Open Trade Bangladesh
Home / Import room / Part A
Lesson 3 of 7

Is the price right?

Genuine buyers, genuine sellers, a fair market price, and the details a PI must show, down to the 8-digit HS code.

A-7A-12

Imagine buying a mango in Karwan Bazar for Tk 500 when every other stall sells it for Tk 100. Either it is a very special mango, or something is wrong.

Banks ask the same question about every import. If the price is far above the market, money may be leaving the country quietly, hidden inside an ordinary invoice. If the goods are vague ("assorted items, 1 lot"), nobody can even check. This lesson shows what the bank must check before saying yes, and how the PI and the HS code make checking possible.

Para A-7

Import regulatory framework

In plain words

Three checks, in plain words:

Check 1: a fair price. When the bank sends the basic import information to OIMS, it must be sure the contracted price reflects the current market price of those goods.

Check 2: genuine people, a sensible route. Before opening the LC, the bank takes usual and reasonable care that:

  • the exporter and the importer are genuine businesses in those goods,
  • the exporting country usually exports those goods, and
  • the price is competitive against the international market on the contract date, or against similar recent imports.

Check 3: a detailed PI. To make checking possible, the PI (or the local agent's indent) must clearly show:

  • a) a full description: quality, brand, production date, packaging and grade (if any), plus unit price and quantity;
  • b) when one PI covers several products, the same details for each product separately;
  • c) when goods are of different kinds, each in its own proper unit (not everything in "kg" or "pieces");
  • d) the transport charges, in line with the Incoterm used;
  • e) the 8-digit HS code: the 6-digit international code plus the next 2 digits.
At the desk

A PI arrives: "Electronic items, 2,000 kg, USD 180,000." Mahin sends it back with a smile. Phones, chargers and cables can't share one line, one unit and one price. The revised PI lists each item with its brand, model, quantity in pieces, unit price and 8-digit HS code. Now the price can actually be compared with the market.

Key words
Bona fide
Genuine; made in good faith.
Competitive price
A price in line with what the same goods sell for in the international market at that time.
HS Code
Harmonized System code: the number that tells Customs exactly what a product is. The first 6 digits are the same worldwide; Bangladesh adds more for its own tariff.
Over-invoicing
Showing a higher price than the real one, which lets extra money leave the country.
Read the rule as written (Para A-7)

(1) ADs shall, while providing primary information to the OIMS of Bangladesh Bank, be ensured of the import price contracted for import depicting the current market price of the importable goods.

(2) Before opening of LC or initiating imports, ADs shall have to take usual and reasonable cautionary measures to ensure that both the exporter and importer are bonafide business persons of the goods concerned, the exporting country is the usual exporter of the goods concerned and the price of the goods concerned is competitive in terms of prevailing price in the international market on the date of contract and/or similar imports in contemporary period.

(3) To facilitate the accurate verification of the import price in line with international market rates, the following details need to be clearly mentioned in the Proforma Invoice (PI) sent by foreign exporters or in the indent provided by their local agents regarding the imported goods:

(a) A complete description of the goods, including their quality, brand, production date, packaging information, and grade (if any), through which quality of goods can be differentiated, as well as the unit price and quantity;

(b) In cases where multiple products are imported through the same PI, the details of each product should be separately listed, including its description, quality, brand, production date, packaging details, and grade (if any), with unit price and quantity for each;

(c) In cases where different types of goods are imported under the same PI, all goods should not be measured in a single unit such as kg, liter, or piece; instead each item should be presented in the applicable units based on their nature;

(d) Transportation charges should be clearly mentioned in terms of incoterms used for the relevant transactions;

(e) To identify the imported goods specifically, the 6-digit HS Code along with the next 2 digits (total of 8 digits) should be mentioned.

Source: Bangladesh Bank, FEPD-1 Circular No. 30, 13 August 2026, Part A, paragraph 7 (page 7). The original circular is the authority.

Ask about this paragraphReport a mistake
Para A-12

Use of correct HS Code

In plain words

Using the correct HS code is mandatory, following the First Schedule of the Customs Act. No bank may start an import without the correct HS code in the LC, or in the purchase contract or PI.

A wrong code can bring penalties from Customs. When in doubt, the bank or the customer should ask the Customs authority directly, not guess.

At the desk

A client describes his goods as "plastic parts" and suggests a code he used last year. Nadia isn't sure the code fits these new goods, which look more like machine components. She doesn't guess. She asks the client to confirm the classification with Customs first. A two-day delay is cheaper than a penalty at the port.

Key words
First Schedule (Customs Act)
The customs tariff: the full list of HS codes and their duty rates.
Read the rule as written (Para A-12)

It is mandatory to use the correct HS Code to indicate the classification of goods to be imported, as per First Schedule of the Customs Act. No bank shall initiate import transactions without quoting correct HS Code in the LC or purchase contract/PI (as the case may be). Failure to do so may lead to imposition of penalties by the Customs Authority. In all cases of doubt, reference should be made either by ADs or the customer directly to the concerned customs authority.

Source: Bangladesh Bank, FEPD-1 Circular No. 30, 13 August 2026, Part A, paragraph 12 (page 9). The original circular is the authority.

Ask about this paragraphReport a mistake
Putting it together

So far: before an import starts, the bank checks three things: genuine people, a sensible trade route, and a fair market price. A detailed PI makes that check possible, item by item, each in its own unit, with freight and an 8-digit HS code. And the HS code must be correct; when in doubt, ask Customs.

Next: the importer's own promises, on the IMP form.

Check yourself

Four quick questions. Nobody sees your answers but you.

1. Before opening an LC, which of these must the bank take reasonable care to check?
2. One PI covers four different products. How should it show them?
3. How many digits of the HS code should the PI show?
4. The bank is unsure which HS code applies. What should it do?
Found this useful? Pass it on.

Brain feeling full? Take a tea break.