CBIC Directs Customs Formations Not To Link Entry Inward And Sail-Out Clearance With Vessel Boarding

The Central Board of Indirect Taxes and Customs (CBIC) has directed customs formations across the country not to link the grant of Entry Inward or Vessel Sail-out Clearance with the physical boarding of vessels by customs officers, noting that such practices cause avoidable delays in cargo operations at ports.

In Circular No. 26/2026-Customs dated 15 May 2026, the Board noted that at certain ports customs officers grant Entry Inward only after they physically board vessels post-berthing, and similarly delay Sail-out clearance until they complete boarding formalities. CBIC stated that these practices conflict with the statutory scheme under the Customs Act, 1962.

The Circular states that Sections 30 and 31 of the Customs Act govern Entry Inward, while Sections 41 and 42 govern Vessel Sail-out Clearance. It further states that Section 37 of the Act and the Imported Stores (Retention on Board) Regulations, 1963 govern physical boarding of vessels as a separate process. CBIC stated:

“grant of Entry Inward and Vessel Sail-out Clearance shall not be made contingent upon physical boarding of Customs officers on the vessel.”

The Board highlighted that Sea Arrival Manifest (SAM) and Sea Departure Manifest (SDM) filings under the Sea Cargo Manifest and Transhipment Regulations (SCMTR) already allow shipping lines and agents to electronically submit crew details, ship stores information, and other data required by customs authorities.

It directed field formations to grant Entry Inward and Sail-out Clearance promptly once officers receive the requisite documents and complete prescribed checks, without insisting on physical boarding of vessels.

Further, the CBIC directed customs formations to adopt a risk-based approach for vessel boarding, considering factors such as compliance history, nature of voyage, itinerary, cargo profile, and security concerns. It asked field formations to issue public notices informing stakeholders of the revised procedure and to report implementation issues to the Board.