India has terminated the transshipment facility for Bangladesh’s export cargo that may disrupt exports to countries such as Bhutan, Nepal and Myanmar.
The Indian Ministry of External Affairs confirmed that India has withdrawn the transshipment facility for Bangladesh.
"The transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports,” MEA spokesperson Randhir Jaiswal said during a media briefing in New Delhi on Wednesday.
He said logistical delays and higher costs were hindering their own exports and creating backlogs.
“The facility, therefore, has been withdrawn w.e.f. April 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory," he said.
Indian Central Board of Indirect Taxes and Customs (CBIC) on Tuesday issued a notification in this regard, according to Indian media.
The CBIC, in its circular, said it had rescinded its earlier circular dated June 29, 2020 in respect of the “transshipment of export cargo from Bangladesh to third countries through Land Customs Stations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”.
The 2020 circular had permitted the transshipment of export cargo from Bangladesh to third countries using Indian Land Customs Stations en route to Indian ports and airports, to enable smooth trade flows for Bangladesh’s exports to countries such as Bhutan, Nepal and Myanmar.