The government of India has clarified that the recent withdrawal of the transshipment facility for Bangladesh will not affect its exports to Nepal or Bhutan through Indian territory.

Randhir Jaiswal, spokesperson of the India’s Ministry of External Affairs made the remark during a media briefing on Wednesday (April 9).

On April 8, the Central Board of Indirect Taxes and Customs (CBIC) issued a circular withdrawing the 2020 provision that allowed Bangladesh to export goods to third countries using Indian land customs stations, ports, and airports.

In response to a question from the reporters, Jaiswal said the facility had caused significant congestion at Indian ports and airports, resulting in logistical delays and higher costs. 

“These challenges were affecting India’s own exports,” he said, adding, “from April 8, this facility has been withdrawn.”

However, he said that “this move will not impact Bangladesh’s exports to Nepal or Bhutan using Indian territory.”

Earlier, India Today reported that the decision could affect Bangladesh’s third-country exports via India. Indian trade experts believe the move will benefit India’s own export sectors, especially in textiles, footwear, gems, and jewellery, where Bangladesh is a key competitor.

Ajay Srivastava, head of the Delhi-based think tank Global Trade Research Initiative (GTRI), warned that the decision may raise concerns over India’s commitments under World Trade Organization (WTO) rules, which require member states to facilitate trade for landlocked countries.

BDST: 2101 HRS, April 9, 2025
MSK