Transportation of goods to and from India through a foreign Territory

Transportation of goods to and from India through a foreign Territory

The transportation of goods from one part of India to another through a foreign territory was hitherto covered by the Transportation of Goods (Through Foreign Territory) Regulations, 1965. Such movements were however uncommon and the regulations were not effectively used due to absence of bilateral arrangements with neighbouring countries.

In the recent past, India and Bangladesh have signed the Agreement for use of Chattogram and Mongla ports for movement of goods to and from India (ACMP) on 25.10.2018 and a Standard Operating Procedure (SoP) inter alia prescribing the documentation, procedure and time limits and extension thereof, for movement of goods under the ACMP has also been signed on 05.10.2019.

Further, as per the Article VIII of the Trade Agreement between India and Bangladesh signed on 06.06.2015, the two countries have also agreed on a Protocol on Inland Water Transit and Trade between the People’s Republic of Bangladesh and the Republic of India on 06.06.2015 (herein after referred to as PIWTT).

The ACMP covers movement of goods from one part of India to another through Bangladesh and the PIWTT covers bilateral trade between India and Bangladesh, movement of goods from one part of India to another through Bangladesh and also export to third countries using each other’s territories.

In view of the above developments, the Transportation of Goods (Through Foreign Territory) Regulations, 1965 have been superseded by the Transportation of Goods (Through Foreign Territory) Regulations, 2020 dated 21st February 2020.

The new regulations provide for:

(i) movement of goods from one part of India to another through Bangladesh under the ACMP,

(ii) movement of goods from one part of India to another through Bangladesh under the PI WTT;

(iii) movement of goods from one part of India to another through land route which lies partly over the territory of a foreign country.

FOr the movements under PIWTT, only transit movements are covered by the new regulations i.e. movement of goods from one part of India to another through Bangladesh. For bilateral trade and export to third countries, the extant provisions shall prevail.

For any movement under the regulations, the consignor of the goods, the carrier or their authorised agent shall file a Customs Transit Declaration (CTD) and a bond. The format of the CTD and the bond is already prescribed in the regulations.

CBIC has also issued Circular No. 14/2020 detailing procedure for each movement namely:

(a) India to India movements under the ACMP:

(b) India to India movements under the PIWTT and Movements from one part of India to another through land route which lies partly over the territory of a foreign country

Download Circular No. 14/2020 Click Here >>
Download the Transportation of Goods (Through Foreign Territory) Regulations, 2020 Click Here >>

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