Legal Foundation of Import Policy
Imports and Exports (Control) Act, 1950
The import system operates under the Imports and Exports (Control) Act, 1950. This Act empowers the government to regulate import and export activities, issue orders, grant permits and enforce compliance through designated authorities.
Key Definitions Under Import Policy
H.S. Code Number
The H.S. Code Number refers to the Harmonized System Code comprising eight or more digits used for classification of commodities under the Customs Act. It is essential for determining duty rates, restrictions and policy status of imported goods.
Import Control Authority
The Import Control Authority refers to the Chief Controller of Imports and Exports (CCI&E) and other authorized officers empowered to issue licenses, permits, registration certificates or approvals under import control regulations.
Letter of Credit (L/C)
A Letter of Credit is a banking instrument opened for the purpose of import, under which a bank undertakes payment to the exporter against compliant documents.
L/C Authorization (LCA) Form
The LCA Form is a prescribed document authorizing the opening of an L/C and registration of an import transaction with the banking system and regulatory authority.
Control List and Annexes
The Control List contains items whose import is restricted, regulated or prohibited. Annexes appended to the policy provide detailed lists, conditions and clarifications related to imports.
Actual User
An actual user is a person or organization importing permissible items for own use or consumption, not for resale or transfer.
Commercial Importer and Industrial Consumer
A commercial importer imports goods for sale without further processing, while an industrial consumer imports goods as inputs for recognized industrial production.
Clearing and Forwarding Agent and Freight Forwarder
C&F Agents and Freight Forwarders are licensed intermediaries handling customs clearance and logistics. They must be properly registered, possess a valid TIN and comply with digital record‑keeping requirements.
Special Trade Concepts
Entre‑pot Trade
Entre‑pot trade refers to export of imported goods to a third country with a minimum value addition of 5%, without altering the shape, quality or quantity. Goods generally remain within port areas unless special permission is granted.
Re‑export
Re‑export involves exporting imported goods after reprocessing with at least 10% value addition, achieved through transformation of quality, form or both.
Sources of Finance for Imports
Cash Foreign Exchange
Imports may be financed using Bangladesh Bank’s foreign exchange reserves.
Foreign Currency Accounts of Nationals Abroad
Bangladeshi nationals living or working abroad may finance imports through their maintained foreign currency accounts.
External Economic Aid
Imports may be financed through external aid, including loans, grants and commodity assistance.
Commodity Exchange and Special Trading Arrangements
Imports may also occur through barter systems or Special Trading Arrangements (STA), subject to government approval and prescribed procedures.
Fund Provision for Import Financing
Unless otherwise specified, import financing must primarily be conducted against cash foreign exchange. Special arrangements are allowed only under defined government and Bangladesh Bank instructions.
Import Procedures Under Import Policy
Import License Requirement
Unless specifically required, no import license is necessary for importing permissible items under the policy.
Import Against LCA Form
All import transactions conducted through banks—such as L/Cs, remittances and drafts—must be supported by an LCA Form, regardless of the source of finance.
Import Through Letter of Credit
Imports are generally effected through irrevocable Letters of Credit. However, exceptions exist for:
- Perishable items through specified land customs stations
- Capital machinery and industrial raw materials without value limits
Importers must still register with authorized dealer banks even when L/C is not required.
Import Without Opening Letter of Credit
Import against LCA Form without an L/C may be allowed in specific cases, including:
- Books, journals and periodicals
- Imports up to USD 35,000 per financial year from Bangladesh
- Small consignments from Myanmar under defined limits
- Imports under aid, grants or specialized procurement procedures
- International chemical references for pharmaceutical quality control
Import Through Import Permit or Clearance Permit
In certain special cases, imports may be made without LCA Form or L/C, provided an Import Permit or Clearance Permit is obtained. Such cases include:
- Imports using UNESCO coupons
- Imports under Pay‑As‑You‑Earn schemes
- Used machinery, vehicles, vessels and fishing trawlers under specified age limits
- Import of capital machinery for export‑oriented or joint‑venture industries
Passenger Baggage and Sample Imports
Imports exceeding permissible baggage limits, free samples, advertising materials and gift items may be allowed under defined ceilings and regulatory conditions.
Import on Deferred Payment or Supplier’s Credit
Imports on deferred payment basis or against supplier’s credit may be permitted, subject to restrictions and procedures laid down by Bangladesh Bank.
Direct Payment Imports from Abroad
Bangladeshi nationals residing abroad may send permissible goods to Bangladesh against direct payment abroad without value restrictions, provided the recipient is a Bangladeshi resident.
Time Limit for Opening Letter of Credit
For imports financed under cash foreign exchange, Letters of Credit must be opened within 150 days from the date of issue or registration of the relevant authorization.
Validity of LCA for Shipment
Unless otherwise specified:
- Shipment must be completed within 17 months for machinery and spare parts
- Shipment must be completed within 9 months for all other items
These periods are counted from the date of issuance of the LCA Form or registration of L/C authorization.
Importance of Import Policy Compliance
Strict adherence to import policy and procedures:
- Ensures orderly use of foreign exchange
- Prevents misuse of trade facilities
- Supports national economic planning
- Protects importers and banks from regulatory violations
Understanding and following import policy is essential for importers, bankers, regulators and trade professionals.
