India terminated transshipment facilities for export cargo from Bangladesh this week — days after the country batted for an extension of the Chinese economy in the strategically significant northeastern states. The Central Board of Indirect Taxes and Customs circular said that access had been revoked with immediate effect.
According to a missive released on Tuesday, Indian authorities have rescinded a 2020 circular that greenlit transshipment of export cargo from Bangladesh to third countries using Indian Land Customs Stations en route to Indian ports and airports. The circular came into immediate effect and is likely to impact Bangladeshi trade with Bhutan, Nepal, and Myanmar
The development came days after interim leader Muhammad Yunus referred to Bangladesh as the “only guardian of the ocean for all this region” and invoked the ‘landlocked’ northeastern states while urging China to ‘extend’ its economy. Prime Minister Narendra Modi had also urged his Bangladeshi counterpart to avoid “rhetoric that vitiates the environment” during a brief meeting on the sidelines of the BIMSTEC summit in Bangkok.
Yunus had sparked controversy last month after urging China to ‘extend’ its economy during a visit to Beijing. Videos of his speech had later gone viral on social media platforms with many interpreting it as a bid for Dhaka to exert its influence over the region and portray Beijing as a new strategic partner.
“The seven states of India…eastern part of India — are called the Seven Sisters. They are a landlocked region of India. They have no way to reach out to the ocean. We are the only guardians of the ocean for this region. So this opens up a huge possibility. So this could be an extension of the Chinese economy…” he had said.
Bangladeshi exporters are now likely to face logistical delays and increased costs after losing their streamlined route through India. Experts however interpreted the circular to add that cargo which had already entered Indian territory would be allowed to exit as per existing procedures.