EXPORTER’S RETENTION QUOTA ACCOUNT (ERQ ACCOUNT)
This account can be opened by Bangladeshi Exporter. With this account balance, exporters can promote their businesses abroad, open liaison office(s), and cover import cost of raw materials and machinery.
Rates of quota are
- Merchandise exporters are entitled to a foreign exchange retention quota of 60% of repatriated FOB value of their exports.
- Exporters of computer software and data entry/processing services may retain 60% of export earnings repatriated in foreign exchange in ERQ accounts.
- Readymade garment, furnace oil, bitumen-10% of the repatriated of FOB value.
(a)
Retention quota for merchandise exporters
Merchandise exporters are entitled
to a foreign exchange retention quota of 60(sixty) percent of repatriated FOB
value of their exports. However, for exports of goods having high import content
(low domestic value-added) like POL products including naphtha, furnace oil and
bitumen, readymade garments made of imported fabrics, electronic goods etc. the
retention quota is 15(fifteen) percent of the repatriated FOB value.
(b)
Retention quota for deemed exporters
Retention quota account may also be
opened and maintained in the names of deemed exporters for supplying inputs
against inland back to back letter of credit denominated in foreign currency. Since
foreign exchange earned from direct export is to be shared among direct and
deemed exporters, ADs are obliged for the meticulous compliance of the
followings:
(i) the total amount credited to
the direct exporter's retention quota account together with foreign exchange
paid to the deemed exporter against supply of input must not exceed the net
repatriated FOB export value of the direct exporter; and
(ii) the foreign exchange shall be
credited to the retention quota account of the deemed exporter only after
settlement of the amount against back-to-back LC for deemed export.
(c)
Retention quota for export of software, data entry/processing and other ICT
related
services
Exporters of software, data entry/processing and other ICT related services may retain 70(seventy) percent of net export earnings repatriated in foreign exchange in ERQ accounts.
(d)
Retention quota for other service exporters
Service exporters other than those
mentioned at para (c) above may retain 60(sixty) percent of their repatriated
export receipts in ERQ accounts against service rendered in non-physical form However,
foreign exchange earnings on account of indenting commission or agency
commission for export from Bangladesh cannot be credited to such accounts since
these incomes originate from Bangladesh sources.