India cancels transshipment facility for Bangladesh

India has canceled the transshipment facility that allowed Bangladesh to transport commodities to third countries using Indian territory. 

Now, there will be no scope to export Bangladeshi products to Nepal and Bhutan through the land route. 

The Indian Central Board of Indirect Taxes and Customs (CBIC) issued a circular on Tuesday, officially withdrawing the transshipment facility. 

At the same time, it repealed its previous order dated 29 June 2020, which had enabled the transshipment. 

According to information available on the CBIC’s official website, the 2020 order permitted Bangladeshi exports to third countries to transit through Indian customs stations and exit via other ports or airports within India. This arrangement, known as transshipment, enabled Bangladeshi cargo to reach Nepal and Bhutan by passing through Indian land routes and switching transport vehicles at designated customs points.

The new order stipulates that the facility is no longer valid. However, goods that are already in transit within Indian territory under the previous arrangement will be allowed to exit the country without hindrance.

Under the transshipment process, Bangladeshi goods destined for Nepal and Bhutan travel through Indian land routes, where the cargo is transferred from one vehicle to another at the border and Indian customs checkpoints. 

The decision to revoke this facility is likely to impact trade logistics and export operations between Bangladesh and its landlocked neighbors.

The Indian authorities have not provided any specific reason for the withdrawal of the service.