How to use the Export Development Fund 

The Export Development Fund is expected to contribute to a sustained export drive and long-term development of Bangladesh Exports by assuring a continued availability of Foreign Exchange to meet the import requirements of particularly new exporters, exporters diversifying into higher value exports & new markets.

This fund, it may be recalled has been established jointly by the International Development Association (IDA) and the government of Bangladesh to finance import of raw materials for non-traditional export oriented industries on sight payment basis, Direct exporters would be able to borrow for their imported inputs based on confirmed & Irrevocable L/C opened by an overseas buyer and indirect exporters would be able to borrow for imported inputs based on confirmed irrevocable inland back to back L/Cs opened by direct exporters. The time of the pre-shipment loan from the EDF will be the export production cycle or 180 days whichever is shorter and will not exceed 180 days.

Opening of EDF (Export Development Fund) L/C’s:
1)  Passing of Contra Liability Voucher:
Dr. Customers liability for L/C (EDF)                                              Tk.
Cr.  Bankers Liability for L/C   (EDF)                                                Tk.

2)  Realisation of Charges
Dr. Party’s A/C                                                                                            Tk.
Cr. Income A/C – Commission on L/C (EDF)                                 Tk.
Cr. Income A/C –SWIFT/Telex/Courier Service etc.                 Tk.
Cr. Others, Stamp if any                                                                           Tk.

Note:   
1)    Taka Amount for contra voucher shall be determined by multiplying   the   L/C value at B.C Selling rate on the date .of L/c opening.
2)    Actual liability voucher may be passed by rounding up the amount in       thousand for balancing purpose.
3)    L/c opening statement to be sent to Bangladesh Bank through HO.

Lodgement of EDF (Export Development Fund)  L/C’S:

1)  Reversal of original contra entry
Dr. Bankers Liability for L/C      (EDF)                                                    Tk.
Cr. Customers Liability for L/C   (EDF)                                                  Tk.
2) Passing Bills liability voucher
Dr. Customers Liability for EDF Bills                                                       Tk.
Cr.  Bankers Liability for EDF Bills                                                            Tk.
3)    Payment of Bills
Dr.  Suspense A/C – EDF Loan Receivable from Bangladesh Bank Tk.
Cr.   ETCA – HO (At TT Clean Buying Rate)                                              Tk.

Settlement/Retirement of EDF L/C’S:

a)    EDF loan from Bangladesh Bank:

The branches shall apply for Export Development Fund (EDF )Loan to Bangladesh Bank as per existing procedure immediately on receipt of document but not later than 3 (three) days from the date of receipt of the import documents.
On receipt of Export Development Fund (EDF)  Loan from Bangladesh Bank, Head Office. International Division shall send a Credit Advice to the branch, which shall be responded for adjustment of suspense A/C EDF Loan receivable from Bangladesh Bank as mentioned above by passing the following vouchers.
Dr.  ETCA – HO- (Responding Credit Advice)                                             Tk.
Cr.  Suspense A/C – EDF Loan receivable from Bangladesh Bank      Tk.
(At TT Clean Buying Rate)
Cr.    Handling Charge                                                                                            Tk

b)    Refund of EDF Loan to Bangladesh Bank:

After receipt of Export proceeds, the EDF Loan amount along with interest shall be repaid to Bangladesh Bank under the existing procedure by passing the following vouchers:
Dr.     Sundry Deposit A/C – FC BPAR (At TT/Clean buying rate)       Tk.
Cr.     ETCA – HO                                                                                                       Tk.

Liability reversed from Bills EDF
Dr.       Bankers Liability for EDF Bills                            Tk.
Cr.       Customers Liability for EDF Bills                        Tk.

Note: 
i) In Addition to party wise individual EDF Loan Ledger, the Foreign Exchange Department of each    branch shall maintain EDF Loan Control Ledger and all the transaction of EDF Loan shall be routed through this ledger.
ii) The rate of the Interest (Additional amount) will be (LIBOR + 1) %, where LIBOR rate shall be paid to Bangladesh Bank & additional 01 (One) percent shall be taken by the branch from the party.

The Export Development Fund (EDF) is typically a government-backed initiative aimed at supporting businesses in exporting their products or services to international markets. Here’s a general guide on how to use the Export Development Fund:

1. Research Eligibility: Start by researching the eligibility criteria for accessing the Export Development Fund. Requirements may vary depending on your country and the specific program. Typically, eligibility is based on factors such as the nature of your business, the potential for export growth, and adherence to certain regulations.
2. Application Process: Once you’ve determined your eligibility, you’ll need to apply for funding through the designated process outlined by the organization managing the EDF. This may involve filling out an application form and providing supporting documents such as business plans, financial statements, and details of your export strategy.
3. Submit a Proposal: Your application will likely require a detailed proposal outlining how you intend to use the funds to support your export activities. This may include plans for market research, product development, marketing and promotional activities, trade missions, or participation in international trade shows and exhibitions.
4. Evaluation: Your proposal will be evaluated based on various criteria, such as the feasibility of your export plan, the potential for market expansion, the economic impact of your exports, and the overall benefit to the economy. Be prepared to provide additional information or clarification if requested during the evaluation process.
5. Approval and Funding: If your proposal is approved, you will receive funding from the Export Development Fund to implement your export plan. The amount of funding awarded may vary depending on the specific needs of your business and the available resources within the fund.
6. Implementation: Once you receive funding, it’s essential to effectively implement your export plan according to the proposal submitted. This may involve activities such as market research, product adaptation, establishing distribution channels, and promotional campaigns targeted at international markets.
7. Monitoring and Reporting: Throughout the funding period, you may be required to provide regular progress reports to the organization managing the Export Development Fund. This helps ensure that the funds are being used as intended and allows for any necessary adjustments to be made to your export strategy.
8. Evaluation and Follow-Up: After the funding period has ended, your export activities may be evaluated to assess their impact and effectiveness. This may involve measuring key performance indicators such as export sales, market share, and return on investment. Depending on the outcomes, you may be eligible for further support or funding to continue your export efforts.

It’s important to note that the specific procedures for accessing and using the Export Development Fund may vary depending on your location and the policies of the organization managing the fund. Therefore, it’s advisable to consult with the relevant authorities or seek professional assistance to ensure compliance with all requirements and maximize your chances of success.