The ceiling on import payments, what happens when the currency rate moves, which exchange rate applies, and the rules for bank charges.
When you order a sofa for Tk 50,000, you expect to pay Tk 50,000, not Tk 50,000 plus "a little extra" that the shop forgot to mention. Import payments work the same way: the documents set the ceiling.
But there are two honest reasons the numbers can move: the exchange rate changes, and banks abroad charge fees for handling the deal. This lesson shows what is allowed, and what needs Bangladesh Bank's permission.
The ceiling. The total foreign exchange sold for an import, under an LC or otherwise, must not exceed the value in the underlying documents.
When the currency rises. Suppose the import is in a floating currency (say, euro) and no forward contract was booked. If the euro gets dearer before payment, the importer needs more Taka to pay the same euro amount. The rule treats the Taka value as increased by that rise, so the bank can still pay. The foreign currency amount itself does not go up.
Which exchange rate? Unless a forward contract was taken, an import bill is paid off at the exchange rate on the day the bill is lodged in the bank's books.
An LC is for EUR 100,000. When it was opened, a euro cost Tk 140; at payment time it costs Tk 145. No forward contract was booked. Farhana pays EUR 100,000, exactly the document value. The importer pays more Taka, and the rule allows that. If he asked her to send EUR 103,000 "to cover the rate", she would say no: the euro amount can't go above the documents.
(1) The aggregate amount of foreign exchange sold against an import whether under LC or otherwise, should not exceed the value mentioned in underlying documents, in case where import was initiated and remittance is needed in a floating currency against which no forward booking has been made, the Taka value of the amount shall be deemed to have been increased to the extent of appreciation of the foreign currency for the purpose of allowing remittance by ADs.
(2) Applicable exchange rate on retirement of import bill: Import bill, unless forward cover has been taken, shall be retired at the rate of exchange prevailing on the date of lodgment in the book of ADs.
Source: Bangladesh Bank, FEPD-1 Circular No. 30, 13 August 2026, Part A, paragraph 13 (page 9). The original circular is the authority.
No paying more than the import value without Bangladesh Bank's prior approval. There is one exception: the normal bank charges of the foreign correspondent banks. These may be paid on top, so the bank doesn't need to cut them from the import value.
When charges are paid, the bank:
Three limits:
A foreign bank's claim arrives: the import value plus USD 150 in normal LC handling fees. Babul pays both, notes "USD 150, bank charges, paid on 12-10" on the back of the IMP form, and reports it with the TM form. A week later, another claim adds a USD 900 "special arrangement fee" that nobody can explain. That is not a normal charge, so Babul doesn't pay it without Bangladesh Bank's approval.
(1) Remittance in excess of the value of the relative import is not permissible without prior approval of Bangladesh Bank except for payment of normal bank charges of the foreign correspondents. In other words, ADs need not adjust the amount of bank charges from the import value. Remittances of bank charges should be reported to Bangladesh Bank as usual with TM forms and necessary supporting documents. ADs shall endorse the amount of bank charges remitted along with the date of remittance on the back of the IMP Form. They should also quote the approval number and date, if remittance is effected against any specific approval from Bangladesh Bank.
(2) Bank charges of unusual nature i.e., not commonly attributable to transactions against LCs cannot be remitted without Bangladesh Bank's approval. Foreign bank charges in respect of imports in the public sector shall be on the suppliers account and, hence, cannot be remitted from Bangladesh. Bank charges under barter/special trade arrangements (STA) shall be payable in accordance with the relevant provisions therein.
Source: Bangladesh Bank, FEPD-1 Circular No. 30, 13 August 2026, Part A, paragraph 14 (page 9). The original circular is the authority.
So far: the documents set the ceiling in foreign currency. If the currency rises, the importer pays more Taka, not more euros or dollars. Without a forward contract, the bill is paid at the rate on the lodgment date. Normal foreign bank charges may be paid on top and noted on the IMP form; unusual charges need approval; public sector imports can't pay them at all.
Last lesson of Part A: FOB imports and freight.
Four quick questions. Nobody sees your answers but you.
A-13(1): the foreign exchange sold must not exceed the value in the underlying documents.
A-13(2): unless forward cover was taken, the bill is retired at the rate prevailing on the date of lodgment.
A-14(1): payment of normal bank charges of foreign correspondents is the exception that needs no prior approval.
A-14(2): for public sector imports, foreign bank charges are on the supplier's account and cannot be remitted from Bangladesh.
Anonymous. It only adds one to a count, so we know who the lessons are helping. We never learn who you are.
Brain feeling full? Take a tea break.