Transshipment cancellation: India denies passage to 4 goods trucks

The trucks were carrying garment products headed to Spain, says a Benapole port official

India has restricted passage of four trucks carrying goods bound for Spain from Bangladesh at the Petrapole Land Port for the first time after revoking the transshipment facility allowing transit for export cargo using its land customs stations.

Benapole Land Port Deputy Director (Traffic) Mamun Kabir Tarafder said the trucks were sent back from the gate of the Indian land port on Wednesday evening.

“The trucks carrying the goods belonged to Dhaka-based exporter DSV Air & Sea Limited. The trucks contained ready-made garment products, which were being exported to Spain," said Benapole Clearing and Forwarding Agent Staff Association General Secretary Sajedur Rahman.

The trucks returned to Dhaka from the Petrapole border, he confirmed.

Introduced in June 2020, the facility allowed Bangladeshi goods bound for third countries like Nepal, Bhutan and Myanmar to be transshipped through Indian land routes en route to seaports and airports, streamlining the export process to neighbouring nations.

On Tuesday, India’s Central Board of Indirect Taxes and Customs (CBIC) announced a decision to end the facility “with immediate effect”.

The CBIC said cargo that has already entered India may be allowed to exit Indian territory in line with the procedure outlined in the now rescinded circular on transshipments.

On Wednesday, however, India said that goods trucks already in Indian territory must also leave immediately.

The decision will also hinder the export of Bangladeshi ready-made garments to other countries through other ports, including Delhi's Indira Gandhi International Airport.

Kartik Chakraborty, the general secretary of Petrapole Port C&F Staff Welfare Association, said: “The Indian Ministry of Finance has issued a letter to customs cancelling the transshipment facility through the land port. In light of this letter, transit facility goods have been prevented from entering Petrapole Port from Benapole Port.”

Mamun Kabir said, "Petrapole customs did not issue cargo passes for any third-country goods due to the cancellation of the transshipment facility. So, they did not [allow passage] of four truckloads of goods brought for export to a third country yesterday [Tuesday]."