Bangladesh Bank has issued final guidelines for implementing the Import Policy Order 2026-2029, allowing businesses to import goods without opening letters of credit (LCs) solely on the basis of purchase and sales agreements.

The central bank’s Foreign Exchange Policy Department-1 issued a circular on Sunday, September 13, following the government’s issuance of the Import Policy Order 2026-2029 on August 24.

Under the new guidelines, all importable goods for industrial and commercial purposes can be imported without any value limit based on contractual agreements. Importers will also be allowed to settle payments through the open-account method, providing greater flexibility in managing cash flows.

However, Bangladesh Bank clarified that importers must comply with all applicable foreign exchange regulations when importing goods without LCs.

The new arrangement is expected to provide greater flexibility for importers in sourcing goods and making payments in international trade, particularly for businesses regularly engaged in cross-border transactions.

The policy also introduces greater flexibility for export-oriented industries in sourcing production inputs. Under Article 25 of the new policy, export-oriented enterprises will be allowed to procure raw materials from local sources in local currency through back-to-back LCs, as well as obtain production inputs on a free-of-cost basis.

The policy also provides for the appropriate use of bonded warehouse facilities, which could help export-oriented industries reduce production costs.

Bangladesh Bank instructed authorised dealer (AD) banks to ensure compliance with the Import Policy Order when settling transactions involving imported goods and locally sourced production inputs.

The Import Policy Order 2026-2029 will remain effective until December 31, 2029. If no new import policy order is issued during this period, its provisions will remain in force.