Four cargo trucks denied entry to India as transshipment withdrawn

Four trucks loaded with readymade garment products have been denied entry to India through Petrapole as the Indian authorities revoked the transshipment facility for Bangladesh. The trucks have been rerouted to Dhaka from the Benapole land port in Jashore.

India had introduced the transshipment facility through an order on 29 June, 2020, allowing Bangladeshi goods to be transported to third countries using Indian territory. However, the Indian Central Board of Indirect Taxes and Customs (CBIC) cancelled the order on Tuesday, leading to a halt to such shipments.

According to sources at the Benapole land port, three exporters from Dhaka brought the RMG products to the Benapole landport on four trucks. The shipment was supposed to be exported to Spain via the Dum Dum airport in Kolkata. However, customs officials at Petrapole refused to issue car passes for the trucks, leaving the exporters with no choice but to return the goods.

Padma Trading was the clearing and forwarding (C&F) agent for the shipments. Speaking to Prothom Alo, its owner Anik Ahmed said, “The Indian government has suddenly withdrawn the transshipment facility without prior notice. The trucks already arrived at the port. Both we and the exporters have suffered significant losses due to the entry denial.”

He added that only a day before the cancellation, his company successfully sent 20 trucks of garments to different European countries using Indian transit. Usually, garments exports peak in summer. Now is the peak season, and the Indian decision has caused heavy losses to them.

In this regard, Benapole land port director Shamim Hossain said, “No representatives of the exporters, who got their products returned, have formally informed us about the incident. However, we came to know that they were not issued car passes from the Petrapole customs in India. Therefore, the products were brought back.”

The transshipment order allowed Bangladeshi goods to be exported via some Indian ports. Now, the facility is no longer in place.

In a statement, the Indian authorities claimed the move would not impact exports from Bangladesh to Nepal and Bhutan through the Indian border.

According to insiders, most third-country exports via transshipment through Benapole and Petrapole go to European countries, particularly Spain and Switzerland. The volume of exports to Nepal and Bhutan under the transshipment facility is insignificant.