Banks barred from opening LCs without DGDA approval

FE REPORT

Bangladesh Bank (BB) has instructed all banks not to open letters of credit (LCs) for importing dietary supplements without prior approval from the Directorate General of Drug Administration (DGDA).

To this effect, the central bank issued a circular on Wednesday and also forwarded an official letter of the DGDA to all banks concerned.

In the letter, the DGDA said under the Drugs and Cosmetics Act, 2023, obtaining registration or prior approval from the Directorate is mandatory for the production, import, export, sale, and distribution of dietary supplements, herbal supplements, nutritional supplements, medical nutrition, therapeutic nutrition, and supplementary food products.

The letter further said some traders have been importing such products from various countries without having prior approval.

Since the customs authorities refused to release those goods

without the required registration or prior approval, the concerned importers filed separate writ petitions in the High Court Division.

In those cases, the court directed the customs authorities concerned to release such goods.

Later, the customs authorities appealed to the Appellate Division of the Supreme Court.

Subsequently, the Appellate Division instructed that the goods might be released subject to compliance of the legal provisions, according to the DGDA letter.

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