Bangladesh Bank has directed all scheduled banks not to open letters of credit (LCs) or process telegraphic transfers (TTs) for the import of dietary and related supplements without prior approval from the Directorate General of Drug Administration.

The instruction was issued on Wednesday through a circular, forwarding an official communication from the DGDA to the country’s banking institutions.

According to the DGDA, under the Drugs and Cosmetics Act, 2023, it is mandatory to obtain registration or prior approval from the authority for the production, import, export, sale, and distribution of dietary supplements, herbal supplements, nutritional products, medical nutrition, therapeutic nutrition, and similar items.

The DGDA noted that some importers had been bringing in such products from different countries without securing the required approval.

As customs authorities declined to release these products without DGDA registration or prior clearance, the importers filed separate writ petitions with the High Court Division of the Supreme Court of Bangladesh.

In response, the court initially directed customs authorities to release the goods. However, the customs authorities later appealed to the Appellate Division of the Supreme Court.

The DGDA said the Appellate Division subsequently permitted the release of goods subject to compliance with legal requirements.

To ensure proper enforcement of the law, Bangladesh Bank has now instructed banks not to facilitate any import-related payments, including LCs and TTs, for supplement products without prior DGDA approval.