Revised Import Credit Guidelines: 100% Cash Margin Requirement for Luxury Goods and Import Substitutes

To enhance stability in the foreign exchange rate and streamline transactions while facilitating import trade, boosting business, industry, and commerce, and ensuring the supply of essential consumer goods in the domestic market, guidelines have been issued for determining the cash margin rate when opening import credit letters for almost all products—with a few exceptions as noted in the circular based on the banker-customer relationship.

Notably, a 100% cash margin is required for the establishment of import credit for the following luxury goods and domestically-produced import substitutes:

• Automobiles (sedans, SUVs, minivans, etc.)
• Cosmetics
• Electrical and electronic home/office appliances
• Furniture and decorations
• Gold and gold ornaments
• Fruits and flowers
• Precious metals and pearls
• Non-cereal food products
• Ready-made garments
• Processed food and beverages, such as canned food, chocolate, biscuits, juice, coffee, soft drinks, etc.
• Leather products
• Alcoholic beverages
• Jute products
• Tobacco, tobacco products, or substitute products

This circular entered into effect on the date of issuance, i.e. 5 September 2024. The instructions outlined in BRPD Circular Letter No-25/2022, BRPD Circular Letter No. 54/2022, and BRPD Circular Letter No. 19/2023 are hereby revoked. However, any activities initiated before the issuance of this latest circular that are in accordance with the instructions of the revoked circular letters, will remain valid.