New import policy order issued to increase free trade, investment

The government has issued a new ‘Import Policy Order 2026-29’ to make the import process easier and more business-friendly. In it, emphasis has been given on relaxing the existing restrictions on opening LCs as well as simplifying imports, free trade and increasing investment. At the same time, the issue of creating compatibility of Bangladesh with the global trade system in the post-LDC graduation period has also received importance in the policy.

The new import policy order was issued from the Ministry of Commerce on Tuesday (August 25). With this, the previous import policy for the 2021-24 term has been cancelled. In the new order, several changes have been brought to modernize commercial activities and reduce various complexities of the banking system.

One of the most important changes in the new policy is the expansion of the opportunity to import goods without LC. In the previous policy, there was permission to import goods through sales or purchase contracts within a specific limit. Although there was an opportunity for such import up to a maximum of 5 lakh US dollars per year in the case of commercial imports, that specific value limit has been withdrawn in the new order. As a result, the opportunity for import on the basis of ‘sales or purchase contract’ following the methods prevalent in international trade has become more extensive.

To strengthen the international trade and supply system, the provision for establishing free trade zones and central bonded warehouses has been included in the new policy for the first time. Through this, the opportunity will be created to build an international logistics centre in Bangladesh and make product storage and commercial activities more dynamic, it is believed. Alongside, the process of importing capital machinery and raw materials for approved industries has also been simplified.

Various facilities have also been kept in the new policy with the aim of diversifying exports and increasing the production of high value-added products. The opportunity to import raw materials and production inputs on a free of cost basis for export-oriented industries has been increased. At the same time, the opportunity to use internationally recognized modern payment methods has been kept. The definition of ‘non-resident Bangladeshi’ has also been determined for the first time in the new import policy.

Besides, importance has been given on attracting foreign and domestic investment, encouraging investment by non-resident Bangladeshis and increasing the connection of the country’s business and trade with the global market. As the policy is compatible with the World Trade Organization’s Trade Facilitation Agreement, it is expected that Bangladesh will be in a comparatively advantageous position in future FTA and PTA discussions with various trade partners including the European Union.