India cancels cargo trans-shipment facility for Bangladesh

In a significant order, the Central Board of Indirect Taxes and Customs (CBIC) has rescinded an 2020 order that allowed trans-shipment of export cargo from Bangladesh to third countries through Indian Land Customs Stations (LCSs) to ports and airports.

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The rescission takes immediate effect.

However, cargo that has already entered the Indian territory under the provisions of the rescinded circular may continue its exit process following the procedures outlined in the original circular, according to a notification from CBIC,

The trans-shipment facility allowed Bangladesh to have a smoother trade with nations such Nepal, Bhutan, Myanmar and the like. However, the trans-shipment facility for Bangladesh had drawn considerable criticism from the Indian industry, especially apparel-makers, who felt that it disadvantaged them in terms of freight cost.

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