Economy Desk: Bangladesh Bank has given new instructions to make imports easier. According to the instructions, industrial enterprises can import through contracts outside of loans.
A circular in this regard has been issued by the Foreign Exchange and Policy Department of the Central Bank on Thursday (October 24).
According to the circular, the Import Policy Order (IPO) allows industrial establishments to import through sale and purchase agreements without letters of credit (LC) with commercial imports up to a specified limit within a year. There are some new guidelines to follow regarding these imports. Among them, in case of import under the contract, the import information should be given in the reporting portal of Bangladesh Bank. In addition, guidelines have been given in the circular regarding the acceptance of the credit report of the foreign supplier. If the price is not paid within the specified time, the concerned importer has been asked not to carry out import activities through the contract.
The new directives will be applicable to imports through agreements in specialized zones (EPZs and EZs). Also, there is a provision of short-term import credit for normal imports.
Authorized dealers are required to collect an undertaking from the importer concerned for the necessary financing arrangements to settle the import liability on maturity.
The importer himself can take short-term foreign loans to pay the import liabilities under the contract. However, the foreign lender can issue a LC, SBLC, or guarantee to the supplier. Foreign loans taken for imports and interest may be repaid as per the terms of the loan.
Authorized dealers shall keep a record of importation by contract with relevant information, including expiry date and settlement date. Based on the records, authorized dealers will inform the importers to settle the liability before maturity.
General sanction facility for corporate, personal, or third-party guarantee from the importer in case of taking a short-term import loan for imports. Under the agreement, commercial imports will get 60 days of short-term foreign credit facility.
Those concerned say that earlier there was a rule to import without a letter of credit. But some things were unclear. Through this circular the ambiguity has been removed, which has made it easier for the importers.
