India’s Central Board of Customs (CBIC) revoked the transit facility for Bangladeshi exports via third countries through Indian land ports
As per an Indian Express report, in its notification on Tuesday (April 8), the CBIC declared that the circular dated June 29, 2020, which allowed transit facilities to Bangladesh, has been rescinded.
As per the 2020 circular, Bangladeshi products would have been exported to third countries like Bhutan, Nepal, and Myanmar via Indian ports and airports using India’s LCS land customs station. Indian Express states that this would have saved Bangladeshi exporters quite significantly in terms of time as well as cost.
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No particular motive for transit facility cancellation had been mentioned in the report. However, some recent comments of Professor Muhammad Yunus, advisor of the caretaker government of Bangladesh on his recent visit to China may be disturbing for India in the view of The Indian Express.
Their chief advisor, commenting on Chinese nationals, had stated at that point in time, “Seven states in northeast India are inland states. We are the sole guardians of the sea for this region. It is an excellent opportunity. It can be an outgrowth of the Chinese economy.”
India’s diplomatic circles are in uproar as a result of the comments, with Assam Chief Minister Himanta Biswa Sarma calling them “highly offensive” as well as “a threat to sovereignty.”
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Indian Express states that projecting China as an ascending strategic partner has embroiled India-Bangladesh relations as well at the moment when the relationship between New Delhi and Dhaka is endangered. Withdrawal of transit facility will increase the cost and duration of Bangladeshi exports. It will especially affect Bangladesh’s trade with landlocked countries like Bhutan and Nepal. It will create problems for Bangladesh’s export activity.
It is as per the regulations of the World Trade Organization (WTO) that it is obligatory on member states to provide transit for landlocked countries free of charge. Under Article V of the General Agreement on Tariffs and Trade (GATT), made in 1994, it is obligatory for members to provide transit for the movement of products through landlocked countries. It should not be under any particular limitation and should not be charged transit duty.
