BB bans LC opening for supplement imports without DGDA approval

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Dhaka, Apr 29 – Bangladesh Bank (BB) on Wednesday instructed all banks to stop opening Letters of Credit (LC) or processing Telegraphic Transfers (TT) for the import of dietary and nutritional supplements without mandatory prior approval from the Directorate General of Drug Administration (DGDA).

The directive, issued by the Foreign Exchange Policy Department (FEPD), follows a request from the Ministry of Health and Family Welfare to ensure the strict application of the "Drugs and Cosmetics Act, 2023".

According to the central bank circular, products including dietary supplements, herbal supplements, nutritional supplements, and medical or therapeutic nutrition items require mandatory registration or prior clearance from the DGDA for production, import, export, sale, and distribution. The circular emphasized that importing or marketing such products in violation of the law is a punishable offense.

The move comes after several importers brought in supplement-related products without the necessary registration. Following customs' refusal to release these unauthorized goods, legal disputes reached the Supreme Court's Appellate Division, which ultimately directed that those goods must be cleared only "in accordance with law".

To safeguard public health and ensure legal compliance, the Ministry of Health urged the central bank to instruct authorized dealer banks not to facilitate the import of such products unless the importers provide a valid registration certificate or prior approval from the DGDA. - UNB