News Brief

India Ends Bangladesh's Cargo Transshipment Facility Amid Dhaka’s China Pivot

Kuldeep Negi

Apr 09, 2025, 03:18 PM | Updated 03:18 PM IST


Prime Minister Modi and Mohammad Yunus.
Prime Minister Modi and Mohammad Yunus.

Following Bangladesh’s advocacy of extending China’s economic reach into India’s strategically crucial Northeast region, New Delhi has terminated the transshipment facility for Dhaka’s export cargo, Indian Express reported.

The move, announced Tuesday (8 April) by the Central Board of Indirect Taxes and Customs (CBIC) via a notification, could disrupt Bangladesh's trade with Bhutan, Nepal, and Myanmar.

CBIC’s 8 April circular withdrew its 2020 order in respect of the “transhipment of export cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to ports or airports in containers or closed-bodied trucks”.

The 2020 circular had permitted the transhipment of export cargo from Bangladesh to third countries using Indian Land Customs Stations en route to Indian ports and airports, to enable smooth trade flows for Bangladesh’s exports to countries such as Bhutan, Nepal, and Myanmar.

During a recent visit to China from 26-29 March, Bangladesh’s interim Chief Adviser Muhammad Yunus had said that, with Northeast India being “landlocked”, Dhaka was the “only guardian of the ocean for all this region”.

His remarks was widely interpreted as an attempt by Dhaka to assert its leverage over access to the Northeast — a matter of concern for Delhi.

Yunus’ efforts to portray Beijing as a new strategic partner have further complicated the already fragile India-Bangladesh relationship.

“The seven states of eastern India, known as the Seven Sisters, are a landlocked region. They have no direct access to the ocean,” Yunus said.

“We are the only guardian of the ocean for this entire region. This opens up a huge opportunity. It could become an extension of the Chinese economy — build things, produce things, market things, bring goods to China and export them to the rest of the world,” he added.

According to the Global Trade Research Initiative (GTRI), the CBIC’s decision takes effect immediately.

However, goods already in transit under the earlier system can still be moved out under existing rules.

Ending the cargo facility is likely to complicate Bangladesh’s trade logistics with Bhutan, Nepal, and Myanmar.

The earlier system reduced time and costs. Now, exporters may face rising delays and unpredictability.

Nepal and Bhutan, being landlocked, might also raise objections as the move restricts their transit access through India to Bangladesh, potentially hampering regional trade flows.

Also Read: Rail Connectivity To Paradip, Dhamra And Haldia Ports Set For Major Expansion—What You Need To Know

Kuldeep is Senior Editor (Newsroom) at Swarajya. He tweets at @kaydnegi.


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