Industrial raw material imports: BB sets up to 270 days for usance period

The central bank has allowed import of industrial raw materials-- including back-to-back import-- as well as agricultural implements and chemical fertilisers under suppliers' or buyer's credit for a usance period of up to 270 days.

On August 18, 2025, the Bangladesh Bank (BB) permitted such facility for a usance period of up to 360 days, extending from 180 days earlier, which is valid until December 31, 2025.

Under the revised guidelines, the permitted usance period will now be up to 270 days or the cash conversion cycle, whichever is earlier, according to a notification issued by the Bangladesh Bank (BB) on Monday, according to the BB.

A usance period is the agreed-upon time frame in international trade, often via Letters of Credit (LCs), which allows an importer a grace period to pay for goods after receiving them.

Before allowing such facilities, authorised dealer (AD) banks will have to ensure that the estimated cash conversion cycle reflects a realistic position, based on the customer's historical operating and transaction trends, it said.

In the case of back-to-back letters of credit, the usance period will be determined in line with the statutory export proceeds repatriation period, according to the BB circular.

"As usual, the extended usance facility shall not be applicable to imports financed under Export Development Fund (EDF)," the circular noted.

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