Withdrawing Transshipment Facility To Bangladesh
He also described the decision as a reflection of the government’s commitment to protect the country’s "strategic and economic priorities".
Guwahati:
He also described the decision as a reflection of the government’s commitment to protect the country’s "strategic and economic priorities". India on Wednesday withdrew the transshipment facility extended to Bangladesh for exports to the Middle East, Europe and various other countries through its ports and airports.
Assam Chief Minister Himanta Biswa Sarma said the Centre’s decision to withdraw the transshipment facility to Bangladesh for exports to various countries reflected Prime Minister Narendra Modi-led government's priority to safeguard the security of the North East region. The move came against the backdrop of the recent controversial statement of the head of Bangladesh’s interim government, Muhammad Yunus, in China, that India’s northeastern states are landlocked and his country was the “only guardian” of the Indian Ocean in the region.
“India’s decision to revoke the transhipment facility for Bangladesh underscores Hon’ble Prime Minister @narendramodi’s unwavering commitment to safeguarding national interests and the security of the Northeast region,” Sarma said in a post on X.
“This decisive action reflects the government’s firm stance on protecting India’s strategic and economic priorities,” he added.
Sarma had earlier described Yunus's statement as "offensive and strongly condemnable" and called for the prioritisation of exploring alternative routes connecting the Northeast to the rest of India, bypassing the Chicken's Neck.
The strategic Siliguri Corridor, called the 'Chicken's Neck' for its shape, is a strip of land located in northern West Bengal, having a width of just over 20 km. This narrow strip, which connects the Northeast to the rest of India, is sandwiched between Nepal and Bangladesh, with Bhutan and China a few hundred km away.
Exporters Hail Decision:
Indian exporters, mainly from the apparel sector, had earlier urged the government to withdraw this facility to the neighbouring country. The facility had enabled smooth trade flows for Bangladesh's exports to countries like Bhutan, Nepal, and Myanmar. It was provided by India to Bangladesh in June 2020.
"It has been decided to rescind... circular...dated June 29, 2020, as amended with immediate effect. Cargo already entered into India may be allowed to exit the Indian territory as per the procedure given in that circular," the Central Board of Indirect Taxes and Customs' circular, dated April 8, said.
The announcement comes at a time when the US has imposed sweeping tariffs against a number of countries, including India and Bangladesh. The earlier circular had allowed transshipment of export cargo from Bangladesh to third countries using Indian Land Customs Stations (LCSs) en route to Indian ports and airports.
According to trade experts, the decision will help many of the Indian exporting sectors like apparel, footwear, and gems and jewellery. Bangladesh is a big competitor of India in the textile sector.
"Now we will have more air capacity for our cargo. In the past, exporters have complained about lesser space due to the transhipment facility given to Bangladesh," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. Apparel exporters' body AEPCAEPC Chairman Sudhir Sekhri stated that almost 20-30 loaded trucks arrive in Delhi every day, which slows down the smooth movement of cargo, and airlines are taking undue advantage of this.
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