India withdraws transhipment facility for BD exports

NEW DELHI/DHAKA: India has withdrawn a transhipment facility for Bangladesh’s export cargoes to other countries via its land borders, in a fresh blow to Dhaka which is already reeling from steep U.S. tariffs on its goods.

The move is expected to disrupt Bangladesh’s readymade garment exports and raise costs for trade with countries including Nepal, Bhutan and Myanmar, exporters said. A circular from India’s customs department issued on Tuesday said it has decided to rescind a 2020 order allowing transhipment of Bangladeshi exports to third countries through India’s land customs stations to ports and airports in containers or closed-body trucks.

The facility has been withdrawn due to “delays and higher costs” hindering India’s own exports and creating backlogs, India’s external affairs ministry spokesperson said. “This will stop Bangladesh’s exports to Nepal and Bhutan,” Yunus Hossain, a Dhaka-based trader, said.