Navigating Export Cargo Challenges Amid Maritime Route Disruptions

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Dated: 13.04.2026

Navigating Export Cargo Challenges Amid Maritime Route Disruptions

The closure of the Strait of Hormuz has caused significant disruptions in maritime routes, impacting global trade and logistics. In response, the Government of India, through the Central Board of Indirect Taxes & Customs (CBIC), has issued Circular No. 19/2026 to address the challenges faced by exporters, particularly those operating from Special Economic Zones (SEZs). This article provides a detailed overview of the procedures outlined in the circular to manage export cargo originating from SEZs during this critical period.

Background

The Strait of Hormuz is a vital maritime route for global trade, connecting the Persian Gulf to the Arabian Sea. Its closure has led to severe disruptions, causing export cargo to be diverted or returned from international waters to Indian ports. This situation has created logistical challenges for exporters and customs authorities alike, necessitating a streamlined and uniform procedure to handle affected cargo.

Circular No. 19/2026, issued on April 10, 2026, builds upon previous circulars (No. 09/2026, No. 10/2026, No. 12/2026, and No. 15/2026) to provide clarity and guidance on managing export cargo originating from SEZs.

Key Provisions of Circular No. 19/2026

1. Cancellation of LEO/Shipping Bill

Exporters whose cargo is stranded at gateway ports due to maritime disruptions can request the originating SEZ to cancel the Let Export Order (LEO) or Shipping Bill. Upon cancellation:

Customs officers at the gateway port may permit the movement of cargo out of the port for return to the exporter or re-routing.
Containers do not need to be returned to the originating SEZ.
The custodian at the gateway port is responsible for proper accounting of the cargo.

2. Expedited Processing

To mitigate congestion and facilitate trade, the circular emphasizes:

Expedited processing of requests in coordination with SEZs and gateway ports.
Electronic communication and submissions via official email to minimize delays and avoid physical documentation.

3. Handling Cargo Returned to Gateway Ports

For SEZ-originating export cargo that was loaded onto vessels but returned to gateway ports due to vessel rerouting:

The cargo will be handled as per the procedures outlined in Circular No. 09/2026 and Circular No. 12/2026.

4. De-stuffing and Storage

Permission may be granted for de-stuffing and storing the cargo at Customs Bonded Warehouses located at gateway ports. If re-routing is requested, it will be allowed subject to:

Filing of new Shipping Bills.
Compliance with existing legal provisions and procedures.

5. Relaxation Timeline

The relaxation measures outlined in Circular No. 19/2026 will remain in effect until April 30, 2026, as per the timeline specified in Circular No. 15/2026.

Implications for Exporters

The measures outlined in Circular No. 19/2026 aim to:

Reduce Congestion: By allowing cargo to be moved out of gateway ports, the circular seeks to alleviate congestion and ensure smoother operations.
Facilitate Trade: The emphasis on electronic communication and expedited processing minimizes delays and enhances efficiency.
Provide Flexibility: Exporters can choose to return cargo or re-route it, depending on their business needs.
Ensure Compliance: The procedures ensure that all actions are in line with the Customs Act, 1962, and other legal provisions.

Conclusion

Circular No. 19/2026 is a timely intervention by the CBIC to address the challenges posed by the closure of the Strait of Hormuz. By providing clear guidelines and emphasizing efficiency and compliance, the circular supports exporters in navigating the complexities of disrupted maritime routes. Exporters and stakeholders are encouraged to familiarize themselves with the provisions of this circular and leverage the facilities provided to minimize the impact on their operations.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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

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