India has officially withdrawn the transshipment facility that allowed Bangladeshi goods to transit through Indian territory en route to third countries. This effectively halts the overland export of goods from Bangladesh to Nepal and Bhutan via India.
The decision was announced on Tuesday, April 8, through an order issued by the Central Board of Indirect Taxes and Customs (CBIC) of India. Alongside the new directive, India also repealed its earlier order dated June 29, 2020, which had granted this transshipment facility.
According to the CBIC’s official website, the 2020 order had permitted the use of specific Indian customs stations for transshipment, enabling Bangladeshi exports to be routed through Indian ports or airports on their way to third countries. With the new order, this facility has now been revoked.
The latest directive further states that any consignments already within Indian territory under the transshipment arrangement will be allowed to exit the country without delay.
Previously, under this arrangement, Bangladeshi goods destined for Nepal and Bhutan were transported overland through India, involving a change of vehicle—typically trucks or trailers—at the Indian border. This logistical process is known as transshipment. With the new decision, India has suspended this transit privilege for Bangladesh.