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The Indian government has cancelled the transshipment facility that allowed Bangladesh to use the land customs stations of its neighbour to export cargo to third countries.
However, the Indian Ministry of External Affairs (MEA) on Wednesday clarified that the decision would not affect Bangladesh's exports to Nepal or Bhutan transiting through the Indian territory.
"The transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs," MEA Spokesperson Randhir Jaiswal told the weekly press briefing in Delhi.
"The facility, therefore, has been withdrawn with effect from April 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory," he added.
Earlier on Tuesday, the Central Board of Indirect Taxes and Customs (CBIC) of India issued a notification cancelling the facility.
According to the circular available on the CBIC website, the board stated that it has rescinded its previous circular dated June 29, 2020, in respect to the "transshipment of export cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to ports or airports in containers or closed-bodied trucks."
It further said the cargo that has already entered India may be allowed to exit the country's territory as per the procedure mentioned in Circular No 29/2020- Customs.
When asked, Kamruzzaman Kamal, director (marketing) of PRAN-RFL Group, said the group's annual exports worth $10 million destined to Nepal and Bhutan would be affected severely and likely be "stopped" as there is no alternative way to export to the two landlocked countries. "It is not possible for the goods, which we export to Nepal and Bhutan, to be shipped by air," he said.
BGMEA former president Rubana Huq, however, told The Financial Express as Bangladesh has always prioritised direct shipping and no significant transhipment has been done through India so far, the impact will hopefully not be severe for the readymade garment sector.
Munni_fe@yahoo.com