DHAKA, Bangladesh 

Bangladesh has given India permission to transport goods from one Indian state to another using major Bangladeshi ports in line with an agreement signed in 2018 between the neighboring countries. 

The National Board of Revenue (NBR) in Bangladesh issued a permanent standing order in this regard on Tuesday.

The permanent transit order was issued by the NBR following the completion of trial runs for the operationalization and regular movement of goods, the order said.

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, transshipment, security, scanning, administrative charges, an electric lock and seal fee and toll fees for using Bangladeshi roads, the order said.

As a result, India will be able to use Chattogram and Mongla seaports for transit and transshipment to carry goods to and from India using Bangladeshi territory.

Chattogram Port, Bangladesh’s main seaport, is located on the banks of the Karnaphuli River in the country’s southeast and handles over 90% of the country’s export-import trade.

Mongla Port, the country’s second largest seaport, lies close to the shore of the Bay of Bengal.

India will get the facility under an agreement for the use of Chattogram and Mongla ports signed in 2018. A Standard Operating Procedure (SOP) for passenger and cruise services was also signed in 2019.

India used to take a lot of time to transport goods to its northeastern states. The new order will reduce both time and costs for India, both countries' officials recently told reporters following bilateral meetings.

The northeastern Indian states include Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

Bangladesh State Minister for Shipping Khalid Mahmud Chowdhury said earlier this week at an event in the Indian state of Tripura that Bangladesh port authorities have the capacity to handle goods at full speed.

An agreement has also been signed between Bangladesh and India to use inland water transit for transportation of goods from West Bengal to India's seven eastern states through Bangladesh, he added.

He termed the agreement a "step forward" in realizing the commitment made in meetings between Prime Ministers Sheikh Hasina and Narendra Modi.

There are a total of 16 routes between the two ports and northeastern Indian states, according to the NBR notice.

The development will drastically reduce the cost and time for India of transferring goods from one state to another. For instance, the land route between India’s Kolkata and its northeastern states is more than 1,200 kilometers (745 miles) while Chattogram and Mongla ports are located at almost half the distance.

However, critics claim that it will be a one-sided benefit for India until such a facility is opened in Bangladesh and among countries in the region, including Nepal and Bhutan.