Bangladesh tears down import barriers in major trade policy overhaul

Bangladesh has launched a sweeping overhaul of its import regime, tearing down procedural barriers and easing restrictions in a bid to cut business costs, attract investment and give industries a stronger foothold in global markets.

The Ministry of Commerce issued the Import Policy Order 2026�"2029 in a gazette on Monday under Section 3(1) of the Imports and Exports (Control) Act, 1950. The new policy will remain in force until December 31, 2029.

The policy marks a significant shift towards a simpler and more predictable import regime, with the government seeking to align Bangladesh’s trade procedures with international practices while providing greater certainty to businesses and investors.

It introduces clearer rules on product classification, import conditions, mandatory certificates, determination of country of origin and compliance with international trade requirements. Greater emphasis has also been placed on verifying the origin of imported goods, which could improve transparency and help businesses secure preferential treatment under international trade agreements.

The new regime also puts greater emphasis on opportunities created by Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs), Economic Partnership Agreements (EPAs) and other regional trade arrangements.

Such agreements can provide tariff advantages, open new markets and help Bangladeshi businesses integrate more effectively into international supply chains at a time when exporters face mounting pressure to remain competitive.

Compliance with international standards has also been strengthened, with provisions covering Technical Barriers to Trade (TBT), Codex Alimentarius and standards of the Bangladesh Standards and Testing Institution (BSTI).

Trade experts said the longer-term policy framework could help remove a major source of uncertainty for industries by facilitating imports of raw materials, capital machinery and technology.

Easier access to industrial inputs and equipment could lower production costs, raise productivity and encourage businesses to expand capacity, they said.

One of the most striking changes is the relaxation of restrictions on motorcycle imports. The new policy allows completely built-up (CBU) motorcycles of up to 375cc, sharply raising the previous threshold.
Under the Import Policy Order 2021�"2024, CBU motorcycles above 165cc were restricted.

The government has also widened the scope for imports through purchase and sale agreements without any value ceiling, alongside the existing facility of opening letters of credit (LCs).

The move gives importers greater flexibility in sourcing goods and settling international transactions, potentially reducing dependence on conventional LC-based arrangements.

The policy also provides for the establishment of free trade zones and central bonded warehouses, creating scope for a more efficient trade and logistics infrastructure.

Facilities for non-resident Bangladeshis investing in industries have been expanded, while export-oriented industries will receive wider opportunities to import raw materials required for production.

Under the previous policy, imports through purchase and sale agreements without LCs were permitted but remained subject to product- and sector-specific ceilings and conditions.