India ends trans-shipment facility for Bangladesh

India has terminated the trans-shipment facility provided to Bangladesh from April 8, keeping in mind the ever-increasing congestion and logistics delays at its airports and ports. Through this service, Bangladesh earlier exported goods to third countries using Indian customs stations, thereby indirectly increasing the burden on Indian exports. Foreign Ministry spokesperson Randhir Jaiswal said that the cancellation of the facility will reduce congestion at airports and ports, which will help reduce delays and high costs in exports. He also ensured that there will be no adverse impact on the transportation of Bangladeshi exports through Nepal and Bhutan.

This trans-shipment facility was introduced in June 2020 with the main objective of establishing India as a transit corridor by promoting regional connectivity. The decision to withdraw the facility has been clarified in a notification issued by the Central Board of Indirect Taxes and Customs (CBIC), which states that the revised form dated June 29, 2020 has been repealed with immediate effect, but cargo that has already entered India will continue to be processed as per the existing procedure.

Assam Chief Minister Himanta Biswa Sharma praised the move on social media, saying that the decision reflects Prime Minister Narendra Modi’s unwavering commitment to national interests and the security of the Northeast region. The action comes after controversial statements made by Bangladesh interim government chief adviser Mohammad Yunus during his recent visit to China.

Also, the agreement between the two countries on the use of Chittagong and Mongla ports in 2023 facilitated transit trade between Northeast India and the mainland. India has also expressed concern over the persecution of minorities in Bangladesh and expects the interim administration there to take a tough stand against those guilty of violence.