India cancels transshipment facility for Bangladesh

India has canceled the transshipment facility that allowed Bangladesh to transport commodities to third countries using Indian territory. Now, there will be no scope to export Bangladeshi products to Nepal and Bhutan through the land route.

The Indian Central Board of Indirect Taxes and Customs (CBIC) issued a circular on Tuesday, officially withdrawing the transshipment facility. At the same time, it repealed its previous order dated 29 June 2020, which had enabled the transshipment, according to the CBIC website.

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. According to the latest circular, the CBIC has now withdrawn the facility.

However, loaded vehicles that have already entered Indian territory under the previous arrangement will be allowed to exit the country, the circular added.