The government has overhauled the import regime, allowing industrial and commercial importers to bring in goods through sales or purchase contracts without a value ceiling, alongside letters of credit (LCs).
The Import Policy Order 2026-2029 also provides for free trade zones and central bonded warehouses, expands import facilities for expatriate Bangladeshis investing in industries and widens access to raw materials for export-oriented industries.
The Ministry of Commerce gazetted the new policy yesterday (24 August).
Under the Import Policy Order 2021-2024, imports through sales or purchase contracts without LCs were allowed in certain cases, subject to value limits and other conditions. The new order removes the value ceiling, bringing the system closer to international trade practices.
According to the gazette, the policy aims to modernise the import system, facilitate business, boost exports, attract investment and ensure easier access to raw materials for industries.
Less reliance on LCs
One of the key changes is greater flexibility in import payment methods.
Under the previous policy, commercial importers could import without LCs, using payments from Bangladesh, up to an annual limit of $500,000, with separate limits for certain products.
The new policy removes the value restriction, allowing importers and overseas suppliers to use sales and purchase contracts as an alternative to LCs.
The change could reduce reliance on LCs and make it easier to use payment methods commonly used in international trade.
However, greater use of non-LC transactions will require monitoring of product pricing, foreign exchange management, over- and under-invoicing and money laundering risks.
Free trade zones, central bonded warehouses
The new policy includes provisions for free trade zones and central bonded warehouses, with the government aiming to strengthen Bangladesh’s potential as a regional trade, logistics and re-export hub.
The policy also seeks to improve the storage and supply of raw materials for export-oriented industries.
Unlike the 2021-2024 order, which provided bond facilities and other benefits for export-oriented industries, the new order explicitly includes central bonded warehouses as part of the country’s trade and logistics infrastructure.
Facilities for expatriate Bangladeshis
For the first time, the new policy defines “expatriate Bangladeshi” and provides easier procedures for importing capital machinery, machinery parts and raw materials for their approved industrial establishments.
It also allows modern international payment methods in line with Bangladesh Bank’s existing foreign exchange regulations, with the aim of encouraging expatriate Bangladeshis to invest in industries in Bangladesh.
More raw material import facilities
The new policy expands facilities for importing raw materials and production inputs on a fee-at-cost basis for various export-oriented industries to diversify exports and increase the production of higher value-added goods.
The measure could help exporters maintain international competitiveness after Bangladesh’s LDC graduation by reducing production costs and improving access to necessary raw materials.
Greater focus on HS codes
The new policy also seeks to reduce complications over discrepancies between HS codes and product descriptions during imports, which can cause delays and harassment in the import process.
Overall, the 2026-2029 policy expands the previous framework to cover import financing, investment, logistics, re-export and expatriate investment.
The policy also refers to free trade agreements (FTAs), comprehensive economic partnership agreements (CEPAs), economic partnership agreements (EPAs), unilateral agreements and bilateral agreements.
As Bangladesh moves towards trade agreements with various countries, the new import regime seeks to align with such arrangements. The framework could also facilitate future alignment with preferential trade agreements and CEPAs.
The previous Import Policy Order 2021-2024 expired on 30 June 2024 but remained in force until the new order was issued.
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