Bhutan begins first trial transit of goods via Bangladesh on 22-24 Nov

Highlights:

• Trial run coincides with Bhutan PM Tshering Tobgay's 22–24 Nov Dhaka visit
• Bangladesh already issued clearance to port and customs authorities
• No trade talks planned during this visit; next secretary-level meeting in Jan
• Second trial run needed before transit begins regular commercial use

Bhutan will carry out its first trial run under the traffic-in-transit agreement signed with Bangladesh, as a 15-tonne consignment is set to move from Chattogram Port to Burimari land port and onward to Bhutan through Indian territory during Bhutanese Prime Minister Tshering Tobgay's Bangladesh visit.

Once the second trial run is completed, the South Asian landlocked country will be able to transport goods regularly through Bangladesh, using Chattogram Port and travelling 684 kilometres across Bangladeshi territory, commerce ministry officials said yesterday.

Bhutanese Prime Minister Tshering Tobgay will visit Bangladesh from 22 to 24 November and will receive VVIP protocol during the trip, a government gazette notification said.

Asked about progress on the trial transit, Commerce Secretary Mahbubur Rahman told The Business Standard that Bangladesh has already issued written consent to the port authorities and the National Board of Revenue to facilitate the movement of Bhutanese cargo.

He said there will be no bilateral meeting on trade or investment between the commerce ministries during the visit.

"We have been invited to a dinner to be hosted by the chief adviser's chief adviser on Saturday night," he said, adding that the next commerce secretary-level meeting with Bhutan is scheduled for January.

Bangladesh signed the "Agreement on the Movement of Traffic-in-Transit" and its protocol with Bhutan on 22 March 2023. At a commerce secretary-level meeting in Bhutan in April last year, both sides agreed that the agreement would come into effect after completing two trial runs at mutually convenient times.

In October, Bhutan informed Bangladesh through a note verbale that a 15-ton shipment had been loaded for Chattogram Port for the first trial run and designated M/s Abhi Cargo Company to handle the process. The goods were imported from Thailand.

Earlier, Bangladesh completed four trial runs under its transit agreement with India ahead of the December 2024 national election. Although the agreement was expected to move into implementation, no progress has been made since the change of government.

Commerce ministry officials said transit charges and fees for India's use of Chattogram and Mongla ports were previously set through an inter-governmental committee. Under the Bhutan agreement, a joint technical committee is supposed to determine charges and fees.

However, Bhutan requested the trial run before the committee was formed and before charges were finalised, officials said. Since the consignment has already reached Chattogram Port, Bangladesh is preparing to conduct the trial as a friendly gesture.

For Bhutan's trial transit, Bangladesh has set a document processing fee of Tk30 per consignment, a transshipment fee of Tk20 per tonne, a security charge of Tk100 per tonne, an escort fee of Tk85 per kilometre per container, administrative charges of Tk100 per tonne and a scanning fee of Tk254 per container. Road tolls and corridor user fees will be determined by the Ministry of Road Transport and Bridges.