Written by Mehdi Rahman
Researcher and Columnist
Mehdi Rahman
In a decisive step toward formalizing and facilitating cross-border e-commerce, the central bank has announced a landmark regulatory enhancement on November 5, 2025, by doubling the threshold for exports without declaration on the EXP Form—from USD 500 to USD 1,000 or equivalent. This policy adjustment, coupled with the permission granted to Mobile Financial Service Providers (MFSPs) and Payment Service Providers (PSPs) to repatriate proceeds against such exports, marks a significant stride in easing export operations for small and medium enterprises (SMEs) and digital entrepreneurs in Bangladesh.
The measure, though technical in appearance, represents a transformative shift in how Bangladesh integrates small-value exports, digital marketplaces, and fintech-based payment systems into the formal economy. For thousands of small exporters—craft makers, apparel entrepreneurs, home-based producers, freelancers, and micro e-commerce merchants—this change directly addresses long-standing bottlenecks in documentation, payment realization, and compliance burdens that once hindered their global participation.
Under the earlier regulatory framework, any export of goods required an EXP Form declaration to the Customs Authority, irrespective of its value. The requirement often discouraged small e-commerce exporters whose shipments rarely exceeded USD 500 in value and were typically fulfilled through courier or express delivery services. Recognizing this constraint, the central bank initially relaxed the rule by exempting declarations for exports up to USD 500 on e-commerce platforms against advance payments.
The latest circular—raising the threshold to USD 1,000—further aligns Bangladesh’s trade facilitation framework with international best practices. This enhancement brings flexibility to exporters conducting Business-to-Consumer (B2C) transactions through online platforms. It acknowledges that e-commerce exports often involve multiple small orders rather than large commercial consignments, and therefore, requiring each to go through the full customs declaration and banking documentation was impractical and costly.
Now, exporters can fulfill international orders up to USD 1,000 or equivalent without an EXP declaration, provided that the payment is received before shipment through legitimate channels. This threshold effectively covers a large portion of Bangladesh’s emerging online export transactions through global courier services.
Despite easing the process, the central bank has maintained necessary checks to ensure transparency and integrity in these transactions. Authorized Dealer (AD) banks are required to obtain a declaration from exporters confirming that exports are conducted at fair value so as to prevent misuse of the relaxation for illicit fund movements or under-invoicing.
To maintain transparency in fund management, inward remittances received prior to shipment are to be held temporarily in margin accounts in the exporters’ names until the Bill of Export and relevant documents are submitted. Upon verification, AD banks will release the funds to exporters’ accounts in equivalent Taka, excluding the retention portion eligible for credit to Exporters’ Retention Quota (ERQ) accounts at the exporter’s discretion. This system ensures that the funds received in advance are linked to actual shipments while allowing exporters to benefit from partial retention of foreign currency for future imports of raw materials or inputs.
In addition, AD banks must report these transactions to Bangladesh Bank’s reporting system under the e-commerce category, referencing the Bill of Export data extracted electronically from the customs database. This digital linkage is an important step toward real-time tracking of small-value exports, ensuring traceability and compliance without imposing excessive paperwork.
Another notable inclusion in the framework is the provision allowing B2C exports on Delivered Duty Paid (DDP) terms—commonly known as home delivery. Under this arrangement, exporters can deliver goods to foreign consumers’ doorsteps while the shipping costs, duties, and related expenses are recovered from the buyers in advance. This is a practical recognition of modern e-commerce practices where customers expect all-inclusive pricing and doorstep delivery. The regulation ensures that ADs verify adequate realization of such charges from the foreign buyers before shipment, thereby protecting exporters from losses and ensuring proper accounting of all cross-border costs.
The central bank’s circular goes beyond procedural simplification—it also broadens the infrastructure through which export proceeds can be repatriated. Bangladesh Bank has allowed licensed MFSPs and PSPs to act as facilitators of payment repatriation for small-value e-commerce exports in partnership with internationally recognized Online Payment Gateway Service Providers (OPGSPs), digital wallets, or aggregators. This permission is a critical enabler for Bangladesh’s digital trade ecosystem. Traditionally, small exporters and freelancers faced hurdles in collecting international payments, as global platforms like PayPal or Stripe are not directly available in Bangladesh. The new framework allows domestic PSPs and MFSPs—such as bKash, Nagad, Rocket, Upay, or PSP platforms integrated with banks—to partner with foreign payment aggregators to receive export proceeds legitimately.
Under this arrangement, MFSPs and PSPs will establish standing arrangements with foreign PSPs and maintain settlement accounts in Taka with AD banks, through which the export proceeds are credited. Upon fund receipt, MFSPs and PSPs can make equivalent amounts available to exporters’ digital wallets, enabling fast and convenient access to earnings. All transactions must be recorded electronically and made available to the central bank when required. These provisions effectively integrate digital finance into export operations, bridging the gap between online sales platforms and the banking system. For micro and small e-commerce entrepreneurs—many of whom operate entirely online—this facility will be transformative.
AD banks, meanwhile, remain at the heart of the regulatory oversight process. They will handle the transfer of funds received in their nostro accounts to the settlement accounts of MFSPs and PSPs, ensuring compliance with tax and reporting obligations. Alternatively, ADs may maintain accounts directly in the name of foreign PSPs—either in Taka or foreign currency—to facilitate settlement. Overdraft facilities against these accounts may be allowed, provided payment guarantees are in place from acceptable banks abroad. This creates flexibility in managing payment flows while maintaining prudential safeguards. Further, AD banks may also maintain ERQ accounts in the name of exporters in association with MFSPs or PSPs, allowing retention of a portion of export proceeds in foreign currency before settlement to local accounts. This inclusion of ERQ facility recognizes that even digital exporters may require foreign exchange balances for business expenses such as cloud subscriptions, software licensing, or international marketing.
The decision to raise the small-export limit and formalize digital repatriation channels aligns strongly with the government’s broader digitization agenda. E-commerce has become a lifeline for thousands of small businesses, particularly in the post-pandemic era. Yet, the inability to receive small international payments easily has long remained a bottleneck. By empowering MFSPs and PSPs under a structured regulatory umbrella, central bank has opened a new chapter in inclusive trade facilitation. Small online entrepreneurs who previously relied on informal payment intermediaries or foreign accounts now have a legitimate pathway to conduct business globally—securely and transparently.
This move is expected to particularly benefit women and youth entrepreneurs who dominate the small-scale e-commerce sector. Platforms like Facebook Shops, Etsy, Shopify, and regional e-marketplaces have enabled many to reach global customers. With simplified documentation and accessible payment channels, these entrepreneurs can now confidently expand their export base. The central bank’s decision thus supports broader financial inclusion and women’s economic empowerment—two core objectives under Bangladesh’s national development strategies and Sustainable Development Goals (SDGs).
The enhancement of the non-declaration export limit to USD 1,000, along with the inclusion of MFSPs and PSPs as legitimate repatriation intermediaries, represents a milestone in Bangladesh’s journey toward digital trade facilitation. By bridging regulatory formality with technological innovation, central bank has effectively brought small exporters, fintech operators, and digital marketplaces into a harmonized framework. The policy not only simplifies trade documentation but also democratizes export opportunities—making global commerce accessible to micro and SME entrepreneurs for the first time at scale.
This is not merely a change in threshold; it is a paradigm shift that redefines export accessibility. With appropriate monitoring, robust KYC practices, and digital oversight, this initiative can significantly enhance Bangladesh’s participation in global e-commerce, boost small export earnings, and reinforce the country’s position as a forward-looking player in the international digital economy. In short, this policy is both a facilitator and an equalizer—opening the doors of export opportunity to every capable Bangladeshi entrepreneur, from a home-based craft maker in Bogura to a digital service provider in Dhaka, marking a truly inclusive evolution in the nation’s export landscape.
