India withdraws cargo transshipment facility for Bangladesh

India has withdrawn a facility that allowed the transshipment of export cargo from Bangladesh to third countries using Indian land customs stations, according to a government circular issued by the Central Board of Indirect Taxes and Customs on Tuesday, The Indian Express reported.

The facility, introduced in June 2020, enabled Bangladesh to route export consignments through Indian land customs stations to Indian ports and airports for onward shipment to nations such as Bhutan, Nepal and Myanmar.

The latest circular, dated April 8, stated": “It has been decided to rescind…circular…dated June 29, 2020, as amended with immediate effect. Cargo already entered into India may be allowed to exit the Indian territory as per the procedure given in that circular.”

The move comes amid increasing complaints from Indian exporters in the apparel sector, who had called for the termination of the facility, and amid wider concerns about regional trade competitiveness.

The development also comes days after Bangladesh leader Muhammad Yunus’ remarks about Dhaka being the ‘only guardian of the ocean’ in the region sparked a furore in India.

“Now we will have more air capacity for our cargo,” said Ajay Sahai, Director General of the Federation of Indian Export Organisations, to PTI. “In the past, exporters have complained about lesser space due to the transhipment facility given...

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