CBIC Issues Simplified Procedure For Export Cargo Returning To India After Strait Of Hormuz Closure

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular prescribing a simplified procedure for handling export cargo that is returning to Indian ports after vessels were unable to reach their destinations due to the closure of the Strait of Hormuz.

Shipping through the Strait of Hormuz has been disrupted amid ongoing conflict in the Gulf region, forcing several commercial vessels to turn back before reaching their destination ports.

CBIC said it received representations from field formations stating that vessels carrying export cargo from India had returned to Indian ports after maritime routes were disrupted following the closure.

Invoking its powers under Section 143AA of the Customs Act, 1962, the Board prescribed special procedures to facilitate handling of such cargo.

The circular states that vessels returning with such cargo will generally be permitted to berth only at the same Indian port from which they departed, except in cases of transshipment.

Where the vessel is still within Indian territorial waters and the Export General Manifest (EGM) or SDM has not been filed, the ship's master must submit an undertaking that the vessel has not crossed India's territorial waters.

In such cases, the vessel may berth without filing a Sea Arrival Manifest. Containers may also be offloaded without filing a Bill of Entry after verification of shipping documents.

Customs officers will verify container details with the corresponding Shipping Bills and check the integrity of container seals.

If seals are found tampered with, the cargo will be subjected to 100% examination.

The Shipping Bills and Let Export Orders must be cancelled. Exporters may also be allowed to bring the goods back to the domestic area under the “Back to Town” facility.

Where the EGM or SDM has already been filed, or the vessel had entered international waters but returned without calling at a foreign port, containers may still be offloaded without filing a Bill of Entry after verification of documents.

CBIC said a system-based facility will be introduced in the ICES system to enable cancellation of Shipping Bills even after filing of the export general manifest.

Field formations have also been directed to recover export incentives such as IGST refunds or drawback if such benefits were already disbursed for the returned cargo.

The relaxation will remain in force for 15 days from March 8, 2026.