Voice of International Business

Back-to-back Letter of Credit (BTB LC) is one of the most important trade financing tools supporting Bangladesh’s export-driven economy. The mechanism allows export-oriented industries to import raw materials and accessories against confirmed export orders or export LCs without immediate cash outflow. This article provides a comprehensive guide on “Back to back LC Bangladesh”, strictly aligned with Bangladesh Bank regulations, especially FE Circular No. 33 dated 14 August 2025. Understanding Back to Back LC in Bangladesh A Back to Back LC refers to an import LC opened by an exporter on the strength of an underlying export LC or export contract. In Bangladesh, this facility is widely used by export-oriented industries operating under bonded warehouse licenses, enabling them to import inputs required for producing export goods. Import under Back to Back Arrangement Bangladesh Import under back to back arrangement in Bangladesh is permitted only for recognized export-oriented units. The ...

Bangladesh is entering a decisive phase of industrial transformation. Driven by infrastructure expansion, export diversification, energy projects, and private sector-led manufacturing growth, the demand for industrial capital machinery and spare parts is expanding at an unprecedented pace. Recent policy support from Bangladesh Bank, particularly allowing extended usance facilities for capital machinery imports, has further strengthened this momentum. Together, these developments are creating a significant opportunity for both overseas suppliers and local importers of industrial machinery and spare parts. This article explores the regulatory, financial, and market dynamics shaping this opportunity and outlines why Bangladesh has become an increasingly attractive destination for industrial equipment trade. A Growing Industrial Economy Bangladesh has traditionally been known for its ready-made garments sector, but the industrial landscape is now far broader. Steel, cement, pharmaceu...