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IMPORT POLICY ORDER 1997-2002
Government is sincerely committed to fostering a
gradual development of free market economy in the light of GATT agreement. For
the interest of export promotion & investment in the country, it is necessary
to have a long term, stable, facilitative & liberal Import Policy. The present
government has taken steps to extend the duration of the Import Policy from
two years to five years. Efforts have been made to make the Import Policy
easier and more liberal by relaxing or rescinding the regulatory provisions of
the previous Import Policy. Provisions have already been made to allow import
of capital machinery and industrial raw materials on consignment basis without
the cover of the Letter of Credit.
Government has taken steps for quality
control in the import of cement, fertilizer etc. In order to protect the
interest of the consumers, steps are afoot to ensure that in future all
imported consumer items conform to a specified standard of quality. In the
present Import Policy Order, second hand/reconditioned machinery are
importable subject to fulfillment of certain conditions. Gradually efforts
will be made to classify the machinery under H. S. Code.
Main Objectives of the Import Policy:
a) To make the Import Policy Compatible with the changes in
world-market that have occurred as a result of the introduction of market
economy and signing of the GATT Agreement;
b) To simplify the procedures for import of capital machinery and industrial
raw materials with a view to promoting export, and
c) To ensure growth of the indigenous industry and availability of high
quality goods to the consumers at a reasonable price.
GENERAL
PROVISIONS FOR IMPORT
Regulation of Import - Import of goods under this Order shall be
regulated as under:
(a) Banned list: Unless otherwise specified, items included in this list
cannot be imported. List of import banned items has been attached in
annexure-I;
(b) Restricted list: Any item included in this list shall be importable only
on fulfillment of the conditions (b) specified there in against the item. The
list of restricted items has been attached in annexure-l(b);
(c) Freely Importable Items : Unless otherwise specified, any item, which does
not appear either in banned or in restricted list shall be freely importable;
(d) In addition to the conditions mentioned in the Restricted and Banned
Lists, the conditions, restrictions and procedures for import of various items
mentioned in the text portion of this Order, shall as usual apply in case of
import of those items;
(e) If, while determining the import status of an item mentioned in the
Restricted and Banned Lists, the description of goods does not conform to the
H. S, Code mentioned against the item or any discrepancy arises between the H.
S. Code and the description of goods in that case the description of goods
shall prevail;
Conditions of Ban and Restriction:
If the import of an item had been banned at any time before the coming into
effect of this Order or if such ban has been made effective by virtue of the
placement of the item in the control list annexed to this Order such ban shall
be subject to the following conditions:
(i) The concerned sponsoring authority/Tariff commission shall strictly
monitor production of the industrial unit which is being afforded protection
by the ban. 'The ban may be revoked on the recommendation of the concerned
sponsoring authority/Tariff Commission if the quality of products deteriorates
and the price of the product is not maintained at satisfactory level or if
production level fails leaving unutilized capacity. Such of the protected
units as are now primarily engaged in assembly type activities shall actively
and expeditiously move towards progressive manufacture.
(ii) The sponsoring authority concerned and Tariff Commission shall
continuously monitor the prices of the items covered by such ban to guard
against undue increase of price. If the price of any item is increased except
for factors like rise in the price of raw materials or decline in. the rate of
exchange or if the increase in the price of the item is disproportionately
higher compared to the rise in the price of the raw material, the ban may be
revoked on the recommendation of Tariff Commission/sponsoring authority.
(iii) Whoever feels aggrieved by any decision regarding ban or restriction on
import of any item can represent his case to the Tariff Commission. The Tariff
Commission will duly examine such a representation and furnish as early as
possible its recommendation (s) to the Ministry of Commerce for latter's
consideration.
Conditions on Import of goods:
(1) Import Trade Control Schedule Numbers. For import purpose, use of new ITC
Numbers (H. S. Code) with at least six digits corresponding to the
classification of goods as given in the Import Trade Control Schedule 1988,
based on the Harmonized Commodity Description and Coding System, shall be
mandatory. But in cases where a particular item has been classified under an H.
S. Code Number with more than six digits, in those cases it shall be mandatory
to use that specific Code Number (having more' than six digits). The seven Digit
H. S. Code published by Bangladesh Bureau of Statistics my also be mentioned in
the L.C.A. From, LC and other relevant paper within a bracket in addition to
normal H. S. Code as mentioned above. No bank shall issue L.C. Authorization
form or open LC without properly mentioning I.T.C. number (H. S. -Code) thereon
NOC on the basis of ROB (Right of Refusal)-(a) No Objection Certificate on the
basis of Right of Refusal (ROR) from any authority shall not be required for
import of any freely importable item by any Public Sector agency. However, in
cases where a public sector agency is required to import banned/restricted items
included in the Control List prior permission of the Ministry of Commerce shall
have to be obtained on the basis of ROR issued by the Ministry of Industries or
by the Sponsoring Ministry/Division, or by both as the case may be.
(2) In case of import of banned/restricted items for approved projects financed
under foreign aid the concerned' Government Agency will approach the Chief
Controller of Imports and Exports directly for necessary permission together
with a list of items duly certified under proper seal and signature giving
description, quantity/number, price and H. S. Code Number against each item
required to be imported. The details about the aided project and specific
provision of the relevant contract and other necessary information shall also
have to be furnished along with the list of items. The Chief 'Controller shall
issue permission/permit on the basis of above documents.
(3) Restriction regarding source of procurement of goods:
a) Goods from Israel or goods originating from that country shall not be
importable. Goods shall also not be importable in the flag vessels of that
country.
b) All kinds of import from and export to Serbia and Montenegro, fragments of
former Socialist Republic of Yugoslavia, shall be banned.
(4) Pre-shipment inspection: Unless otherwise specified, pre-shipment inspection
of imported goods shall not be obligatory in case of import by the private
sector importers.
(5) Shipment of Bangladesh Flag Vessels: Subject to waiver specified below
shipment of goods shall normally be made on Bangladesh flag vessels:
a) Import of goods up to maximum twenty metric tons in case of single individual
consignee or up to maximum 100 (one hundred) metric tons in case of group import
may be made in non-Bangladeshi flag vessels. However the Director-General of
Shipping may notify general waivers in the following cases, such as
(1) shipment of goods from foreign ports which are not visited by Bangladeshi
Vessels, and
(2) import of goods on the basis of specific agreements which provide for C & F
contract. In all other cases a certificate of waiver shall be obtained from the
Director General of Shipping for importation of goods in non-Bangladeshi flag
vessels. If there appears to be no possibility of any Bangladeshi flag vessels,
visiting a port within next seven days, waiver shall be given within twenty-four
hours of application for waiver. Otherwise, it will be considered that waiver
has been given. However, the preceding condition of compulsory shipment of goods
on Bangladeshi flag vessels, or the condition of obtaining certificates of
waiver from the Director-General of Shipping shall not apply in cases of import
under such foreign aids, loans or grants which contain specific provisions
regarding shipment of goods.
b) In case of import and export of goods by export-oriented industries, shipment
may be made in non-Bangladeshi flag vessels.
(6) Import at competitive rate:
a) Import shall be made at the most competitive rate and the importers may be
required, at any time, to submit documents regarding the price paid or to be
paid by them.
b) In case of import under Untied Commodity Aid in the private sector, goods
shall be imported at the most competitive rate by obtaining quotations from a
minimum three-suppliers/ indenture representing at least two countries abroad.
This condition shall, however, not apply for opening of LC up to TK. One Lac.
For import at the most competitive rate by the Public Sector importers the
conditions mentioned at para 27(8) of this Order shall apply.
(7) Import on C&F and FOB basis: All imports by sea, air and land route shall be
made either on C& For FOB basis. However in case of import on FOB basis the
concerned importer shall have to properly comply with the circular issued by
Bangladesh BMA regard. Before opening of LC necessary insurance cover note shall
have to be purchased from the Sadharan Bima Corporation or any other Bangladeshi
insurance company. Unless there is specific provision in the relevant loan
agreement/ project agreement concluded with the foreign donors for import on CIF
basis, no import shall be allowed on CIF basis without prior approval from the
Ministry of Commerce. However, Bangladesh nationals, living abroad, for sending
goods against their earned foreign exchange and foreign investors sending
capital machinery & raw materials against their equity share portion shall be
allowed on CIF basis.
(8) Packaging and Container Procedures:
a) In all cases of import, "country of origin" shall be mentioned clearly on
package/container. A certificate regarding "country of origin" issued by the
concerned Government agency/approved authority organization of the exporting
country' must be submitted, along with import documents to the customs Authority
at the, time of goods. However, the provisions of "country of origin" shall not
be applicable to coal and export oriented garments industries. Of cotton import
it shall not be required to mention country of origin on each bale. But "country
of origin" shall be mentioned photo-sanitary certificate, Besides, 100% export
oriented industries, which are recognized by the Customs Authority, shall be
from the restriction of "country of origin" subject to the conditions imposed by
the Foreign Exchange Regulation Act. Bangladesh Bank and Commercial banks.
b) Incase of import of Limestone, in different consignments/lot by the rope-way
or by river, as raw-materials for Chaotic Cement Factory, "country of origin"
certificate from the exporting country's Government/approved
authority/organization shall be submitted to the once Customs authority at the
time of release of goods, instead of each consignment/lot for the quantity
mentioned in river-way and as per supplied carrying list in case of rope-way.
SOURCE OF FINANCE
(1) Import may be allowed under the following sources of finance:
a) Cash -
(i) Cash foreign exchange (balance of the foreign exchange reserve of Bangladesh
Bank);
(ii) Foreign currency accounts maintained by Bangladeshi nationals
working/living abroad;
b) External economic aid (Commodity Aid, Loan, Credit or Grant);
c) Commodity exchange: Barter and special trading arrangement (STA); this source
shall be abolished as and when present agreements expire,
(2) Commercial importers and industrial consumers may utilize their respective
shares under Barter/STA as per basis notified.
a) Import under the Special Trading Arrangements (STA), which are or were
concluded with prior approval/permission of the government, shall be subject to
the specific procedures laid down by the government in this respect.
b) The provision of this para will remain effective only unto the time of
completion of on going agreements.
c) Fund provision for financing import - Unless otherwise specified the
importers shall import primarily against cash foreign exchange.
IMPORT PRODECURES
(1) Import License not require No import License will be necessary for import of
an), item. No import License will be necessary for import of an), item.
(2) Import against LCA From: Unless otherwise specified, all imports transacted
through a bank (LCs, bank drafts, remittances etc.) shall require LCA forms
irrespective of the source of finance.
(3) Import against LC.- Unless otherwise specified, import shall be made only by
opening irrevocable letter of credit (LC).
However, LC is not required for import of each consignment, by road, of easily
perishable item bolded from US$ five thousand to Seven thousand five hundred and
for import of capital machinery & raw materials for industrial use without any
price limit. Existing conditions regarding import on deferred payment under LC
shall be applicable in this case also and importers shall be required to
register with Bangladesh Bank for importation without LC.
(4) Import against LCA Form but without opening of Letter of Credit (L/C):
Import against LCA Form may be allowed without
Opening of letters of credit in the following cases
(a) Import of books, journals, magazines and periodicals on sight draft bill
basis;
(b) Import of any permissible item for an amount not exceeding US Dollar, Five
thousand only during each financial year against remittance made from
Bangladesh. However, permissible item valued unto US Dollar five thousand in a
single consignment from Myanmar shall be importable without opening LC and in
that case above mentioned annual ceiling of US Dollar five thousand shall not be
applicable.
(c) Import under commodity aid, grant or such other loan for which there are
specific procurement procedures for import of goods without opening any LC;
(d) Import of "International Chemical References" through Bank drafts by
recognized pharmaceutical (allopathic) industry on the approval of Director,
Drugs Administrators for the purpose of quality control of their products.
(5) Import against Import Permits and in special cases against Clearance Permit
(for clearance of goods on payment of fine): In the following cases, neither LCA
Form nor opening of LC will be necessary; but Import Permit (IP) or Clearance
Permit (CP) will have to be obtained by the importer for -
(a) Import of books, magazines, journals, periodicals and scientific and
laboratory equipment against surrender of UNESCO Coupons;
(b) Import under Pay-As-You-Learn-Scheme in the following cases only on the
basis of clearance of the Bangladesh Bank
(i) New or not exceeding twelve years old plant and machinery of permissible
specification;
(ii) New or not exceeding five years old motor cars;
(iii) Cargo or passenger vessel of steel or wooden bodies, including
refrigerated vessel of any capacity either new or not exceeding fifteen years
old; but in case of ocean going ships, old ship, not exceeding twenty years old
shall importable;
(iv) Import of. plant and machinery for export-oriented industrial units with
the clearance of the competent sanctioning authority, wherever necessary; and
(v) Trawlers and other fishing vessels, either new or not exceeding twenty years
old:
For import under this scheme the sanctioning authority of such import shall
forward a copy of sanction letter to the Chief Controller and the importers
shall apply to the CCI & E along with necessary paper for prior permission.
IMPORT PRODECURES
(c) Import of item (s) by passengers coming from abroad in excess of the
permissible limits as per the relevant baggage rules, provided the import of the
item(s) concerned is permissible under the relevant baggage rules;
(d) Import of free samples, advertising materials and gift items above the
ceiling prescribed as per paragraph 13 of this Order;
(e) Import of only drugs and medicines (allopathic) under product bonus system
subject to the condition that it shall be obligatory on the part of the
importers concerned to pass on the benefit to the consumers. The Director, Drugs
Administration shall devise appropriate mechanism in this behalf-,
(f) Import of capital machinery as share of capital of the foreign shareholder
for an approved joint venture industrial unit already set up or to be set up;
(g) Import of any other goods, not specifically exempted from permit.
(6) Import on Deferred Payment Basis or Against Supplier's Credit: Subject to
restriction and prohibitions contained in this order, import on differed payment
basis or against Suppliers, Credit may be allowed on the basis of procedure laid
down by, the Bangladesh Bank in this behalf.
(7) Import against direct payment abroad: Only Bangladeshi nationals living
abroad may send any importable item irrespective of value ceiling against direct
payment abroad in the name of any Bangladeshi living in Bangladesh. 'The name
and address of the consignee shall be mentioned in the import documents. For
such import, no permission or import permit from the Import Control Authority
shall be necessary.
(8) Time limit for opening of LIC: Unless otherwise specified, for import under
cash foreign exchange, letter of credit s opened by all importers within one
hundred and fifty days from the date of its issue or from the date of its
registration above time limit may be extended unto such time as deemed fit by
the Chief Controller. For import under foreign aid and barter/STA. LC shall be
opened within the time limit as may be notified by the Chief Controller.
(9) Validity of LCA for shipment:
(a) Unless, otherwise specified, shipment of goods shall be made within
seventeen months in the case of machine spare parts and nine months in the case
of all other items from the date of issuance of LCA Form by bank or registration
of LC Authorization Form with Bangladesh Bank Registration unit, as the case may
be, Shipment of goods commodity aid/grant, and barter/STA shall be effected
within the time limits as may be notified by the Chief Controller
(b) In case where shipment could not be made within the validity of the LCA Form
due to circumstances beyond the control the importer, the Chief Controller may
extend the time limit for shipment of goods on the merit of each case;
(10) Restriction on L/C after imposition of ban/restriction: No extension of the
date of shipment in any letter of credit of the value or quantity of goods shall
be allowed by the nominated bank or by the Import Control Authority after the
import of the item or items has been banned or restricted; or amendment to
letter of Credit or enhancement.
(11) Document required to be submitted along with LCA Form: Importer in both
public sector and private sector shall submit to their nominated banks the
following documents along With the LC Authorization Form for opening Letter of
Credit:
(a) LC application form duly signed by the importer;
(b) Indents for goods issued by indenture or a Proforma invoice obtained from
the foreign supplier, as the case may be; and
(c) Insurance cover note.
(I2) Additional documents to be furnished by public sector importers: In
addition to the documents mentioned in sub paragraph
(I 1) above public sector
importers shall submit the attested photocopy of sanction letter from the
Administrative Ministry Division or Authority, wherever applicable;
(13) Additional documents to be furnished by private sector importers: In
addition to the documents, mentioned in sub-paragraph (I 1) above private sector
importers will be required to submit the following documents-
(a) Valid membership certificate from the registered local Chamber of Commerce
and Industry or any Trade Association, established on all Bangladesh basis,
representing any special trade/business;
(b) proof of payment of renewal fees for the Import Registration Certificate for
the concerned financial year;
(c) a declaration, in triplicate, that the importer has paid income-tax or
submitted income-tax return for the preceding year;
(d) proof of having Tax Identification Number (TIN) in all cases of import
excepting personal use;
(e) insurance cover note either from Sadharan Bima Corporation or from
Bangladeshi Insurance Company and stamped insurance policy against this
cover-note;
(f) any such documents as may be required as per this Order or Public Notice, or
instruction issued by Chief Controller, from time to time under this Order;
(14) Violation of the requirement of LCA/LC: Shipment effected before
authentication of the LC Authorization Form by the nominated bank and
registration with the Bangladesh Bank, wherever necessary, and before opening of
LC or after expiry of the validity of the LC Authorization Form or LC shall be
treated as import in contravention of this Order. LC Authorization Form obtained
on the basis of false or incorrect particulars or by adopting any fraudulent
means shall be treated as invalid and void abilities.
(15) Import against indent and proforma invoice: LC may be opened against an
indent issued by a local registered indenture or against a proforma invoice
issued by a foreign manufacturer/seller/supplier.
IMPORT BY COMMERCIAL IMPORTERS
(1) Commercial import under cash foreign exchange or under Government,
Allocation: Commercial import will normally be made under cash foreign exchange,
subject to availability of fund, import of a few commercial items may be allowed
under Government allocation. In such cases the name of items, source of finance
and other terms and conditions commercial import will be notified by the Chief
Controller from time to time.
(2) Import of industrial raw and packing materials and spares by commercial
importers: Industrial raw and pack materials and spares that do not occur in the
banned and restricted lists shall be freely importable under cash foreign
exchange by commercial importers.
(3) Commercial import by Foreign Firms: Foreign Firms registered in Bangladesh
under the Companies Act. 1994(XVIII 1994) shall be allowed to import permissible
commercial items against their commercial IRC, without any prior permission from
the Chief Controller. However, in such cases of import of commercial items
Foreign Firms shall inform the Office the Chief Controller in writing regarding
the detail information of the item (e.g. HS code of the item, description of the
item quality, value, name and address of the exporting foreign firm etc.) before
importation.
(4) Import of capital machinery for commercial purpose: Registered Commercial
Importers may import permissible items of industrial capital machinery and
accessories under cash foreign exchange without any value limit for commercial
purpose.
CONDITIONS FOR IMPORT ON CERTAIN COMMERCIAL ITEMS
(1) Milk Food: Import of milk food shall be subject to the following conditions:
a) Milk food with fat content and baby food shall be imported in tin containers only.
b) The words given sol work (There is no alternative for breast-feeding) shall be printed
clearly in relatively larger letters in Bangla on each tin of baby food with cream.
c) Composition and percentage of various ingredients shall be printed in Bangla on the
tin container of milk food.
d) The date of manufacture and the date of expire for human consumption shall be embossed
either in Bangla or in English on each tin container of milk food. Apart from this,
the net weight of milk food shall be clearly indicated on each in container either in
Bangla or English.
e) The conditions mentioned at classes (b), (c) and (d) above must be embossed on the tin.
Separate printed labels pasted on the tin shall not by any means be deemed to have fulfilled
this requirement.
f) Measuring spoon shall be supplied in tin containers of baby food i.e. milk food having fat
contents upto 19%.
(2) Non-fat-dried milk: Import of not-fat-dried milk shall be made subject to the following
conditions:
a) Import of non-fat-dried milk, packed in bag/tin, shall be allowed.
(b) 'The importer shall produce analysis certificate authenticated by competent authority of the
exporting country. 'The certificate will contain a declaration that the milk food is fit for
human consumption.
c) The date of manufacture and date of expire of the fitness of the contents for human
consumption shall be printed on each container/bag.
d) In case of import of milk products and milk food, pre-shipment inspection shall be
mandatory for determination of radioactivity level, and the goods may be shipped
only if the radioactivity level is found in such test within the acceptable limits
approved by the Government. Such test report shall be sent to all concerned
authorities as one of the shipping documents. On arrival of milk food and
dried milk in the country, the consignment shall be subject to radioactivity
test for the second time before release of the goods, and the goods shall be
released only if the radioactivity level is found within the acceptable as well
as approved limits. Imported milk food and dried milk shall be subject to
radioactivity test as usual on its arrival in the country.
(3) The date of manufacture and date of expiry for import of food and beverages. In case of import
of all kinds of food and beverages the date of manufacture and the date of expiry shall be
clearly printed on each package/container of such items. However, it shall not be necessary
to mention the date of expiry in case of import of wine/liquor.
(4) Explosives: Import of explosives including calcium carbide shall not be allowed except with
the prior approval of the Chief Inspector of Explosives of the Ministry of Industries.
Commercial import of explosive substances shall not be allowed except through the Trading
Corporation of Bangladesh (TCB). The TCB may sell explosive substances imported by it to the
actual users only under intimation to the Ministry of Home Affairs. Explosive substances shall
however, be importable by the Govt. recognized industrial units up to the entitlement for such
items with prior approval of the Chief Inspector of Explosives. But such industrial units
shall not be allowed to import explosives in excess of their import entitlement/value under
the provisions of Para 23(1) of this Order. Immediately after giving clearance for import
of Potassium Chlorate the chief Inspector of Explosives shall inform the National Board of
Revenue in writing about the quantity of Potassium Chlorate to be imported. Explosive
substances imported by industrial units against their import entitlement/value shall
be used in the factory for production purposes only and these shall not be sold,
transferred or used in any other way.
CONDITIONS FOR IMPORT ON CERTAIN COMMERCIAL ITEMS
(5) Import of approved pesticides & insecticides shall be subject to the following conditions:
a) Containers shall be in good condition and capable of withstanding the risk of handing and
carrying by sea;
b) Correct technical/chemical name of the contents must be marked on the container and
c) The following information shall be printed clearly in Bangla on the container:
(i) Name of the product:
(ii) Name and address of the manufacturer or the formulator or the person in whose name
the pesticide is registered:
(iii) Net contents:
(iv) Date of manufacture:
(v) Date of test:
(vi) Normal storage stability and time limit:
(vii) Name and percentage by weight or active ingredients and total percentage of other
ingredients waring or caution statements such as "keep out of reach of children" "Dangerous"
"Warning" or "Caution" etc.
(viii) The goods, should possess quality to capacitate it to be in good condition
in normal storage
(6) Second-hand Clothing: Second-hand clothing shall be importable only by selected
importers on the basis of prior permission issued in their favour subject to the
following conditions:
a) Only blankets sweaters, ladies cardigans, men's jackets including zipper jackets men's
trousers and shirts of synthetic and blended fabric shall be importable as second hand
clothing: no other items of second hand clothing shall be importable:
b) Share of individual importer shall not exceed Taka fifty thousand and the maximum quantity
to be imported within that share shall be further subject to weight limit as mentioned below:
(i) Sweater 4 (four) ton
(ii) Ladies Cardigan 4(four) ton
(iii) Men's jackets including zipper jackets 4 (four) ton
(iv) Men's trouser 4 (four) ton
(v) Blanket-1 and a half ton
(vi) Shirts of synthetic blended fabric 1(one) ton
If an importer intends to import more than one of the above mentioned six
items then import of the concerned items shall be limited to the quantity
worked out in proportion to the L/C value for the said items within the
overall share of Taka fifty thousand.
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