The Indian government has officially withdrawn a key transshipment facility that had allowed Bangladesh to transport its export cargo through Indian territory to third-country destinations. 

The cancellation was formalized through a notification issued by India’s Central Board of Indirect Taxes and Customs (CBIC) on Tuesday.

According to Indian media reports, the CBIC rescinded its earlier circular dated June 29, 2020, which had permitted the transhipment of Bangladeshi export cargo to countries such as Bhutan, Nepal, and Myanmar via Indian land customs stations (LCSs), using either containers or closed-bodied trucks bound for ports or airports.

This move effectively dismantled a logistics mechanism that had served as an important trade conduit for Bangladesh since mid-2020, especially during the global disruption caused by the COVID-19 pandemic.

It enabled Bangladeshi exporters to move goods through Indian territory to reach landlocked neighboring countries such as Nepal and Bhutan and to use Indian ports for access to other destinations, such as Myanmar.