India revokes transshipment facility for Bangladesh
India has withdrawn the transshipment facility that previously allowed Bangladesh to route its export cargo to third countries via Indian land borders and onward through Indian ports and airports.
However, this change will not affect Bangladesh’s trade routes to Nepal and Bhutan through Indian territory.
The decision is expected to impact Bangladesh’s apparel industry, particularly exporters who ship to Western markets using facilities like New Delhi’s Indira Gandhi International Airport. Exporters may now face higher transportation costs and logistical hurdles.
The Central Board of Indirect Taxes and Customs (CBIC) issued a notification on Tuesday revoking a 2020 circular that permitted the movement of Bangladeshi exports through Land Customs Stations (LCSs) using containers or sealed trucks to Indian ports and airports.
According to the CBIC, the revocation takes effect immediately. However, any cargo that has already entered Indian territory under the earlier policy will still be allowed to continue its transit.
Addressing the move, Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs, cited "significant congestion" at Indian airports as the reason for the rollback. He mentioned that the backlog had caused delays and increased logistical costs for Indian exporters.
Jaiswal emphasized that this decision does not affect the existing arrangements for Bangladesh’s trade with Nepal and Bhutan.
This development comes at a challenging time for Bangladesh, as its key export sector—ready-made garments—is already grappling with elevated tariffs in the US, its largest export market.
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