🧾 1. Letters of Credit (LC)
✅ Extended Tenor for Import LCs
- Bangladesh Bank has extended the permissible payment period for LCs used in importing raw materials, agricultural inputs, and chemical fertilizers from 180 days to 360 days, valid through December 2025. This was done to ease foreign exchange pressure amid a dollar liquidity crunch
⚠️ Overdue LC Clearance
- BB is enforcing stricter measures on unfulfilled LC payments.
- Banks must clear overdue LCs promptly or face punitive actions, including potential suspension of Authorized Dealer licenses .
- As of Nov 2024, around $400 million in overdue LC payments had accumulated, largely from state-run banks .
🧾 Discrepant Bill Acceptance
- From April 2025, banks may process payments for LCs with minor document discrepancies if importers have provided formal waivers and due diligence is confirmed .
🔍 Margin Adjustments
- LC cash margin requirements for motor vehicle imports were reduced:
- Fully electric/hybrid vehicles now approved with margin based on bank-customer relationships.
- Conventional vehicles require a 50% cash margin (previously 100%) .
📦 2. Customs Compliance & Trade Facilitation
🌐 Mandatory Bangladesh Single Window (BSW)
- As of Feb 1, 2025, ALL import/export certificates, licenses, and permits must be submitted electronically through the Bangladesh Single Window. Manual submissions are no longer accepted .
- Initial phase covers 7 agencies including DGDA, EPB, DoE, BEPZA, and others, with expanded benefits for transparency and efficiency .
💸 Penalty Structure Revisions
- Finance Ordinance 2025–26 reduces custom penalties:
- Fines for false declarations cut in half.
- Interest caps introduced on customs and tax disputes.
- Importer-declared values prioritized over customs discretion .
- While welcomed by businesses, experts warn reduced penalties may encourage smuggling and tax evasion .
🚢 3. Shipping & Port Operations
📈 Direct Shipping Enabled with Pakistan
- Since Nov 2024, direct shipping services between Karachi and Chattogram began, reducing transit time to ~11 days and boosting imports from Pakistan by ~10% in 2024 .
⚠️ Impact of NBR (Customs) Strike
- NBR employees went on strike (May–June 2025), halting customs services—especially at Chattogram Port—for several days.
- Operations resumed on June 30 after the interim government restored customs as essential services
📌 Summary Table
| Compliance Area | Update | Implications |
| LC Tenor | 360 days extension for select imports | Trade liquidity relief, FX pressure reduction |
| Overdue LC Enforcement | Stronger regulatory action by Bangladesh Bank | Improved import payment discipline, reduces global reputational risk |
| Discrepant Bills | Conditional acceptance permitted | Aligns with global banking practices, eases trade friction |
| LC Margin (Vehicles) | Margin eased for EVs, 50% for conventional cars | Supports green transition, eases costs for importers |
| Customs Filing | Mandatory use of Bangladesh Single Window | Digital transparency, faster clearances |
| Penalty Cuts | Lowered false-declaration fines and interest caps | Business relief, risk of compliance slackness |
| Direct Shipping | Route opened for Pakistan imports | Lower transit times, cost savings |
| Customs Strike | Disruption from NBR strike; resolved by declaring services essential | Highlights systemic risk, but swift government action restored normalcy |
✅ Recommendations
- Digitize Operations: Ensure full integration with the BSW system to avoid delays or rejections.
- Prepare for LC Changes:
- Exploit extended LC tenors for cash flow management.
- Adopt best practices for discrepant bill handling.
- Monitor Penalty Risks: Balance operational relief with ethical compliance. Avoid false declarations.
- Plan for Disruptions: Build buffer logistics and alternative routes in case of strikes or delays.
- Leverage Shipping Routes: Expand imports via new Pakistan direct shipping linkages for speed and cost efficiency.
