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India withdraws key trade facility for Bangladesh export cargo

10 Apr '25
2 min read
India withdraws key trade facility for Bangladesh export cargo
Pic: Shutterstock

Insights

  • India has revoked a 2020 trade arrangement allowing Bangladesh to tranship exports via Indian ports and airports.
  • India cited logistical delays and backlogs as reasons.
  • The change does not affect Bangladeshi exports to Nepal or Bhutan.
  • The move follows Bangladeshi Chief Adviser Muhammad Yunus' support for Chinese influence in Northeast India.
Indian government has officially revoked a key trade arrangement that allowed Bangladesh to tranship export cargo to third countries through Indian ports and airports. This move could pose challenges for Bangladesh’s international trade.

The decision was announced through a circular issued by the Central Board of Indirect Taxes and Customs (CBIC) on April 8.

“Logistical delays and higher costs were hindering our own exports and creating backlogs. The facility, therefore, has been withdrawn w.e.f. April 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory,” MEA spokesperson Randhir Jaiswal said.

The now-rescinded Circular No. 29/2020-Customs, originally issued in June 2020, had enabled Bangladeshi export goods to be transported via Indian Land Customs Stations (LCSs) to seaports and airports using containers or sealed trucks. The move was part of a broader effort to facilitate regional trade and improve logistics connectivity.

Effective immediately, the facility has been withdrawn. However, cargo that has already entered Indian territory under the previous arrangement will be permitted to exit the country following the procedures laid out in the original circular, the notification said.

This decision comes a few days after Bangladesh's Chief Adviser Muhammad Yunus expressed support for expanding Chinese economic influence in the strategically vital Northeast India region.

During his visit to China from March 26 to 29, Muhammad Yunus remarked that, given the landlocked nature of Northeast India, Dhaka served as the region’s sole gateway to the sea. This comment was broadly seen as Bangladesh attempting to emphasise its strategic importance in providing access to the Northeast—a point that has raised concerns in India, as per media reports.

ALCHEMPro News Desk (KD)

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