Process at a Glance

 

Detail Process for Importing Palm Oil

Step 1: Obtain Trade License

Trade license is a mandatory document to start any business in Bangladesh. A business needs to declare itself as an importer in trade license. Trade License is issued by City Corporation or Municipality’s relevant office (e.g., Union Parishad or Pourashava). An importer has to take Trade License from the area where his business is located.

The process of obtaining trade license from Dhaka North City Corporation (DNCC) can be found here: 

The process of obtaining trade license from Dhaka South City Corporation (DSCC) can be found here: 

Step 2: Become a member of a Chamber of Commerce or a Trade Association

It is mandatory to be a member of a Government-authorized Chamber of Commerce or Trade Association for import, as per the Import Policy Order 2021-24. The list of authorized Chambers of Commerce can be found here: Registered Chamber of Commerce . The list of Trade Associations can be found here: Licensed Trade Association

Step 3: Obtain Import Registration Certificate

Import Registration Certificate (IRC) is mandatory for import of any product, according to the “The Importers, Exporters and Indentors (Registration) Order, 1981" . Currently, the Office of the Chief Controller of Imports and Exports (CCI&E) is providing the certificate. The detail process and requirements of obtaining the certificate can be found here: 

Step 4: Obtain Permission from Ministry of Commerce

Prior permission from Ministry of Commerce is required to import crude palm oil into Bangladesh. The process of obtaining permission from Ministry of Commerce can be found here: 

Step 5: Obtain Pro-forma Invoice

It is mandatory to have Pro-forma Invoice for import according to Import Policy Order 2021-24. An importer sends a written request to seller for information regarding the price and the terms on which the seller will be able to supply goods. In reply to this enquiry, the importer will receive a quotation from the exporter which is generally known as Pro-forma Invoice (PI).

Bangladesh Bank has published a circular, containing the requirements for Pro-forma Invoice. The circular of Bangladesh Bank can be found here: FE Circular Letter No. 10 dated September 18 2021

Step 6: Obtain Insurance Cover Note and Insurance Policy against the Insurance Cover Note

According to Import Policy Order 2021-24, an importer shall purchase Insurance Cover Note either from the Sadharan Bima Corporation or from any Bangladeshi Insurance Company and a duly stamped insurance policy against this Cover Note. The stamped insurance policy needs to be submitted to the Customs authority during the release of goods.

Step 7: Place Order through opening irrevocable LC

Except for the exception provided in the Import Policy Order 2021-24, all import shall be done opening irrevocable LC. The documents mandatory for opening LC are:

1. LCA form with signature
2. Pro-forma Invoice/Indent
3. Membership Certificate
4. IRC

Step 8: Obtain Clearance Certificate from Bangladesh Standards and Testing Institution (BSTI)

BSTI is responsible for checking that palm oil is consistent with the Bangladesh Standard (BDS). The standard for Fortified edible palm oil is BDS 1770:2014 and for fortified palm oil is BDS 1774:2006. The sample for test is collected when product arrives at the port and the process is a part of customs clearance process.

The process for obtaining Clearance Certificate from BSTI can be found here: 

Step 9: Obtain Radioactivity Test Certificate

It is mandatory to collect Radioactivity Test Certificate from Bangladesh Atomic Energy Commission for importation of processed food. The sample for test is collected when product arrives at the port and the process is a part of customs clearance process.

The process of obtaining Radioactivity Test Certificate can be found here: 

Step 10: Prepare and Obtain Necessary Documents from Seller for Customs Clearance

After placing the order, an importer has to prepare documents for Custom clearance and other regulatory requirements. The documents that are mandatory for palm oil import are:

1. Authorization Letter to the C&F agent issued by the importer
2. VAT/BIN Certificate
3. Bank-endorsed Letter of Credit Authorization for customs copy
4. Bank-endorsed Letter of Credit for Customs copy
5. Bank-endorsed Pro-forma Invoice
6. Bank-endorsed Commercial Invoice
7. Value declaration
8. Bank-endorsed Packing List
9. Detailed Packing List
10. Bank-endorsed original copy of Waybill (Bill of Lading/Airway Bill/Truck Receipt/Rail Receipt)
11. Insurance Cover Note
12. Country of Origin Certificate issued by the origin/shipment country
13. Data sheet duly signed by the C&F agent
14. Radiation Certificate issued by the exporting country

 

Step 11: Customs Clearance of Goods

After arrival of consignment in designated customs station in Bangladesh, an importer has to clear his consignment after paying duty and taxes and fulfilling other regulatory requirements. Detail customs clearance process can be found here: 

Step 12: Port Clearance/Clearance of Goods from Port

After completing customs formalities, an importer has to clear/release his goods from port (sea/land/air). The port clearance process for Chattogram Sea Port, Benapole land Port, and Dhaka Airport is below:

Port Clearance Process in Chattogram Seaport:

 

Port clearance process in Benapole Land Port

 

Port clearance process in Dhaka Airport