New policy allows import of LNG, re-conditioned generators

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Sheikh Shahariar Zaman
In accordance with the new import policy, the government will allow import of reconditioned generators or generating sets of any value to cope with the nagging power crisis.
The new import policy also allows import of liquefied natural gas (LNG) by the private sector.
Earlier, only new generators could be imported and only the government could import LNG.
Second-hand capital machinery and computers are also allowed to import under the new policy.
The government has issued the gazette notification of the policy effective from January 26 this year to 2012.
The government is aware of the present power shortage and in order to ease the problem facing the people, it allows import of reconditioned generators and LNG by private sector, said a commerce ministry official.
"This will give the private sector a breathing space and during this time the government will take steps to set up new power plants to meet the rising demand," he added.
Importers must take permission from the government and the regulatory authorities before importing LNG and petroleum products.
The country is facing a power shortage of about 1,500 megawatt and domestic consumers experience about two to three hours' load shedding every day.
Traders can import essential products without LCs (letters of credit) as the government wants to reduce the import lead time in times of crisis, the official said.
The government wants to reduce the LC opening time, which is about two weeks in times of rising prices, he added.
The government bans import of salt to protect the local industry, he added.
Hundred per cent foreign-owned companies can import capital machinery and other machinery without opening LCs to attract foreign direct investment (FDI).
"The government wants to lure FDI, and the new incentive will encourage the foreign investors to invest in the country," the official hoped.
Ship-building sector will also get a boost as the builders are allowed to import scrap, iron and aluminium after taking permission from the Board of Investment (BoI), he said.
"They are registered with the BoI and they need its permission before importing the required amount of raw materials," he said.
Recycled materials including plastic can also be imported, but the finished products must be exported, the official added.
Coming to milk and milk food, the import policy says they must be melamine-free to be imported in the country.
Bangladeshi importers can import products without LCs upto $20,000 for paddy, wheat, maize, soyabean oil, palm oil, onion and fish from Myanmar, and for other products the range is $10,000.