B Mirror Desk : The Central Board of Indirect Taxes and Customs (CBIC) announced on Tuesday that the Indian government had revoked, with immediate effect, an earlier circular dated June 29, 2020, which had permitted the transshipment of export cargo from Bangladesh to third countries through Land Customs Stations (LCSs) to Indian ports or airports in containers or closed-bodied trucks. This move may have an impact on the shipment of Bangladesh’s ready-made garments through Indian airports, particularly Indira Gandhi International Airport in New Delhi, since a sizable portion of these exports are routed through India.

Ajay Srivastava, head of the New Delhi-based think tank Global Trade Research Initiative (GTRI), noted that India’s decision might raise concerns regarding New Delhi’s commitments under the World Trade Organization (WTO), which mandates freedom of transit for goods to and from landlocked countries. The AEPC Chairman Sudhir Sekhri had argued that the removal of the transshipment facility would free up more space at airports for Indian exports, as both Bangladesh and India are competitors in the textile export sector.

According to Srivastava, “all WTO members are required to allow freedom of transit for goods moving to and from landlocked countries under WTO rules, particularly Article V of the General Agreement on Tariffs and Trade (GATT) 1994. This means such transit must be unrestricted, free from unnecessary delays, and not subject to transit duties.

” India’s apparel exports saw a 3.46 percent year-over-year decline in January of this year, and the country is facing additional challenges, including a space crunch caused by the 20–30 truckloads of cargo that enter the air cargo complex at Indira Gandhi International Airport every day from Bangladesh for transshipment to third countries.