Payment period for raw material imports extended till Dec

Bangladesh Bank has extended the usance period—the allowable time between the date of the bill and the date of payment—by another six months for the imports of industrial raw materials, agricultural machinery and chemical fertilisers.

It means, the grace period to make payments for the goods imported through letters of credit (LC) will end on December 31 this year, which was supposed to end today, according to a Bangladesh Bank circular.

Earlier on December 14 last year, the central bank extended usance period to 360 days from 180 days and made it effective until June 30 this year.

This usance period of 360 days will be applicable in case of imports of industrial raw materials, including back-to-back imports and imports of agricultural implements and chemical fertilisers under the buyer's credit.

However, the extended usance period will not be applicable for imports made through loans of the Export Development Fund of Bangladesh Bank, the circular read.