Import Policy and its salient feature; HS Code; Basis, Issuance and Authentication Procedure of LCAF and reporting thereof

Import Policy and its salient feature; HS Code; Basis, Issuance and Authentication Procedure of LCAF and reporting thereof

 Rokhshana Parveen, CDCS First Asst. Vice president International Division Head Office.

Import Policy Order, 2015-2018 content (i) Chapter One (Prelude) (ii) Chapter Two (General Provisions for Import) (iii) Chapter Three (Fees Regarding Imports) (iv) Chapter Four (Miscellaneous Provisions) (v) Chapter Five (General Provisions for Industrial Import) (vi) Chapter Six (The Rules of Import By Commercial Importers) (vii) Chapter Seven (Import by Public Sector Importers) (viii) Chapter Eight (Import Trade Control (lTC) Committee) (ix) Chapter Nine (Compulsory Membership of recognised Chamber of Commerce and Industry and Trade Association.)

GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH MINISTRY 0F COMMERCE ORDER Date: 28 Magh, 1422 BE/10 February, 2016 A.D S.R.O. No. 28-Aim/2016.

In exercise of the powers conferred by section 3 (1) of the Imports and Exports (Control) Act, 1950 (Act No. XXXIX of 1950), the Government is pleased to make and issue the following order, namely:

Chapter One : Prelude Short title, application, duration, etc.: (1)This Order may be called the Import Policy Order, 2015- 2018. (2)Unless otherwise specified, this Order shall apply to import all kinds of goods into Bangladesh. (3)It shall come into force immediately and shall remain in force up to 30th June, 2018: (until a new Import Policy Order is issued)

Chapter Two: General Provisions for Import Definitions, 01) Entre-port trade 11) Re-export 02) Importer (1981) 12) Expatriate Bangladeshi 03) Import Control Authority 13) Commercial Importer 04) Basis of import 14) Fish or livestock or birds feed 05) Import value 15) Importer for lease financing 06) H.S. Code Number 16) Industrial consumer 07) LC or Letter of Credit 17) Public sector importer 08) LC Authorization (LCA) Form 09) Food product 10) List of controlled goods (a-1)

General conditions of import of goods: 

01) Mandatory of using H.S. Code : Use of H.S. Code with at least eight digits corresponding to the classification of goods as given in the First Schedule of the Customs Act, 1969.

02) Pre-shipment inspection : Unless otherwise specified, in case of export and import, shipment of goods can be made under the Bangladesh Flag Vessels (Protection) Ordinance,1982 (Ord. No.XIV of 1982).

 03) Import at competitive rate: For import at the most competitive rate by the public sector importers, quotations have to be invited before opening letter of credit, and goods shall be imported at the most competitive price.

 04) Import using Incoterms: Goods can be imported through water, land and airways on the basis of defined Incoterms : a) No import shall be allowed CIF and CIP basis without prior approval from the Ministry of Commerce. (food goods can be imported by Ministry of Food and Ministry of Relief and Rehabilitation Management on CIF or CIP basis)

05) Import by mentioning Country of origin In case of import of aluminun ingot, zinc ingot along with other non-ferrous and ferrous metals, the "country of origin" need not be mention.

06) Inscription of name, address and ETIN/UTIN, BIN of importer: Importer shall be inscribed or printed in indelible ink on, at least two percent of the largest packet, cover, timed package, sack pack, wooden box or other packets containing the imported goods, name. (Except listed sl-14 )

07) Import procedure: (a) Import Licence required-Unless otherwise specified, import licence shall be necessary for import of any item. b) Import against LCA Form unless otherwise specified, all import transactions through a bank (LCs. bank drafts, remittances etc.) shall require LCA forms irrespective of the source of finance c) Import through LC- quickly perishable food goods worth US dollar 50,000 (Fifty Thousand) via Teknaf Customs Station & Essential food goods and raw materials used in industry worth US Dollar 10,000 (Ten Thousand) without opening LC d) Import against LCA Form without opening of Letter of Credit (LC): i) Import of books, journals, magazines and periodicals on sight draft or usance bill basis. ii) In case of import of raw materials and capital machinery , of maximum 2,00,000 (two lac) US dollar per annum. iii) Import from Myanmar import of rice, pulse, maize, beans, iv) ginger, garlic, soyabin oil, palm oil, onion and fish goods valued not exceeding USD 50,000 and in case of other goods, valued not exceeding 30,000 (thirty thousand) US dollar in a single consignment.

08) Time limit for opening of LC (a) Unless otherwise specified all importers within 180 days from the date of issue or registration of LCA Form. Provided that the time limit mentioned above may be extended by the Chief Controller of Import and Export up to such period as may be deemed fit.

 09) Validity of shipment for goods (a) Unless, otherwise specified, shipment of goods shall have to be made within 30(thirty) months, in the case of machinery and spare parts, and in the case of all other goods, 9 (nine) months, from the date of issuance of LCA Form by a bank.

CHAPTER THREE Fees Regarding Import

CHAPTER FOUR Miscellaneous Provisions

 01. Import by actual user: Individuals or institutions, not being registered importers, may import permissible goods valued up to 7,000 US Dollar for their personal use under cash foreign exchange without any permission.

 H.S. Code Number

 The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products.
H.S. Code Number
• 05.01 0501.00.00: Human hair (whether or not washed or scoured; waste of human hair) kg
• 05.02 Pigs', hogs' or boars' bristles and hair; badger hair and' other brush-making hair;
0502.10.00 Pigs', hogs' or boars' bristles and hair and waste thereof kg 10% Free.
0502.90.00 Other 05.04 0504.00.00 Guts, bladders and stomachs of animals (other than fish),