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Business News/ News / World/  Bangladesh permits India's permanent access to Chattogram, Mongla ports for improved trade and connectivity
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Bangladesh permits India's permanent access to Chattogram, Mongla ports for improved trade and connectivity

This decision will reduce both time and costs for transporting goods to India's northeastern states and West Bengal while promoting regional connectivity in the Bay of Bengal.

Bangladeshi ports, the NBR, customs and other taxation parties involved will draw certain charges in line with the country’s tax and VAT laws. (AFP PHOTO/ Sam PANTHAKY)Premium
Bangladeshi ports, the NBR, customs and other taxation parties involved will draw certain charges in line with the country’s tax and VAT laws. (AFP PHOTO/ Sam PANTHAKY)

Bangladesh has made a significant decision by granting India permission to use Chattogram and Mongla ports to transit and trans-shipment cargo vessels.

The National Board of Revenue (NBR) in Bangladesh issued a permanent standing order stating, “The permanent transit order was issued by the NBR following the completion of trial runs for the operationalization and regular movement of goods."

This decision will reduce both time and costs for transporting goods to India's northeastern states and West Bengal while promoting regional connectivity in the Bay of Bengal.

Bangladeshi ports, the NBR, customs and other taxation parties involved will draw certain charges in line with the country’s tax and VAT laws. This will include fees for documentation, transhipment, security, scanning, administrative charges, an electric lock and seal fee and toll fees for using Bangladeshi roads, the order said.

Situated in the southeastern region of Bangladesh, Chattogram Port serves as the country's primary seaport and is situated alongside the Karnaphuli River. The port manages more than 90% of Bangladesh's export-import trade.

Mongla Port, the second-largest seaport in Bangladesh, is located near the Bay of Bengal's coastline. Earlier, India used to face significant time and cost-related challenges when transporting goods to its northeastern states.

However, officials from both countries recently revealed that the new decision to allow India access to Chattogram and Mongla ports will address these challenges, resulting in reduced transportation time and costs. This decision followed bilateral meetings between the two nations.

As per a report by ORF, by utilizing the Mongla port, India can also establish better connectivity of these states with other parts of the country by avoiding the narrow Siliguri Corridor, commonly known as the 'Chicken's Neck.'

As a result, eight routes have been identified for connecting India's Northeastern region through Bangladesh's seaports, including Chattogram or Mongla Port to Agartala (India) through Akhaura (Bangladesh); Chattogram or Mongla Port to Dawki in Meghalaya (India) via Tamabil in Sylhet city (Bangladesh); Chattogram or Mongla Port to Sutarkandi in Assam (India) through Sheola (India); and Chattogram or Mongla Port to Srimantpur in Tripura (India) via Bibir Bazar (India).

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ABOUT THE AUTHOR
Mausam Jha
A journalist covering International Relations, and Business.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 01 May 2023, 09:37 AM IST
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