BB extends deadline for import payments
The central bank yesterday issued multiple notices and extended the deadline of the relaxed rules for forex businesses in various sectors until March 31 next year.
Banks have already been asked to accept advance payments as high as $500,000 from businesses wanting to import Covid-19-related lifesaving drugs and essential medical items until March 31, according to a notice of the Bangladesh Bank. The deadline expired on September 30.
Importers are usually permitted to make advance payments of a maximum of $10,000 for the import of general items, including recycleables meant for commercial purposes and consumer goods.
Global drug companies are actually refusing to export such items if the payments aren't manufactured in advance, said a central bank official.
"This is why the banking regulator eased the guidelines."
In another order, the central bank has allowed the importers of professional raw materials to enjoy the one-year timeframe to make import payments until March next year.
Prior to the pandemic, businesses had to make the import payment for industrial raw materials within half a year. This relaxation aims to cushion the enterprises from the ongoing financial meltdown stemming from the coronavirus pandemic.
Many exporters have already imported adequate raw materials to create items meant for export, said a central bank official.
But they are facing hurdles when wanting to export their products in the wake of a fall in global demand.
The same instruction may also be applicable for the importers in the agriculture sector, according to some other notice issued by the central bank.
Importers of agriculture equipment and chemical fertilizers will be permitted to get the support.
The instructions can help importers run their businesses smoothly amid the monetary slowdown, a central bank official said.
