CBIC Issues Simplified Guidelines for Handling Export Cargo Returning Due to Strait of Hormuz Closure

The Government of India, through the Ministry of Finance and the Central Board of Indirect Taxes & Customs (CBIC), has issued Circular No. 09/2026-Customs dated 8th March 2026, addressing the challenges posed by the closure of the Strait of Hormuz. This disruption in maritime routes has led to vessels carrying export cargo from India being unable to reach their destination ports and returning to Indian ports. To facilitate trade and ensure smooth handling of such cargo, the CBIC has prescribed a simplified procedure under Section 143AA of the Customs Act, 1962.

Background

The Strait of Hormuz is a critical maritime route for international trade. Its closure has caused significant disruptions in shipping routes, affecting export logistics globally. In response to representations from field formations, the CBIC has recognized this as an exceptional situation and introduced measures to address the challenges faced by exporters and shipping lines.

Key Provisions of the Circular

The circular outlines specific procedures for handling export cargo returning to Indian ports under three distinct scenarios:

(a) Cargo Loaded on Vessel Within Indian Territorial Waters (EGM or SDM Not Filed) 

Undert by Vessel Master: The master of the vessel must submit an undertaking stating that the vessel has not crossed Indian territorial waters.
Berthing Permission: Vessels may berth at the same Indian port from which they departed without filing a Sea Arrival Manifest (SAM), provided they have not called at any foreign port.
Offloading Containers: Containers can be offloaded at the port terminal without filing a Bill of Entry, subject to verification of shipping documents.
Verification of Container Seals: Proper officers will verify container seals against the details declared in the Shipping Bills. If seals are tampered or not intact, the containers will undergo 100% examination.
Cancellation of Shipping Bills: Proper officers will ensure the cancellation of Shipping Bills and Let Export Orders.
Back to Town Facility: Exporters may request the “Back to Town” facility, which allows them to take back their cargo.

(b) Cargo Loaded on Vessel Within Indian Territorial Waters (EGM or SDM Filed) OR Vessel Beyond Indian Territorial Waters Returning Without Calling Any Foreign Port 

Undertaking by Vessel Master: The master of the vessel must submit an undertaking stating that the vessel has either not crossed Indian territorial waters or has returned without calling at any foreign port.
Berthing Permission: Vessels may berth at the same Indian port from which they departed without filing a SAM.
Offloading Containers: Containers can be offloaded without filing a Bill of Entry, subject to verification of SDM and shipping documents.
Verification of Container Seals: Proper officers will verify container seals against the details declared in the Shipping Bills. If seals are tampered or not intact, the containers will undergo 100% examination.
Cancellation of Shipping Bills Post EGM: A new system will be developed by DG Systems to cancel Shipping Bills post EGM in the ICES system. This ensures that export incentives are not disbursed for such cargo.
Sharing of Cancelled Shipping Bills: Details of cancelled Shipping Bills will be shared with RBI, DGFT, and other concerned agencies via ICEGATE.
Manual Record Maintenance: Until the new system is operational, field formations will maintain manual records and update the system once available.

(c) Vessel Beyond Indian Territorial Waters Returning After Calling Any Foreign Port Without Discharging Containers 

Export Status: Such consignments will be treated as exported out of India.
SAM Filing: The shipping line or authorized representative must file the SAM.
Follow Procedures in Para (b): Steps (ii) to (vi) of Para (b) will apply to these cases.

Recovery of Export Incentives 

Field formations are instructed to manually recover export incentives such as IGST, Drawback, etc., if they have already been disbursed. Transshipment of cargo will be handled as per existing provisions.

Validity of the Circular 

The relaxation provided under this circular will remain in force for 15 days from the date of issuance (8th March 2026).

Reporting Difficulties

Any difficulties in implementing the circular should be reported to the CBIC for further clarification or resolution.

Conclusion

This circular demonstrates the government’s commitment to addressing trade disruptions caused by unforeseen circumstances like the closure of the Strait of Hormuz. By prescribing simplified procedures, the CBIC aims to minimize delays, ensure compliance, and support exporters during this challenging period.

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Source: CBIC, Ministry of Finance, Govt. of India

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