Bangladesh is now providing the opportunity to import coal, refined soybean oil and sugar through alternative means of sale and purchase agreement, without opening letters of credit (LC).
As per previous regulations, the import price limit for soybean oil was $50,000 per shipment and the import price limit for other products was $30,000. By amending the policy order, the price limit for importing coal, refined soybean oil and sugar has been set at $5 million.
The government had published a revised gazette of the import policy order last Wednesday.
This decision was made at a commerce ministry meeting on June 8, chaired by the commerce ministry Senior Secretary Tapan Kanti Ghosh. Following that meeting, the ministry issued an order on June 26.
According to sources, the Ministry of Commerce has taken this decision on an urgent basis to deal with the crisis in the power sector and control inflation.
The revised Import Policy Order provides the opportunity for unlimited import of industrial raw materials and capital equipment through purchase and sale agreements. However, in the case of commercial imports, the limit of $500,000 on payment from Bangladesh remains unchanged.
Due to the high cost of importing coal, this price limit was increased to $5 million. Coal import is allowed only for the purpose of supplying to industrial establishments engaged in coal based thermal power generation.
Besides, the same price limit facility has been imposed in the case of importing refined soybean oil and sugar to control the market price. Prior permission of the Ministry of Commerce must be taken in case of importation under this price range.
The government has decided to import coal on an urgent basis to keep the power plants that are currently closed and on the verge of closure.
With a view to expanding exports, on a case-by-case basis, allowing import of goods irrespective of value through TT without opening letter of credit has been continued as well.
Besides, the government has given the opportunity to import ethylene and propylene for the private sector. Importers can import these chemicals for use in both industrial sectors under the same SS code of LNG.
According to the revised policy order, ethylene and propylene will be importable by the private sector subject to prior approval of the Department of Explosives and clearance of the Department of Environment.
