India’s decision to end the transshipment facility for Bangladeshi goods will not apply to shipping goods to Nepal or Bhutan, the Indian Ministry of External Affairs (MEA) has said.
On Wednesday, India revoked a key transit facility that allowed Bangladesh to transport its export cargo to third countries using Indian land customs stations en route to ports and airports.
MEA, however, said that India’s new decision will not have any impact on Bangladesh’s trade with Bhutan or Nepal using India’s land borders and territory.
“The transshipment facility extended to Bangladesh had over a period of time resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs,” the MEA said in a statement.
“The facility, therefore, has been withdrawn w.e.f. Apr 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory.”
India’s Central Board of Indirect Taxes and Customs (CBIC) announced the decision on Tuesday with immediate effect.
Introduced in June 2020, the facility allowed Bangladeshi goods bound for third countries like Nepal, Bhutan and Myanmar to be transshipped through Indian land routes en route to seaports and airports, streamlining the export process to neighbouring nations.
According to the fresh guidelines, Bangladeshi goods currently in transit will be able to leave India under the existing process, but no new consignments of goods will be eligible for transshipment.
The suspension of this facility is likely to disrupt Bangladesh’s export and import operations , as countries like Nepal, Bhutan, and Myanmar depend on Indian infrastructure for access to third-country markets, an Indian Express report said citing the circular released by CBIC.