BB issues guidance on implementing Import Policy Order 2026-2029

New order allows permissible industrial and commercial imports without LCs, subject to foreign exchange rules

Bangladesh Bank has issued guidelines to authorised dealer (AD) banks for implementing the Import Policy Order 2026-2029, which allows permissible industrial and commercial goods to be imported without opening letters of credit (LCs), subject to existing foreign exchange regulations.

The Ministry of Commerce introduced the new Import Policy Order through SRO No. 308-Ain/2026 on 24 August 2026. It will remain effective until 31 December 2029 or until a new import policy order is issued, whichever comes first, Bangladesh Bank said in a circular today (13 September).

Under paragraph 6(3) of the order, all permissible goods for industrial and commercial purposes can be imported through purchase and sale contracts without opening LCs, regardless of the value of the imports.

However, authorised dealer banks must ensure that all such transactions comply with applicable foreign exchange regulations, the central bank said.

The circular also outlined provisions under paragraph 25 of the new order concerning the import and procurement of production inputs by export-oriented industrial enterprises.

Such enterprises may procure production inputs from local sources in local currency through back-to-back LC arrangements and on a free-of-cost (FOC) basis, according to the guidelines.

The circular also provided guidance on the applicability of the bonded warehouse system for importing and procuring production inputs.

Bangladesh Bank instructed AD banks to ensure compliance with the Import Policy Order 2026-2029 and relevant foreign exchange regulations when settling import transactions and payments related to locally sourced production inputs.

The central bank said the guidelines are intended to align foreign exchange procedures with the new import policy framework and provide greater flexibility in trade transactions, particularly for export-oriented industries.

Source: The Business Standard