Overview

• India has officially terminated the transshipment facility that allowed Bangladesh to export goods to third countries via Indian land customs stations, effective immediately.
• The facility, established in 2020, enabled Bangladesh to streamline exports to Bhutan, Nepal, and Myanmar, reducing transit costs and time.
• Indian exporters, particularly in the apparel sector, had pushed for the cancellation, citing congestion, higher air freight costs, and reduced air cargo capacity for domestic goods.
• The move is partly attributed to rising geopolitical tensions, including concerns over Bangladesh's collaboration with China near the sensitive Siliguri Corridor, a critical gateway to India's northeast.
• Trade experts warn the decision could increase logistical costs for Bangladeshi exporters and disrupt trade for landlocked countries like Nepal and Bhutan, potentially challenging India's WTO obligations.