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Bangladesh Bank has cancelled its previous circulars on imports and issued a consolidated policy framework, bringing various foreign exchange regulations related to import trade under a single set of guidelines.
The new policy includes provisions for alternative trade financing arrangements, digital processing of import documents and the use of export proceeds for settling import payments.
It also incorporates provisions on domestic letters of credit (LCs) in foreign currency, specialised and free trade zones, and the import of gold, silver, jewellery and foreign currency notes.
The Foreign Exchange Policy Department of Bangladesh Bank issued a circular on the matter on Thursday (August 13).
The new framework covers import trade, online reporting, letters of credit, authorised payment methods, advance payments, submission of bills of entry, supplier and buyer’s credit, settlement of import liabilities and back-to-back LCs.
According to the circular, instructions issued over the past year have been incorporated into the new framework to bring foreign exchange regulations governing imports under one consolidated policy.
With the issuance of the new circular, all previous instructions related to imports have been cancelled. However, existing reporting requirements for import transactions will remain in force.
The new circular also updates FE Circular No. 33 issued on August 14 last year.
Issued under Section 20(3) of the Foreign Exchange Regulation Act, 1947, the new guidelines will remain effective for one year from August 13, 2026. Any new instructions issued during this period will have to be applied in line with the circular.
Business leaders have welcomed the updated guidelines, saying the inclusion of digital documentation and alternative financing mechanisms reflects the changing realities of Bangladesh’s import trade.
They, however, stressed the need for effective implementation, adequate digital infrastructure and capacity building for banks and importers to ensure the new framework delivers its intended benefits.