Commerce Ministry holds emergency meeting over India's transhipment issue

India has scrapped Bangladesh’s transshipment facility for exporting goods to third countries using Indian territory.

In response, the Ministry of Commerce convened an emergency meeting at 9:30pm on Wednesday to address the situation.

The meeting is being held at the office of the Export Promotion Bureau (EPB) in Karwan Bazar, Dhaka.

Senior officials from the Ministry of Commerce and representatives of the business community are attending the meeting. The Indian high commissioner in Dhaka is also joining the discussion virtually.

Notably, on June 29, 2020, India’s Central Board of Indirect Taxes and Customs (CBIC) had issued an order allowing Bangladesh to export goods to third countries using one of its customs stations.

Under this facility, goods could be transported to third countries via Indian ports by land, sea, or air.

However, on Tuesday, the CBIC suddenly withdrew that order. As a result, Bangladeshi goods will no longer be able to transit through Indian territory to reach other destinations.

India has also instructed that all currently loaded consignments within its territory must exit the country immediately.

Stakeholders fear that the decision could have an immediate impact on Bangladesh’s export trade. The meeting is expected to discuss the possible consequences of the move and the way forward.