Bangladesh Bank has issued a new consolidated circular updating previous import-related directives, expanding opportunities for imports without letters of credit, long-term deferred payments for raw materials and capital machinery, supply chain financing, digital trade documentation and imports into free trade zones. The circular also introduces forward rate agreements for managing foreign exchange interest rate risk.
The circular was issued by the central bank’s foreign exchange policy department on Wednesday. It consolidates the August 14, 2025 import directive and subsequent instructions into a single document. The previous consolidated circular has been superseded, though reporting guidelines under Volume 2 of the Foreign Exchange Transaction Guidelines remain in effect. The new circular is valid for one year.
The most significant change is the expansion of import financing beyond letters of credit. Under specified conditions, imports can now be conducted through documentary collection — both documents against payment and documents against acceptance. Imports under purchase or sale agreements without LCs are also permitted. For commercial imports, usance terms of up to 60 days are available within prescribed limits.
The most important benefit for the industrial sector is in raw material imports. Usance terms of up to 270 days are now available for raw materials imported for own use, though if a company’s actual cash conversion cycle is shorter, that period applies instead. Agricultural machinery and chemical fertilizer imports also qualify for 270-day terms. Spare parts, ships for scrapping, active pharmaceutical ingredients and laboratory reagents qualify for up to 360 days, while life-saving medicines and certain medical equipment qualify for up to 180 days.
Capital machinery and capital goods imports now qualify for usance terms of up to three years. Industries in export processing zones, private EPZs, economic zones and high-tech parks also qualify. This is expected to reduce the pressure of lump-sum payments at the time of import and improve working capital management.
Some relaxation has also been introduced for advance payments on imports. Advance payments are permitted under specified conditions with acceptable bank guarantees. No repayment guarantee is required for advance payments of up to $20,000, and applications for larger advance payments can be submitted in urgent cases.
The central bank has also emphasized expanding supply chain financing. Mechanisms such as buyer’s credit, supplier’s financing and payables financing now offer additional avenues for import financing, potentially enabling both importers and foreign suppliers to receive funds more quickly.
A separate framework has been established for imports into free trade zones. Manufacturing, processing and export-oriented industries in FTZs, along with authorized traders and logistics service providers, can now import goods. Consignment-based imports can be stored for 48 to 60 months under specified conditions.
The new circular also emphasizes the digital transformation of trade. Electronic acceptance of invoices, transport documents and other commercial documents is now permitted under specified conditions. Pilot programs for digital trade documents in authorized trade corridors have also been enabled. Electronic bills of lading, commercial invoices and bills of exchange fall under this framework.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report