WORLD TRADE  
ORGANIZATION  G/LIC/N/3/BGD/2 
4 April 2005 
 
 (05-1368) 
Committee on Import Licensing Original:   English 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the  
Agreement on Import Licensing Procedures  
 
BANGLADESH 
 
 
 The following communication, dated 1 March 2005, is being circulated at the request of the 
Delegation of Bangladesh. 
 
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Outline of system
 
 
1. The import licensing system has been gradua lly dismantled/abolished since the late 1970s.  
Importation through the opening of LC on the basis of LCA (Letter of Credit Authorization) issued by the nominated bank has been in practice now.  An im port licence is not required to be issued by the 
Import Control Office for importing any goods at presen t.  Besides, limited import is also allowed 
without the cover of LCA and LC.  A brief description of each import system (licensing system long 
since abolished) is given below: 
 1.1 LCA (Letter of Credit Authorization) is requi red to be obtained by an importer for opening 
LC (Letter of Credit) through the nominated banks .  For this the importer is not required to 
take any licence, permit or permission from the Im port and Export Control Office.  More than 
80 per cent of the country's imports take place under this system. 
 
1.2 Import through LC only is allowed without cover of an LCA in cases where the Bangladesh 
Bank notifies exemption from LCA for import against aids and grants. 
 1.3 Import by "actual users" (not sellers) is a llowed subject to prior permission from the Import 
and Export Control Authority.  This sort of import is not usually in bulk quantity and in 
frequent cases. 
 1.4 Import of free gifts, samples and ad. mate rials above the value ceilings ranging between 
Tk. 15,000 to Tk. 75,000 is allowed against Im port Permit (IP) from the Chief Controller of 
Imports and Exports.  It relates to only a limited number of cases around the year. 
 1.5 Import of books, magazines, journals, periodi cals, scientific and laboratory equipment against 
surrender of UNESCO coupons subject to obtai ning IP and Clearance Permit (CP) from the 
Chief Controller of Imports and Exports is a llowed without cover of an LCA form or LC. 
 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/BGD/2 
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 1.6 Import under Pay-As-You-Earn Scheme is allowed on the basis of clearance of the 
Bangladesh Bank without the cover of an LCA form  or LC subject to obtaining IP or CP from 
the Chief Controller of Imports and Exports. 
 1.7 Import by a passenger coming from abroad in ex cess of the permissible value limits as per the 
relevant Baggage Rules of the National Boar d of Revenue (NBR) is allowed without the 
cover of an LCA or LC against an IP or CP from the Chief Controller of Imports and Exports. 
 1.8 Import of capital machinery as share of capital of the foreign shareholders for an approved 
Joint Venture Industrial Unit is allowed without  the cover of an LCA or LC subject to 
obtaining IP or CP from the Chief Controller of Imports and Exports. 
 1.9 Import on Deferred Payment Basis or Against Supplier's Credit is allowed on the basis of 
procedures laid down by Bangladesh Bank subj ect to obtaining permission from the Chief 
Controller of Imports and Exports. 
 
1.10 Import against direct payment abroad by Bangladeshi nationals living abroad without the 
cover of an LCA or LC is allowed on the basis of an earning certificate from the Bangladesh Embassy in the concerned country. 
 1.11 Import of any other goods, not specifically ex empted from IP, is allowed without the cover of 
an LCA or LC subject to obtaining IP from the Chief Controller of Imports and Exports. 
 Purposes and coverage of licensing
 
 2. Products covered under different import syst ems (ref. 1.1 to 1.11) are stated below: 
 
2.1 LCA and LC system (ref. 1.1) covers all kinds of products from consumables to plant, 
machinery and spares to industrial raw and packing materials. 
 2.2 Import through LC without LCA form (ref. 1.2)  covers various products, particularly project 
materials and equipment against Project Aids and Grants. 
 
2.3 Import by "actual users" against prior permission from the Import Trade Control Authority 
(ref. 1.3) covers mainly professional instrument s, appliances, life-saving drugs and medicines. 
 2.4 Import of free samples, gift items, ad. materi als (ref. 1.4) covers mainly newer products of 
various descriptions. 
 2.5 Import against UNESCO coupons includes books, journals, magazines and periodicals, etc. 
(ref. 1.5). 
 2.6 Import under Pay-As-You-Earn sch eme (ref. 1.6) covers new or not more than ten years old 
plant and machinery, new or not more than four years old motor cars, new or not more than 
15 years old cargo or passenger vessels (ocean-going old ships not exceeding 20 years) and plant and machinery for export-oriented industrial units. 
 2.7 Import under baggage rules by incoming passenge rs (ref. 1.7) includes items of day-to-day 
use including electronic products, motor cars, motorcycles etc. 
 2.8 Import by foreign shareholders covers  mainly plant and machinery (ref. 1.8). 
  G/LIC/N/3/BGD/2 
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 2.9 Import under deferred-payment system (ref. 1.9) covers all products including banned 
restricted goods as per the Import Policy Order in force. 
 2.10 Import against direct payment covers a wide  variety of items except banned and restricted 
items above the prescribed limit in the IPO (ref. 1.10). 
 
2.11 Import, not specifically exempted from permit (ref. 1.11) includes a wi de range of goods from 
consumables to plant and machinery in contra vention of import policy provisions in force. 
 3. The systems apply to goods originating in and coming from all countries of the world 
excluding Israel alone. 
 4. The purposes of the import systems outlined unde r paragraph 1 (1.1-1.11) and whether or not 
alternative methods have been c onsidered/adopted are noted below: 
 
4.1 LCA and LC system (ref. 1.1) applies without quantity or value restric tions of imports and is 
aimed at simplifying and liberalizing imports.  The system is in place in order to enable 
importers to import without being required to obtain any import licence from the Import 
Trade Control Authority.  No alternative methods  have been considered as the existing system 
does not impede/restrict the import flow in any manner. 
 
4.2 The system (ref. 1.2) is intended to further simplify the import procedure obviating the need 
for processing the LCA form by the banks.  An y alternative method is not deemed necessary. 
 4.3 The system (ref. 1.3) enables the actual users i.e. firms and individuals to import goods for 
their own use without being required to register as a regular importer with Import Trade 
Control Authority.  Any alternative method is not deemed necessary. 
 4.4 The system is intended to allow import of free samples, gifts and ad. materials in reasonable 
quantities (not in bulk quantities like commercial imports).  Alternative methods have not 
been considered/adopted. 
 
4.5 The system (ref. 1.5) is intended to fac ilitate import of books and publications by the 
academic institutions.  No alternativ e method has been considered/adopted. 
 4.6 The system (ref. 1.6) is intended to enable  the new businessman to im port ships and trawlers 
for commercial operations without being required to pay the costs of imports readily at the 
time of import.  No alternative method has been considered/adopted. 
 4.7 The system (ref. 1.7) is intended to allo w incoming passengers to import reasonable quantity 
of goods purportedly for their personal use.  No alternative method has been considered/adopted. 
 
4.8 The system (ref. 1.8) is intended to enable foreign investors to invest in terms of capital 
machinery rather than cash resources. 
 4.9 The system (ref. 1.9) is intended to ease the payment of import costs by allowing payment 
subsequently as agreed by  importers and exporters. 
 
4.10 The system (ref. 1.10) is intended to allow Bangladeshi citizens earni ng abroad to utilise their 
hard-earned foreign exchange for import of goods  through direct payment, without quantity or 
value restrictions.  No alternative method is deemed necessary. 
 G/LIC/N/3/BGD/2 
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 4.11 The system (ref. 1.11) is intended to facilita te clearance of goods by the customs authority.  
No alternative method has been considered/adopted. 
 5. The import systems (ref. 1.3 to 1.11) are maintained under an administrative order entitled 
"Import Policy Order".  They are also statutorily required.  Statutory regulations leave scope of 
administrative discretion in that the Import Trade C ontrol Authority may or may not issue IP, CP or 
prior permission for such imports under the systems i ndicated above (ref. 1.3 to 1.11).  It is, however, 
possible for the Government to abolish the system without legislative approval.  Procedures
 
 
6. Restrictions on import of products as to the quantity or value of imports are applicable 
globally and in the case of food products and drin ks as well as rice, wheat etc., the condition of 
radioactivity test applies to all other countri es except Malaysia, Singapore, SARC countries and 
South-East Asian countries. 
 
I. Information concerning allocations of quotas for importing second-hand clothing and 
uncrushed salt and formalities of filing applications  are published through public notice by the Chief 
Controller of Imports and Exports.  The overall amount and the maximum amount allocated to each 
importer are published without any country-specific quota.  The system allows no scope for any exceptions or derogations from the Import Trade Control Authority. 
 
II. The size of quota is determined district-wise on the basis of population in the case of second-hand clothing and the import quota for uncrushed salt is determined on a pro-rata basis for the 
salt-crushing industrial units.  The quota for second- hand clothing is on a yearly basis and the quota 
for uncrushed salt is not on a yearly basis but on the basis of emergent needs due to the production-
demand gap. 
 III. Permission for import of uncrushed salt is issued  only to domestic crushers of salt.  The actual 
use of prior permission for second-hand clothing is monitored by the LC opening bank and the Import 
Trade Control Authority, and in the case of uncrush ed salt by the banks, sponsoring authority and the 
Import Trade Control Authority.  Unused allocations  are not added to quotas for a succeeding period.  
The names of the concerned importers are made  known to the Governments and export promotion 
bodies of exporting countries upon request.  IV. Usually a period of one month is allowed for submission of applications for prior permission. 
 
V. A period of 15 days is allowed for processing applications in both cases. 
 VI. A minimum of one month's time is allowed be tween issuance of prior permission and the date 
of opening of the LC.  VII. Consideration for prior permission in both the above cases is effected by a single 
administrative organ.  However in the case of second-hand clothing the District Administrative 
Committee, after finalising the selection of impor ters through public lottery, passes the relevant 
application on to the local Import Trade Control Aut hority of the concerned districts.  In the case of 
uncrushed salt, prior permission is issued strai ght away by the Chief Controller of Imports and 
Exports. 
 
VIII. In the cases of second-hand clothing and uncrushed salt, applications are examined 
simultaneously.  Answers to all other queries unde r this sub-paragraph are in the negative. 
 IX. Answers to the queries in this sub-paragraph are in the negative.  G/LIC/N/3/BGD/2 
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X. Import licences are not required for import of any goods, but goods are importable by the export-oriented industries, particularly in the te xtile and leather sectors, on condition that the goods 
shall be exported and not so ld in the domestic market. 
 
7.(a)-(d)  Quantity limits of any kind mentioned here are not in vogue. 
 8. The import licensing system for imports has l ong been abolished.  The country's imports are 
being effected mainly through the LCA and LC system administered directly by the banks.  No case involving the refusal of LCA or LC has so far b een recorded.  If there we re any, the concerned 
applicant for LCA and LC could apply to the Bangladesh Bank for due redressal. 
 Eligibility of importers to apply for licence
 
 9. No licence is required for import in the normal course.  All persons, firm s and institutions are, 
however, eligible to obtain an LCA form and open an  LC there-against directly from their nominated 
bank without having to obtain any kind of perm ission or permit from the Import Trade Control 
Authority.  There is a system of registration of  all intending persons and firms to engage in 
importation.  All persons or firms having a trade licence from the Municipality or Union Parisad, membership of the Chamber of Commerce and Industr y or the respective Trade Associations and Tax 
Identification Number are eligible to apply to th e Import Trade Control Authority for registration on 
payment of prescribed fees.  In the case of a limite d company applying for registration the Certificate 
of Incorporation from the Joint Stock Compa ny Registrar and Memorandum and Articles of 
Association are to be submitted along with the prescribed application form and other documents 
mentioned earlier.  A list of authorised importers  is not yet published.  Documentation and other 
requirements for application for licence are notified duly for information of the potential applicants. 
 
Documentational and other require ments for application for licence 
 
 10. No import licence is required to be obtained  by the importers from the Import Trade Control 
Authority.  The LCA form and LC are obtainable directly from the banks upon production of a valid 
Import Registration Certificate, Membership Certif icate, Certificate of TIN (Tax Identification 
Number) and VAT Registration Certificate. 
 11. Shipping documents like invoice, B/L, Certificat e of Origin, etc. are required to be produced 
along with Bill of Entry for clearance at the customs point.  
12. No licensing fee is required to be paid by importers. 
 13. Answers to these queries are negative.  Conditions of licensing
 
 
14. No licence is required to be obtained by im porters.  However the period of validity of the 
LCA form for opening the LC is 150 days.  This period can be extended under special circumstances 
by the Chief Controller of Imports and Exports upon application by the relevant importers stating the 
reasons for delay.  A letter conveying permission for opening an LC within an extended period of 
time is issued by the Chief Controller of Imports and Exports. 
 
15. No penalty is payable for non-utiliza tion of an LCA in part or in full. 
 16. No LCA is transferable between importers.  G/LIC/N/3/BGD/2 
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 17. No other condition is attached to the LCA for: 
 (a) products subject to restricted quantities;  (b) products not subject to restricted quantities. 
 
Other procedural requirements
 
 18. No other administrative procedures than pr ocessing of the LCA and opening of the LC is 
required in the normal course of importation. 
 
19. The banks automatically provide foreign exch ange on a freely convertible basis against the 
LCA processed by themselves.  Answers to all other questions in this paragraph are in the negative. 
 
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