CBIC Issues Temporary Procedure for Return of Export Cargo Amid Strait of Hormuz Closure

· Reason for Circular: Due to the closure of the Strait of Hormuz and disruption of maritime routes, some vessels carrying Indian export cargo are returning to Indian ports.

· Legal Provision Invoked: The Central Board of Indirect Taxes and Customs (CBIC) has issued the procedure under Section 143AA of the Customs Act, 1962 to facilitate trade and ensure quick handling of such cargo.

· Port of Return: Returning vessels must berth at the same Indian port from which they originally departed, except in transshipment cases.

· Scenario 1 – Vessel within Indian territorial waters & EGM/SDM not filed:

o Vessel can berth without filing Sea Arrival Manifest (SAM).

o Containers may be offloaded without filing Bill of Entry, subject to document verification.

o Container seal integrity must be verified; tampered seals require 100% examination.

o Shipping Bills and Let Export Orders (LEO) must be cancelled.

o Exporters may request Back-to-Town facility.

· Scenario 2 – Vessel within territorial waters with EGM/SDM filed or returning from international waters without calling foreign ports:

o Vessel allowed to berth without SAM filing after undertaking by the master.

o Containers can be offloaded without Bill of Entry after verification.

o New ICES system option will allow cancellation of Shipping Bills even after EGM filing.

o Cancelled Shipping Bill data will be shared with RBI, DGFT and other agencies via ICEGATE.

o Until system development, manual records must be maintained by field formations.

· Scenario 3 – Vessel called at a foreign port but no cargo discharged:

o Cargo will be treated as exported.

o SAM filing required by the shipping line.

o Procedures similar to Scenario 2 will apply.

· Recovery of Export Incentives: If export incentives like IGST refund or drawback have already been granted, customs officers must recover them manually.

· Validity: The special relaxation will remain in force for 15 days from the date of the circular (8 March 2026).

[CBIC Circular No. 09/2026-Customs dated 8 March, 2026]

Subject: Return of export cargo from international waters due to closure of the Strait of Hormuz – Section 143AA of the Customs Act, 1962.

Representations have been received from field formations indicating that, due to the closure of the Strait of Hormuz and the consequent disruption in maritime routes, certain vessels carrying export cargo from India are unable to reach their destination ports and are returning to Indian ports. It has been requested to prescribe a simplified procedure for handling of such cargo.

2. The matter has been examined by the Board. It is noted that the present circumstances constitute an exceptional situation affecting international shipping routes and export logistics. Accordingly, Board in exercise of the powers conferred under Section 143AA of the Customs Act, 1962, prescribes the following procedures in order to facilitate trade and ensure expeditious handling of such cargo, where export cargo is brought back to Indian ports due to the closure of the Strait of Hormuz or similar disruptions. In all such cases the vessel shall be permitted to berth only at the same India port from which it was departed except in case of transhipment. The procedures to be followed in different situations are prescribed as below:

(a) Cargo loaded on vessel and vessel is within Indian territorial waters and EGM or SDM not filed

(i) The master of the vessel/Captain shall submit an undertaking stating that the vessel has not crossed territorial waters of India. In such cases, the vessels may be permitted to berth at the Indian port without filing Sea Arrival Manifest (SAM) where the vessel had earlier departed from an Indian port and has not called at any foreign port.

(ii) The containers may be offloaded at the port terminal without filing a Bill of Entry, subject to verification of related shipping documents.

(iii) The container particulars shall be verified with the corresponding Shipping Bills. During such verification, the integrity of container seals shall also be checked and matched with seal details declared in the Shipping Bills.If the seal is found tampered or not intact, the container shall be subjected to 100% examination.

(iv) The proper officer shall ensure that the Shipping Bills and Let Export Order is cancelled.

(v) Where requested by the exporter, Back to Town facility may be permitted by the proper officer.

(b) Cargo loaded on vessel and vessel is within Indian territorial waters and EGM or SDM filed OR Vessel is beyond Indian territorial waters and is in International waters and returning without calling any foreign ports.

(i) The master of the vessel/Captain shall submit an undertaking stating that the vessel has not crossed territorial waters of India or has returned without calling any foreign port if it has crossed territorial water of India.In such cases, the vessels may be permitted to berth at the Indian port without filing Sea Arrival Manifest (SAM) where the vessel had earlier departed from an Indian port and has not called at any foreign port.

(ii) The containers may be offloaded at the port terminal without filing a Bill of Entry, subject to verification of SDM and related shipping documents.

(iii) The container particulars shall be verified with the corresponding Shipping Bills.During such verification, the integrity of container seals shall also be checked and matched with seal details declared in the Shipping Bills.If the seal is found tampered or not intact, the container shall be subjected to 100% examination.

(iv) A new option will be provided by DG System to cancel such Shipping Bills post EGM in ICES system, wherever applicable.The entry of Shipping Bill in new facility for cancellation post EGM will also ensure that export incentives are not disbursed in cases where such benefits have not yet been granted.

(v) Details of such cancelled Shipping Bills shall be shared with RBI, DGFT and other concerned agencies by ICEGATE.

(vi) Till the new system as mentioned above is developed, the field formations shall maintain all the records manually and shall enter the details in system, once its operationalised.

(c) Vessel is beyond Indian territorial waters and is in International waters and returning to India after calling any foreign port without discharge of any container.

(i) Such consignments shall be treated as Exported out of India.

(ii) SAM should be filed by the Shipping line or the authorised representative.

(iii) Procedures mentioned at (ii) to (vi) of para (b) above should be followed in these cases.

3. The field formations to ensure the recovery of all export incentives including IGST, Drawback etc manually, if the same is already disbursed. The trashipment of cargo shall be dealt as per the existing provisions.

4. The above relaxation shall remain in force till 15 days from issuance of this circular.

5. Difficulties, if any, in implementation of this circular may be brought to the notice of the Board.

F.No.450/23 /2026-Cus IV