Imports get greater flexibility

The government has unveiled a new three-year import policy aimed at reshaping the country’s trade regime, attracting investment from expatriate Bangladeshis, ensuring food and energy security and strengthening the foundations for export diversification.

The Import Policy Order 2026–2029 also introduces provisions for free trade zones and central bonded warehouses, reflecting the government’s broader effort to position Bangladesh as a regional trade, logistics and re-export hub ahead of its graduation from least developed country (LDC) status.

The policy was gazetted by the Ministry of Commerce on Monday (24 August) under Section 3(1) of the Imports and Exports (Control) Act, 1950. It took effect immediately and will remain in force until 31 December 2029.

The new order provides greater flexibility to the government to relax import restrictions on controlled goods when necessary in the public interest, particularly to maintain adequate supplies of food and energy and support the diversification and expansion of exports.

Under the policy, the government may relax conditions for importing controlled goods through general or special orders issued by public notification.

It may also ease any condition or regulatory requirement under the order to promote exports, retain existing export markets, encourage investment and facilitate trade.

Such concessions may be granted under free trade agreements (FTAs), comprehensive economic partnership agreements (CEPAs), economic partnership agreements (EPAs), unilateral arrangements and bilateral agreements, either with or without conditions.

For the first time, the new policy formally defines an “expatriate Bangladeshi” and introduces simplified import facilities for Bangladeshis living abroad who invest in approved industrial establishments in the country.

The policy allows such investors to import capital machinery, machinery parts and raw materials under easier procedures, with the aim of encouraging greater participation by expatriate Bangladeshis in domestic industry.

It also permits modern international payment methods in line with Bangladesh Bank’s existing foreign exchange regulations.

The measure is expected to make it easier for expatriate investors to establish and operate industrial ventures while reducing procedural barriers to importing essential equipment and inputs.

The new policy allows industrial and commercial importers to import goods against sales or purchase contracts without a value ceiling, in addition to the existing facility of importing through letters of credit (LCs).

The policy also expands access to raw materials for export-oriented industries as the government seeks to facilitate business operations, attract investment and increase export capacity.

The greater flexibility comes as the government seeks to modernise the import regime and bring it more closely in line with international trade practices.

The government’s authority to relax import conditions could also provide greater flexibility to respond to shortages or disruptions affecting essential commodities, particularly food and energy.

A significant feature of the new policy is the explicit inclusion of free trade zones (FTZs) and central bonded warehouses.

The move is intended to strengthen Bangladesh’s trade and logistics infrastructure and enhance its prospects of becoming a regional centre for trade, logistics and re-export.

The policy also seeks to improve the storage and uninterrupted supply of raw materials required by export-oriented industries.

Unlike the previous Import Policy Order 2021–2024, which provided bond facilities and other benefits for export-oriented industries, the new order specifically recognises central bonded warehouses as part of the country’s trade and logistics infrastructure.

The introduction of FTZs is expected to have wider implications for Bangladesh’s export strategy, industrial development and investment facilitation.

Officials and policymakers expect such facilities to help reduce supply-chain delays, lower production costs and improve the competitiveness of export-oriented industries.

The Import Policy Order 2021–2024 formally expired on 30 June 2024. However, it continued to remain effective until the government issued the new order.

The new 2026–2029 policy now replaces the previous regime and provides a framework for import management over the next three years.

With Bangladesh preparing for LDC graduation, the government is seeking to make its trade and investment environment more competitive and adaptable.

The new import regime, with greater flexibility for investors and importers, wider access to industrial inputs and new trade infrastructure, is intended to support that transition while strengthening Bangladesh’s position in regional and international supply chains.