India Revokes Transshipment Facility for Bangladesh's Third-Country Exports

On 8th April 2025, India rescinded a 2020 transshipment facility that allowed Bangladeshi export cargo to third countries via Indian land borders, ports, and airports, citing logistical challenges and congestion.

Key Points

Revoked Facility: The Central Board of Indirect Taxes and Customs (CBIC) ended the transit of Bangladeshi export cargo through Land Customs Stations (LCSs) to Indian airports and ports.
No Impact on Nepal/Bhutan Trade: India clarified that Bangladesh’s trade with Nepal and Bhutan via Indian territory remains unaffected.
Cost Spike for RMG Exporters: Apparel exporters from Bangladesh who relied on Delhi airport for shipments to Western markets now face higher logistics costs.
Indian Exporters’ Concerns: India’s Apparel Export Promotion Council (AEPC) cited severe congestion and rising costs for Indian exporters as reasons for urging the revocation.
Bangladesh’s Mitigation Plans: The Bangladeshi government is exploring alternative routes, including Dhaka and Sylhet airports, to minimise disruption.