Bangladesh Bank has rolled out a circular explaining how banks should follow the new Import Policy Order (IPO) 2026-2029, which the Commerce Ministry issued back on August 24. The policy will stay in effect until December 31, 2029 or until a new one replaces it.
The central bank told Authorised Dealer (AD) banks about a few key changes worth knowing. One big one the importers can now settle payments through open account arrangements, giving businesses more flexibility instead of relying solely on traditional methods.
Another notable change under paragraph 6(3) of the Order, businesses can import all permitted goods for industrial or commercial use through simple purchase and sale contracts, skipping letters of credit (LCs) altogether also regardless of the value involved. Of course still has to follow standard foreign exchange rules.
For export-focused industries, the circular pointed to paragraph 25 of the IPO, which lays out how these businesses can source production inputs. They're now allowed to buy locally in local currency through back-to-back LC arrangements, or get inputs free of cost. There's also fresh guidance on how the bonded warehouse system applies here.
Bangladesh Bank has instructed all AD banks to stick closely to these rules and existing forex regulations when handling import payments and local procurement going forward.
For everyday business owners and exporters basically means smoother more flexible import processes something that could help ease pressure on trade financing as Bangladesh navigates its ongoing economic challenges.
