CBIC eases procedures for export cargo returning amid Hormuz disruption

CBIC has issued temporary relaxations for handling export cargo returning to Indian ports due to the Strait of Hormuz disruption, outlining simplified processes to speed up clearances

The Central Board of Indirect Taxes and Customs (CBIC) on Sunday issued a circular outlining a simplified procedure for handling export cargo returning to Indian ports, amid disruptions caused by the closure of the Strait of Hormuz that have forced vessels to turn back without reaching their destinations.

 

In the circular, the Board noted representations from field formations about vessels carrying export cargo from India being unable to proceed due to the closure of this key maritime route. The measure, invoked under Section 143AA of the Customs Act, 1962, aims to facilitate trade by ensuring expeditious handling of such consignments upon their return. However, these relaxations will remain in force only until 15 days from the issuance of the circular. 

The procedures vary based on the vessel’s status and are designed to minimise delays while maintaining regulatory oversight.

 

For cargo loaded on vessels within Indian territorial waters where the Export General Manifest (EGM) or Sea Departure Manifest (SDM) has not been filed, the master or captain must submit an undertaking confirming that the vessel has not crossed territorial waters or has returned without calling at any foreign port. In such cases, vessels may be permitted to berth at the Indian port without filing a Sea Arrival Manifest (SAM), provided they departed from an Indian port earlier and have not visited a foreign one.

 

Containers can then be offloaded at the port terminal without filing a Bill of Entry, subject to verification of related shipping documents. Customs officers will verify container particulars against the corresponding Shipping Bills, check the integrity of container seals, and match seal details declared in the Shipping Bills. If seals are found to be tampered with or not intact, the container will undergo 100 per cent examination.

 

The proper officer must ensure cancellation of both the Shipping Bills and the Let Export Order. Where requested by the exporter, a “Back to Town” facility -- allowing cargo to be returned to the exporter’s premises — may be permitted by the officer.

 

In scenarios where the vessel has crossed Indian territorial waters but returns without calling at any foreign port, regardless of whether the EGM or SDM has been filed, the master or captain must similarly provide an undertaking. Vessels may berth without a SAM if they originated from an Indian port and avoided foreign calls. Offloading without a Bill of Entry will follow similar verification steps, including seal checks and potential full examination for discrepancies.

 

To enable this, a new option will be provided in the DG system to cancel Shipping Bills after EGM filing in the ICES system, ensuring export incentives are not disbursed where benefits have not yet been granted. Details of cancelled Shipping Bills will be shared with the Reserve Bank of India (RBI), the Directorate General of Foreign Trade (DGFT), and other concerned agencies.

 

Until the new system is operationalised, field formations must maintain manual records and enter details into the system once it becomes available.

 

However, if the vessel is beyond Indian territorial waters and has called at a foreign port but returns without discharging any containers, such consignments will be treated as exported out of India. In these cases, the Sea Arrival Manifest must be filed by the shipping line or its authorised representative. Additionally, procedures such as document verification, Shipping Bill cancellation, and incentive handling from the earlier scenarios should be followed where applicable.

 

Field formations are also directed to ensure manual recovery of all export incentives, including IGST and drawback, if these have already been disbursed. Transhipment of cargo will continue to be handled as per existing provisions. Any difficulties in implementing the circular should be brought to the Board’s notice, as per the circular.