The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular prescribing a simplified procedure for handling export cargo returning to India due to the closure of the Strait of Hormuz and disruptions in international maritime routes.

Invoking powers under Customs Act, 1962 (Section 143AA), the Board has introduced temporary measures to facilitate exporters and ensure smooth customs handling when vessels carrying export cargo are forced to return to Indian ports.

The procedures apply to different scenarios depending on whether the vessel has crossed Indian territorial waters or called at any foreign port.

Background

The closure of the Strait of Hormuz has created significant disruptions in global maritime shipping routes. As a result, several vessels carrying export cargo from India have been unable to reach their intended destinations and are returning to Indian ports.

This unusual situation has created operational challenges for exporters, shipping lines, and customs authorities. Recognizing this exceptional circumstance, CBIC has introduced a temporary framework to streamline the handling of such cargo.

Legal Basis of the Circular

The Board has issued these procedures under Section 143AA of the Customs Act, 1962, which empowers customs authorities to introduce trade facilitation measures in exceptional situations.

The circular aims to:

• Ensure quick clearance of returning cargo
  • Prevent procedural delays
  • Maintain proper verification and compliance controls

Procedures Prescribed by CBIC

The circular outlines procedures for three different scenarios.

1.Vessel within Indian Territorial Waters – EGM / SDM Not Filed

Where the vessel has not crossed Indian territorial waters and Export General Manifest (EGM) or Shipping Departure Manifest (SDM) has not been filed:

• The vessel may berth at the same Indian port from which it departed.
  • The vessel master must provide an undertaking confirming it has not crossed territorial waters.
  • Containers may be offloaded without filing a Bill of Entry.
  • Container details must be verified with Shipping Bills.
  • Container seals must match the declared seal numbers.
  • If seals are tampered, 100% examination will be conducted.
  • Shipping Bills and Let Export Orders (LEO) will be cancelled.
  • Exporters may request Back-to-Town facility.

2.Vessel within Territorial Waters or Returning from International Waters (No Foreign Port Call)

Where EGM or SDM has been filed or the vessel has entered international waters but returned without visiting any foreign port:

• The vessel may berth at the original Indian port.
  • Containers can be offloaded without filing a Bill of Entry.
  • Shipping documents and SDM must be verified.
  • Container seals must be checked against Shipping Bills.
  • A new system option will be introduced in ICES to cancel Shipping Bills after EGM filing.
  • ICEGATE will share cancelled Shipping Bill details with agencies such as RBI and DGFT.
  • Until the system is operational, records must be maintained manually.

3.Vessel Returning After Calling a Foreign Port (No Cargo Discharged)

Where the vessel has called at a foreign port but has not discharged any containers:

• The cargo will be treated as exported out of India.
  • Sea Arrival Manifest (SAM) must be filed.
  • The same procedures prescribed in scenario 2 will apply.

Important Compliance Points

Customs authorities have also clarified that:

• Export incentives such as IGST refunds or Drawback must be recovered if already disbursed.
  • Transshipment of cargo will continue to follow existing procedures.
  • The relaxation introduced by the circular is temporary and valid for 15 days from the date of issuance.

Practical Implications for Exporters

The circular provides operational clarity for exporters whose shipments have been disrupted due to the Strait of Hormuz situation.

Key benefits include:

• Simplified cargo handling procedures
  • Reduced documentation requirements in specific scenarios
  • Faster processing at Indian ports
  • Clear guidance for customs authorities and shipping lines

These measures aim to minimize disruption to export logistics and maintain continuity in international trade operations.

Advisory Note – Preface Consulting

Exporters and logistics operators affected by the disruption should closely review the applicable scenario under the circular before initiating cargo handling procedures.

It is important to maintain accurate documentation, verify container seals, and ensure timely coordination with customs authorities to avoid compliance issues.

Professional advisory support can help businesses manage documentation, incentive implications, and cargo reprocessing efficiently.

Notification Reference:  CBIC
CircularNo.09/2026-Customs
o8/03/2026