BB eases import declaration rules for intercompany transactions

Bangladesh Bank (BB) has eased import declaration requirements for intercompany transactions, allowing importers to conduct business with their parent companies, approved foreign subsidiaries and branch offices under enhanced transparency and compliance conditions.

The central bank issued the revised instructions through Foreign Exchange Policy Department (FEPD-1) today, amending the earlier requirement that importers must declare they have no direct or indirect connection or financial interest in foreign exporters.

The circular said the change was introduced in recognition of the fact that many international trade transactions are legitimately conducted between related companies.

Under the revised rules, importers engaged in intercompany transactions must declare that the transactions are conducted on an arm's length basis at competitive market prices and comply with all applicable transfer pricing regulations, relevant laws and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards.

In such cases, the declaration previously required under clause 1(c) of the prescribed IMP Form regarding the absence of any relationship between the importer and the exporter will no longer be applicable. Bangladesh Bank has amended the IMP Form accordingly.

The central bank directed Authorized Dealers (ADs) to obtain the required declarations before processing import transactions.

ADs have also been instructed to verify the legitimacy of the relationship between the importer and the foreign exporter through appropriate documentary evidence.

The circular said the revised instructions for intercompany transactions will also apply, mutatis mutandis, to export transactions, modifying the provisions of FEPD-1 Circular No. 26 issued on July 30, 2026.

All other foreign exchange regulations will remain unchanged.

Authorized Dealers have been asked to inform their concerned clients of the revised instructions and ensure their immediate and strict compliance.