Bangladesh Bank (BB) has eased import regulations, allowing industrial and limited commercial imports without Letters of Credit (L/C) through sales contracts on a usance credit basis.
This initiative, introduced by a new order from the central bank on Thursday, aims to enhance trade operations by enabling deferred payments while ensuring compliance with foreign exchange guidelines.
Under the revised policy, Authorised Dealers (ADs) can process imports on delayed payment terms, provided the importer's track record is sound and future cash flows are secured. Usance credit allows importers to settle payments after a specified period, which must adhere to the limits outlined in Chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 (GFET). This relaxation is expected to ease supply chain challenges in specialised zones such as Export Processing Zones (EPZs) and Hi-Tech Parks.
ADs must verify suppliers' creditworthiness through formal reports and prevent further imports if previous dues remain unsettled.
Additionally, commercial imports on usance credit are capped at 60 days unless otherwise specified. The circular also permits short-term external borrowing backed by guarantees, such as corporate or third-party assurances.
