Return of export cargo from international waters due to closure of the Strait of Hormuz – Section 143AA of the Customs Act, 1962

CircularNo. 09/2026-Customs F.No.450/23/2026-CusIV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes & Customs) **** Hall No 14049,Kartavya Bhavan, NewDelhi, datedthe 08thMarch, 2026 To, All Principal Chief Commissioner/ Chief Commissioner of Customs/ Customs (Preventive) / Customs andCentral Tax All PrincipalDirector General/ Director General underCBIC Subject: Returnof exportcargofrom international waters dueto closure of the Straitof Hormuz – Section143AAof theCustoms Act, 1962 – reg. Madam/Sir, Representations have been received from field formations indicating that, due to the closure of the Strait of Hormuz and the consequent disruption in maritime routes, certain vessels carrying export cargo from India are unable to reach their destination ports and are returning to Indian ports. It has been requested to prescribe a simplified procedure for handlingof such cargo. 2. The matter has been examined by the Board. It is noted that the present circumstances constitute an exceptional situation affecting international shipping routes and export logistics. Accordingly, Board in exercise of the powers conferred under Section 143AA of the Customs Act, 1962, prescribes the following procedures in order to facilitate trade and ensure expeditious handling of such cargo, where export cargo is brought back to Indianports due tothe closure of the Straitof Hormuz or similar disruptions. In all such cases the vessel shall be permitted to berth only at the same India port from which it was departed except in case of transhipment. The procedures to be followed in different situations are prescribed asbelow: (a) Cargo loaded on vessel and vessel is within Indian territorial waters and EGM orSDM not filed (i) The master of the vessel/Captain shall submit an undertaking stating that the vesselhasnotcrossed territorialwaters ofIndia. In such cases, the vessels may be permitted toberth at the Indianport without filingSea Arrival Manifest (SAM) where the vessel had earlier departed from an Indian port and has not called at any foreign port. (ii) The containers maybe offloaded at the port terminalwithout filinga Bill of Entry, subject toverificationofrelatedshippingdocuments.(iii) The container particulars shall be verified with the corresponding Shipping Bills. During such verification, the integrity of container seals shall also be checked and matched with seal details declared in the Shipping Bills.If the seal is found tampered ornot intact,thecontainershallbe subjectedto100%examination. (iv) The proper officer shall ensure that the Shipping Bills and Let Export Order is cancelled. (v) Where requested by the exporter, Back to Town facility may be permitted by the properofficer. (b) Cargo loaded on vessel and vessel is within Indian territorial waters and EGM or SDM filed OR Vessel is beyond Indian territorial waters and is in International waters andreturning withoutcallingany foreignports. (i) The master of the vessel/Captain shall submit an undertakingstating that the vessel has not crossed territorial waters of India or has returned without calling any foreign port if it has crossed territorial water of India.In such cases, the vessels may be permitted toberth at the Indianport without filingSea Arrival Manifest (SAM) where the vessel had earlier departed from an Indian port and has not called at any foreign port. (ii) The containers maybe offloaded at the port terminalwithout filinga Bill of Entry, subject toverificationofSDMandrelatedshippingdocuments. (iii) The container particulars shall be verified with the corresponding Shipping Bills.During such verification, the integrity of container seals shall also be checked and matched with seal details declared in the Shipping Bills.If the seal is found tamperedornot intact,thecontainershallbe subjectedto100%examination. (iv) A new option will be provided by DG System to cancel such Shipping Bills post EGM in ICES system, wherever applicable.The entry of Shipping Bill in new facility for cancellation post EGM will also ensure that export incentives are not disbursed in caseswhere suchbenefitshavenot yetbeengranted. (v) Detailsof such cancelledShippingBillsshall be shared withRBI, DGFTandother concernedagenciesby ICEGATE. (vi) Till the new system as mentioned above is developed, the field formations shall maintain all the records manually and shall enter the details in system, once its operationalised. (c ) Vessel is beyond Indian territorial waters and is in International waters and returning to Indiaaftercalling anyforeignportwithout dischargeof anycontainer. (i) Suchconsignmentsshall be treatedasExportedout of India. (ii)SAMshould be filedby the Shipping line or the authorised representative.(iii) Procedures mentioned at (ii) to (vi) of para (b) above should be followed in these cases. 3. The field formations to ensure the recovery of all export incentives including IGST, Drawback etc manually, if the same is already disbursed. The trashipment of cargo shall be dealtasperthe the existing provisions. 4. The above relaxation shall remaininforce till 15daysfrom issuance of thiscircular. 5. Difficulties, if any, inimplementation of this circular maybe brought tothe notice of the Board. Hindi version will follow Yourssincerely, (Indrajit Panda) Under Secretary(Cus IV)