The Central Board of Indirect Taxes & Customs (CBIC) on March 08, 2026, notified regarding the return of export cargo from international waters due to the closure of the Strait of Hormuz.
The following has been stated:
• The circular provides a temporary simplified procedure for handling export cargo that returns to Indian ports due to the closure of the Strait of Hormuz and disruptions in international shipping routes. The Board noted that many vessels carrying Indian export cargo cannot reach destination ports and are returning to India. Therefore, using powers under Section 143AA, special procedures have been prescribed to facilitate trade and ensure quick handling of such cargo.
• The circular states that vessels returning with export cargo should normally berth at the same Indian port from which they originally departed, except in cases of transshipment. Where the vessel is still within Indian territorial waters, and an Export General Manifest (EGM) or Shipping Document Manifest (SDM) has not been filed, the vessel may berth without filing a Sea Arrival Manifest.
• Containers may be unloaded without filing a Bill of Entry, but customs officers must verify shipping documents and check the integrity of container seals. If seals are tampered with, the container will undergo 100% examination. The relevant Shipping Bills and Let Export Order (LEO) shall be cancelled, and exporters may request the Back-to-Town facility for returning goods to domestic circulation.
• Where the EGM/SDM has already been filed or the vessel has entered international waters but returned without visiting any foreign port, similar procedures will apply. Containers can be offloaded after document verification, and a new system facility will allow cancellation of Shipping Bills even after EGM filing in the customs system. Details of such cancellations will be shared with agencies like the Reserve Bank of India and the Directorate General of Foreign Trade to ensure that export incentives are not wrongly granted.
• If the vessel had already visited a foreign port but did not unload the cargo, the consignment will be treated as exported goods, and a Sea Arrival Manifest shall be filed before following the prescribed procedures. Customs field formations must also recover any export incentives such as IGST refunds or duty drawback if already disbursed. These relaxations are temporary and will remain valid for 15 days from the date of the circular.
[Notification no. - 450/23 /2026-Cus IV]
