Sub: Return of export cargo from international waters due to closure of the Strait of Hormuz

Dear Sir/Madam,

CBIC (Central Board of Indirect Taxes and Customs) has waived import procedures at domestic ports for the unloading of export shipments that were forced to turn back due to the closure of the Strait of Hormuz after the disruption in West Asian shipping lanes.

CBIC has issued Circular No. 09/2026–Customs dated March 8, 2026 to prescribe a simplified procedure for handling containers that were unable to reach overseas destinations.

The Circular specifies as follows:

1. The relief is for 15 days from date of issue of Circular i.e. March 8, 2026.
2. Customs field formations to manually recover export benefits such as IGST refunds, or duty drawback if they have been already disbursed.
3. Vessels carrying such cargo can berth at the same Indian port from which they sailed, and containers can be offloaded without filing a Bill of Entry, provided the ship did not call at any foreign port during the voyage.
4. Customs officers will verify container details with the corresponding Shipping Bills and check seal integrity before allowing the cargo to be delivered to the exporters.
5. Shipping Bills and the associated “Let Export Order” will be cancelled to ensure that export benefits are not claimed for shipments that did not reach foreign buyers.
6. Where EGM (Export General Manifest) has already been filed, the Customs electronic system will introduce a new facility to cancel Shipping Bills after filing so that benefits like IGST Refunds and Duty Drawback are not released.
7. The Customs Sata System (ICEGATE) will share details of such cancellations with the RBI and the DGFT to prevent export benefits from being processed.
8. If a vessel had called at a foreign port before returning to India without unloading the cargo, the shipment will still be treated as exported under existing rules.
9. Till the new system as mentioned above is developed, the field formation shall maintain all records manually and enter the details in the system once it is operationalised.

A copy of Circular No. 09/2026–Customs dated March 8, 2026 is enclosed herewith for your information (Click to Download).

This is for your kind Information.

In case, you need any further clarification or guidance please get in touch with us.

Thanking You

A. Ravi Kumar
Executive Director