Bangladesh Eases Import Regulations For Raw Materials

To make it easier to import specified items, the Bangladesh Bank (BB) has authorised all banks to reduce the cash margin rate associated with the beginning of import letters of credit (LCs) for ten different types of products, including textile raw materials.

According to a newly issued BB circular, the regulation requires banks to assess the opening margin rate depending on their relationship with the consumer. According to local media reports, this is a shift from the prior requirement that importers pay a 75% LC margin on these commodities.

The new regulations imposed by the central bank apply only to the specified product categories. Other imports continue to be subject to LC margins of 75% and 100%.

According to the circular, banks currently have the ability to import a variety of additional products based on the banker-customer relationship. These goods include fuel, imported capital machinery, and raw materials for domestic, export-oriented companies.