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Lesson 19 of 39 · Part F · Level 2 · Explained

Software by e-delivery, tenders and export-funded imports

Three special cases: paying for software that arrives by download, foreign currency LCs for local suppliers under international tenders, and shipbuilders using advance export money for their inputs.

F-1F-2F-3

In Lesson 18, Paying on time, Rakib learned that a bank's promise to pay has a date on it, and that the date is not a suggestion. He now checks the due-date list every Sunday without being asked. Sadia, his team lead, has noticed.

This Monday brings a different kind of file. Nabila, who owns a software firm in Dhaka, wants to pay a supplier abroad for a set of software licences. "Where is the shipment?" Rakib asks. Nabila smiles. "It came last night. By download. It took eleven minutes, including the time I spent making tea."

Rakib turns to Sadia, a little worried. "No ship, no port, no container. So where is the Bill of Entry? How do we pay for an import that never passed a customs gate?"

"That," says Sadia, "is a question for someone who ran a customs house." That afternoon the branch's training guest is Shely, a retired Commissioner of Customs. She laughs at the question. "Customs has seen many things arrive in strange ways. Software through a cable is just the newest. The circular has a special path for it."

This lesson covers Part F of the import circular: paying for software bought through e-delivery (F-1), foreign currency LCs for local suppliers under international tenders (F-2), and shipbuilders using advance export money held in FC accounts (F-3).

Para F-1

Remittance against purchase of software through e-delivery

In plain words

F-1 lets an AD pay abroad for software bought through e-delivery, as long as it follows a set path. Think of it as three gates.

Gate 1: BASIS says the deal is genuine

The AD may let its customer arrange customs assessment of the software only after the AD is satisfied, from a certificate issued by BASIS (Bangladesh Association of Software and Information Services), that the purchase is genuine and comes from a reliable supplier.

Gate 2: Customs assesses, and the duties are paid

The AD can pay only after it receives:

  • the customs assessment order; and
  • documentary evidence that the duties and taxes have been paid.

Shely's point: for software that arrives by download, the paper the circular asks for is this assessment order and proof of payment. F-1 doesn't mention a Bill of Entry.

Gate 3: The bank's own checks before and after paying

  1. The AD must be satisfied, from the certificate or licence issued by the supplier, that the buyer has already received the software.
  2. The AD must do due diligence and follow AML/CFT rules for the transaction.
  3. The AD must keep an authenticated copy of the supplier's certificate or licence and report the transaction to Bangladesh Bank using the IMP form procedure.

Off the path?

A request to remit without following this procedure needs prior approval from Bangladesh Bank.

In short: genuine deal, duties paid, software received, checks done, papers kept, and then the money goes.

At the desk

Nabila brings Rakib her supplier's licence and an invoice, and asks him to send the money today. Rakib checks his list: there is no BASIS certificate yet, no customs assessment order and no proof of duty payment. Sadia agrees: "Without those, F-1's path isn't followed. Either she completes it, or the remittance needs Bangladesh Bank's prior approval." Nabila sighs and calls BASIS.

Key words
BASIS
Bangladesh Association of Software and Information Services. Under F-1, its certificate shows a software purchase is genuine and from a reliable supplier.
e-Delivery
Delivering software by download or other electronic means, instead of in a physical package.
Customs assessment order
Customs' written decision on the duties and taxes payable on an import.
Authentication
A competent official signing or sealing a copy to confirm it is genuine.
Read the rule as written (Para F-1)

ADs may effect remittance against purchase of software through e-Delivery subject to observance of the following instructions:

(a) Customs assessment of the purchases: ADs may allow their customers to arrange customs assessment of the software after being satisfied from the certificate issued by Bangladesh Association of Software and Information Services (BASIS) to the effect that the purchase of software is genuine and sourced from reliable supplier.

(b) Outward remittances: On receipt of customs assessment order and documentary evidence of payment of duties/taxes, ADs may effect payment against the purchase of the software subject to compliance of the following conditions:

(i) ADs shall be satisfied with the certification/licence issued by the supplier that the software has already been received by the purchaser;

(ii) ADs shall observe due diligence and comply with AML/CFT regulations in respect of the transactions;

(iii) ADs shall keep an authenticated copy of the certification/license issued by the supplier and report the transactions to Bangladesh Bank with IMP Form procedure.

(c) Application for remittance without the procedure mentioned above shall require prior approval of Bangladesh Bank.

Source: Bangladesh Bank, FEPD-1 Circular No. 30, 13 August 2026, Part F, paragraph 1 (page 23). The original circular is the authority.

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Para F-2

Payment in foreign currency against local supply of goods under international tender

In plain words

Sometimes a project in Bangladesh is put out to international tender, and a local contractor wins the work order. F-2 lets that local contractor be paid in foreign currency.

  • The LC: an AD may open a letter of credit in foreign currency in favour of the local contractor, to carry out a work order under an international tender.
  • Settlement: such foreign currency LCs are settled through the FC clearing accounts that the banks concerned keep with Bangladesh Bank. So the foreign currency moves between the banks' accounts at Bangladesh Bank.
  • Who else can use it: the same facility applies to sub-contractors, agents and other local suppliers, in terms of the NBR explanation letter of November 13, 2022, given as Appendix-11.
  • Keeping the money for a while: the foreign exchange received may be retained up to thirty days to settle the client's import payment obligations, as mentioned in paragraph 2 of Part J.

F-2 points to Part J for that detail and doesn't repeat it. It also doesn't say from which day the thirty days are counted.

At the desk

A local cable supplier has won part of a work order under an international tender, as a sub-contractor to the main local contractor. He asks Rakib whether he too can be paid by a foreign currency LC. Sadia points to F-2: the facility also covers sub-contractors and other local suppliers, in terms of the NBR letter of November 13, 2022 at Appendix-11, and the LC is settled through the banks' FC clearing accounts with Bangladesh Bank.

Key words
International tender
A public call for bids that is open to bidders from abroad as well as from Bangladesh.
FC clearing account
A foreign currency account that a bank keeps with Bangladesh Bank, through which foreign currency payments between banks in Bangladesh are settled.
NBR
National Board of Revenue: the government body in charge of taxes and Customs.
Read the rule as written (Para F-2)

ADs may establish letter of credit in foreign currency favoring local contractor to implement work order under international tender. Such LCs established in foreign currency shall be settled through FC clearing accounts of the concerned banks maintained with Bangladesh Bank. The facility is equally applicable for sub-contractors/agents/other local suppliers in terms of NBR explanation letter of November 13, 2022 (Appendix-11). Foreign exchange thus received may be retained up to thirty days to settle import payment obligations of the client as mentioned in paragraph 2 of Part-J.

Source: Bangladesh Bank, FEPD-1 Circular No. 30, 13 August 2026, Part F, paragraph 2 (page 23). The original circular is the authority.

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Para F-3

Payment of import bills from advance export proceeds …

In plain words

Building a ship takes a long time and a lot of money, so buyers abroad often pay part of the price in advance. F-3 helps ship builder-exporters use that money.

  • General authorisation: ADs have a standing permission to open FC accounts on behalf of ship builder-exporters, to keep export proceeds received in advance against ship exports. No case-by-case request to Bangladesh Bank is needed for opening them.
  • Use of the money: the balances in these accounts may be used for input procurements, that is, buying what is needed to build the ship. The paragraph's own heading talks about paying import bills from these balances.
  • Running the account: ADs must follow the relevant instructions when operating these FC accounts. F-3 doesn't list those instructions.

Like a tailor who uses the customer's advance to buy the cloth, the shipyard uses the buyer's advance to buy the steel and engines.

At the desk

A shipyard on the river near Chattogram receives an advance from a foreign buyer for a cargo ship and wants to keep it in foreign currency to pay for imported steel plates. Rakib asks whether they must first write to Bangladesh Bank to open the account. Sadia shakes her head: "F-3 gives ADs general authorisation to open FC accounts for ship builder-exporters. We open it, follow the relevant instructions, and the balance can pay for their inputs."

Key words
General authorisation
A standing permission. The bank does not need to ask Bangladesh Bank case by case, as long as it follows the rules.
Ship builder-exporter
A shipyard in Bangladesh that builds ships for buyers abroad.
Input procurement
Buying the materials and parts needed to make a product, here to build a ship.
Read the rule as written (Para F-3)

Payment of import bills from advance export proceeds retained in FC accounts of ship builder-exporters

General authorization has been given to ADs to open FC accounts on behalf of ship builder-exporters for retaining export proceeds received in advance against ship exports. The balances of these accounts may be used for input procurements. ADs should comply with relevant instructions in operating the FC accounts.

Source: Bangladesh Bank, FEPD-1 Circular No. 30, 13 August 2026, Part F, paragraph 3 (page 23). The original circular is the authority.

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Putting it together

So far: an AD may pay for software bought through e-delivery once BASIS has certified the deal, Customs has assessed it and the duties are paid, the supplier confirms the software was received, and the bank has done its AML/CFT checks, keeping an authenticated copy and reporting through the IMP form procedure; any other route needs Bangladesh Bank's prior approval. Local contractors, sub-contractors and suppliers under international tenders can be paid by foreign currency LCs settled through FC clearing accounts with Bangladesh Bank, and shipbuilders can keep advance export money in FC accounts and use it for their inputs.

Next: Part F of the import room is complete. Part G, on back-to-back LCs, starts in Lesson 20, Opening a back-to-back LC.

Check yourself

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

Set 1 of 3

1. Under F-1, whose certificate must satisfy the AD that a software purchase is genuine and from a reliable supplier?
2. What must the AD receive before it may pay for software bought through e-delivery?
3. Which document must satisfy the AD that the buyer has already received the software?
4. How is a software e-delivery payment reported to Bangladesh Bank under F-1?
5. What must the AD keep on file after paying for software under F-1?
6. What is needed to remit for software without following the F-1 procedure?
7. Which order of steps fits F-1?
8. True or false: under F-1, the AD may pay the supplier before the customer has received the software, so the supplier can then send it.
9. True or false: under F-1, the AD must observe due diligence and comply with AML/CFT regulations for software payments.
10. True or false: F-1 lets the customer arrange customs assessment of the software before the AD has seen a BASIS certificate.

Set 2 of 3

11. Nabila brings her supplier's licence and asks Rakib to remit today. She has no BASIS certificate and no customs assessment order. What should Rakib do?
12. Nabila has her BASIS certificate and the customs assessment order, but has not yet paid the duties and taxes. Can Rakib remit now?
13. Rakib asks Shely why Nabila's file has no Bill of Entry. Which answer stays within F-1?
14. Everything in Nabila's file is in order and Rakib has made the payment. What must the branch still do under F-1?
15. During AML/CFT checks on a software payment, Rakib finds that the overseas payee's name does not match the supplier named on the licence. What fits F-1 best?
16. Under F-2, in whose favour may an AD open a foreign currency LC for a work order under an international tender?
17. How are these foreign currency LCs settled?
18. Under which document does the facility also extend to sub-contractors, agents and other local suppliers?
19. For how long may the foreign exchange received under F-2 be retained to settle the client's import payment obligations?
20. Which part of the circular does F-2 point to for the retention of the foreign exchange received?

Set 3 of 3

21. True or false: under F-2, the foreign currency LC facility also applies to sub-contractors and other local suppliers.
22. A local firm wins a work order under an international tender and asks Rakib if its payment can come by a foreign currency LC. What is the accurate answer?
23. A local agent supplying parts to the winning contractor of an international tender asks if the F-2 facility covers him. What should Sadia say?
24. A contractor paid under an F-2 foreign currency LC wants to keep the money for 45 days to pay its import bills. What does F-2 allow?
25. Under F-3, for whom may ADs open FC accounts under general authorisation?
26. What money do these FC accounts hold?
27. What may the balances of these FC accounts be used for?
28. True or false: under F-3, an AD needs Bangladesh Bank's case-by-case approval before opening each FC account for a ship builder-exporter.
29. A shipyard has received an advance from a foreign buyer for a cargo ship and wants to use it to pay for imported steel plates. What fits F-3?
30. Rakib opens an FC account for a ship builder-exporter and asks Sadia what rules apply to running it. What is the accurate answer?
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