FEPD Circular No. 51: Extension of usance period against imports of industrial raw materials

The usance period for imports of industrial raw materials, agricultural implements, and chemical fertilizers under suppliers’ or buyers’ credit is reduced from 360 days to a maximum of 270 days or the cash conversion cycle, whichever is earlier. Authorized Dealers must ensure that the estimated cash conversion cycle reflects a realistic position based on the customer’s historical operating and transaction trends. For back-to-back letters of credit, the usance period must align with the statutory export proceeds repatriation period, and the extended facility remains excluded for imports financed under the Export Development Fund.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Dhaka www.bb.org.bd
FE Circular No. 51 Date: December 29, 2025
All Authorized Dealers in
Foreign Exchange in Bangladesh
Dear Sirs,
Extension of usance period against imports of industrial raw materials Attention of Authorized Dealers (ADs) is invited to FE Circular No. 08 dated January 20, 2025 and FE Circular Letter No. 27 dated August 18, 2025, in terms of which import of industrial raw materials, including back-to-back imports, as well as imports of agricultural implements and chemical fertilizers under suppliers’/buyers’ credit, has been permitted for a usance period of up to 360 days, extended from 180 days, until December 31, 2025.
02. With a view to facilitating import transactions, it has been decided that the abovementioned items shall be importable for a usance period of up to 270 days or the cash conversion
cycle, whichever is earlier.
03. Before allowing usance facilities, ADs shall ensure that the estimated cash conversion
cycle reflects a realistic position, based on the customer’s historical operating and transaction trends. In the case of back-to-back letters of credit, the usance period shall be determined in line with the statutory export proceeds repatriation period. As usual, the extended usance facility shall not be applicable to imports financed under Export Development Fund (EDF). Please bring the contents of this circular to the notice of relevant clientele.

Yours faithfully,
(Md. Harun-Ar-Rashid)
Director (FEPD)
Phone: 9530123

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Lineage: In force

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Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works