NEW DELHI/DHAKA — India has revoked a crucial transshipment facility that allowed Bangladesh to export goods to third countries using Indian territory, including land customs stations, ports, and airports. The decision, which came through a notification issued by the Indian central government on Tuesday, effectively ends a long-standing arrangement between the two neighbors.
The move was reported by The Telegraph Online on Wednesday, citing the Press Trust of India (PTI).
The transshipment facility, granted to Bangladesh in June 2020, had enabled seamless trade flows to countries such as Bhutan, Nepal, and Myanmar—strengthening regional connectivity across the Bay of Bengal. However, in a fresh notification issued on April 8, the Central Board of Indirect Taxes and Customs of India stated, “It has been decided to withdraw the circular issued on June 29, 2020. This revised decision will take immediate effect.”
The notification did make an exception for Bangladeshi cargo that has already entered Indian territory under the previous rule, allowing those consignments to exit as planned.
According to the report, Indian exporters—particularly those in the garments sector—had previously lobbied the Narendra Modi-led government to withdraw the facility, citing competitive concerns over market access and pricing.
The decision to revoke the facility comes at a sensitive time, just days after the United States imposed high tariffs on several countries and regions, including India and Bangladesh. Observers suggest the move could signal shifting regional trade dynamics and growing protectionist sentiment in South Asia, potentially impacting the Bay of Bengal’s strategic trade corridors.