Written by The Banking Post
Bangladesh Bank (BB) has issued guidance to banks on implementing the new Import Policy Order (IPO) 2026–2029, giving importers greater flexibility in settling import payments.
The Ministry of Commerce issued the new IPO on August 24, 2026. According to BB’s circular, it will remain effective until December 31, 2029, or until a new import policy order is issued.
One of the key provisions allows import payments through open-account arrangements, expanding the options available to importers for settling trade obligations.
The circular also clarified that permissible goods for industrial and commercial purposes can be imported through purchase and sale contracts without opening letters of credit (LCs), regardless of the value of the imports, provided the transactions comply with applicable foreign exchange regulations.
For export-oriented industries, the central bank highlighted provisions covering the import and procurement of production inputs under paragraph 25 of the new IPO.
Export-oriented enterprises may procure production inputs from local sources in local currency through back-to-back LC arrangements or on a free-of-cost (FOC) basis. The provision also sets out requirements concerning the bonded warehouse system for imported and locally procured inputs.
BB instructed Authorised Dealer (AD) banks to ensure that all import and local procurement transactions are processed in accordance with the new IPO and relevant foreign exchange regulations.
