India has withdrawn the transforce facility (transfers) provided to Bangladesh. This may affect Bangladesh’s trade with Bhutan, Nepal and Myanmar. The decision was given in the circular issued by the Central Indirect Taxes and Customs Board on 8 April. Under this arrangement released since the year 2020, it was allowed to send goods coming from Bangladesh to other countries via India. The goods used to reach Indian ports and airports by the ground.

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The purpose of this was that Bangladesh could easily send goods to countries like Bhutan, Nepal and Myanmar. Now this facility has been abolished. Indian businessmen, especially the apparel sector exporters, urged the government to withdraw this facility to Bangladesh.

Global Trade Research Initiative (GTRI) chief Ajay Srivastava said that the facility has been stopped immediately after the new order. But the goods that have already arrived in India will be allowed to go out according to the old rules. According to Srivastava, India has allowed Bangladesh goods to enter their market without any tariff. This facility is being provided since the year 2020. Except for alcohol and cigarettes, there is no tax on everything else.

Bangladesh business will be affected

The closure of goods transfer facility will affect Bangladesh exports and imports. Especially there will be problems with Bhutan, Nepal and Myanmar. These countries depend on Indian routes for trade with third countries. Earlier the path leading through India was easy. This saved both time and money. Now the traders of Bangladesh will take longer, more expenses will come and uncertainty will also increase. Both Nepal and Bhutan are land surrounded by land. They use India’s way for trade with Bangladesh.

Indian businessmen will benefit

According to business experts, this decision will benefit many Indian export areas like apparel, shoes, gems and jewelery. Bangladesh is a great competitor of India in the apparel field. Sudhir Sekhari, president of the Apparel Export Promotion Council, an organization promoting Indian clothing exports, said that 20-30 Bangladeshi trucks come to Delhi every day, causing jam on cargo terminals and increases the cost of freight. Director General of Indian Export Organization Federation (FIEO) Ajay Sahai said that now we will have more air capacity for our goods.

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Why did India finish the old system?

In fact, Mohammad Yunus, the Chief Advisor of the Interim Government of Bangladesh, visited China last month. There he commented on the northeastern states of India. He had said that the northeastern states of India are land lock (surrounded by land) and the only way to reach the sea is Bangladesh. Yunus invited China to take advantage of Bangladesh’s situation. Yunus’s remarks passed India exasperated. After this, diplomatic tension between the two countries was also seen.