Introduction

In a sudden policy shift, India has revoked a significant transshipment agreement with Bangladesh, leading to immediate logistical disruptions at the Petrapole-Benapole border. On Wednesday, four export trucks from Bangladesh were turned back by Indian authorities after India’s Central Board of Indirect Taxes and Customs (CBIC) officially cancelled the long-standing transshipment facility. This unexpected move marks a major development in cross-border logistics and trade between the two neighboring nations.

Background of the Transshipment Agreement

On 29 June 2020, Bangladesh was granted the right to use Indian customs stations for transshipment of goods to third countries via Indian ports and airports. This landmark agreement allowed Bangladeshi exporters to send their consignments to other global destinations by leveraging India’s extensive transport network, including seaports and airports, thereby enhancing trade flexibility and reducing logistical costs.

Cancellation and Immediate Action

However, as per a recent letter issued by the Indian Ministry of Finance to customs authorities, the transshipment arrangement has now been cancelled. This decision was swiftly enforced at Petrapole port—the largest land port on the India-Bangladesh border.

Kartik Chakraborty, General Secretary of the C&F Agents’ Staff Welfare Association at Petrapole, confirmed that based on the directive, the entry of goods from Bangladesh meant for third-country export via Indian territory has been completely halted. Consequently, four export trucks from DSV Air & Sea Limited, a leading export firm based in Dhaka, were denied entry and sent back from the Petrapole border gate.

Impact on Trade Movement

According to Mamun Kabir Tarafder, Deputy Director (Traffic) of Benapole Land Port, the Indian side did not issue any CARPASS—a mandatory clearance document—for the third-country goods, resulting in the refusal to process the cargo. This has caused concern among exporters and logistics providers who relied on the transshipment route for efficient cargo movement.

Conclusion

The cancellation of the transshipment facility is expected to disrupt trade strategies for Bangladeshi exporters, who may now have to reroute their goods through alternative and possibly costlier logistic channels. This development underscores the importance of digital infrastructure and updated trade protocols in minimizing such disruptions.