No restrictions on opening import LCs

The authorities are lifting a minimum value or cash margin requirement for opening letters of credit (LCs) for imports. Since such requirements are inconsistent with the rules of the World Trade Organization (WTO), they are being removed entirely. As a result, any importer will be able to open LCs for any quantity of goods.

The new import policy order being drafted for three years (2025–28) includes this directive. The Ministry of Commerce has already prepared the draft after consulting various chambers and associations.

According to sources, Commerce Secretary Mahbubur Rahman will present the key points of the draft to Commerce Adviser Sheikh Bashiruddin at the beginning of next week. After incorporating any observations from the adviser, the draft will be finalised.

On Wednesday, Commerce Secretary Mahbubur Rahman told Prothom Alo that the draft would be sent to the Advisory Council for approval. The policy order will specifically state that restrictions regarding LC size and minimum value will no longer apply.

Bangladesh has only 14 months left before graduating from the Least Developed Country (LDC) list. This factor is also being taken into account in the preparation of the new three-year import policy order, ministry sources said.

The existing import policy order for 2021–24 expired in June 2024. Until a new order is issued, the existing order remains in effect as per the rules. The process of drafting the new order has been ongoing for more than a year. The previous policy (2015–18) was finalised four and a half years after its tenure had expired—in May 2022.

The new draft includes a ban on hydraulic horns, along with provisions to limit noise levels of horns for pollution control. On the recommendation of the Ministry of Environment, Forest, and Climate Change, the maximum permissible horn level is set at 100 decibels. The draft also requires a government-approved list of laboratories to certify imported food items, establishing uniform standards for food safety.

For the first time, raw materials for the petrochemical industry—ethylene and propylene—are being included in the import policy draft. However, their import will require permits from the Department of Explosives and Bangladesh Petroleum Corporation.

Exports of rice and spices to Australia have faced hurdles due to the banned chemical methyl bromide. Other issues raised include introducing a separate HS code for gas cylinders and allowing imports of used batteries under environmentally friendly recycling conditions. Sources said these complications will be resolved through the new policy.

The draft bans all types of waste material imports. Other items on the list include shrimp, live pigs and pork products, poppy seeds, grass, molasses, artificial mustard oil, and reconditioned office equipment such as photocopiers, typewriters, phones, old computers and related accessories, and other used electronics.

Also prohibited are hydraulic horns and any horn above 75 decibels; certain chemical pesticides and industrial substances such as aldrin, chlordane, DDT, dieldrin, endrin, heptachlor, mirex, toxaphene, hexachlorobenzene, and polychlorinated biphenyls (PCBs); polypropylene and polythene bags; and two-stroke three-wheeler vehicles such as tempos and auto-rickshaws.

Items showing maps, charts, or globes that do not depict Bangladesh’s boundaries, horror comics, obscene or subversive literature, magazines, posters, photos, films, documents, audio, or video tapes will also be banned.

Certain items may be allowed under conditions, such as fishing nets with mesh less than 4.5 cm, cars older than five years, motorcycles above 165cc and older than three years, and LNG.

For toys and recreational products, the target age group of children must be indicated, and plastic toys must come with a certificate from competent authorities in the exporting country stating they are “not harmful to health.” Civil aircraft and helicopters may also be imported under conditions.

For old ships, importers must provide certificates stating no toxic or hazardous waste is being transported, along with a declaration from the importer. Warships may only be imported with clearance from the Ministry of Defence, while swords and bayonets will require approval from relevant administrative ministries of user agencies.