Kathmandu-India has revoked the transshipment facility that allowed Bangladesh to export goods to third countries using Indian territory.
The decision was announced through a circular issued by the Central Board of Indirect Taxes and Customs (CBIC) on April 8, 2025, effectively scrapping the provision granted in June 2020.
India’s Ministry of External Affairs said the arrangement had led to significant congestion at Indian airports and ports, causing logistical delays, higher costs, and backlogs that were affecting India’s own exports.
With the facility now revoked, Bangladeshi exporters can no longer use Indian territory to send goods to third countries, including Nepal, Bhutan, and Myanmar.
However, Ministry spokesperson Randhir Jaiswal clarified that the move would not impact Bangladeshi exports destined for Nepal and Bhutan transiting through India.
'To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory,' he said in a statement.
In the first eight months of the current fiscal year, Nepal imported goods worth Rs 3 billion from Bangladesh, while exporting goods worth Rs 440 million.
Nepal’s major imports from Bangladesh included potatoes, maize, biscuits, garments, juice, sausages, and fried lentil snacks (daalmoth).
