Temporary Guidelines for Export Cargo Transshipment Amid West Asia Crisis and Strait of Hormuz Closure

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Dated: 21.08.2026

Temporary Guidelines for Export Cargo Transshipment Amid West Asia Crisis and Strait of Hormuz Closure

The ongoing West Asia crisis and the closure of the Strait of Hormuz have significantly disrupted global maritime trade routes. In response, the Indian government has issued Circular No. 36/2026-Customs, outlining temporary measures to facilitate the transshipment and return of export cargo through Indian ports. This article provides a comprehensive overview of the circular, its implications, and actionable guidance for stakeholders in international trade.

Background: The Need for Temporary Measures

The closure of the Strait of Hormuz and instability in the Gulf region have created operational challenges for exporters, shipping lines, and logistics providers. Persistent disruptions have led to cargo vessels being diverted from their original routes, necessitating a flexible and facilitative framework to ensure uninterrupted international trade.

Key Provisions of Circular No. 36/2026

1. Scope of Transshipment Permissions

International transshipment of both Full Container Load (FCL) and Less than Container Load (LCL) cargo is permitted from all Indian seaports and international airports.
Transshipment is allowed even when it involves movement through multiple customs stations, provided all provisions of the Customs Act, 1962, and related rules are followed.

2. Special Measures for Bulk Cargo

Liquid Bulk, Break Bulk, and Solid/Dry Bulk Cargo:
1. Temporary unloading, storage, and transshipment are allowed at Indian ports if cargo is diverted due to maritime security concerns or logistical exigencies.
2. Storage can be in customs areas, bonded warehouses, tanks, silos, or other approved facilities, strictly for onward international transshipment or re-export.
3. All operations must be under customs supervision, with proper inventory records, bonds or undertakings, and testing to ensure cargo remains under customs control.
4. Repacking of bulk cargo is permitted within customs areas if operationally necessary, subject to supervision and record-keeping.

3. Procedures for Containerized Cargo

The procedures outlined in previous circulars (No. 14/2007, No. 12/2026, and No. 15/2026) must be followed for FCL/LCL cargo.
Permissions for international transshipment are to be granted on a priority basis by the jurisdictional Assistant/Deputy Commissioner of Customs, authorized by the Commissioner.

4. Multi-Station Transshipment Protocol

Consent and Coordination:
1. The Nodal Officer at the originating customs station must obtain prior consent from the transit/destination station via official email.
2. The destination station must confirm readiness, infrastructure, and storage capacity before granting consent.
3. Upon consent, permissions are issued at the originating station, and cargo movement occurs under customs control (including container sealing where required).

5. Custodian Responsibilities

Custodians at all involved stations are responsible for:
- Safe custody and secure storage of cargo
- Proper handling and accounting
- Compliance with customs instructions and supervision
- Immediate reporting of discrepancies or irregularities

6. Validity and Review

The provisions of this circular are effective until 31st October 2026.
Any implementation difficulties should be reported to the Central Board of Indirect Taxes and Customs.

Practical Implications for Trade Stakeholders

Exporters and Shipping Lines: Should coordinate closely with customs authorities and custodians to ensure compliance and minimize delays.
Logistics Providers: Must maintain robust inventory and record-keeping systems, and be prepared for customs supervision during all stages of cargo handling.
Customs Brokers: Should stay updated on procedural requirements and facilitate timely permissions for transshipment.

Conclusion

Circular No. 36/2026 provides a clear, structured framework to address the extraordinary challenges posed by the West Asia crisis. By enabling flexible transshipment and return of export cargo through Indian ports, the government aims to safeguard international trade flows while maintaining regulatory oversight and security.

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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