Transshipment Facility Withdrawn – Four Trucks of Ready-Made Garments Denied Entry into India, Returned to Dhaka

Due to the Indian government's withdrawal of the transshipment facility, Petrapole Customs has denied entry (car pass) to four trucks carrying ready-made garments. As a result, the trucks were sent back to Dhaka from Benapole land port in Jashore on Wednesday.

On June 29, 2020, India issued an order allowing Bangladesh to use Indian territory for transporting goods to third countries via transshipment. However, on Tuesday, the Central Board of Indirect Taxes and Customs (CBIC) of India revoked that order.

According to Benapole land port authorities, on Tuesday, three garment exporters from Dhaka transported goods to the Benapole port using four trucks. These goods were supposed to be exported to Spain via Dum Dum Airport in Kolkata under transshipment. However, Petrapole Customs in India did not issue entry permission for the trucks. As a result, the goods were returned to the respective exporting companies.

Padma Trading was the clearing and forwarding (C&F) agent for these goods in Benapole. When contacted, the owner of the firm, Anik Ahmed, told People's time, “Without any prior notice, the Indian government suddenly withdrew the transshipment facility. By then, the loaded trucks had already reached Benapole. Since they weren’t allowed entry, the exporters and we have suffered significant losses.” He added that just a day before the suspension, 20 trucks loaded with garments had been shipped to various European countries using Indian transit through his firm. "Summer is usually the peak season for garment exports. At this crucial time, India’s decision has caused us substantial financial damage," he said.

When contacted, Shamim Hossain, Director of the Benapole Land Port, stated, “No representatives of the exporters whose goods were returned have contacted us. However, we learned that Petrapole Customs did not issue the car pass, which led to the goods being returned.”

The transshipment facility, introduced on June 29, 2020, allowed Bangladeshi exports to third countries using India's Kolkata port, Nava Sheva port, and the Kolkata Air Cargo Complex. Now, that facility has been withdrawn by India.

In a statement, India claimed that this move would not affect the export of Bangladeshi goods to Nepal and Bhutan through Indian territory.

Users of Benapole port noted that most third-country exports using Indian transit through this route go to European countries. Bangladesh’s ready-made garments are commonly shipped to Spain and Switzerland via Benapole and Petrapole. In contrast, exports to Nepal and Bhutan through this port are relatively low.