New Delhi, April 9, 2025: India has withdrawn the trans-shipment facility extended to Bangladesh in 2020, citing severe congestion at its airports and seaports. The decision comes in the wake of controversial remarks by Bangladesh’s interim leader, Muhammad Yunus, who described India’s Northeast as “landlocked” and supported Chinese autonomy in the region.
The Ministry of External Affairs confirmed that the facility, which allowed Bangladeshi cargo to move through Indian land customs stations en route to ports and airports for shipment to third countries, had become unsustainable.
MEA spokesperson Randhir Jaiswal said the growing backlog and delays were affecting India’s own trade efficiency. “The trans-shipment facility resulted in significant congestion at our airports and ports, causing logistical delays and higher costs. Therefore, the facility has been withdrawn effective April 8, 2025,” he said.
The Central Board of Indirect Taxes and Customs (CBIC) issued an official circular confirming the move.
The move may disrupt Bangladesh’s trade links with Nepal, Bhutan, and Myanmar. However, Jaiswal clarified that exports from Bangladesh to Nepal and Bhutan transiting through Indian territory would remain unaffected.
The development also comes just days after Prime Minister Narendra Modi met Yunus on the sidelines of the BIMSTEC Summit in Bangkok, where the two discussed regional security and minority issues. The recent diplomatic chill may further complicate long-pending agreements like the Teesta Water Treaty.
Jaiswal reiterated that talks under the Joint Rivers Commission could proceed only if the political environment was conducive. “India and Bangladesh share 54 rivers. Constructive discussions are possible under the institutional framework provided mutual trust exists,” he added.
India Scraps Trans-Shipment Facility for Bangladesh Citing Congestion and Political Tensions
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