The government of Bangladesh has suspended the requirement for importers to obtain prior approval from the chief boiler inspector before bringing in boilers and boiler components, a move expected to streamline the import process and reduce bureaucratic delays. The decision was communicated to authorised dealer (AD) banks engaged in foreign exchange transactions through a circular issued by Bangladesh Bank on October 18.

The central bank’s Foreign Exchange Policy Department-1 instructed the head offices and principal offices of all AD banks to implement the change in line with the directive. This action follows a letter from the Ministry of Industries dated October 7, which stated that the Boiler Board had resolved to suspend the prior approval requirement as part of efforts to simplify the importation of boilers. A subsequent letter from the ministry’s Boiler Wing, dated October 14, reinforced that request.

Earlier in the year, on July 14, Bangladesh Bank had mandated that importers obtain prior approval from the chief boiler inspector before importing boilers and related components. That requirement had been introduced following a directive from the Ministry of Industries and obliged importers to secure official clearance before proceeding.

The recent circular notifying banks of the suspension does not specify whether the prior approval requirement has been permanently removed or if a new procedure will be established to replace it.

Boilers play a critical role in various industries across Bangladesh, providing necessary steam for manufacturing processes in sectors such as textiles and garments, food processing, pharmaceuticals, and chemicals. Industry figures indicate that roughly 60 percent of industrial boilers are utilized in the ready-made garment sector, while food processing accounts for about 19 percent, pharmaceuticals and chemicals each approximate 8 percent of total use.

Md Eleash Mridha, managing director of PRAN Group, a major food-processing company, welcomed the decision, noting that it would ease the process of importing boilers by eliminating a burdensome approval step. He said the company had previously benefited from duty exemptions on capital machinery, but the main challenge was navigating the bureaucratic requirements from the boiler inspector’s office, which involved submitting detailed drawings and documentation and responding to repeated queries. According to Mridha, even after multiple submissions, approvals were often delayed or obstructed on varying grounds.

The suspension of the prior approval requirement is expected to facilitate smoother imports of boilers and components, potentially benefiting multiple sectors reliant on these critical industrial goods.