Bangladesh withdraws permission for yarn imports through Indian land ports

Bangladesh has suspended yarn imports from India via land ports, days after New Delhi suspended transhipment facility for the country’s export cargo.

According to a report by the Times of India, Bangladesh’s National Board of Revenue (NBR) has halted the import of yarn through the Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari land ports.

The development comes weeks after Yunus sparked a  row  after he called the Northeastern region “landlocked” and drew criticism for calling on China to expand its control over Indian regions during his state visit to the country.

Last week,  India’s Central Board of Indirect Taxes and Customs (CBIC) issued a statement saying that the transhipment facility, which was opened in 2020 to facilitate the export of cargo from Bangladesh to third countries via the Indian Land Customs Stations en route to Indian ports and airports, will be terminated with immediate effect.

The move is likely to disrupt Bangladesh’s trade with Bhutan, Nepal, and Myanmar. Furthermore, landlocked countries like Nepal and Bhutan are likely to raise concerns over the closure of the facility as it may affect their trade with Bangladesh.

Ajay Srivastava, former trade officer and Head of GTRI, highlighted that India has consistently backed Bangladesh’s interests by offering preferential, zero-tariff access to Bangladeshi goods—excluding alcohol and cigarettes—into its large market for the past 20 years.

“However, Bangladesh’s plans to establish a strategic base near the Chicken’s Neck area with China’s assistance may have prompted this action. Bangladesh has invited Chinese investment to revitalise the airbase at Lalmonirhat, near India’s Siliguri Corridor,” Srivastava said.