Dhaka/New Delhi, Apr 9 (UNI) In a blow to Bangladesh’s exports, the Indian government has withdrawn its transshipment facility which allowed the export of Bangladeshi goods to third countries like Nepal, Bhutan, and Myanmar, via India's land routes.
The Indian move has essentially terminated Dhaka’s land-based exports to these countries.
The Central Board of Indirect Taxes and Customs (CBIC) issued a circular on April 8, announcing that New Delhi is rescinding the use of its facility for export via its land routes with immediate effect, the Daily Star reported.
The CBIC circular announced it was rescinding with immediate effect, an earlier circular dated June 29, 2020, that allowed the transhipment of export cargo from Bangladesh to third countries through the Land Customs Stations (LCSs) to Indian ports or airports in containers or closed-bodied trucks.
"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," reads the CBIC circular, according to Business Standard BD.
This move could lead to debilitating impact on the shipment of Bangladesh's readymade garments along with other exports to third countries, as Dhaka is almost entirely dependent on New Delhi’s infrastructure for conducting all its land-based trade and commerce with third countries.
The withdrawal of this facility is expected to disrupt Bangladesh's export and import logistics, especially with Bhutan, Nepal, and Myanmar, which rely on Indian infrastructure for third-country trade. The transshipment arrangement had previously helped reduce goods transit time and costs, the Daily Star reported.
A significant portion of Bangladesh's exports of readymade garments are routed through Indian airports, particularly Indira Gandhi International Airport in New Delhi.

The Apparel Export Promotion Council (AEPC) of India had been lobbying for the removal of this facility, since both countries are direct rivals in textile exports. Eliminating the facility is seen as a step to ease congestion at Indian airports and support the domestic exporters, according to AEPC Chairman Sudhir Sekhri, who added that disruptions in maritime commerce due to the Red Sea crisis and rampant piracy have prompted exporters to switch from sea to air, further inflating logistics expenses, as per the Dhaka Tribune.

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