BIBM CERTIFICATION PROGRAM ON:

Certified Expert in Trade Services (CETS)

Intake- XII (July- 2023), Part- A, Online Module- 02

An Assignment on Summarizing:

➢ Import Policy Order (2021-2024), Chapter-3 & 4

Covering the Answer of the Given Sample Questions.

SUBMITTED TO:
▪ Mr. Tanweer Mehdee, Assistant Professor & Program Coordinator
▪ Ms. Rahat Banu, Assistant Professor & Program Coordinator
BANGLADESH INSTITUTE OF BANK MANAGEMENT (BIBM), DHAKA.

IMRAN HOSSAIN Senior Assistant Vice President Eastern Bank Limited Batch- 01
MD. ANAYET HOSSAIN Assistant Vice President Prime Bank Limited Batch- 01
GOLAM KIBRIA Assistant Vice President Al-Arafah Islami Bank Limited Batch- 01
FARAH DIBA First Assistant Vice President Eastern Bank Limited Batch- 01
MOHAMMAD SALIM UDDIN First Assistant Vice President Islami Bank Bangladesh Limited Batch- 01
REHANA AKTER PERVIN Senior Officer Islami Bank Bangladesh Limited Batch- 01
FARUKUZZAMAN Senior Officer BRAC Bank Limited Batch- 01
 EXECUTIVE SUMMARY
Chapter 3 of the document focuses on specialized provisions for imports. It covers joint
importation, allowing importers to collaborate either individually or in groups. Importers,
including industrial and commercial buyers, can form multiple groups. Import by actual users
is outlined, permitting individuals and institutions to freely import goods worth up to $10,000
for personal use without prior permission. Chief Controller approval is required for goods
exceeding this value. Expatriate professionals are allowed to import necessary equipment
without Import Control Authority permission.

Section 2.4 details regulations for importing samples, advertising materials, and gift items
within specified limits for various importer categories. Temporary imports with re-export
conditions, including for exhibitions and projects, are explained in Section 2.5. Provisions for
importing into Bangladesh's Economic Zones and Export Processing Zones are highlighted.

The chapter also addresses releasing detained goods, contraventions, and amendments. It
empowers the government to adjust provisions as necessary. Export provisions mirror import
rules.

In essence, Chapter 3 provides a comprehensive framework catering to diverse import

scenarios, maintaining a balance between controlled procedures and necessary flexibility for
efficient trade operations. It addresses joint importation, import by users, expatriate
professionals, temporary imports, and provisions within special economic zones.
Chapter 4 of the document provides a comprehensive set of rules governing imports within the
industrial sector. It covers various aspects such as import permissions, regulations, and
conditions for specific types of imports. The chapter outlines the criteria for importing items
that are prohibited for commercial purposes but can be imported for industrial use. It establishes
rules for industrial units with import permissions, allowing them to import a certain number of
times against their permission.

The chapter discusses the process for obtaining adhoc and regular Industrial Registration
Certificates (IRC) and the conditions under which these certificates can be renewed. It
highlights restrictions and allowances for industries that are given import permission based on
production capacity and shifts. The rules also extend to conditional imports for government
industrial concerns and import of raw materials against waived advance tax.

Import conditions are specified for industries such as readymade garments, hosiery, textiles,
and pharmaceuticals. The guidelines for export-oriented industries detail how they can import
raw and packing materials, including grey fabrics, under the bonded warehouse system.

Furthermore, the chapter addresses the import of specific products like electric meters, coconut
oil, and waste and scrap, outlining quality standards and conditions for their importation. It also
covers imports related to methanol, formalin, and crude oils, indicating the required approvals
and purposes for which they can be imported.

Overall, the chapter aims to establish a structured framework for imports in the industrial
sector, ensuring compliance, quality control, and adherence to relevant regulations while
facilitating the importation of necessary materials for industrial production.

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 TABLE OF CONTENT

1.0 Introduction…………………….…………………….………………………………...1
1.1 Objectives of The Report……………………………………………………..1
1.2 Methodology………………..……………….………………….………………1

2.0 Special Provision for Import………..……………………….….…………………...2

2.1 Import on joint basis…………………………...……………………………..2
2.2 Import by actual user…………………………………………………...…….2
2.3 Import by expatriate professionals…………………………………………2
2.4 Import of samples, advertising materials and gifts. ……………...…….2
2.5 Temporary import with conditions for re-exports. …………………...…4
2.6 Import into and Export from the Bangladesh Economic Zone (BEZ)
and Export Processing Zone (EPZ). ……………………………………………5
2.7 Release of goods detained by the Customs Authority…………...…….6
2.8 Import in contravention and amendment or alteration of this order..7

3.0 General Provision for Industrial Import…. …………………………..…………...8

3.1 General rules for Import in the Industrial sector…………..……..……...8
3.2 Prescribed condition for import of industrial goods………....………...9
3.3 Import by Export-Oriented Industries……………………………….……10
3.4 Import against Import Permits and in special cases against
Clearance Permit...……………………...………………………………………..12
3.5 Import of Grey-Fabric………………………………………………………..13
3.6 Import of parts, accessories and components………...……………….13
3.7 Second-hand or reconditioned capital machineries……...…………...13
3.8 Electric Meter…………………...…………………………………………….13
3.9 Import by packing sector…………………………...………………………14
3.10 Coconut Oil…………………………………………………………………..14
3.11 Waste and scrap…………………………………………………………….14
3.12 Brake acrylic…………………………………………………………………14
3.13 Formalin………………………………………………………………………15
3.14 Methanol/Methyl Alcohol related products…………………………….15
3.15 Crude Soya-bean oil………………………………………………………..15
3.16 Crude Palm Oil………………………………………………………………15

7.0 Conclusion………………………………….……….………………………………..15

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1.0 INTRODUCTION
1.1 OBJECTIVES OF THE REPORT
The objectives of the present study are as follows:
a) To prepare a Group assignment for Module- 02 for CETS Program.
b) To understand Export Policy and Import Policy Order (2021-2024)
c) To confirm through study of the same.
d) To confirm proper implementation of the said Policy and Orders in day-to-day banking
transactions.
e) To determine the potential benefits of implementing them and to determine risks of
non-compliance.

1.3 METHODOLOGY
Group study of the contents as provided by BIBM and as found in the various sources of Govt.
Authority websites.

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 CHAPTER# 03
2.0 SPECIAL PROVISIONS FOR IMPORT
2.1 Import on Joint Basis:
A) Importers may import jointly in one or more groups at their convenience.
B) The procedure for joint importation is mentioned in Annexure-ii.
C) Only industrial buyers may be grouped with other commercial importers can belong to
multiple groups.
D) Commercial Importers together with other commercial importers can belong to multiple
groups.

2.2 Import by Actual User:

A) Not registered as an importer as such individuals or institutions can import freely
importable goods worth up to 10 (ten) thousand US dollars in cash for their own use
without permission.
B) Chief Controller in case of import of goods worth more than 10 (ten) thousand US
dollars prior permission should be taken.
C) Also applies in respect of Government servants and employee of statutory bodies and
the provisions of, in such case, from the head of the department or organization
concerned.
D) A certificate has to be submitted that the imported goods are for the applicant’s actual
use and not for sale.
E) Goods imported by genuine users, permission from the concerned import control
authority within 1 (one) year from the date of import cannot be sold without.

2.3 Import by Expatriate Professionals:

Expatriate Bangladeshi professionals (i.e. Doctors, Engineers, Scientists, Lawyers,
Agriculturalist) may import equipment and scientific instruments required for their
professional work irrespective of the price limit from their money earned abroad without
obtaining any permission of permit from the Import Control Authority.

2.4 Import of Samples, Advertising Materials and Gift Items:

A) samples, advertising materials and gift items shall be imported free of charge within the
CFR price limits in the following cases:-
SL Class of Importer samples, advertising CFR main limit
materials and gift items
1. Importer Inventor The Herbs and medicine 10 (ten) thousand US
agent related dollars
2. All Importers Indents advertising materials 10 (ten) thousand US
and Agents dollars
3. Agent of foreign New brand products for 05 (five) thousand US
manufacturer in sale to introduce to dollars
Bangladesh consumers
4. Person or Institutions The perfect gift item 05 (five) thousand US
dollars

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 Other materials associated with the business of the importer concerned shall include
advertising materials such as diaries, brochures, posters, technical brochures and
company name printed or engraved ball pens, key rings and lighters.

B) To facilitate the production of articles of new design for export or foreign various
categories of exporters will get the following facilities for free import of samples
without prior approval and permit of the Chief Controller, every financial year to
facilitate local production of goods as per the choice of buyers, namely:-

Sl Class of Exporter Annual price limit for sample imports/ Caution

No. maximum number
1. Clothing Ships a) 15 (fifteen) per category with a
maximum of 1500 samples.
b) 2 percent of the fabric used in the
garment exported in the previous year
Readymade garments by the readymade
garment industry will get the import
facility.
c) In case of new factories, 2 percent of the
quantity of cloth or fabrics or yarn or
wool or woolen required,
for half of the sanctioned capacity shall
be allowed.
2. Export oriented Maximum 05 (five) hundred pairs of
machinery samples.
3. Export oriented A maximum 3 (three) hundred piece mature
Tannery leather samples
4. Other exporters or 10 (Ten) thousand US dollars only Certificate
producers from EDB

C) If the concerned foreign supplier does not agree to supply the same free of charge, the
concerned exporters or manufacturers shall, on the recommendation of the Export
Development Bureau and with the prior approval of the Chief Controller, value in
normal banking mode under their respective prices or quantities specified in foreign
currency.
D) Prohibited or restricted goods shall also be imported as samples within the specified
lower value or quantity if necessary for the preparation of goods for export purposes.
E) If required for local assembly or production of manufactured goods imported in
readymade condition with the prior approval of the Chief Controller. Local agents of
foreign suppliers may also participate in the tender if necessary and they will get same
benefits as imports.
F) For the use of expatriate Bangladeshis by their family members residing in the country,
Gift items up to the value limit 10(Ten) thousand taka sent in non-commercial quantities
without any type of permit.

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2.5 Temporary Import with Conditions for Re-Exports:

A) Agents and representatives of the foreign manufacturers shall be allowed to import

machinery and equipment on temporary basis of their principal or parent company for display
in Bangladesh, subject to the conditions stated below:
(I) goods brought into Bangladesh for such exhibition or demonstration shall be re-
exported within a period of one year; and
(II) the importer shall execute a bond and furnish a Bank Guarantee or a legal
instrument to the satisfaction of the Customs Authority at the time of clearance of the
goods regarding timely re-export.

B) If any banned or restricted item is included in the equipment or material needed to be

imported on temporary basis for the implementation of any development project or for any
other specific purpose, prior permission of the Chief Controller must be obtained for their
import.

C) Equipment or material imported on re-export basis under sub-para (2) may be

transferred with the prior permission of Chief Controller to any local contracting firm at a
concessionary rate of duty/duties.

D) Import for ‘entre-port’ trade: Goods can be imported for ‘entre-port’ trade against back-
to- bank LC of the buyer through Import Permit on returnable basis issued by the office of the
Chief Controller of Imports and Exports. It is to be mentioned in the import declaration that
it is ‘entre-port’ or ‘Temporary Import’.

E) Such goods shall not be allowed to bring out side of the port area, if the port of entry
and port of export is the same.

F) If the port of import and export are different, goods can be shifted to the port of export
with the permission of Customs Authority on payment of duty and taxes under Duty Draw
Bank system or against 100% Bank Guarantee and it is to be exported within the specified
time limit.

G) Import for Re-export: Any goods can be imported for 100% export against export LC of
the buyer on payment of Duty & Taxes under Duty Draw back system or against 100%
Bank Guarantee/under Bonded Warehouse with Import Permit on returnable basis issued
by the Chief Controller of Imports & Exports.

H) “Processed in Bangladesh” is to be mentioned in the packet of the re-exported goods

and date of expiry and packing of the goods, date of packing, description of goods is to be
written/printed on each pot /container/jute-made package of the goods.

I) All the procedures and formalities of the Government are to be observed in case of re-export
of imported goods.

J) For sending of machinery, equipment or cylinder for repair, re-filling or maintenance etc.
to another country, Export-Cum-Import Permit or Permission is to be taken from the Import
Controlling Authority on submission of Bank guarantee of equivalent value of the goods.

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 K) Provisions of sub-para (10) shall be applicable for the industrial enterprises and in those
cases the enterprises shall execute & submit bonds on recommendation from the sponsoring
authorities.

L) For turbines capable of producing electricity or similar machinery, an export-cum-

import permit is required from the import control authority when replacing expired
imported turbines. The replacement turbines and related equipment must be imported
according to the terms of the contract or LC with the turbine manufacturer or holder
organization.

M)
I) Regarding the re-export of rejected readymade garments:
a) Bonded Warehouse Readymade Garments:
Defective garments exported from bonded warehouses can be returned for re-
export if approved by the Chief Controller. Clearance and re-export orders
require no objection from the lien bank and customs authority.
b) Non-Bonded Warehouse Readymade Garments:
Readymade garments manufactured locally from local raw materials can be
returned for re-export within one year, subject to Chief Controller clearance and
bond conditions. If re-export fails, garments may be sold locally with payment
of local VAT.

II) Return of Defective Cloth and Accessories:

a) Suppliers/exporters accepting defective cloth and accessories without
remitting foreign exchange can receive clearance for re-export, subject to Chief
Controller approval and no objections from the lien bank and customs authority.
b) Suppliers/exporters accepting defective cloth and accessories after foreign
currency payment can obtain re-export clearance by agreeing on replacement
quantities or making payment through TT or LC at sight in foreign currency.

N) In case of import of goods as warranty replacement and consequently for returning the
defective goods to the supplier, approval is to be obtained from the import and export control
authority.

2.6 Import into and Export from the Bangladesh Economic Zone (BEZ) and Export
Processing Zone (EPZ):

A) Import into and export from Bangladesh Economic Zone (BEZ) and Export Processing
Zone (EPZ) shall remain outside the purview of this Order. Provided that, the banned goods
mentioned in the annexure -1 shall not be imported and in case of import of other goods, the
rules & regulations related to public health and environment must be observed strictly.

B) The banking and customs procedure relating to export from or import into the
Bangladesh Economic Zone (BEZ) and Export Processing Zone to or from any country
outside Bangladesh shall be regulated in accordance with the instructions issued in that
behalf by the Bangladesh Bank and the National Board of Revenue respectively from time
to time.

C) All statistics regarding import into and export from Bangladesh Economic Zone (BEZ)
and Export Processing Zone shall be maintained by the Customs Authority concerned.

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 D) Subject to the provisions of sub-paragraphs (5) and (6) below all movement of goods
between Bangladesh Economic Zone (BEZ) & the Export Processing Zone and any other
area in Bangladesh outside the Zone shall be regulated in accordance with the existing Imports
and Exports Control regulations.

E) BEZA and EPZ Authority shall prepare a list of goods required to be procured from the
Bangladesh Customs area for use in the BEZ and EPZ area:

I) On the basis of N.O.C. from the NBR it should be approved by the Ministry of
Commerce.
II) Amendments to the list must follow the same procedure; industrial units in
BEZ and EPZ areas must pay in convertible currency from their foreign
currency accounts for goods procured from Bangladesh Customs according to
the list.
III) The BEZ and EPZ Authority will provide Pass Books to EPZ industrial
units, indicating permissible local procurement amounts in Taka for different
time periods, with format and accounting rules decided in consultation with
Customs Authority.

F) BEZA and EPZ Authority issue "In-Pass" and "Out-Pass" for machinery leaving EPZ for repair,
with Customs Authority overseeing movement, documentation, and accounting as determined by
EPZ Authority in consultation with Customs.

2.7 Release of goods detained by the Customs Authority:

A) If a consignment of imported goods is detained by the Customs Authority, the concerned

importer may apply to the Chief Controller of Imports and Exports with a prayer to issue
instruction to the Customs Authority for clearance of the consignment; but such an
application shall be submitted to the Chief Controller within 90 (ninety days) from the date
of objection given in writing by the Customs Authority and the applications submitted after
expiry of the above time limit shall not be considered with exception to special cases.

B) Such application as per sub-para (1) must be accompanied by written objection of the
Customs Authority or detention memo showing the ground for detention of the consignment.

C) The Chief Controller shall expeditiously dispose of all cases under sub para-1, except
those involving issuance of IP or CP for goods included in the list of controlled goods or
goods otherwise restricted for import as per any other provision of this Order taking into
consideration of all relevant aspects of the cases.

D) The Chief Controller shall, however, forward to the Ministry of Commerce with his
opinion such other cases that involve import of goods included in the list of controlled
goods or goods otherwise restricted for import as per any other provision of the Import
Policy Order for decision regarding relaxation of the relevant provisions.

Claim for import facility in cases accepted in review, appeal and revision.
claim for import shall be entertained in cases accepted under the Review, Appeal and Revision
Order, 1977 if the item is not permissible for import at the concerned time.

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2.8 Import in Contravention and Amendment or Alteration of this Order:
A) Import in Contravention of this Order.
Goods imported in violation of any provision of this order or of any notification issued
thereunder by the Chief Controller shall be treated to have been imported in contravention of
the provisions of the Act.

B) Amendment or alteration of this order

The Government may, at any time, if necessary, amend, alter or relax the provisions of this
Order.

C) Application of the provisions regarding export

All provisions regarding export as mentioned in this Order shall apply in case of export.

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 CHAPTER# 04
3.0 GENERAL RULES FOR IMPORT IN THE INDUSTRIAL SECTOR

3.1 General rules for Import in the Industrial sector- unless otherwise not specified in this
order:
A) For items which are prohibited to be imported commercially and can be imported only for
industrial purposes, for regular import of such items by industrial units which have import
permission, 3 times goods import is acceptable against the import permission.

B) Industrial units which have import permission on adhoc basis can import for 6 months under
recommendation from concerning authority and can import 2 times the import value
permissible.

C) After receiving the adhoc industrial IRC for the first time, the industrial unit can apply for
Regular IRC through the concern industrial authority to Office of Chief controller of Imports
and Exports (CCI&E)

D) After 70 % limit utilization of adhoc IRC, the importer can apply for regular IRC which
will be allowed on the basis of recommendation from the concern industrial authority otherwise
Adhoc IRC will be allowed for 2nd time and 3rd time .

E) Ad hoc IRC cannot be renewed unless the Chief controller of Imports and Exports (CCI&E)
releases permission on the basis of recommendation from the concern industrial authority.

F) After getting adhoc IRC for 2nd or 3rd time instead of permission for regular IRC, the
importer can reapply for regular IRC after using ad hoc IRC from the 2nd and 3rd time to the
concern authority and based on the recommendation from the concern authority the importer
can obtain regular IRC.

G) For those industries which are given import permission based on the total production
capacity from multiple shifts, the importers of these industries if allowed conditional
permission to import raw materials and packaging the importer cannot import more that 100%
of the allowed import limit as prescribed in their regular IRC or ad hoc IRC.

H) For conditional import by government industrial concerns, permission to be obtained from

industrial authority based on recommendation from the administrative authority for total annual
import quantity at the beginning of the fiscal year.

I) For import of industrial raw materials, packaging and spare parts against regular IRC
whereby advance tax against import has been waived, importer can import at maximum 3 times
the import limit.

J) IRC issued to industrial concerns by CCI&E will have clearly mentioned total import
quantity (in word and number) and when IRC is being issued by CCI&E, its local office will
provide entitlement document based on recommendation from concern authority.

K) A copy of the entitlement document needs to be provided to the concern authority

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L) The provisions at sub-paragraphs (b) and (g) above shall not apply in case of import by the
readymade garments, hosiery and special textile industries operating under bonded warehouse
system pharmaceutical (allopathic) industries; but the provisions of sub-paragraphs (6) and (9)
of paragraph 21 respectively shall apply in these cases;

M) import under cash foreign Exchange-Subject to the provision of sub-paragraphs (b) and (g)
industrial sectors for which no fund under Government allocation has been provided may
import their essential raw materials, packing materials and spares (excluding restricted goods
in the control list) under cash foreign exchange without any value limit; and

N) in case of liquidation of any industrial unit the Industrial Registration Certificate (IRC) of
that unit shall be transferred to the Office of Import and Export Control within 120 (one
hundred and twenty) days of liquidation.

O) Sub paragraph 4 under Paragraph 1 and Sub paragraph E Paragraph 4 conditions must be
maintain and no other law is applicable to interrupt any import raw material and goods for legal
and manufacturing industries.

However, if required to postponed any illegal goods or raw marital by other law then it must
be stopped by ministry of commerce on the basis of examination.

3.2 Prescribed condition for import of industrial goods:

A) Import by foreign currency earning hotels. Unless otherwise stated in this order:
I) Hotels earning in foreign currency can import items including pork sausage under
HS heading 22.03, 22.06,22.08 and 16.01 by foreign currency
II) Items mentioned in subsection a can be purchased from duty free shops of
Bangladesh tourism corporation by paying tax and vat instead of importing from abroad
III) For importing as well as locally purchasing of items mentioned in subsection (A),
concern hotels must comply with the following conditions:
a) For import against conditional permit, total import must be restricted to 27% of
the total foreign currency earned by respective hotel
b) Of total earned foreign currency, 12% can be used for purchase of alcohol and
spare parts and remaining 15% of the earned currency can be used for import of
items under conditional import permission
c) Concern AD branch must keep record of the foreign currency earned by a
restaurant and AD branch must record foreign currency used for import of
conditional items against at the time of issuing LC
d) Before opening LC, the hotels earning foreign currency must get the IRC
endorsed by the import authority
B) Import by licensed club, resort, restaurants, motel bar:
I) club, resort, restaurants, motel bar permitted by Department of Narcotics can import
of beer, alcohol under HS heading 22.03-22.06 and subsequent HS code as per the
monetary value and quantity defined by that department upon obtaining permission
from Ministry of Commerce and Chief Controller of import and Export.
II) Apart from this, any concern mentioned in (A) can purchase beer and alcohol from
Bangladesh Tourism Corporation by paying tax and vat instead of importing under
HS heading, 22.03 to 22.06.

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 C) Import of beer and alcohol in other cases:
I) Apart from institutions mentioned in subsection (1) and (2 Institutions employing
foreign nationals under HS headings 22.03-22.06 can import beer and alcohol with
Ministry of Commerce permission, Chief Controller clearance, and Department of
Narcotics approval.
II) Instead of importing items mentioned under subsection (A), it can be purchased
from duty free shop of Bangladesh Tourism Corporation by paying prevailing tax and
vat
D) Different type of sheets- HS Sheet, Hot roll, GP sheet, BP sheet, stainless steel, CRCA
tin, tin plate, MS sheet and silicon sheet-
I) Secondary quality of specified sheets can be commercially imported alongside
primary quality by recognized industrial concerns if import permission covers them,
subjected to testing and not classified as prime quality.
E) Raw Material and Packing material for Drug Industries: Prior approval is needed from
relevant authorities, including Director General of Drug Association, for
pharmaceutical-related raw material and packaging imports, requiring submission of
approved blocklist copies to various specified entities.

3.3 Import by Export-Oriented Industries:

A) Recognized readymade garment industries operating under the bonded warehouse

system shall be permitted to import raw and packing materials (including banned &
restricted goods) by the UD issued by BGMA or BKMA and flowed by the NBR on
the basis of confirmed and irrevocable Letter of Credit for export of readymade
garments against back to back letter of credit. But without gray fabric they shall be
import 18.29 meter.
B) In the above mention paragraph A. industry not permitted to import to any cloth in
pieces or cloth cut into pieces and no staple fiber imported for back to back LC.
C) To import grey fabrics paragraph 10 . B order may apply ,however 400 gram Duplex
board shall be importable under back to back LC through entry in the Pass Book;
D) Lesser thickness Collar and back board importable for Back to Back LC purpose which
is entry in Pass book.
E) Entitlement of industries according to the paragraph A. may Import for back to back
LC purpose by the nominated bank ,for this tyeps of import there is no IP or CP
required from import controller.
F) Such units (mentioned in clause a) under readymade garments industry shall, however,
be permitted to import raw inaterials on `No Cost Basis' for execution of export orders
on following conditions, such as:-
I) No foreign remittance send form Bangladesh and each case shall be realized on
consignment basis against UD from MGEA & BKMEA .
II) For the export of readymade goods pre shipment certificate if required then this
certificate must be made by buyer cost and submitted , readymade garments
made for export shall be not be rejected.
III) The entire value added amount in respect of readymade garments shall be
repatriated to Bangladesh and the lowest percentage of value addition shall be
as under:
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 S.L Sector/field minimum rate of
value addition
1 For export of FOB below 60 USD price of all types of 20%
Net and woven
2 For export of FOB above 60 USD price of all types of 10 %
Net and woven
3 All kind of baby Cloth 15%
IV) Quantity, price and description of the materials imported on consignment basis
must be mentioned in the invoice but imported raw and packing materials may
be transferred through inter-bond transfer and imported gray fabrics, knit fabrics
and white fabrics.

G) Back-to-back LCs are to be set up, except as specified, for raw material and packaging
imports up to the notified maximum percentage against domestic value addition rate, linked
to the FOB value of the export LC for other products.
H) Specialized textile industries under bonded warehousing, exporting via irrevocable LCs,
can import raw materials within Customs-approved quantities against back-to-back LCs
without Controller General's prior approval.
I) Export-oriented hosiery industries under bonded warehousing, exporting through
irrevocable LCs, can import raw materials including prohibited ones, based on Customs-
set quantities against back-to-back or co-LCs without prior Chief Controller permission,
allowing approved apparel industries to import yarn and knitted fabrics as specified.
J) Only yarn can be imported as raw material for products like sweaters, jumpers, gloves,
socks, etc., in the textile sector's approved apparel industries, while cloth and knitted fabrics
should be in bale or roll form; no import of cloth or knitted fabrics in piece form is allowed.
K) Export-oriented industries, excluding clothing and textiles, can import restricted
materials with a patron's recommendation and Chief Controller's approval for specific
export orders, requiring a bank guarantee of 100% value except for bonded warehouse
license holders.
L) Under the bonded warehouse system, various sectors' recognized manufacturing and
exporting establishments can import raw and packing materials using back-to-back credit,
benefiting both direct and indirect exporters.
M) Bonded wire against back-to-back debentures in case of guarding export-oriented
industries

N) Under the bonded warehouse system, only 100% export-oriented industries are
permitted to import necessary raw materials and packaging materials for a period of Six
months on a revolving basis. This import is allowed through back-to-back Letter of Credit
(L/C) against the Master Export L/C or confirmed contract by the buyer. The basis for
determining the import quantity is through the value of exports from the previous year or a
performance certificate.
I) For new factories, the import quantity for six months will be fixed based on the
production capacity determined by the Board of Investment. Following the procedures
outlined above, 100% export-oriented industries under the bonded warehouse system

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 can also procure goods from local producers or suppliers through sight payment or
deferred payment within a maximum of 180 days under a local L/C.
II) Additionally, these industries can import raw materials through either sight or
usance L/C against a contract based on the client-bank relationship, in addition to the
existing rules governing export L/C.
III) Import Permits and Clearance Permits are required for approved industries with
100% foreign investment to import capital machinery and spares. However, they are
exempted from needing an L/C (Letter of Credit) to make these imports.
IV) For import against back-to-back L/C by these industries mentioned above as “In
case of industries which supply raw materials to export oriented industries i.e. deemed
exporters, raw materials can be imported against back to back L/C through bonded
warehouse”, authorization of Bangladesh Bank will not be necessary and raw materials
will be imported without L/C and against contract on the basis of Bank Customer
relationship through sight/ the usance L/C under prevailing rules.
O) If a container or consignment of fabrics imported for the readymade garment industry
contains a few separate cut pieces, the Customs Authority will only detain the cut pieces
and not the entire container or consignment.
P) If a readymade garment manufacturer receives an export order that requires these
specific products, they can import them without being limited by the 18.29-meter
restriction. This exemption allows the garment industry to procure the necessary materials
for fulfilling export orders without facing limitations on the length of embroidered fabrics,
badges, labels, stickers, and patches.
Q) Shipping raw and packing materials before setting up the back-to-back Letter of Credit
(L/C) for export-oriented readymade garments or textile industry will not be regarded as a
breach of the Import Policy. The back-to-back L/C should be established before submitting
the challan manifest
R) For 100% export-oriented industries operating under the bonded warehouse system,
engaged in the manufacturing of corrugated cartons, thread, poly bags, butterfly labels,
interlining, gum tape, leather, leather goods, footwear, etc., the option to import raw
materials through the Cash L/C procedure under the bonded warehouse system will
continue to be available, in addition to the existing back-to-back L/C facilities.
S) Export-oriented industries deemed as exporters will receive Utilization Permits (UP)
against Back-to-Back L/C under certain conditions:
(I) In cases where payment for carton and accessories is not possible after payment
through L/C, adjustments can be made if there is a surplus in any other L/C opened for
raw and packing materials. Such adjustments will be limited to seven cases.
(II) Relevant information about surplus money adjustments, including L/C numbers,
references, dates, names, addresses of L/C openers, commodity descriptions,
quantities, and other details, must be clearly stated in the UP.
(III) Back-to-back L/C for supplied accessories must be adjusted within six months,
and no delays are allowed.
(IV) Inland back-to-back L/C adjustments should be completed within six months.
(V) These conditions apply to all consignments, regardless of their value.

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3.4 LC is not required to import Capital Machineries or Spare Parts to release goods against
Import Permit, or in some cases, against Clearance Permit (to release with penalty) for
100% foreign owned existing or going to be established approved industries to be cleared
but the importer will be needed to acquire Import Permit, or in some cases, Clearance
Permit.

3.5 Grey Fabrics Import:

A) Recognized textile finishing units under the bonded warehouse system can import Grey
Fabrics against back-to-back L/C with conditions that the fabrics must be supplied to
export-oriented readymade garment units or fully exported abroad after finishing, dyeing,
or printing.

B) If Grey Fabrics are directly exported, the importer must process an equal quantity of
local Grey Fabrics for the same purpose during the same financial year.

C) Export Promotion Bureau monitors compliance with these conditions.

D) Export-oriented readymade garment industries can import grey fabric based on

recommendations from the Utilization Expert Committee.

F) Specialized textile units with technical capability can import grey fabrics without back-
to-back L/C under supervised bonded warehouse system, up to 33% of their production
capacity.

F)100% export-oriented specialized textile mills can import raw materials under supervised
bonded warehouse up to twelve months without back-to-back L/C.

3.6 Import of parts, accessories, and components: Banned or restricted parts, accessories, or
components can be imported along with machinery if they are integral and indispensable
parts of the machinery allowed for import.

3.7 Second-hand/reconditioned capital machineries:

A) Second-hand/reconditioned capital machineries used in industry can be imported
without any price limit, but a certificate from an enlisted surveyor stating at least 10 years
of economic life for each machine must be submitted.
B) For generators or generating sets, certificates stating not more than 5 years old from the
exporting country's appropriate authority must be submitted.

3.8 Electric Meter (Electric Kilowatt Meter):

A) Electric Meter: For importation of fully prepared Single-Phase Electric Meter (H.S.
Code 9028.30.10, 9028.30.20 and 9028.30.90), the quality cannot be less than Metering
Equipment (AC)-Particular/ Requirements Part-2 Electromechanical Meters for Active
Energy (Class 0.5, 1 and 2): BDS IEC 62053-11:2008.
B) For importation of the spare parts of Electric Meters (H.S. Code 9028.90), quality
inspection will not be necessary but it’s quality must be as per BDS and to be tested by
BSTI while marketing the complete meter made with those spare parts.

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3.9 Import by packing or canning sector:
Approved Packing or Canning Industries can freely import Full cream Powder Milk,
Horlicks, Ovaltine or Maltova, up to their approved importation limit subject to comply the
following rules into Tin Container or in larger pack:
A) A certificate needs to be submitted with each challan, issued by the proper authority
(Govt. Health or Food department) of the exporting country regarding ingredients and
ratio, manufacturing date and expiry date to be used as human food.
B) Radio Activity test according to Section 23 to be applied;
C) Sub section 17 of Section 23 will be applied in case of importation in Tin Container
or marketing those Tin Container or larger pack goods in retail pack; and
D) To import those goods in Tinned Container or larger pack permanent imprint
regarding goods ingredients and ratio, manufacturing date and expiry date to be used as
human food is needed.

3.10 Coconut Oil:

Coconut oil can be imported by all approved industries against H.S. heading 15.13 and all other
H.S. Code under this heading but Coconut oil imported to be used as hair oil cannot have Acid
value more than 0.6 and for Soap industries the Acid value should be within 10.0 and Coconut
Oil will be commercially freely importable item and in this case the Acid value will not be
more than 0.6.

3.11 Import of waste and scrap:

A) Waste and scrap of iron and steel can be imported as raw materials by industrial units that
are officially recognized for production purposes.
B) Only industrial units that have official recognition will be permitted to import aluminum
waste and scrap as raw materials according to their import entitlement.
C) Import of Glass Calet Scrap as raw materials is allowed only for recognized importers who
operate as industrial units.
D) Copper waste and scrap can only be imported as raw materials by recognized importers who
are industrial units and have the necessary import entitlement.
E) For all the items mentioned in Paragraphs A, B, C, and D, importation is subject to
confirmation from the exporter that there are no toxic or radioactive particles, as verified by
Customs.

3.12 Brake acrylic:

Brake Acrylic (under classification of H.S. Code 3915.90 of H.S. Heading 39.15) can be
imported under the following conditions:
A) Those approved industries that use acrylic as their raw material can import acrylic as per
their production capacity as mentioned on their IRC;
B) Acrylic Source and Sourcing country to be reported to the Ministry of Environment
immediate after the importation.
C) The importer must submit a PSI report to be issued by any internationally recognized
surveyor company before shipping onboard to the effect that, the imported Brake Acrylic has
no such toxic or radioactive substances which may cause harm to the environment according
to international convention and the goods will be released under such certification as per
general customs rule.

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3.13 Formalin and Formalin type substances:
Formalin and Formalin type substances will be imported as per Formalin Control Act, 2015
(Act No. 5 of 2015) and Formalin (Import, Production, Transportation, Store, Sell and Use)
Control Regulations, 2015.

3.14 Methanol/Methyl Alcohol related products:

A. Methanol/Methyl Alcohol and its related products can be imported as raw materials for
industrial use. However, the usual provisions for industrial import of this order will not apply
when importing methanol.
B. Methanol/Methyl Alcohol and its related products can be imported for educational or
research purposes only with the approval of the Ministry of Commerce.

3.15 Crude Soya-bean oil:

Soybean oil in its crude form can be imported for refining purposes, but if the importer enters
into an agreement with TCB (Trade Corporation of Bangladesh), they will need permission
from the Ministry of Commerce to import unrefined soybean oil.

3.16 Crude Palm Oil:

Crude palm olein can be imported for refining, provided that the importer either possesses a
refinery unit or has an agreement with a refinery industry, and the import value will be
determined based on the agreement.

4.0 Conclusion: In conclusion, Chapters 3 and 4 of the document provide a robust and inclusive
framework for import regulations in diverse scenarios, addressing both joint importation and
industrial sector needs. The chapters strike a balance between controlled procedures and
necessary flexibility, aiming to facilitate efficient trade operations. By encompassing various
import categories such as joint importation, user imports, industrial needs, and special
economic zones, the document ensures compliance, quality control, and adherence to
regulations while promoting the smooth flow of goods for economic growth and development.

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