Import Policy Order Bangladesh 2026–2029: What Importers Need to Know

Import Policy Order Bangladesh: the 2026–2029 framework

The Import Policy Order Bangladesh traders now work under is the most liberal the country has issued. The Import Policy Order 2026–2029, issued by the Ministry of Commerce on 24 August 2026, replaces the 2021–2024 order, removes the value ceiling on importing without a letter of credit, recognises open account payment, makes room for free trade zones and central bonded warehouses, and widens free-of-cost imports for export-oriented industry. It also keeps, and in places tightens, the lists of banned and conditionally importable goods that decide whether a consignment clears at all.

This guide explains what the 2026–2029 order changes and what it does not: the statutory basis in the Imports and Exports (Control) Act 1950, the import registration certificate and its fees, banned and restricted goods, used and reconditioned goods including vehicles, payment routes and LC margins, capital machinery and export-oriented inputs, BSTI and other certificates, personal and e-commerce imports, EPZ and economic zone regimes, enforcement under the Customs Act 2023 and the practical steps that keep a shipment out of trouble.

Summary: Bangladesh controls imports through a time-bound Import Policy Order made under section 3 of the Imports and Exports (Control) Act 1950. The 2026–2029 order, dated 24 August 2026 and valid until 31 December 2029 or until replaced, lets industrial and commercial importers bring in any permissible goods under sales or purchase contracts without an LC and without value limits, subject to foreign exchange rules. Banned items, conditional items, certification requirements and registration rules still apply, and breaches are punished under both the 1950 Act and the Customs Act 2023.

Key point: The headline liberalisation is about payment, not about what may be imported. The order removes the old US$500,000 annual cap on LC-free commercial imports, but a consignment that falls within a banned or conditional schedule, or that lacks a required certificate, is still treated as prohibited or restricted goods at customs, with confiscation and penalties to follow.

At a glance

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Table of Contents

Import Policy Order Bangladesh: the 2026–2029 framework

The Import Policy Order Bangladesh relies on is secondary legislation. Section 3(1) of the Imports and Exports (Control) Act 1950 allows the government, by order published in the official Gazette, to prohibit, restrict or otherwise control the import of goods of any specified description, to regulate trade practices and procedure connected with imports, and to provide for licences, appeals and fees.[7] Section 3(2) adds that goods of a specified description may be imported only in accordance with a licence issued by the Chief Controller of Imports and Exports or another authorised officer.[7]

Two further provisions give the order its teeth. Under section 3(3), goods covered by an order are deemed to be prohibited or restricted goods for customs purposes, so the full customs regime of examination, confiscation and penalty applies.[7] And under section 4B, an industrial consumer that imports goods may not sell or transfer them, or use them for a different purpose, without the Chief Controller's written permission.[7] That second rule is often forgotten by manufacturers who sell surplus raw materials on the local market.

The 2026–2029 order in outline

The new order was approved in principle by the Cabinet in July 2026 and issued on 24 August 2026, replacing the 2021–2024 order.[3] [2] It remains effective until 31 December 2029, and its provisions continue to apply until a new order is issued.[2] Its stated aims are to facilitate trade, attract domestic and foreign investment and align Bangladesh with global commerce after graduation from least developed country status.[1]

Why the order runs late

The previous order was meant to be replaced well before 2026. A successor order for 2024–2027 was in preparation in early 2024, but it was not issued, and later drafts were still under discussion in 2026.[14] [5] In practice the 2021–2024 order continued to govern imports until the new order took effect. Contracts and compliance manuals drafted in that period should be checked against the 2026–2029 text, because paragraph numbering and several schedules have changed.

What the Import Policy Order Bangladesh issued in 2026 changed

The changes are concentrated in payment methods, export-oriented industry and logistics infrastructure.

LC-free imports without value limits

Under the previous order, imports under sales or purchase contracts without an LC were allowed but subject to value limits and conditions, and commercial importers were capped at US$500,000 a year.[1] Paragraph 6(3) of the new order allows all permissible goods for industrial and commercial purposes to be imported through purchase and sale contracts without opening LCs, irrespective of value, subject to the foreign exchange regulations.[2] The order also allows import payments through open account arrangements and other international payment methods approved by Bangladesh Bank.[2] [3]

Free trade zones and central bonded warehouses

For the first time, the order includes provisions for establishing free trade zones and central bonded warehouses, with the aim of developing Bangladesh into a regional hub for trade, logistics and re-export.[1] [3] These provisions are enabling rather than self-executing: the detailed operating rules will come from the customs and investment authorities.

Expatriates, machinery and raw materials

The order defines a "Bangladeshi expatriate" for the first time and promises easier imports of capital machinery and raw materials for approved industries.[1] Export-oriented industries get wider scope to import raw materials and production inputs on a free-of-cost basis, to diversify exports and encourage higher-value products.[1]

Bangladesh Bank's implementing circular

Bangladesh Bank issued a circular to authorised dealer banks on 13 September 2026 directing them to follow the new order.[2] It highlighted paragraph 25, under which export-oriented enterprises may procure inputs locally in taka through back-to-back LCs and on a free-of-cost basis, and the provisions on bonded warehouses, and told banks to ensure compliance with both the order and the foreign exchange regulations.[2] For importers, the bank's reading of the order is what matters day to day, because the bank decides whether to process the payment.

Import registration: the IRC

Commercial and industrial importers need an import registration certificate (IRC) from the Office of the Chief Controller of Imports and Exports (CCI&E), which issues registrations and renewals through its Online Licensing Module.[9] The IRC is the importer's licence to trade: banks will not open an LC or process an import payment without it, and the registered import limit caps the value the importer may bring in each year.

Fees and limits

Fees are set by import-limit slab. Under the fee schedule that took effect in September 2022, registration cost Tk 24,000 for an import limit of Tk 25 lakh to Tk 50 lakh, Tk 40,000 for Tk 50 lakh to Tk 1 crore, Tk 50,000 for Tk 1 crore to Tk 5 crore, Tk 60,000 for Tk 5 crore to Tk 20 crore, Tk 70,000 for Tk 20 crore to Tk 50 crore and Tk 80,000 for Tk 50 crore and above, with renewal fees of Tk 24,000 to Tk 32,000 in the upper slabs and Tk 2,000 for changes of bank, import limit or ownership.[9]

Check the current schedule on the CCI&E portal before applying, as fees are revised by government circular.

Practical points

Choose an import limit that fits realistic volumes with headroom, because exceeding it means a mid-year amendment. Keep the trade licence, TIN, VAT registration and company documents consistent across all filings, since mismatches between the IRC and the bill of entry are a common cause of delay. Industrial IRCs are tied to the approved industrial use, which links back to the section 4B restriction on resale. Our guide to import and export licensing in Bangladesh covers the registration process in more detail.

Banned and restricted goods under the Import Policy Order Bangladesh

Every Import Policy Order carries schedules of goods that may not be imported and goods that may be imported only on conditions. These schedules are where most enforcement problems arise.

Statutory prohibitions under the Customs Act

Some prohibitions sit in the Customs Act 2023 itself, regardless of the order. Section 17(1) bars the import of counterfeit coins and currency, any other counterfeit product, obscene material, goods imported in breach of the Wildlife (Conservation and Security) Act 2012, goods with fake geographical indications, goods bearing a counterfeit trademark or false trade description, goods infringing patents or copyright, goods prohibited under any other law and goods specified by the National Board of Revenue by notification.[8]

The order's banned schedule

The banned schedule has been broadly stable across orders. Reporting on the drafting of a successor order in 2024 listed items the commerce ministry intended to keep banned, including pigs and pork products, poppy seeds, low-quality goods, old, used or reconditioned goods, factory rejects and stock lots, reconditioned office equipment and used computers and electronics, industrial sludge and waste, listed persistent pesticides such as DDT and aldrin, horns above 75 decibels, polythene and polypropylene bags, two-stroke three-wheelers, maps not showing Bangladesh's boundaries as published by the Survey of Bangladesh, and obscene or subversive material.[14] Always check the final schedule of the 2026–2029 order line by line against the HS code, not the commercial description.

Conditional imports

Conditional items are permitted only if specified requirements are met: an age limit, a certificate, a ministry clearance or a licence. The same 2024 reporting described conditional treatment for items such as furnace oil, current fishing nets, vehicles, motorcycles, certain petroleum gases and residues, toys and civil aircraft, with toys requiring age labelling and, for plastic toys, a certificate from the exporting country that they are not harmful to health, and old ships requiring certification that they carry no toxic or hazardous waste.[14] Weapons, swords and similar items need clearance from the relevant ministry.[14]

Used goods and reconditioned vehicles

Under the Import Policy Order Bangladesh customs applies, the default position is that old, used and reconditioned goods are not importable unless the order specifically permits them on conditions.[14] Vehicles are the most commercially important exception.

Reconditioned cars

Reconditioned cars may be imported only within the order's age limit. The draft of the 2026–2029 order kept the existing restriction on used motor cars, passenger cars and trucks older than five years.[5] Importers and dealers should calculate age from the date of manufacture as the order defines it and keep the de-registration and inspection documents from the exporting country, because age disputes are decided on paper at the port.

Used electric vehicles

The draft had proposed allowing used electric vehicles up to ten years old.[5] The final order went the other way and prohibits the import of used and reconditioned EVs, prompting the reconditioned vehicle importers' association, BARVIDA, to call for the ban to be withdrawn and replaced with controlled imports subject to battery state-of-health certification, pre-shipment inspection and exclusion of flood-, fire- and accident-damaged vehicles.[6] Until the order is amended, only new EVs may be imported. Dealers holding orders for used EVs placed before 24 August 2026 should take advice on transitional treatment before shipment.

Ships and capital goods

Second-hand ships are conditionally importable, subject to the exporter's certificate and the importer's declaration that no toxic or hazardous waste is being carried.[14] For other used capital machinery, check whether the specific item is permitted, what age or certification condition applies, and whether a pre-shipment inspection certificate is needed. The safest course is to obtain written confirmation from the CCI&E or customs before the goods leave the port of loading.

Payment routes, LCs and LC margins

The order now permits LCs, sales and purchase contracts and open account, but each route remains subject to Bangladesh Bank's foreign exchange regulations and the authorised dealer bank's own credit judgement.[2]

Choosing the route

An LC gives the seller a bank's payment undertaking and the buyer documentary control over shipment, at the cost of bank charges, margin and time. Contract-based payment, whether advance, collection or open account, is cheaper and faster but shifts credit risk to one side. Removing the US$500,000 cap means commercial importers can now choose contract-based payment for large consignments, but the bank will still require the import to be reported, the documents to match and the foreign exchange rules to be met. Our comparison of LC and telegraphic transfer payment in Bangladesh sets out the trade-offs.

LC margins

LC margins are set by Bangladesh Bank, not the order. In September 2024 Bangladesh Bank lifted margin restrictions on LCs for most goods and let banks set margins on the basis of the banker-customer relationship, but kept a 100 per cent margin for luxury goods and import substitutes, including cars, electrical and electronic goods, home appliances, gold and jewellery, readymade garments, furniture, fruits and flowers, processed food, alcohol and tobacco.[10] Margin rules change by circular and item, so the importer's bank should confirm the margin before the commercial terms are agreed.

Shipment periods

The 2021–2024 order set maximum shipment periods after LC opening of 24 months for machinery and 9 months for other goods, and the draft of the new order did not specify a time limit.[5] Whatever the final position, the LC itself and the bank's foreign exchange reporting will impose deadlines that must be managed.

Capital machinery, raw materials and export-oriented industry

The Import Policy Order Bangladesh exporters rely on is built around inputs. The new order expands the free-of-cost import facility for export-oriented industries, intended to diversify exports and encourage high value-added sectors.[3]

Value addition and entitlements

The draft proposed much higher minimum value addition for exports made with imported inputs, including raising the threshold for knit and woven garments of cotton and man-made fibre from 20 to 30 per cent and for children's garments from 15 to 30 per cent, with new thresholds for footwear, ships and furniture, and warned that exporters failing to meet them would lose cash incentives and duty benefits on inputs.[5] Exporters should read the final paragraph 25 entitlements carefully against their own costings, because the value-addition and import-entitlement figures directly affect bonded warehouse and incentive claims.

The September 2026 amendment

On 30 September 2026 the Ministry of Commerce amended the order after representations from BGMEA and BKMEA. It deleted the sentence in paragraph 25(12) that made knit fabric non-importable, allowed fabric for seamless sportswear of synthetic fibre, high-value fashion items and functional garments to be imported regardless of shape or size on the recommendation of BGMEA or BKMEA, added "and other materials" to the free-of-cost import schedule for cotton, man-made fibre and synthetic fabrics, linked raw material quantities for specialised textiles and hosiery to the UD or UP, and removed the requirement for ministry permission to import yarn and knitted fabric for hosiery and knitwear.[4]

The episode shows that the Import Policy Order Bangladesh businesses plan around is not static: the schedules can and do move within the life of an order.

BSTI and other certificates

For many products, clearance depends on a certificate from a technical regulator. The Bangladesh Standards and Testing Institution (BSTI) is the most important. By January 2025 the government had brought 299 items under mandatory quality certification, and under Appendix 4 to paragraph 25(48) of the 2021–2024 order, importers needed BSTI certificates for 79 products after testing and before final assessment by customs.[12]

Conditional release for industrial raw materials

To reduce port demurrage, BSTI began issuing conditional temporary certificates for imported industrial raw materials in January 2025, subject to proof that the goods are raw materials for industry, disclosure of the storage warehouse and application at the port of entry, with a final certificate issued once the goods pass testing. BSTI warned that storing the goods outside the certified warehouse or using or selling them before final certification would lead to legal action.[12]

Other regulators

Food, medicines, chemicals, plants and animal products, radioactive material and telecom equipment each have their own clearance authorities and certificates, and the order's conditional schedule lists which apply. The practical rule is to identify every certificate needed before shipment and, where the certificate must come from the exporting country, to make its issue a condition of the supply contract. Our guide to BSTI certification in Bangladesh covers the standards regime.

Personal imports, gifts and e-commerce

The Import Policy Order Bangladesh also governs imports by individuals and non-registered entities, which matters for cross-border e-commerce. Under the previous order, persons and entities not registered as importers could import goods for their own use up to US$10,000 without an IRC, and expatriates could send goods worth Tk 10,000 duty-free for family members; the draft of the new order proposed doubling the first limit and raising the second to US$1,000.[5] Confirm the final figures in the 2026–2029 order before relying on them.

For businesses, the line is clear: an online seller that imports stock for resale is a commercial importer and needs an IRC, and the personal-use allowance is not a route for commercial volumes. Platforms and sellers should also watch the conditional schedule for product categories commonly sold online, such as electronics, cosmetics, toys and food supplements, each of which may need a certificate. Our guide to e-commerce law in Bangladesh covers the platform side.

EPZs and economic zones

Enterprises in export processing zones operate under a separate regime administered by BEPZA, which offers duty-free import of machinery, equipment and construction materials and duty-free import of raw materials, together with tax holidays and a one-window service in which foreign investors deal only with BEPZA for project sanction and operations.[11] Economic zone enterprises have similar import incentives.

The institutional map changed in August 2026. On 20 August 2026 the Invest Bangladesh Act 2026 came into force, merging BIDA, BEZA and the Public-Private Partnership Authority into the Invest Bangladesh Authority and transferring their assets, records, contracts and liabilities to it.[13] Economic zone investors should therefore expect import permissions previously issued by BEZA to be handled by Invest Bangladesh as its structure is built out. Zone enterprises still interact with the general Import Policy Order when they sell into the domestic tariff area or source inputs locally. Our guide to investment approvals with BIDA and BEPZA explains the zone regimes.

Who administers the import regime

Several authorities share responsibility, and knowing which one decides each question saves time at the port.

Enforcement and penalties

Under the Imports and Exports (Control) Act 1950

A person who breaches the Act, an order made under it or its rules, or who uses a licence otherwise than in accordance with its conditions, is punishable with imprisonment of up to one year, a fine, or both, without prejudice to confiscation or penalty under customs law.[7] A court may take cognisance only on a written complaint by a customs officer authorised by the Collector or, for other offences, by the Chief Controller or an officer authorised by him, and only a first-class magistrate or higher court may try the offence.[7]

Under the Customs Act 2023

Customs penalties are usually the larger exposure. Section 33 prohibits false information, statements or documents in any customs matter, including electronic declarations.[8] The penalty schedule provides for a penalty of not less than the amount of duties and taxes evaded and up to twice that amount, with confiscation of the goods, or on conviction imprisonment of up to five years, a fine of the same range, or both.[8] A misdeclared HS code used to avoid a banned or conditional schedule is therefore both a policy breach and a false statement.

No ADR for policy breaches

The Customs Act's alternative dispute resolution chapter covers valuation and related disputes, but expressly excludes disputes on alleged evasion through misdeclaration of description, quantity or HS code, forgery, violation of import and export policy and bond violations, as well as seizure and confiscation of prohibited or restricted goods.[8] Appeals against customs decisions by officers below Commissioner rank lie to the Commissioner of Customs (Appeal) within three months.[8] Our overview of customs law in Bangladesh explains adjudication and appeals.

Practical steps for importers

The following sequence reflects how we review a new product line or supplier against the Import Policy Order Bangladesh customs officers will apply. Most problems are avoidable if this work is done before the goods are shipped.

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Comparing the 2021–2024 and 2026–2029 orders

The table below summarises the main changes reported so far. On a phone, scroll it sideways.

Common mistakes under the Import Policy Order Bangladesh enforces

• Classifying by description, not HS code. Schedules are applied by HS code at the port; a commercial description will not save a misclassified item.
• Assuming LC freedom means import freedom. Paragraph 6(3) applies only to permissible goods.[2]
• Selling industrial inputs locally. Section 4B of the 1950 Act requires written permission to sell or divert goods imported as an industrial consumer.[7]
• Shipping before certificates are arranged. BSTI and other certificates often require testing after arrival; storage and use before certification can attract action.[12]
• Relying on the old order. Paragraph numbers, schedules and figures changed on 24 August 2026 and again on 30 September 2026.[4]
• Treating used goods as routine. Used and reconditioned goods are banned unless expressly permitted, and used EVs are now prohibited.[6]

What to watch in 2026 and beyond

Three issues will shape how the Import Policy Order Bangladesh introduced in 2026 operates in practice. First, implementing rules: the free trade zone and central bonded warehouse provisions need detailed operating frameworks from customs and investment authorities before they produce real hubs.[1] Second, amendment pressure: the September 2026 textile changes and the campaign against the used EV ban show that the schedules will continue to move.[4] [6] Third, trade balance: commentators have warned that fewer import controls could widen the trade deficit if export market access does not expand correspondingly, which could prompt tighter foreign exchange or margin measures even while the order stays liberal.[1]

For importers, the opportunity is real: cheaper payment structures, larger LC-free volumes and more flexible input sourcing. The legal discipline remains the same. Classify correctly, check the schedules, secure certificates before shipment and keep every declaration accurate. TRW's customs and trade compliance practice and international trade team advise on product reviews, registrations, seizures and appeals; to discuss a shipment or a new product line, contact TRW.

Frequently asked questions

What is the current Import Policy Order in Bangladesh?

The Import Policy Order 2026–2029, issued by the Ministry of Commerce on 24 August 2026. It replaced the 2021–2024 order and remains effective until 31 December 2029 or until a new order is issued.[1] [2]

Under which law is the Import Policy Order made?

Section 3 of the Imports and Exports (Control) Act 1950, which lets the government prohibit, restrict or control imports by order published in the Gazette.[7]

Can goods now be imported without a letter of credit?

Yes. Paragraph 6(3) allows all permissible goods for industrial and commercial purposes to be imported under purchase and sale contracts without an LC, irrespective of value, subject to foreign exchange regulations. Open account is also recognised.[2]

What happened to the US$500,000 limit?

It has gone. Commercial importers were previously limited to US$500,000 a year for LC-free imports; the 2026–2029 order removes that ceiling.[1]

Do I need an IRC to import?

Commercial and industrial importers need an import registration certificate from the CCI&E, with fees set by import-limit slab. Small personal-use imports by non-registered persons are treated separately.[9] [5]

Can reconditioned cars be imported?

Yes, within the order's age limit; the draft retained the five-year restriction on used cars and trucks. Used and reconditioned electric vehicles, however, are prohibited under the final order.[5] [6]

Which goods are banned from import?

Counterfeit, obscene, IP-infringing and wildlife-law goods are banned under the Customs Act 2023, and the order's schedule adds items such as pork products, used and reconditioned goods not expressly permitted, industrial waste, certain pesticides and polythene bags.[8] [14]

Is BSTI certification required for imports?

For listed products, yes. BSTI certification applied to 79 imported products under the 2021–2024 order, and conditional temporary certificates are available for industrial raw materials pending testing.[12]

What is the penalty for breaching the Import Policy Order?

Up to one year's imprisonment, a fine or both under the 1950 Act, plus customs consequences. A false declaration under the Customs Act 2023 attracts a penalty of one to two times the duty evaded and confiscation, or up to five years' imprisonment on conviction.[7] [8]

Has the 2026–2029 order been amended?

Yes. On 30 September 2026 the Ministry of Commerce removed the knit fabric import ban and eased several textile input conditions after representations from BGMEA and BKMEA.[4]