says the accounts may be kept in the name of the enterprise with ADs or OBUs in Bangladesh. (P-1)
P-1(a): balances may freely be used to meet all foreign payment obligations, including import payment obligations and payment obligations in foreign exchange to zone authorities. (P-1)
True. P-1(a) says they are freely encashable for local disbursements or for crediting the Taka account for such Taka payment obligations. (P-1)
P-1(a): Taka accounts of Type A enterprises may be credited only with encashments of funds from foreign currency accounts or other inward remittances from abroad, with the stated exceptions. (P-1)
P-1(a) allows it provided the permission letter of the zone authority and evidence of payment of duties/taxes on sale proceeds are produced to the AD. (P-1)
P-1(a) lists legitimate receipts against short weight claim, quality claim, sample freight charges, insurance claims and reimbursement of sample expenses from buyers or parents, etc. (P-1)
P-1(a): ADs shall observe due diligence in compliance with KYC, AML/CFT standards while crediting accounts on these grounds, based on documentary evidence. (P-1)
False. P-1(a) says balances in these Taka accounts cannot be converted to foreign exchange and may only be used for local expenses. (P-1)
P-1(a): 100% of repatriated export proceeds of a Type A enterprise may be retained in foreign currency accounts. (P-1)
Set 2 of 3
P-1(a) requires both the zone authority's permission letter and evidence of payment of duties/taxes on the sale proceeds. (P-1)
P-1(a): balances in these Taka accounts cannot be converted to foreign exchange and may only be used for meeting local expenses. (P-1)
P-1(b): balances may be used for purchase of shares in zone areas or outside zone areas in Bangladesh. (P-1)
P-1(b): ADs receiving funds on account of share purchase shall observe all instructions including issuance of certificate and reporting routine in chapter 9 of GFET-2018 and subsequent circulars. (P-1)
True. P-1(b) says dividend income out of such investment may be credited to the foreign currency accounts, subject to regulatory compliances including tax regulations. (P-1)
P-1(b): disinvestment proceeds (if any) approved by Bangladesh Bank, where required, may be credited, subject to regulatory compliances including taxes. (P-1)
P-1(c): up to 80% of repatriated export proceeds of Type B and Type C enterprises other than those in the garments sector. (P-1)
P-1(c): for a Type B or Type C enterprise in the garments sector, up to 75% may be credited to foreign currency accounts. (P-1)
P-1(c): the remainder of the export proceeds should be encashed to Taka at the prevailing exchange rate. (P-1)
P-1(c): up to 80% for Type B and Type C enterprises outside the garments sector; 80% of USD 100,000 is USD 80,000. (P-1)
Set 3 of 3
P-1(c): up to 75% for a Type C enterprise in the garments sector; 75% of USD 40,000 is USD 30,000. (P-1)
P-1(c): all foreign payment obligations of Type B and Type C enterprises, including import payment and repayments of foreign loans, may be met from their foreign currency balances. (P-1)
P-1(c) says payment obligations in foreign exchange of a Type B enterprise to the zone authority may be settled from its foreign currency account. (P-1)
True. P-1(c) says balances in their foreign currency accounts are freely encashable to Taka for local disbursements. (P-1)
P-1(c): Taka accounts of Type B and Type C enterprises may also be credited with authorized payment received in Taka in accordance with the same instructions as paragraph 1(a). (P-1)
P-1(d): equity from foreign shareholders of Type A and B enterprises may be credited to foreign currency accounts. (P-1)
P-1(d): authorized loans received in foreign currency by Type A, B and C enterprises may be credited. (P-1)
P-1(d): issuance of shares to foreign shareholders is subject to the provisions of chapter 9 of GFET-2018 and its subsequent circulars. (P-1)
P-1(e): balances may be used through international debit/pre-paid cards as per FE Circular No. 37, dated September 30, 2025 and subsequent circulars. (P-1)
P-1(a) speaks of ADs or OBUs for Type A, while P-1(c) speaks of accounts with their ADs for Types B and C; P-1 doesn't say more. (P-1)
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