BB relaxes LC margin on imports of particular products

Bangladesh Bank (BB) has relaxed the cash margin rate against the opening of import letters of credit (LCs) for 10 categories of products, in a bid to help ease the import of the goods.

The central bank issued a circular in this regard on Tuesday.

The products are industrial and industry-related spare parts, textile raw materials, chemical and ancillary products, plastic and packaging items and raw materials, treatment-related equipment, ancillary and reagent, UPS/IPS pieces of machinery and ancillary products, and security-related products.

Earlier, importers had to pay a 75 per cent LC margin on imports of those goods.

In the circular, the central bank directed all commercial banks to fix with immediate effect the opening margin rate based on the banker-customer relationship.

However, LC margins of 100 per cent and 75 per cent will be applicable for other imports.

Currently, banks have the flexibility to import some other products based on banker-customer relations.

Such goods are: baby food, essential food products, fuel, medicines, and equipment, directly imported capital machinery, raw materials for production-oriented local industries, export-oriented industries, and agricultural products.

jasimharoon@yahoo.com