Businesses struggle with Bangla-only Import Policy Order

Jia Wei, a representative of a Chinese toy manufacturer interested in big investments in Bangladesh, had to hire a third-party translator to translate the Import Policy Order (IPO) to understand various legal regulations in Bangladesh.

"The hired translator initially used Google Translate, which caused misunderstandings. Later, I found a Bangladeshi proficient in Chinese language and local law, but it was time-consuming and costly," he noted.

Besides, unofficial translation may lead to mismatches and inaccuracies. 

This can misguide importers over HS codes – standardised numerical method of classifying traded products – at customs clearance, Jia Wei said. Wrongly translated HS codes create complications, he added. 

Like Jia Wei, many other foreign investors and local importers continue to suffer with the latest IPO, which remains without an official English version for over a year and a half after its publication.

An IPO is a comprehensive legislation outlining import requirements, rules, procedures, restrictions, and conditions for all imports. It is issued every three years, according to the commerce ministry.   

However, the government did not release any IPOs in 2018 and 2021. The latest edition was published through a gazette in May 2022 which includes several changes due to evolving business, trade, and international transactions.

Mirajul Islam Ukil, joint secretary of the Ministry of Commerce, mentioned that a firm was hired to translate the policy into English, and the translation and legal work have been finished.

"The ministry will review and upload it to the website shortly," he said.

When asked why it hadn't been done for such a long time, Md Ruhul Amin, additional secretary at the Ministry, said after the release of the main policy order, businesses raised objections to some parts of it. 

Subsequently, efforts were made to amend it. There was a delay in its vetting by the Ministry of Law.

"We wanted the English version to be published after the final amendments," he added. "The IPO was delayed due to various complications, but such problems will not arise further." 

Importance of English IPO?

TIM Nurul Kabir, executive director of the Foreign Investors Chamber of Commerce and Industry (FICCI), emphasised that foreign investors want a comprehensive understanding of the country's laws, including regulations on raw materials and machinery imports.

"The absence of an English version of IPO creates unnecessary complications, making it imperative to provide an English version alongside the Bangla one," he stressed.

Also, the absence of an English IPO can lead to customs clearance issues and damage a country's business reputation, Nurul Kabir added.

Mohammed Amirul Haque, managing director of Seacom Group, said foreign companies are very cautious about their reputation, and therefore prefer to review all laws before exporting or importing.

Furthermore, the absence of an English version of the IPO results in discrepancies with HS codes when importing from other countries, especially impacting imports of chemicals and agricultural products.

Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), said an English version of the IPO should be prepared alongside the original version.

FICCI Executive Director Nurul Kabir said when the IPO is not officially available in English, some companies have it translated with their own initiative. Previously, there were English versions of the IPO. 

An IPO serves as a centralised source of information for importers and regulators, covering general import conditions, industrial and commercial import procedures, and complementing sector-specific legislations.

So, accurate translation of the IPO is crucial to help international exporters comprehend the necessary documentary requirements, compliance, and conditions for entering the Bangladesh market, said Nurul Kabir.

The official English version prevents errors and delays, ensuring clarity, transparency, and easy access to crucial information, thus facilitating cross-border trade.

"With an official version, all parties have access to the same information, reducing the risk of fraudulent activities or fake documentation – development partners often base projects on existing legislation like the IPO," he said.