So far, India has been exporting goods via rail to Bangladesh, but the new arrangement by CBIC is expected to enable import of goods from Bangladesh via rail as well. The rail line for imports is being opened up following requests from Dhaka as well as from central ministries in the Indian government and merchants.
The Central Board of Indirect Taxes and Customs (CBIC) has set the rules for allowing import of goods in sealed containers by rail from Bangladesh in a move aimed at boosting trade between the two nations.
Railway lines are being opened up for import on the bases of a request made by Bangladesh, as well as those made by central ministries in the Indian government and merchants, according to an order from the tax authority.
At present, India only exports goods by rail to the neighbouring nation.
The new framework will allow the logistics infrastructure, which is being used solely for exports now, to be used more productively by employing the same for imports, too.
Containers going from India to Bangladesh by rail are returning empty after delivering India’s export goods in that country, the finance ministry said, quoting the Bangladesh High Commissioner to India.
Bangladeshi companies want to use such empty containers to send their products to India, it said. Also, using the same containers for imports will help lower India’s export logistics cost, the CBIC said.
Use of returning empty containers for import of goods into India will apply to units of the Container Corporation of India carried on trains operated by Indian Railways.
The movement of the train will be monitored through the government’s electronic tracking system.
The Container Corporation of India has to ensure that the import consignments go directly to the customs depots, according to the framework set by CBIC.