India's cancellation of transshipment won't affect Bangladesh: Commerce adviser

Although India has suddenly cancelled transshipment, it will not pose a problem for Bangladesh, Commerce Adviser Sk Bashir Uddin has said.

"Efforts will be made to overcome the crisis through our own management, and commercial capacity will be enhanced," he told the media at the Secretariat on Thursday (10 April).

Meanwhile, four Bangladeshi trucks carrying goods were sent back from Benapole Port on Thursday evening.

Rashedul Sajib Nazir, deputy director of the land port, said the Indian government's cancellation of the transshipment facility led to the Petrapole Customs refusing clearance for third-country goods.

"The trucks carrying these goods could not enter India," he said, adding that the export trade for goods intended for the Indian market is still operating normally.

Kartik Chakraborty, general secretary of the Petrapole Clearing and Forwarding Agents' Staff Welfare Association, said India's Ministry of Finance had issued a letter regarding the cancellation of the transshipment facility.

Based on this letter, the entry of goods meant for third countries via Benapole to Petrapole Port was halted.

India on 29 June 2020 issued an order, allowing Bangladeshi goods to transit through Indian territory to third countries via transshipment. On Tuesday, the Central Board of Indirect Taxes and Customs of India revoked that order.

Resolving crisis through own systems

Commerce Adviser Sk Bashir Uddin talking to the media said, "We spoke with business leaders from various sectors. Even buyers were present at the meeting. We are working to resolve the crisis through our own systems. We're ensuring that our competitiveness does not fall short due to any lack of capacity. Commercial capabilities will be increased. At the same time, we're also working on connectivity to prevent any disruptions."

When asked what steps will be taken, the commerce adviser said, "Some of it involves infrastructure issues, and some involves increased costs – we are working on these areas. We hope to overcome the problem."

In response to a question about whether Bangladesh could retaliate by cancelling Indian transshipment or transit facilities, as some social media users have suggested, the commerce adviser replied, "That is not under my jurisdiction. My concern is capacity building."

When asked whether a letter would be sent to India, he said, "At this moment, we are not considering sending a letter."

The commerce adviser further stated that the United States' temporary suspension of additional tariffs for three months would provide immediate relief. 

"This gives us more time for discussions. As the suspension is temporary, we'll be able to take various steps to enhance our capacity and reduce trade imbalances," he added.