Banks asked to examine licence while opening LC:Daily Sun

  Bangladesh Bank (BB) has directed the scheduled banks to examine the validity of licences of the private petroleum product importers issued by the Bangladesh Energy Regulatory Commission (BERC) at the time of opening letters of credit (LCs). In this regard, the central bank issued an urgent directive to banks on Tuesday. Insiders say the directive is aimed at preventing illegal import of petrole
um products and ensure proper storing with essential safety measures by the importers. A central bank high official, however, said the directive came from the ministry. The BB official has refuted to comment on illegal import of petroleum products by private sector importers without BERC licence. “The ministry requested us to issue a directive in this regard. So, we did it,” said the official, who preferred anonymity. Meanwhile, the BERC in a letter sent to state-owned Sonali Bank on September 9 said some private firms had imported petroleum products without having any valid license, resulting in denial in releases of the imported products from the ports by the customs authorities. In some cases, some importers even went to BERC seeking license on urgent basis to release imported products from the customs, the BERC letter reads. For the BERC, the letters reads, it is difficult to collect and examine license-seekers’ documents on proposed store, safety initiatives, fire service availability and concerned district administrations’ clearance in a hurry. A copy of the letter also had been sent to the Foreign Exchange Policy Department of the central bank. The BB said the directive has been issued in line with the National Import Policy for the 2012-2015 period. The import policy 2012-2015 was prepared as per the BERC Act 2003. The Act has made it compulsory for petroleum importers to obtain licence from the BERC. According to the Act, no individual or enterprise is allowed to supply, sale, store or distribute petroleum products without obtaining licenses from the regulatory authority. The central bank has asked banks to follow the rules strictly.