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Facilitating imports

Suppliers' credit report requirement rules relaxed

FE REPORT | January 16, 2025 00:00:00


Credit reports for foreign suppliers will not be required for imports up to US$30,000 against proforma invoices issued directly from abroad, according to a Bangladesh Bank (BB) circular issued Wednesday.

It said such reports will not be necessary for imports up to $40,000 provided that indents are used by local agents. Earlier the limit was $10,000 and $20,000 respectively.

Credit reports regarding a supplier will be obtained one time during its validity. Banks cannot remit more than one time as collection cost for the report.

According to the notification, banks shall use the report for all their importers importing from the same supplier.

It said banks shall set reasonable service charges attributable to respective importers. In addition, banks shall accept credit reports arranged by importers from other banks.

In another notification, the central bank gave guidelines regarding operations of inland transactions by back-to-back LCs.

The BB asked banks to introduce electronic options with regards to communication relating to LCs such as transmission, advising, presentation,  acceptances and all subsequent communications under mutually agreed systems with counterpart banks.

According to business insiders, enhancement for the limit of credit report and multiple uses thereof will decrease import cost since each report requires payment of more than $200.

Inland trade framework will streamline process flows which will promote backward linkage industries, they noted.

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