BB issues guidelines for new import policy

Bangladesh Bank has issued guidelines for implementing the Import Policy Order (IPO) 2026-2029, issued by the Ministry of Commerce on 24 August.
The central bank informed authorised dealers (ADs) that the Import Policy Order 2026-2029 will remain effective until 31 December, 2029. Its provisions will continue to apply until a new Import Policy Order is issued.
The circular highlighted several provisions of the new IPO relating to foreign exchange transactions, including the option to make import payments through open-account arrangements, providing greater flexibility to importers in settling their import obligations.
In line with paragraph 6(3) of the Order, the circular stated that all permissible goods for industrial and commercial purposes may be imported through purchase and sale contracts without opening letters of credit (LCs), irrespective of value limits, subject to compliance with applicable foreign exchange regulations.
Regarding export-oriented industries, the circular referred to paragraph 25 of the IPO 2026-2029, which provides for the import and procurement of production inputs by export-oriented industrial enterprises.
Under the provision, such enterprises may procure inputs from local sources in local currency through back-to-back LC arrangements and on a free-of-cost (FOC) basis. 
The provision also contains guidance on the applicability of the bonded warehouse system for the import and procurement of production inputs.
The circular advised AD banks to ensure compliance with the provisions of the Import Policy Order 2026-2029 and relevant foreign exchange regulations when settling transactions related to the import of goods and local procurement of inputs.
The latest guidance is expected to further harmonise foreign exchange procedures with the new import policy framework, enhance flexibility in trade transactions and facilitate export-oriented industries through simplified sourcing and payment arrangements.