The article is authored by Afrin Sadia Nusrat, Associate, Mahbub & Company.
Bangladesh has unveiled its Import Policy Order 2026–2029, introducing wider options for businesses to structure cross-border transactions while keeping government oversight firmly in place. The new framework loosens specific restrictions, expands trade mechanisms and aligns the country’s import regime with evolving global trade practices.
Imports Without Letters of Credit
One of the most notable changes is the removal of the US$500,000 ceiling on imports made without a Letter of Credit (LC). Industrial and commercial importers may now bring in goods against sales or purchase contracts, alongside traditional LC arrangements, without being bound by the previous monetary threshold.
While this provides businesses with greater flexibility, the policy maintains compliance with Bangladesh Bank’s foreign-exchange regulations, ensuring that transactions remain within the country’s financial oversight framework.
New Rules for Free Trade Zones and Bonded Warehouses
The Order introduces a clearer framework for imports into Free Trade Zones (FTZs) and Central Bonded Warehouses (CBWs). Businesses operating in these zones can now use a wider range of payment methods including LCs, Telegraphic Transfers (TT), sales contract and Free of Cost (FoC) arrangements subject to Bangladesh Bank rules.
It also clarifies the role of the Importer on Record and the treatment of warehoused goods, giving companies more structured options for managing imports within customs regulations.
Expanded Free-of-Cost Imports
Export-oriented industries stand to benefit from expanded provisions for FoC imports. Eligible sectors, such as textiles and garments, may import specified raw materials and production inputs without payment to foreign suppliers, subject to limits and conditions set out in the Order.
This measure is expected to reduce input costs for exporters while supporting Bangladesh’s competitive position in global supply chains.
Flexibility for Trade Agreements
The policy explicitly accommodates international trade arrangements, including Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs) and Economic Partnership Agreements (EPAs). Import conditions may be relaxed in line with such agreements, allowing Bangladesh to adjust its import regime to benefit from preferential trade terms.
Government Retains Power to Adjust Restrictions
Despite the liberalization measures, the government retains authority to relax or tighten import conditions in response to national priorities. The Order allows adjustments in areas such as food and energy security, export diversification, retention of export markets, investment promotion and trade facilitation. This ensures that while businesses gain flexibility, the state can intervene to safeguard economic stability and public interest.
Overall, the Import Policy Order 2026–2029 signals a shift toward regulated flexibility. By removing ceilings on non-LC imports, expanding FoC provisions, strengthening FTZ and CBW frameworks, the Import Policy Order 2026–2029 opens new avenues for trade and investment.
For businesses, the policy’s value lies in the freedom to structure cross-border transactions with greater flexibility while still operating under a regulated framework. For policymakers, it offers a set of instruments to balance openness with oversight, a dual strategy that underscores Bangladesh’s evolving position in international trade.
