ENA Sectors 2025-04-09 16:18:23 <p><span style="font-size:14px"><strong>New Delhi, Apr 9 (KNN) </strong>The Indian government has terminated a key transshipment facility that allowed export cargo from Bangladesh to reach third countries via Indian land customs stations and ports.</span></p> <p><span style="font-size:14px">The move was announced through a circular issued by the Central Board of Indirect Taxes and Customs (CBIC) on Tuesday.</span></p> <p><span style="font-size:14px">Originally granted in June 2020, the facility had enabled Bangladesh to send goods, particularly to landlocked countries like Nepal and Bhutan, through Indian routes.</span></p> <p><span style="font-size:14px">However, it has now been rescinded with immediate effect. Cargo already in transit will be allowed to exit the country under the old guidelines.</span></p> <p><span style="font-size:14px">The decision comes amid rising global trade tensions, including new U.S. tariffs affecting both India and Bangladesh.</span></p> <p><span style="font-size:14px">Indian exporters, especially in the apparel sector, had previously urged the government to end the facility, citing congestion and rising air freight costs at major ports like Delhis IGI Airport.</span></p> <p><span style="font-size:14px">Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), welcomed the move, noting it would free up space for Indian exporters.</span></p> <p><span style="font-size:14px">Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri said that transshipment from Bangladesh had caused delays and made Indian exports uncompetitive.</span></p> <p><span style="font-size:14px">Trade analysts caution, however, that the decision could disrupt logistics for Bangladesh and its trade partners. Ajay Srivastava of the Global Trade Research Initiative (GTRI) highlighted concerns over increased transit times and costs.</span></p> <p><span style="font-size:14px">He also warned that Nepal and Bhutan may face challenges accessing Bangladeshi goods, potentially violating World Trade Organisation (WTO) transit rules.</span></p> <p><span style="font-size:14px">As both India and Bangladesh are WTO members, the move is expected to spark further diplomatic and trade discussions in the region.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 41701 https://knnindia.co.in/news/newsdetails/sectors/india-withdraws-transshipment-facility-for-bangladesh-export-cargo 2025-04-09 16:18:23 knnindia.co.in