India Withdraws Trans-Shipment Facility For Bangladesh Export Cargo
The government has withdrawn the trans-shipment facility that allowed Bangladesh to export goods to third countries via Indian land customs stations, ports, and airports. The facility, introduced in June 2020, enabled seamless cargo movement to nations such as Bhutan, Nepal, and Myanmar using Indian infrastructure.
The Central Board of Indirect Taxes and Customs (CBIC), in a circular dated April 8, said the earlier order has been rescinded with immediate effect. However, cargo already in transit through India will be allowed to exit as per existing procedures.
The move follows long-standing demands from Indian exporters—especially in the apparel sector—who argued that the arrangement congested air cargo terminals and raised freight costs.
Exporters reported that around 20–30 loaded trucks from Bangladesh arrived daily at the Delhi Air Cargo complex, causing delays, increasing handling time, and making Indian exports uncompetitive.
FIEO DG Ajay Sahai said the decision would free up air capacity for Indian goods, while AEPC Chairman Sudhir Sekhri welcomed the move, citing adverse impacts on Indian apparel shipments.
Trade experts noted the withdrawal could disrupt Bangladesh’s logistics chain and affect trade with landlocked neighbours like Nepal and Bhutan, who may now face challenges in accessing Bangladeshi goods through India.
GTRI Founder Ajay Srivastava cautioned that the decision may lead to higher costs and delays for Bangladesh and could raise questions under WTO rules, which mandate freedom of transit for landlocked countries. Both India and Bangladesh are WTO members.
