The Central Board of Indirect Taxes & Customs (CBIC), under the Ministry of Finance, has issued Circular No. 21/2026-Customs dated April 15, 2026, prescribing a streamlined procedure for handling export cargo containers that are off-loaded at foreign ports and subsequently returned to India due to disruptions in maritime routes, particularly arising from the closure of the Strait of Hormuz.
The circular has been issued in response to representations received from trade stakeholders and field formations highlighting procedural and legal challenges in cases where export consignments originating from India are off-loaded at intermediate foreign ports—such as Sri Lanka—and returned to Indian ports without reaching their intended destinations. The disruption in shipping routes has led to significant operational difficulties, necessitating urgent facilitation measures.
In order to ensure expeditious handling of such cargo and to facilitate trade, CBIC has prescribed a set of procedures to be followed by customs authorities. It has been clarified that a Supplementary Arrival Manifest (SAM) is required to be filed by the shipping line or its authorised representative, owing to changes in vessel details, consignor-consignee particulars, and Bill of Lading arising from the diversion and return of cargo.
Further, customs authorities have been directed to verify container particulars with the corresponding Shipping Bills and related documentation. As noted in the guidelines on page 2, special emphasis has been placed on the verification of RFID e-seals and customs bottle seals, ensuring that seal integrity is maintained and matches the declared details in official records. In cases where system-based verification is not readily available, field formations are advised to coordinate with DG Systems for necessary validation.
A significant facilitation measure introduced through the circular allows the offloading of containers at port terminals without filing a Bill of Entry, subject to verification of documents and confirmation that container seals are intact and compliant with declared particulars. This provision is expected to reduce delays and ease the clearance process for returned export cargo.
Additionally, the circular provides for cancellation of Shipping Bills and Let Export Orders (LEO) through the “Post EGM SB Cancellation” module in the EDI system, in accordance with ICES Advisory 16/2026. It also permits “back to town” movement of such cargo as per previously issued circulars, thereby ensuring continuity and consistency in procedural handling.
However, in cases where container seals are found to be tampered with or not intact, the circular mandates 100% examination of the cargo, and such consignments must be processed under the existing procedures applicable to re-imported goods. This measure ensures that while trade facilitation is enhanced, regulatory safeguards and compliance standards are not compromised.
The circular further directs field formations to ensure the recovery of export incentives, including IGST refunds and drawback benefits, wherever such incentives have already been disbursed. Authorities have been advised to handle such cases with due diligence, balancing trade facilitation with the need to safeguard government revenue.
It has also been specified that the relaxation measures introduced under this circular will remain in force up to 30 April 2026, indicating the temporary and situation-specific nature of the facilitation. Any implementation challenges faced by field formations are to be promptly reported to the Board for resolution.
The issuance of this circular reflects the Government’s proactive approach in addressing disruptions in global trade routes and ensuring minimal impact on exporters, while maintaining regulatory oversight and revenue protection.
The Circular can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1003321/ENG/Circulars
