Prior approval suspended for boiler imports

The government has suspended the requirement for prior approval from the chief boiler inspector before importing boilers and boiler components, a move industry leaders say will ease imports by reducing bureaucratic delays.

In a circular issued yesterday, Bangladesh Bank informed authorised dealer (AD) banks involved in foreign exchange transactions of the suspension.

The central bank’s Foreign Exchange Policy Department-1 instructed the head offices and principal offices of all AD banks to take necessary action in line with the decision.

The move follows a Ministry of Industries letter dated October 7, informing Bangladesh Bank that the Boiler Board had decided to suspend the prior approval requirement as part of efforts to simplify boiler imports. A separate letter from the ministry’s Boiler Wing, dated October 14, also requested the suspension, referring to the board’s decision.

In a circular issued on July 14, Bangladesh Bank had made prior approval from the chief boiler inspector mandatory for importing boilers and boiler components, following an earlier directive from the Ministry of Industries. Under the procedure, importers had to secure approval before proceeding with imports.

The latest circular communicates the suspension to banks handling foreign exchange transactions. However, the documents do not clarify whether the requirement has been permanently scrapped or whether an alternative procedure will be introduced.

Boilers are widely used in industries that require steam for production, including textiles and garments, food processing, pharmaceuticals and chemicals.

According to industry insiders, around 60 percent of industrial boilers are used in the ready-made garment sector, while food processing accounts for 19 percent, pharmaceuticals 8 percent and chemicals another 8 percent.

Md Eleash Mridha, managing director of PRAN Group, said the decision would make it easier for food-processing companies to import boilers by removing a cumbersome approval process.

“We get duty benefits on capital machinery, so duty was not an issue for us. The main problem was obtaining permission from the boiler inspector, including submitting drawings, providing documents and responding to queries. Even after submitting papers three times, objections would be raised on different grounds,” he said.

He said the decision would not bring any direct financial benefit but would simplify imports and improve the ease of doing business.

Md Quamrul Hassan, chief business officer of ACI Consumer Brands, also welcomed the move, saying it would simplify boiler imports by reducing bureaucratic complexities.

He described the decision as a positive step, adding that easing the approval process would make it simpler for industries to import the equipment they need.

While industry representatives welcomed the move, the authorities are yet to clarify whether an alternative approval mechanism will replace the suspended requirement.