Industrial and commercial importers in the country can now import goods through purchase-sales contracts without value limits, alongside letters of credit (LCs).
At the same time, the government has issued the new Import Policy Order 2026–2029, incorporating provisions for establishing Free Trade Zones and Central Bonded Warehouses, import facilities for Non-Resident Bangladeshis (NRBs) investing in industries, and expanded opportunities for importing raw materials for export-oriented industries.
On August 24, the Ministry of Commerce published the gazette notification for the new Import Policy Order.
The new policy places special emphasis on aligning the import system with modern international trade practices, enhancing ease of doing business, expanding exports, attracting investment, and ensuring the availability of raw materials for industries.
The most significant change in the new policy is expanding the scope of importing goods based on purchase or sales contracts in addition to LCs.
Under the previous Import Policy Order 2021–2024, importing through purchase-sales contracts without an LC was permitted, but it carried specific limits and conditions across various products and sectors.
Commercial importers, in particular, could import goods up to a maximum of $500,000 per year from Bangladesh without an LC. Separate limits existed for certain goods as well.
The new policy has removed that value ceiling. As a result, greater opportunities have been created to import goods under contract-based alternative payment systems common in international trade.
This move is expected to reduce banking procedures and formalities while increasing direct commercial contracting opportunities between importers and foreign suppliers.
However, stakeholders note that as non-LC transactions increase, effective monitoring will become vital to manage risks related to product pricing, foreign exchange management, and over- or under-invoicing.
The new import policy introduces provisions to establish Free Trade Zones (FTZs) and Central Bonded Warehouses.
The government expects this to position Bangladesh as a regional hub for trade, logistics, and re-exporting.
Simultaneously, raw material storage and supply chain management for export-oriented industries will become more efficient.
While previous policies included bonded facilities and other rules for export-oriented raw material imports, the new order explicitly incorporates Central Bonded Warehouses as a key component of trade and logistics infrastructure.
For the first time, a definition of "Non-Resident Bangladeshi" (NRB) has been included in the import policy.
It simplifies the process of importing capital machinery, spare parts, and raw materials for their approved industrial enterprises.
Additionally, steps have been taken to encourage NRB investment in domestic industries by enabling modern international payment methods in alignment with Bangladesh Bank’s existing foreign exchange framework.
Increased raw material imports for export-oriented industries
To diversify exports and boost high-value-added goods, the new policy expands facilities for importing raw materials and manufacturing inputs for export-oriented industries.
Importantly, the policy prioritizes expanding opportunities for importing raw materials and manufacturing inputs on a "free of cost" basis.
Another widely discussed change is the increase in the engine capacity limit for imported motorcycles.
Under the previous 2021–2024 policy, importing completely built-up (CBU) motorcycles above 165cc was restricted. The new policy raises this ceiling to 375cc.
This will increase direct import opportunities for medium- and high-capacity motorcycles from international brands. However, it may also increase competitive pressure on local motorcycle manufacturers and assemblers.
Initiatives to reduce HS code complexity
The new policy takes steps to address long-standing complications importers face due to discrepancies between HS codes and product descriptions.
During the drafting stage, it was proposed to treat the HS code description as the final authority. This aims to minimize harassment and delays caused by mismatches between codes and descriptions.
From the outset, the new policy references international trade frameworks such as Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs), Economic Partnership Agreements (EPAs), and unilateral or bilateral trade agreements.
As Bangladesh moves toward preferential and bilateral trade agreements with various nations, the policy allows future trade agreements to seamlessly integrate import procedures with the new framework.
Although the 2021–2024 Import Policy Order expired on June 30, 2024, it remained effective until the issuance of this new order.
Overall, the new Import Policy Order shifts Bangladesh's import system from a rigid LC-reliant structure to a more flexible, contract-based framework.
It unifies import financing, investment, raw material supply chains, logistics, re-exports, and international trade agreements under a single policy envelope.