Bangladesh Import Policy Order 2026-2029: Key Changes, Import Regulations and Business Implications

On 24 August 2026, Bangladesh’s Ministry of Commerce published the Import Policy Order 2026-2029 under section 3(1) of the Imports and Exports (Control) Act, 1950, superseding the Import Policy Order 2021-2024 with immediate effect. The new Order introduces greater flexibility into the country’s import regime while maintaining regulatory controls over cross-border trade. Key changes include the removal of the previous value ceiling for imports made without Letters of Credit (LCs), new provisions governing Free Trade Zones (FTZs), and expanded facilities for free-of-cost (FoC) imports of raw materials by export-oriented businesses.

The Order forms part of Bangladesh’s broader effort to modernise its trade and investment framework ahead of LDC graduation and the associated changes in its preferential market-access environment. It seeks to bring the import regime closer to international trading norms, reduce administrative barriers to investment, and support export diversification.

This new framework is particularly relevant to commercial importers, manufacturers, export-oriented businesses, investors, and businesses operating through FTZs and bonded facilities.

Key Regulatory Changes

1. Removal of the Value Ceiling for Contract-Based Imports

One significant change is the removal of the previous US$500,000 ceiling applicable to imports by industrial and commercial importers under sales or purchase contracts without opening an LC. The 2026-2029 Order removes this ceiling while retaining LCs as an available import mechanism.

For businesses with established overseas suppliers, this may provide greater flexibility in structuring procurement and payment arrangements. However, importers must still consider Bangladesh Bank’s foreign exchange rules, customs requirements, import registration, documentation and any product-specific approvals.

The key commercial question is therefore not simply whether an LC is required, but which import and payment structure is permissible and most appropriate for the particular transaction.

2. Free Trade Zones and Bonded Warehouses

The Order also formalises provisions relating to FTZs and Central Bonded Warehouses within the country’s trade and logistics framework. These provisions may facilitate the import and handling of raw materials, capital machinery and other production inputs, subject to the applicable customs, bonded-warehouse and foreign-exchange requirements.

Businesses operating through FTZs or bonded facilities should clearly identify the Importer on Record and allocate responsibility for customs documentation and the goods at each stage, ensuring consistency among commercial contracts, warehouse arrangements and customs records.

3. Expanded Free-of-Cost Imports for Export-Oriented Businesses

The revised regime broadens the facility for export-oriented manufacturers to import certain raw materials and production inputs free of charge from foreign buyers or principals.

Under the prior regime, such imports were generally limited under the Customs Bond Commissionerate’s rules to a proportion of the importer’s existing export volume. The expanded FoC facility is designed to ease input sourcing constraints for exporters, particularly in sectors such as ready-made garments, where buyer-supplied inputs are common.

Retained Restrictions

Despite the overall liberalisation, the Order preserves several existing restrictions. These include continued controls on substandard or reconditioned goods, specified hazardous chemicals, and materials falling within the scope of international environmental conventions to which Bangladesh is a party.

Import of goods originating in Israel, and goods carried on Israeli-flagged vessels, also remain prohibited.

Country-of-origin declaration requirements, temporary import provisions, and preferential trade arrangements under existing bilateral and regional instruments continue to apply, subject to the specific conditions set out in the Order.

Technical Compliance

The Import Policy Order 2026-2029 provides scope for relaxing certain conditions or regulatory requirements in connection with PTAs, FTAs, and CEPAs, but obtaining preferential tariff treatment is never automatic. Therefore, importers should determine the applicable HS classification, Rules of Origin (RoO), Certificate of Origin (CoO), and other documentary requirements before seeking any preferential treatment.

Furthermore, the liberalisation of trade finance does not bypass product-specific mandates. Depending on the goods, importers may need to satisfy BSTI standards, provide phytosanitary certifications or comply with ISPM-15 rules prior to shipment, rather than treating customs clearance as a purely financial or post-arrival matter.

What Businesses Should Do

The practical impact of Bangladesh’s Import Policy Order 2026-2029 will depend on the nature of each transaction. Importers and investors should therefore:

• determine the correct HS classification and regulatory status of the goods;
• identify the permitted import and payment mechanism;
• verify applicable Bangladesh Bank foreign exchange requirements;
• review the underlying sales or purchase contract;
• confirm customs documentation and valuation requirements;
• check sector-specific licences, certificates and approvals;
• verify Rules of Origin and Certificate of Origin requirements where preferential treatment is claimed; and
• ensure that FTZ and bonded transactions clearly identify the Importer on Record and customs status of the goods.

Conclusion

The Import Policy Order 2026–2029 represents a significant step toward a more flexible and commercially responsive import regime, while introducing updated provisions for non-LC transactions, FoC arrangements, FTZ and bonded operations. The reforms do not, however, displace the wider regulatory framework. Bangladesh Bank requirements, customs rules, product-specific regulations, trade agreement conditions and contractual obligations continue to apply where relevant.

For importers and investors, the key opportunity is therefore to determine how the new flexibility can be used effectively while remaining compliant. A transaction-level review of existing import and procurement arrangements can help businesses identify opportunities under the new framework while reducing regulatory and documentation risks.

This article is for general informational purposes only and does not constitute legal advice. For guidance specific to your business, please contact our legal team.

References:

1. S.R.O. No. 308-Law/2026 — Import Policy Order, 2026-2029, Bangladesh Ministry of Commerce (dpp.gov.bd) (Click Here)
2. এস.আর.ও. নং ৩০৮-আইন/২০২৬।–আমদানি নীতি আদেশ, ২০২৬-২০২৯ (Click Here)

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