As Bangladesh moves forward with the establishment of its first Free Trade Zones (FTZs), the country’s central bank has rolled out a new import policy designed to support international trade, manufacturing, and logistics operations within these special economic areas.
The policy authorises Authorised Dealer (AD) banks and Offshore Banking Units (OBUs) to manage all import-related financial transactions for businesses operating inside FTZs while ensuring compliance with the nation’s foreign exchange regulations.
According to the new rules, import activities within the zones will be restricted to manufacturing industries, approved trading companies, and logistics operators. These entities will be eligible to import production inputs, industrial equipment, semi-finished products, and other commercial goods for manufacturing, storage, processing, or redistribution.
A major feature of the framework is the provision for consignment imports, allowing imported goods to remain in FTZ warehouses for up to 60 months. During this period, ownership of the goods will remain with the overseas supplier until they are sold or incorporated into production.
Bangladesh Bank has clarified that banks will not record these consignments as assets or inventory, nor will they bear any financial liability until legal ownership is transferred to the importer.
The framework also defines how transactions between FTZ businesses and the domestic market will be treated. Sales from an FTZ company to buyers in Bangladesh will be recognised as imports into the domestic market, while shipments leaving the FTZ will be treated as exports from the seller’s perspective. Consequently, all applicable import and export regulations must be observed.
To maintain consistency with international trade practices, every transaction under the framework must be settled in freely convertible foreign currencies.
The policy further allows deferred payment arrangements, including buyer’s credit and supplier’s credit, with all payment obligations required to be settled within 270 days.
To minimise financial and regulatory risks, Bangladesh Bank has directed commercial banks to carry out rigorous due diligence before extending services to FTZ-based clients. Banks must verify company ownership, review commercial agreements with overseas suppliers, assess business operations, and ensure that all financing is supported by authentic trade documents.
The framework was prepared following recommendations from a committee formed by the Bangladesh Investment Development Authority (BIDA) under the leadership of Executive Chairman Ashik Chowdhury, with the objective of ensuring that the country’s banking system is fully equipped before FTZ operations officially begin.
Development work on the Anwara Free Trade Zone is expected to commence this year, while construction of the Matarbari Free Trade Zone is planned for the period between 2030 and 2033, alongside the expansion of the Matarbari Deep-Sea Port.
The newly introduced policy is expected to strengthen Bangladesh’s investment climate by simplifying import procedures, improving supply chain management, attracting global businesses, and enhancing the country’s position as a regional hub for manufacturing, logistics, and exports.
