The central bank has issued a circular providing guidance on the implementation of the Import Policy Order (IPO) 2026–2029, issued by the Ministry of Commerce on August 24, 2026.
The Bangladesh Bank (BB) asked Authorised Dealer (AD) banks that the Import Policy Order 2026–2029 will remain effective until December 31, 2029. The provisions of the Order will continue to remain applicable until a new Import Policy Order is issued.
The circular highlighted several provisions of the new Import Policy Order relating to foreign exchange transactions, including the provision allowing import payments through open account arrangements, thereby providing greater flexibility to importers in settling import obligations.
In line with paragraph 6(3) of the Order, the circular further 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 provisions for import and procurement of production inputs used 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 necessary guidance regarding the applicability of the bonded warehouse system for import and procurement of production inputs.
The circular advised AD banks to ensure compliance with the provisions of the IPO 2026–2029 and relevant foreign exchange regulations while settling transactions relating to import of goods and local procurement of inputs.
