India ends the transportation facility for Bangladesh to export goods to third countries

New Delhi, April 9 (PTI), the government has ended the transfer facility that allowed cargo export from Bangladesh to third countries using Indian Land Customs stations on the way to ports and airports, according to a government circular. Indian exporters, mainly of the clothing sector, earlier requested the government to withdraw this facility to the neighboring country. The facility has made smooth trading flow possible for exporting Bangladesh to countries such as Bhutan, Nepal and Myanmar. It was provided to Bangladesh by India in June 2020. “It was decided to recall … Circular … dated June 29, 2020, as amended with immediately. Freight that has already occurred in India may be allowed to leave the Indian area according to the procedure given in that circular,” the Central Council of Indirect Tax and Customs’ Circular, dated April 8, said. The announcement came at a time when the US filed wipe rates against a number of countries, including India and Bangladesh. The earlier circular allowed the transition from export freight from Bangladesh to third countries using Indian Land Customs Stations (LCSS) en route to Indian ports and airports. According to trade experts, the decision will help many of the Indian export sectors such as clothing, shoes and jewelry and jewelry. Bangladesh is a great rival of India in the textile sector. “Now we will have more air capacity for our load. In the past, exporters have complained about less space due to the transitional facility given to Bangladesh,” said Ajay Sahai, director -general of Federation of Indian Export Organizations (FIEO). The body of clothing exporters AEPC earlier requested the government to suspend this order, enabling the transition from the export of Bangladesh to third countries through the Delhi Air Cargo complex. AEPC chairman Sudhir Sekhri said nearly 20-30 loaded trucks arrived in Delhi every day, which delayed the smooth movement of cargo, and airlines did not use it. This leads to an excessive increase in air freight rates, delay in the handling and processing of export freight, and severe congestion at cargo terminal at IGI Airport, Delhi, leading to the export of Indian clothing by the Delhi Air Freight Complex that becomes unusual. Think Tank Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said the withdrawal of this facility is expected to disrupt Bangladesh’s export and import logistics, which depends on the Indian Infrastructure for Trade in Third Countries. “The previous mechanism has offered a streamlined route through India, which has cut the transition time and cost. Now, without it, the exporters of Bangladesh exporters may face logistical delays, higher costs and uncertainty. In addition, Nepal and Bhutan, both countries that are locked up, are concerned about the limited access to Bangladesh. Bangladesh, “He added that according to the rules of the WTO (World Trade Organization) all members must enable freedom of transport for goods that are switched to and from countries. This means that such transport must be unlimited, must be free of unnecessary delays and should not be subject to transport duties. Both India and Bangladesh are members of this Geneva-based organization.