A Comprehensive Guide to Importing Goods from India to Bangladesh

This dynamic trade relationship comprises a diverse range of goods, including textiles, petroleum products, and agricultural commodities, reflecting the complementary nature of their economies. The economic interdependence fostered through this trade not only bolsters the industrial sectors of both nations but also contributes significantly to regional economic stability and growth.

For importers in Bangladesh seeking to import quality products and items from India, this blog covers everything from regulatory procedures and required documentation to logistics, payment methods, and key tips for ensuring a smooth and successful import and export process.

Overview of India-Bangladesh Trade Relations

India and Bangladesh share a longstanding and evolving trade relationship that has significantly strengthened over the decades. Following Bangladesh's independence in 1971, both nations embarked on economic cooperation, gradually expanding their bilateral trade. By the 1990s, trade volumes began to rise steadily, reflecting economic interdependence. 

A pivotal moment came in 2015 with the resolution of the Land Boundary Agreement, enhancing connectivity and facilitating smoother trade flows³. Infrastructure projects like the Maitri Setu bridge and the Bangladesh–India Friendship Pipeline have further bolstered trade logistics in recent years.

As of the 2023-24 fiscal year, Bangladesh's imports from India reached approximately $12.05 billion, making India Bangladesh's largest trading partner in South Asia⁴. This robust trade relationship underscores the deepening economic ties between the two nations and highlights the importance of efficient import processes for Bangladeshi businesses.

Major Categories of Imports from India

Bangladesh imports a diverse array of goods and items from India, reflecting the complementary nature of their economies. Key categories include:

• Machinery and Equipment: This includes agricultural machinery, industrial equipment, and vehicles, essential for Bangladesh's infrastructure and industrial development.
• Petroleum Products: India supplies refined petroleum, diesel, and other fuel products, meeting Bangladesh's growing energy demands.
• Chemicals: Imports include fertilizers, pharmaceuticals, and industrial chemicals, supporting agriculture, healthcare, and manufacturing sectors.
• Textiles and Raw Materials: Bangladesh imports cotton, yarn, and fabrics, crucial for its thriving garment industry.
• Food Grains and Staples: India is a significant supplier of rice, sugar, and vegetables, ensuring food security in Bangladesh⁵.

Key Border Crossing Points for Imports

Key border crossing points facilitate imports from India to Bangladesh, supporting substantial bilateral trade.

1. Benapole-Petrapole Integrated Check Post (ICP) is the largest and busiest land border crossing between India and Bangladesh. Located in West Bengal, India, and Jessore, Bangladesh, it handles approximately 30% of the total land-based trade between the two nations⁶.
2. Agartala-Akhaura ICP is a significant trade corridor linking Tripura with Bangladesh in Northeast India. In the fiscal year 2023–24, trade through this route reached ₹317.95 crore, highlighting its growing importance⁷.
3. Sutarkandi Land Port, situated in Assam's Karimganj district, has seen a remarkable increase in trade activities, with a notable rise in imports from Bangladesh in recent years⁸.

Import Procedures and Documentation

Importing goods from India to Bangladesh necessitates meticulous adherence to documentation and customs protocols to ensure seamless clearance and compliance.

Essential Import Documents

• Bill of Lading (B/L): A negotiable document issued by the carrier acknowledging cargo receipt for shipment. It serves as proof of ownership and is crucial for releasing goods at the destination port.
• Commercial Invoice: This import document provides detailed information about the transaction, including the shipper and consignee details, shipment date, HS code, value, and payment terms. Typically, at least three signed copies are required.
• Certificate of Origin: Issued by the exporter, this certificate attests to the country of origin of the goods. It may be subject to official certification and is essential for customs clearance and claiming preferential duties.
• Packing List: A detailed list outlining the contents of each package, including weights and dimensions, facilitates efficient customs inspection and clearance.

Customs Clearance Process

For goods imported into Bangladesh from India, the customs clearance process begins with submitting the Import General Manifest (IGM). For sea imports, shipping agents electronically submit the manifest data detailing the imported goods' description to the Customs authority. In the case of imports by truck through land customs stations, the IGM is submitted manually by the trucking company or driver. 

After the IGM is filed, the nominated Clearing and Forwarding (C&F) agent or the importer prepares and submits the goods declaration, commonly called the Bill of Entry (B/E). This declaration is completed from the importer’s or agent’s premises and submitted through the ASYCUDA World system. It must follow a specific structure known as the Single Administrative Document (SAD) format. This systematized process ensures accurate documentation, facilitates customs procedures, and supports the efficient release of imported goods into the country⁹.

Transportation and Logistics Considerations

When importing goods from India to Bangladesh, selecting the appropriate shipping method is crucial for efficiency and cost-effectiveness.

• Road Transport is the most prevalent mode, primarily through the Benapole-Petrapole border. It offers flexibility, door-to-door delivery, and cost-effectiveness, making it ideal for short to medium distances. However, it is susceptible to weather conditions, traffic congestion, and road quality issues, which can cause delays.
• Rail Transport provides a reliable option for importing bulk shipments over long distances. It is energy-efficient and less affected by weather conditions. However, its fixed routes and schedules can limit flexibility, and additional transportation may be needed to reach final destinations.
• Air freight is the fastest method suitable for high-value or time-sensitive goods. While it offers speed, it is more expensive and may not be cost-effective for importing bulk shipments.

DHL Express offers comprehensive logistics services between India and Bangladesh, leveraging its extensive network and expertise to streamline the import process. With nearly 92 operational vehicles and 31 service points in Bangladesh, we ensure timely and efficient delivery, providing a reliable solution for businesses engaged in cross-border import and export.

Selecting the appropriate shipping method depends on factors like cost, speed, and the nature of the goods, with DHL Express serving as a valuable partner in navigating these considerations.

Challenges in Importing from India

Importing goods from India to Bangladesh faces several challenges that impact the efficiency and cost-effectiveness of trade.

Export Restrictions and Barter Trade

India's export bans on staple commodities like wheat, sugar, and rice, implemented since mid-2022 to control domestic food inflation, have inadvertently led to a surge in illegal barter trade. Smugglers exchange gold for these restricted goods, exploiting significant price disparities between the two countries. This illicit trade not only undermines India's inflation control measures but also causes substantial revenue losses for both nations¹⁰. An estimated 2 million metric tons of staples are smuggled annually, with a significant portion of India's gold imports originating from Bangladesh¹¹. 

Infrastructure Limitations and Transportation Bottlenecks

Infrastructure challenges at border crossings, such as the Benapole-Petrapole Land Port, hinder the smooth flow of goods. Limited facilities, inadequate customs processing capacity, and congestion lead to delays and increased costs. Additionally, poor road connectivity on the Bangladesh side, especially during the monsoon season, further exacerbates transportation bottlenecks, affecting timely deliveries. 

Addressing these challenges requires coordinated efforts between governments to enhance infrastructure, streamline customs procedures, and curb illegal trade activities.

Streamlining India-Bangladesh Imports with DHL Express

Understanding the import landscape from India to Bangladesh is essential for businesses looking to tap into growing cross-border trade opportunities. Each aspect is crucial in ensuring successful imports, from navigating key border crossing points and meeting documentation requirements to managing transportation and overcoming logistical challenges. 

To streamline this process, businesses are encouraged to partner with DHL Express, a trusted logistics provider with a strong global network and proven expertise in customs clearance. By leveraging our fast and reliable services, importers can ensure timely deliveries, reduce delays, and maintain a competitive edge. Start optimizing your import and export operations today with DHL Express.