What is Bangladesh’s new import policy?
According to the new import policy approved on February 7th, 2022, Bangladeshi retailers who import goods of less than 500,000 US dollars will be exempted from issuing letters of credit and settled by contract and telegraphic transfer.
Moreover, in the bonded warehouse system part of the new policy, 100% of Bangladesh’s export-oriented enterprises import raw materials and goods needed for six months without any back-to-back letter of credit.
Another noteworthy latest news is that Bangladesh’s central bank instructed its banks to check the validity and forgery of the import registration certificate (IRC) when opening letters of credit (LC). In its notice, it said: “Authorized dealer banks must ensure that the original and latest IRC is used when opening letters of credit for enterprises.”
How does this policy compare with the previous policy?
In the previous policy, imports of less than US$ 200,000 can be exempted from issuing letters of credit, but now it has suddenly increased by US$ 300,000. The export or import of machinery should be completed within 24 months from the date of signing the contract, instead of the original 17 months.
According to the new policy, individuals without import registration can import products worth US$ 10,000. If the value of goods exceeds US$ 10,000, they need to obtain permission first. The secretary said at the press conference that after the implementation of the new policy, the development of import trade in Bangladesh will be more suitable for the development needs of the times and more competitive.
What is the impact of this policy on Chinese suppliers?
At present, the export volume of Chinese manufacturers to Bangladesh is increasing. According to customs data, the total value of China’s exports to Bangladesh in 2021 was US$ 2,409,715,230, an increase of US$ 9,037,074,300 compared with the same period in 2020, a year-on-year increase of 59.8%.
If this policy is implemented, it will facilitate the export of Chinese suppliers and shorten the order confirmation time of domestic manufacturers and Bangladeshi customers. Promote domestic manufacturers’ desire for the Bangladesh market.
Wenzhou BlueSky market in Bangladesh and the impact of this policy on us?
According to the import customs data of Bangladesh in 2021, Wenzhou BlueSky ranked first in the total export volume of Fuel dispensers in Bangladesh.
As for LPG series products, in recent years, the CNG market in Bangladesh has gradually transformed into the LPG market, and the sales volume of LPG standard stations is increasing year by year.
This new policy will have a positive effect on our company’s export to Bangladesh. In the past, it often took half a month for customers to issue letters of credit with a small amount. If we send TT directly to our bank, we can receive payment the next day, which is convenient for us to arrange production and delivery. This can shorten the time for us to sign contracts with customers, increase work efficiency and increase the number of orders.
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