Dhaka, Bangladesh (BBN)- The central bank has introduced a structured framework to regulate import trade into Free Trade Zones (FTZs), aiming to facilitate transactions while ensuring prudent risk management by banks.
Under the framework, Authorized Dealer (AD) banks and Offshore Banking Units (OBUs) will handle FTZ-related transactions in line with foreign exchange regulations, according to a notification issued by the Bangladesh Bank (BB) on Thursday.
Eligible importers include industrial enterprises, importers on record authorized to undertake trading activities, and logistics service providers operating within FTZs, it added.
The framework allows consignment-based imports, where ownership remains with foreign suppliers until goods are used in production or sold. Banks will not treat such goods as inventory or assume exposure until ownership is transferred.
Transactions involving FTZs are clearly defined in the circular. Purchases by domestic buyers will be treated as imports, while sales by FTZ enterprises will be treated as exports for sellers and imports for buyers, requiring compliance with EXP and IMP procedures. All payments shall be settled in freely convertible foreign currencies.
Goods under consignment may remain in FTZs for up to 48–60 months, while usance imports, including buyer’s and supplier’s credit, are capped at 270 days.
AD banks may extend financing similar to that for specialized zones, while OBUs can provide foreign currency financing within regulatory limits, officials at the central bank explained.
BBN/SSR/AD