To facilitate the bonafide needs of exporters and
ensure alignment with their operational requirements, it has been decided to substitute
instructions 1-7 of paragraph 21 with the following:

1) The exporter has received irrevocable LC/contract to execute export against
advance payment;
2) The previous export performance of the exporter is satisfactory and the exporter
shall have adequate capability to execute the export order;
3) The payment in advance shall not bear any interest;
4) Export needs to be executed within a period not exceeding one year from the date
of receipt of advance payment. However, this instruction will not be applicable
for advance payment received against performance bonds or bank guarantees/
standby LCs;
5) In case of non-execution of export including issuance of EXP Form against
advance payment, ADs may allow refund of advance payment. In this case, ADs
shall utilize funds from Exporters’ Retention Quota (ERQ) account first and
remainder from Taka accounts.

All other instructions in this regard shall remain unchanged. ADs are advised to bring the
contents of this circular letter to the notice of their exporter-customers.