Licence System and Rules of Origin
All industrial consumers (except enterprises located in EPZs) and commercial importers must register with the Chief Controller of Imports and Exports (CCIE) (in the Ministry of Commerce), who issues an import registration certificate (IRC). Registration with IRC is required only for private importers exempting the public entities. An IRC is generally issued within ten (previously 15) days of receipt of the application.
After fulfilling the initial two requirements, importers are allowed to import with a letter of credit authorization (LCA) form. Along with the LCA form, importers must submit a number of documents to the executing bank, including an L/C application form, an invoice, and an insurance cover note. In addition, private sector importers must submit a membership certificate from the registered chamber of commerce and industry or any trade association; proof of IRC renewal payment; a declaration of income-tax; Tax Identification Number; and any other documents required by the Import Policy Order or other Public Notice. Public sector importers are required to submit an attested photocopy of the allocation letter issued by the administrative ministry, division or authority.
Some other documents required for imports in Bangladesh include a bill of lading or airway bill, commercial invoice or packing list, and a certificate of origin. In case of importing restricted list product or controlled list products some other documentation may be required in accordance with the notification issued by the government. The restricted or controlled list is given in Annexure 1 of the Import Policy Order 2012-2015.
Import against an LCA form may be allowed without opening an L/C for: (i) import of books, journals, magazines, and periodicals; (ii) any permissible item for an amount not exceeding US$25,000 during each financial year against remittance made from Bangladesh; (iii) import under commodity aid, grant or such other loans for which there are specific procurement procedures for imports of goods without opening an L/C; and (iv) import of “international chemical references” through bank drafts by recognized pharmaceutical (allopathic) firms on approval of the Director, Drug Administration, for the purpose of quality control of their products. Moreover, an L/C is not required for imports of perishable goods valued between US$10,000 and US$15,000 (Tecknaf Customs Station) or between US$5,000 and US$7,500 (other land routes) per consignment, or for capital machinery and raw materials for industrial use
Rules of origin (RO) are the criteria that are used to define where a product was made. The origin of a product is important because it will determine how it is treated at the border of an importing country and the origin may impact the import duty payable and admissibility into the country. These are the criteria needed to determine the source of origin of a product for the purpose of determining what tariff, if any, applies to it. If the rules of origin are relaxed, it might erode competitiveness of the backward linkage industries of Bangladesh.