Bangladesh Bank has made it easier for industrial establishments to import through letter of agreement without LC (letter of credit). A circular in this regard has been issued by the Foreign Exchange and Policy Department of Bangladesh Bank on Thursday (October 24).
The circular has given instructions on import trade under the contract. As per the import policy order, industrial establishments have been given the opportunity to import under contract without LC. The central bank says that goods worth 5 lakh US dollars can be imported commercially without LC.
In case of import under the agreement, the import information should be given in the reporting portal of Bangladesh Bank.
Besides, the guidelines on accepting credit reports of foreign suppliers have been given in the circular.
If the price is not paid within the specified time, the concerned importer has been asked not to carry out the import process through the contract.
The directives in the circular will be applicable to imports through agreements in the Specialized Zones (EPZs and EZs). Apart from this, there is a system of short-term import credit for imports as usual.
In case of imports under the agreement, the importer himself can take short-term foreign loans to meet the import liabilities. However, the foreign lender can issue a LC or SBLC or guarantee to the supplier. Foreign loans taken for imports and interest may be repaid as per the terms of the loan. General approval of corporate, personal or third party guarantee by the importer for taking short-term import credit for imports.
Under the agreement, commercial imports are provided with short term foreign credit facility of 60 days.
Those concerned think that a new door has been opened in trade. They said, through this facility, the ambiguity regarding third country import or third country LC has been removed. Imports can be made without LC by following the declared procedure based on good relations with the foreign supplier.
