India cancels transshipment facility for Bangladeshi goods

India has officially revoked the transshipment facility that allowed Bangladeshi goods to pass through Indian territory en route to third countries such as Nepal and Bhutan. 

With this decision, Bangladesh’s overland export access to these countries via India has been suspended until further notice.

The cancellation order was issued on Tuesday by the Central Board of Indirect Taxes and Customs (CBIC) of India. The latest directive also nullifies the previous notification issued on June 29, 2020, which initially granted the facility.

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The new order stipulates that the facility is no longer valid.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.