BB consolidates Forex rules for imports
Bangladesh Bank (BB) on Thursday issued a consolidated circular bringing together the latest foreign exchange regulations governing import transactions, replacing the previous consolidated instructions issued in August 2025.
To this end, the Foreign Exchange Policy Department-1 (FEPD-1) issued the circular.
The central bank said the new circular incorporates subsequent instructions issued after the previous consolidated circular and brings them together in one place.
Previous instructions will stand repealed, except for reporting instructions contained in the Guidelines for Foreign Exchange Transactions (GFET), Volume-2.
Under the new framework, Authorized Dealer (AD) banks will have to report all permissible import transactions to Bangladesh Bank’s Online Import Monitoring System (OIMS) on a daily or regular basis.
For imports valued at $3 million or more, AD banks must report to OIMS at least 24 hours before opening the letter of credit, excluding government imports.
The circular also requires banks to take reasonable measures to verify the bona fide status of importers and exporters, the competitiveness of import prices and the authenticity of transactions.
Import documents must contain detailed descriptions of goods, including quality, brand, production date, packaging, grade, unit price and quantity, as well as the applicable eight-digit HS Code.
Bangladesh Bank has also allowed industrial raw materials, including LPG, to be imported under supplier’s or buyer’s credit for up to 270 days.
Agricultural implements and chemical fertilizers are also eligible for usance terms of up to 270 days.
The circular allows up to 360 days’ usance for imports of spares, vessels for scrapping, certain steel-industry raw materials and active pharmaceutical ingredients and laboratory reagents, subject to applicable conditions. Imports of life-saving drugs and ophthalmic medical equipment may be allowed for up to 180 days.
Bangladesh Bank has also permitted industrial importers to bring in capital machinery and capital goods on supplier’s or buyer’s credit with a usance period of up to three years.
The facility is also available to eligible industrial enterprises operating in export processing zones, economic zones and hi-tech parks.
For deferred-payment imports, the circular says prices must remain internationally competitive, while the all-in-cost of usance interest may carry a maximum annual mark-up of three percentage points over the relevant benchmark rate, such as SOFR or Euribor.
The central bank has also encouraged banks to develop import-oriented supply-chain finance, including buyer’s credit, supplier financing and payables financing.
Banks may provide financing to creditworthy importers for usance imports and may discount accepted usance bills on a non-recourse basis to suppliers, subject to regulatory requirements.
The circular further encourages AD banks to adopt electronic and digitized trade-processing systems and permits the use of electronic trade documents, including invoices and transport documents, provided adequate verification, risk management and legal enforceability requirements are met.
Bangladesh Bank has introduced a pilot framework for digital processing of trade documents covering import and export transactions under documentary collections and letters of credit through approved trade corridors.
The framework seeks to facilitate secure, interoperable and legally reliable electronic trade documentation.
The circular also places emphasis on timely settlement of import liabilities. Banks failing to settle import liabilities on due dates may face punitive action, including revocation of their Authorized Dealer licences.
Importers are required to submit authenticated customs bills of entry within four months of remittance, with specific provisions for usance, buyer’s credit and external-credit transactions.
Extensions may be sought from Bangladesh Bank in cases involving genuine difficulties, such as delays in shipment or customs clearance.
The circular also consolidates provisions covering back-to-back LCs, specialized and free trade zones, foreign-currency inland LCs, alternative trade-finance mechanisms, forward rate agreements for hedging interest-rate risks, and imports of gold, silver, jewellery and currency notes.
Bangladesh Bank issued the circular under Section 20(3) of the Foreign Exchange Regulation Act, 1947.
