How to pay Chinese suppliers from Bangladesh
To pay a Chinese supplier from Bangladesh, hold a valid Import Registration Certificate, apply to your authorized dealer bank to open a letter of credit or a contract-based import, and let the bank pay the supplier's company account in US dollars or yuan by SWIFT. Bangladesh Bank allows advance payments of up to US$20,000 without a repayment guarantee, and the Import Policy Order 2026-2029 removed the annual value limit on imports made under purchase contracts instead of letters of credit. This guide covers the rules, routes, published bank charges, documents and the risks of hundi.
- Import Policy Orders require private-sector importers to hold a valid, renewed Import Registration Certificate (IRC), and banks may not accept their LCA forms or open letters of credit without one.
- Bangladesh Bank raised the limit for advance import payments without a repayment guarantee from US$10,000 to US$20,000 in September 2025, and to US$50,000 from exporters' retention quota accounts.
- The Import Policy Order 2026-2029, gazetted on 24 August 2026, lets industrial and commercial importers import under purchase-sales contracts without value limits, as reported by Dhaka Tribune.
- Under FE Circular No. 33 of 14 August 2025, an import payment delayed more than four months from the bill of lading date is treated as a foreign exchange offence, as described by The Business Standard.
- Prime Bank's July to December 2026 schedule lists commission of up to 0.40% per quarter on sight letters of credit and on imports made without a letter of credit or by advance payment.
- Bangladesh Bank does not recognize cryptocurrency as legal currency and has warned that virtual currency transactions may breach the Foreign Exchange Regulation Act 1947 and money laundering laws.
How to pay a Chinese supplier from Bangladesh: the short answer
A Bangladeshi importer pays a Chinese supplier through an authorized dealer (AD) bank. An AD bank is a bank licensed by Bangladesh Bank, the central bank, to deal in foreign exchange. Every import is recorded by the bank against a letter of credit authorization (LCA) form, and the payment goes out from the bank by SWIFT. SWIFT is the international messaging network banks use for cross-border payments, and each bank has an 8 or 11 character SWIFT code.
The usual sequence for an order from China is:
- Make sure your Import Registration Certificate (IRC) is valid and renewed for the financial year. The IRC is the registration a private-sector importer needs before a bank will open an import for it.
- Agree the price, the payment terms and the Incoterm with the supplier, and get a proforma invoice or indent. An Incoterm is a standard trade term, such as FOB or CFR, that sets who pays freight and insurance. A proforma invoice is the supplier's priced quotation; an indent is the same quotation issued through a local agent.
- Submit the LCA form to your AD bank with the LC application, the proforma invoice or indent and an insurance cover note. The bank opens a letter of credit, registers a contract-based import, or makes an advance payment within the allowed limit.
- The bank pays the supplier's company account in China or Hong Kong, in US dollars or yuan, against the shipping documents or on the agreed date.
- Clear the goods with the Bill of Entry, the customs declaration for imported goods, and give the bank an authenticated copy within the deadline.
This guide covers the Bangladeshi side of each step. For the supplier's side, see our guide on how to pay suppliers in China.
Bangladesh rules on paying for imports
IRC and the LCA form
Bangladesh's import rules are set by the Ministry of Commerce in an Import Policy Order (IPO) and by Bangladesh Bank in its foreign exchange guidelines and circulars. The Import Policy Order 2015-2018 required private-sector importers to hold a valid, renewed IRC and stated that banks may not accept LCA forms, or open letters of credit, for importers without one. It required an LCA form for all import transactions through banks, whatever the source of finance. Banks still administer IRC renewals: Prime Bank's 2026 schedule lists an IRC renewal fee of the government fee plus a Tk. 500 service charge.
The 2026-2029 Import Policy Order
The Ministry of Commerce gazetted the Import Policy Order 2026-2029 on 24 August 2026. As reported by Dhaka Tribune, industrial and commercial importers can now import through purchase-sales contracts without value limits, alongside letters of credit. The previous policy had capped commercial importers at US$500,000 a year for imports made without a letter of credit.
Advance payments
In September 2025 Bangladesh Bank raised the limit for advance import payments without a repayment guarantee from US$10,000 to US$20,000. The limit for advance payments from exporters' retention quota (ERQ) accounts rose from US$25,000 to US$50,000. An ERQ account is the foreign currency account in which an exporter may keep part of its export earnings.
Deadlines after shipment
Bangladesh Bank's FE Circular No. 33, dated 14 August 2025, as described by The Business Standard, treats an import payment delayed more than four months from the bill of lading date as a foreign exchange offence. The Bill of Entry must reach the bank within four months, counted from acceptance of the import documents on supplier's credit, or from payment by the foreign lender on buyer's credit. Extensions are possible only for genuine difficulty, such as a delayed ship, on application to Bangladesh Bank's Foreign Exchange Operation Department quoting the IMP form number. The IMP form is the bank's report of an import payment to Bangladesh Bank. Banks monitor these deadlines through the Online Import Monitoring System (OIMS).
| Rule | What it says | Source |
|---|---|---|
| IRC | Private-sector importers need a valid, renewed IRC; banks may not accept their LCA forms or open LCs without one | Import Policy Order 2015-2018 |
| LCA form | Required for all bank-routed import transactions, whatever the source of finance | Import Policy Order 2015-2018 |
| Contract-based imports | Allowed without value limits for industrial and commercial importers | Import Policy Order 2026-2029, as reported |
| Advance payment without repayment guarantee | Up to US$20,000, raised from US$10,000 in September 2025 | Bangladesh Bank, as reported |
| Advance payment from ERQ accounts | Up to US$50,000, raised from US$25,000 | Bangladesh Bank, as reported |
| Bill of Entry to the bank, on supplier's or buyer's credit | Within four months of accepting the documents or of the foreign lender's payment | FE Circular No. 33 of 2025, as described |
| Import payment after shipment | Delay beyond four months from the bill of lading date treated as a foreign exchange offence | FE Circular No. 33 of 2025, as described |
Sources: Ministry of Commerce, Import Policy Order 2015-2018; Dhaka Tribune report of the Import Policy Order 2026-2029; Prothom Alo report of the Bangladesh Bank circular of September 2025; The Business Standard on FE Circular No. 33 of 2025. As published on 29 October 2026. Confirm current rules, including the IRC and LCA requirements in the 2026-2029 Order, with your bank.
Paying in US dollars or Chinese yuan
Most Chinese suppliers invoice in US dollars. Yuan is also available at some banks. In September 2022 Bangladesh Bank allowed AD banks to hold yuan accounts with their overseas correspondents or branches to settle cross-border transactions in Chinese currency. Before that, banks could keep yuan clearing accounts only with Bangladesh Bank. A correspondent bank is a bank that holds accounts for other banks and settles payments in its currency.
| Point | Pay in USD | Pay in yuan (CNY) |
|---|---|---|
| What most suppliers quote | USD is the usual invoice currency for export orders | Some suppliers accept or prefer yuan; ask |
| Bank accounts behind the payment | Your bank's US dollar correspondent accounts | Yuan accounts with overseas correspondents or branches, allowed since September 2022 |
| Conversion | Taka to dollars at the bank's rate | Taka to yuan at the bank's rate; the supplier does not convert |
| Availability | All AD banks | Ask whether your bank opens yuan letters of credit or sends yuan |
Source: The Financial Express, Banks allowed to maintain yuan accounts to settle cross-border transactions (15 September 2022). As published on 29 October 2026.
Paying in yuan saves the supplier a conversion, and some suppliers price a yuan order lower for that reason. Your side still converts taka, so compare the yuan quote at your bank's rate with the dollar quote before you choose.
How the money reaches a Chinese supplier
Many Chinese factories invoice through a Hong Kong trading company with a Hong Kong bank account, and others give a mainland account. The beneficiary on the letter of credit or payment should be the company named on the proforma invoice or indent.
| Payment route | How it works from Bangladesh | What to check |
|---|---|---|
| Sight letter of credit | Your bank pays when the supplier presents documents that match the credit | Documents, dates and descriptions must match exactly |
| Usance letter of credit | Your bank accepts the documents and pays at a later date | Payment within the four month limit from the bill of lading date |
| Contract-based import (DA or DP) | Documents come through the banks against acceptance or payment, without a bank promise | Allowed without value limits under the 2026-2029 Order |
| Advance payment | Bank sends USD or yuan by SWIFT before shipment | Up to US$20,000 without a repayment guarantee |
| Mainland account or Hong Kong account | SWIFT in USD, or yuan where your bank offers it | The supplier's bank checks the contract and invoice before it credits the funds |
Routes as described in this guide; limits from the sources cited in the rules section; supplier-side checks from PNC Bank's summary of China's goods trade foreign exchange rules. As published on 29 October 2026.
DA means documents against acceptance: the bank releases the shipping documents when you accept a bill of exchange to pay later. DP means documents against payment: the bank releases them when you pay.
What the supplier's bank checks
China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, a Chinese company must be on SAFE's list of companies with goods trade foreign exchange business, and banks cannot handle foreign exchange for companies that are not on it. The supplier's bank checks each receipt for a genuine trade background, using documents such as the contract, invoice and customs declaration. The same summary states that the remitter and the beneficiary must be the parties to the contract. A payment from someone other than the buyer on the contract can be held while the supplier's bank asks questions.
Letters of credit, advances and payment terms
Chinese factories often ask new buyers for a deposit and the balance before shipment. In Bangladesh, a deposit is an advance payment and must fit the advance limit, so most orders above that size are paid by letter of credit or as a contract-based import.
| Supplier asks for | How it fits the Bangladesh rules |
|---|---|
| Deposit before production | Advance payment, up to US$20,000 without a repayment guarantee, or US$50,000 from an ERQ account |
| Full payment before shipment on a larger order | Above US$20,000, the advance needs a repayment guarantee; ask your bank |
| Payment against documents | Sight letter of credit, or a DP contract-based import |
| Payment after arrival | Usance letter of credit or DA import; pay within four months of the bill of lading date |
Sources: Prothom Alo report of the Bangladesh Bank circular of September 2025; The Business Standard on FE Circular No. 33 of 2025; Dhaka Tribune report of the Import Policy Order 2026-2029. As published on 29 October 2026.
A letter of credit (LC) is a bank's written promise to pay the seller when it presents documents that comply with the credit's terms. It protects you against paying for goods that were never shipped, but it does not check quality. Ask the supplier to send draft shipping documents before shipment so you can check them against the credit, because a discrepancy delays payment and costs a fee. Book a pre-shipment inspection on a large first order.
What it costs: published bank charges
Each Bangladeshi bank publishes a schedule of charges on foreign exchange transactions. The table shows Prime Bank's import charges for July to December 2026. They are maximum rates, and the bank's head office can approve lower rates.
| Item | Published charge |
|---|---|
| Sight LC commission | Up to 0.40% per quarter |
| LC opening commission against 100% cash margin | Up to 0.25% per quarter |
| DP LC opening commission | Up to 0.50% per quarter |
| LC acceptance commission | Up to 0.40% per quarter |
| Import without opening an LC, import by advance payment, or import through LCAF on DA or DP basis | Up to 0.40% per quarter |
| LC amendment | Tk. 750 for the applicant |
| Payment charge, foreign, cash LC or back-to-back LC | USD 50 |
| Discrepancy charge, foreign import documents | US$ 50 |
| Certification of import documents for customs assessment | BDT 500 |
| IRC (import) renewal | Government fee at actual plus Tk. 500 service charge |
Source: Prime Bank, Schedule of Charges on Foreign Exchange Related Transactions, Trade Services, effective 1 July to 31 December 2026. As published on 29 October 2026. VAT applies as instructed by the National Board of Revenue; other banks set their own charges.
LCAF is the letter of credit authorization form, the same form this guide calls the LCA form. Prime Bank charges LC commission from the date of issue to the date of expiry, with a minimum of one quarter. On a US$30,000 sight LC valid for under three months, a 0.40% commission comes to US$120, plus the payment charge, SWIFT costs and any discrepancy fees. The costs outside the schedule are the exchange rate at which the bank sells dollars or yuan, the margin the bank asks you to deposit, and the supplier's own bank charges.
Documents that tie the payment to customs
The bank, Bangladesh Customs and the supplier's bank each match the same facts: the supplier's name, the invoice number, the goods and the value. Keep them identical across every document.
| Stage | Document | Issued by |
|---|---|---|
| Before ordering | Valid, renewed IRC; TIN; chamber or trade association membership certificate | Government and trade bodies |
| Opening the import | LCA form, signed LC application, proforma invoice or indent, insurance cover note | Importer, through the AD bank |
| Each payment | IMP form reported by the bank; SWIFT confirmation quoting the LC or contract number | AD bank |
| After shipment | Bill of lading, commercial invoice, packing list, certificate of origin | Carrier and supplier |
| Clearance | Bill of Entry, with the insurance policy | Importer's customs agent |
| Within four months | Authenticated copy of the Bill of Entry to the bank | Importer |
Sources: Ministry of Commerce, Import Policy Order 2015-2018, paragraphs 5, 8(11) and 8(13); The Business Standard on FE Circular No. 33 of 2025. Typical sequence; confirm the current list under the 2026-2029 Order with your bank. As published on 29 October 2026.
TIN is the Taxpayer Identification Number. Submit the Bill of Entry to the bank as soon as the goods clear. Under the same circular, an importer with import payments unsettled past maturity cannot open new contract-based imports. If the supplier changes its bank details, confirm the change by telephone on a number you already hold before the bank pays.
Hundi, agents and crypto: what goes wrong
Some importers pay a Chinese supplier through a hundi dealer, or an agent who collects taka in Dhaka or Chattogram and pays from an account in China. Hundi is an informal money transfer system that settles through a network of dealers rather than through banks. The facts below are what an importer should weigh before using these routes.
- The import has no bank record. Bank-routed imports run on an LCA form and are reported on an IMP form. A payment made outside the bank cannot be matched to your import in OIMS.
- Customs values the goods on your documents. The Bill of Entry and the bank's certified invoice are the record of what you paid. An agent's payment is not.
- The supplier's bank may query it. China's rules expect the payer to be the party on the contract. A transfer from an agent's account is a payment from a third party.
- Crypto is not recognized. Bangladesh Bank has stated that it does not recognize cryptocurrency as legal currency, and in a 2021 letter said virtual currency transactions could be treated as offences under the Foreign Exchange Regulation Act 1947, the Anti-Terrorism Act 2009 and the Money Laundering Prevention Act 2012. It first warned against Bitcoin in 2014.
A note on foreign accounts and Helm
Helm does not currently provide USD account details to companies based in Bangladesh, and this guide does not suggest stablecoins for import payments. For an importer in Bangladesh, the route set out here is through an AD bank under the IRC, LCA form and Bill of Entry rules.
A checklist for paying a Chinese supplier from Bangladesh
- Renew your IRC for the financial year before opening a new import.
- Get a proforma invoice or indent and check that the seller is the company you will pay.
- Choose the route with your bank: sight or usance LC, contract-based import, or advance payment within the limit.
- Keep any advance within US$20,000 unless the bank arranges a repayment guarantee, or within US$50,000 from an ERQ account.
- Decide between USD and yuan by comparing both quotes at your bank's rate.
- Check draft shipping documents against the LC before the supplier ships.
- Pay usance and DA bills within four months of the bill of lading date.
- Give the bank an authenticated copy of the Bill of Entry within four months.
- Keep each SWIFT confirmation with the LC or contract, invoice, bill of lading and Bill of Entry.
For how importers elsewhere organize supplier payments, see the importers page, and compare the rules for a neighboring market in our guide on paying Chinese suppliers from Pakistan. Check the supplier bank's SWIFT code with our SWIFT code lookup.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
How do I pay a Chinese supplier from Bangladesh?
Hold a valid, renewed IRC, submit an LCA form and LC application to your authorized dealer bank, and let the bank pay the supplier's company account in US dollars or yuan by SWIFT. Small deposits can be paid as advance payments within Bangladesh Bank's limit, and larger orders are usually paid by letter of credit or as contract-based imports.
How much can I pay a Chinese supplier in advance from Bangladesh?
Bangladesh Bank raised the limit for advance import payments without a repayment guarantee from US$10,000 to US$20,000 in September 2025. Advance payments from exporters' retention quota accounts rose from US$25,000 to US$50,000.
Do I need an IRC to import from China into Bangladesh?
Import Policy Orders have required private-sector importers to hold a valid, renewed Import Registration Certificate, and stated that banks may not accept their LCA forms or open letters of credit without one. Banks such as Prime Bank still process IRC renewals for a service charge.
Can I import from China without a letter of credit?
Yes. The Import Policy Order 2026-2029, gazetted on 24 August 2026, lets industrial and commercial importers import through purchase-sales contracts without value limits, as reported by Dhaka Tribune. The previous policy capped commercial importers at US$500,000 a year for non-LC imports.
How long do I have to pay for imports in Bangladesh?
Under FE Circular No. 33 of 14 August 2025, as described by The Business Standard, an import payment delayed more than four months from the bill of lading date is treated as a foreign exchange offence. The Bill of Entry must also reach the bank within four months.
Can I pay a Chinese supplier in yuan from Bangladesh?
Where your bank offers it. Since September 2022 Bangladesh Bank has allowed authorized dealer banks to hold yuan accounts with overseas correspondents or branches to settle cross-border transactions. Compare the yuan quote with the dollar quote at your bank's rate.
What do Bangladeshi banks charge for an import LC?
Each bank publishes its own schedule. Prime Bank's July to December 2026 schedule lists sight LC commission of up to 0.40% per quarter, LC amendments at Tk. 750, and a foreign payment charge of USD 50, with VAT as instructed by the National Board of Revenue.
Is it safe to pay a Chinese supplier through hundi from Bangladesh?
A hundi payment leaves no LCA, IMP form or bank record for the import, so it cannot be matched to your import in the bank's monitoring system. The supplier's bank in China may also query a payment from a third party.
Can I pay a Chinese supplier with USDT from Bangladesh?
Bangladesh Bank does not recognize cryptocurrency as legal currency and has said virtual currency transactions could be treated as offences under the Foreign Exchange Regulation Act 1947 and money laundering laws. Pay through your authorized dealer bank instead.
References
- Ministry of Commerce, Bangladesh: Import Policy Order 2015-2018 (via FAOLEX)
- Dhaka Tribune: Imports allowed outside LCs without value limits
- Prothom Alo: Limit for advance import payments raised to $20,000, exporters' retention quota accounts to $50,000 (23 September 2025)
- The Business Standard: Strict timeline for import payments, what the new directive means for businesses
- The Financial Express: Banks allowed to maintain yuan accounts to settle cross-border transactions (15 September 2022)
- The Financial Express: Cryptocurrency trading neither legal nor crime, BB (28 July 2021)
- Prime Bank: Schedule of Charges on Foreign Exchange Related Transactions, Trade Services, July to December 2026
- PNC Bank: Navigating China's regulations on foreign exchange for goods trade
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.