Bangladesh Bank Eases Import Declaration Rules for Intercompany Transactions

Dhaka, August 5, 2026 — The Bangladesh Bank has eased import declaration rules for intercompany transactions, removing a regulatory hurdle that had complicated trade between related companies — a move that simplifies compliance for multinational corporations and conglomerates operating in Bangladesh.

The circular said the change was introduced in recognition of the fact that many international trade transactions are legitimately conducted between related companies. Under the revised rules, importers engaged in intercompany transactions must declare that the transactions are conducted on an arm's length basis at competitive market prices and comply with all applicable regulations. In such cases, the declaration previously required under clause 1(c) of the prescribed IMP Form regarding the absence of any relationship between the importer and the exporter will no longer be applicable.

📜 Key Changes

• ✅ Removed: Declaration of "no relationship" between importer and exporter (clause 1(c) of IMP Form)
• ✅ Required: Declaration that transactions are at arm's length / competitive market prices
• ✅ Required: Compliance with all applicable regulations
• 🏛️ Processing: Authorized Dealers (ADs) must obtain declarations before processing import transactions

The central bank directed Authorized Dealers (ADs) to obtain the required declarations before processing import transactions. The change applies to intercompany import-export transactions — trade between parent companies and subsidiaries, or between sister companies within the same corporate group. Previously, such transactions required a declaration that no relationship existed between the importer and exporter, which was factually inaccurate for intercompany trade and created unnecessary compliance friction.

📋 Why This Matters

The easing of declaration rules addresses a practical problem that has long frustrated multinational companies operating in Bangladesh. Many global brands and retailers source from Bangladeshi factories that are part of their own corporate group, or import raw materials from sister companies abroad. The previous requirement to declare "no relationship" forced these companies to either misrepresent their corporate structure or face delays in import processing.

For Bangladesh's export sector, the change is particularly relevant for the garment industry, where many factories are owned by international groups that import machinery, dyes, and raw materials from affiliated companies. The removal of the "no relationship" declaration requirement will streamline import processing for these companies, potentially reducing the time and cost of bringing in production inputs.

The arm's length pricing declaration requirement ensures that the easing does not create a loophole for transfer pricing manipulation or money laundering. By requiring companies to declare that their intercompany transactions are conducted at competitive market prices, the Bangladesh Bank maintains regulatory oversight while removing an administratively burdensome and factually inconsistent requirement. The change reflects a broader trend toward risk-based regulation — focusing supervisory resources on transactions that pose genuine risks rather than applying blanket requirements to all trade.

The easing of declaration rules addresses a practical problem that has long frustrated multinational companies operating in Bangladesh. Many global brands source from Bangladeshi factories that are part of their corporate group, or import raw materials from sister companies abroad. The previous requirement to declare "no relationship" was factually inaccurate for intercompany trade and created unnecessary compliance friction. For Bangladesh's export sector, the change is particularly relevant for the garment industry, where many factories are owned by international groups that import machinery, dyes, and raw materials from affiliated companies. The removal of the declaration requirement will streamline import processing, potentially reducing the time and cost of bringing in production inputs. The arm's length pricing declaration ensures that the easing does not create a loophole for transfer pricing manipulation or money laundering — maintaining regulatory oversight while removing administratively burdensome requirements. The change reflects a broader trend toward risk-based regulation that focuses supervisory resources on transactions posing genuine risks rather than applying blanket requirements to all trade.

The circular from Bangladesh Bank represents part of a broader effort to modernise the country's trade finance regulatory framework. The central bank has been progressively easing regulatory requirements that were identified as unnecessary burdens on legitimate trade, while simultaneously strengthening oversight of transactions that pose genuine money laundering or sanctions risks. The intercompany transaction easing follows other recent regulatory adjustments, including the lifting of lending caps on Sonali Bank's five major branches and the introduction of more flexible loan restructuring facilities. For the broader trade ecosystem, the change signals that Bangladesh Bank is willing to adapt its regulatory framework to reflect the realities of modern international trade — where multinational corporate structures mean that a significant portion of cross-border transactions occur between related entities. The arm's length pricing requirement ensures that the easing does not create opportunities for profit shifting or capital flight, maintaining the integrity of Bangladesh's transfer pricing framework while removing an administratively cumbersome and factually inconsistent declaration requirement. The impact on trade facilitation should be measurable in reduced processing times for intercompany import transactions, particularly for the garment sector where many factories import machinery, dyes, and raw materials from affiliated companies abroad.