New Delhi:
The government has abolished the trans-showing facility, which according to a government spherical, has allowed export cargo to third countries from Bangladesh using Indian land customs stations using Indian land customs stations.
Indian exporters, mainly from the apparel sector, asked the government to withdraw this facility to the neighboring country.
This facility enabled smooth trade flow for Bangladesh exports to countries like Bhutan, Nepal and Myanmar. It was provided by India to Bangladesh in June 2020.
“Circular circular of indirect tax and customs, circular of 8 April, circular of April 8, Central Board of April 8 Circular said,” It has been decided … June 29, 2020 circular … dated 29, 2020, as revised with immediate effect. Cargo has already entered India, which can be allowed to exit the Indian region according to the process given in that circular. ,
This announcement has been made at a time when the US imposed extensive tariffs against several countries including India and Bangladesh.
The earlier circular allowed transmission of export cargo from Bangladesh in third countries using Indian land customs stations (LCSS), which was the route for Indian ports and airports.
According to business experts, the decision will help many Indian exporting areas such as costumes, shoes and gems and jewelery.
Bangladesh is a major contestant in India in the textile sector.
“Now we will have more air capacity for our cargo. In the past, exporters have complained about the less space due to the transmission facility given to Bangladesh,” said Ajay Sahai, Director General of the Federation of Indian Export Organization (FIEO).
AEPC, the body of apparel exporters, asked the government to suspend the order, which allowed trans-shipment of Bangladesh export cargo to third countries through Delhi Air Cargo Complex.
AEPC President Sudhir Sekhari said that 20-30 loaded trucks come to Delhi every day, which slows down the smooth movement of the cargo, and the airlines are taking undue advantage of it. This leads to excessive increase in air freight rates, delay in handling export cargo and processing, and a severe congestion at the cargo terminal at Indira Gandhi International Airport in Delhi, resulting in the export of Indian costumes through the Delhi Air Cargo Complex.
AEPC general secretary Mithileshwar Thakur said, “This will help in rationalization of freight rates, resulting in a low transit time to ship the goods in addition to low transportation costs besides low transportation costs.”
Ajay Srivastava, founder of Think Tank Global Trade Research Initiative (GTRI), said that the return of this facility is expected to disrupt Bangladesh exports and import logistics, depending on the Indian infrastructure for the third country’s trade.
“The previous mechanism offered a streamlined route through India, cut transit time and cost. Now, without it, Bangladeshi exporters may face logistic delays, high costs and uncertainty. In addition, both Nepal and Bhutan nations can raise concerns about restricted transit reach for Bangladeshis, both Nepal and Bhutan nations.
He said that with the help of China, Bangladesh’s plans to create a strategic base near the chicken neck region may have inspired this action.
India has always supported the cause of Bangladesh, as it has allowed one-way zero tariff access to Bangladesh goods (except all alcohol and cigarettes) in the huge Indian market for the last two decades.
However, Indo-Bangladesh relations were dramatically dramatically dramatic after the interim government under the chairmanship of Muhammad Yunus failed to incorporate attacks on minorities, especially Hindus, especially Hindus.
India-Bengladesh’s trade in 2023-24 was $ 12.9 billion.