The Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, has announced the discontinuation of manual submission of documents and statements relating to the movement of containers imported duty-free under Notification No. 104/94-Customs dated 16 March 1994.
The decision has been communicated through Circular No. 32/2026-Customs dated 11 July 2026, issued under F. No. 450/41/2005-Cus-IV.
Existing Framework for Duty-Free Import of Containers
Notification No. 104/94-Customs dated 16 March 1994 provides exemption from the whole of customs duty and additional duty on containers of a durable nature, subject to execution of a bond and compliance with prescribed conditions.
One of the principal conditions is that such containers must be re-exported within the stipulated period. In cases where the prescribed conditions are not fulfilled, the applicable customs duty becomes payable.
The notification is presently read together with Circular No. 31/2005-Customs dated 25 July 2005 and Circular No. 51/2020-Customs dated 20 November 2020.
Manual Submission Requirement to be Discontinued
Under the existing procedure, shipping lines are required to manually intimate Customs authorities regarding the number and identification particulars of containers being moved outside the Customs area.
Carriers also execute manual bonds with Customs. These bonds are recorded in the Customs system and are subsequently debited or credited based on manifest information submitted electronically through Import General Manifest/Sea Arrival Manifest and Export General Manifest/Sea Departure Manifest messages.
Following representations received from shipping lines and after examination of the matter, CBIC has decided to revise the monitoring framework for duty-free imported containers.
ICEGATE-Based Automated Monitoring System
Under the revised procedure, the Directorate General of Systems will generate reports containing details of containers that have not been re-exported within the prescribed period of six months.
These reports will be published on the ICEGATE portal and will be available to shipping lines and Customs officers for taking appropriate action under the Customs Act, 1962.
The automated mechanism will enable Customs authorities and stakeholders to monitor compliance without requiring manual submission of container-wise documents and statements.
Bond Requirement to Continue Without Surety
Shipping lines, Non-Vessel Owning Common Carriers, steamer agents and their authorised agents will continue to execute the prescribed bond without any surety.
However, the revised procedure will eliminate the need for manual debit and credit of the bond for every individual container transaction.
The measure is expected to save considerable time and cost for stakeholders and reduce procedural delays at ports and Customs formations.
Integration with ‘One Nation One Port Process’ Initiative
The Ministry of Ports, Shipping and Waterways, in its “One Nation One Port Process” report, has also highlighted the need to upgrade Terminal and Port Operating Systems.
Such technological upgrades are intended to eliminate manual approvals and physical verification during the gate-in and gate-out movement of containers.
The automated process will strengthen the safety and security of the supply chain associated with export-import cargo and reduce the requirement for physical verification of container movement at port and terminal gates.
Development of Electronic Gate Systems at Ports and Terminals
CBIC has emphasised the need to develop electronic gate systems capable of capturing the movement of containers entering or exiting Customs areas.
Customs field formations have been directed to coordinate with the Directorate General of Systems and port and terminal operators for expedited technological integration.
Port and terminal operators will be required to electronically maintain records of containers entering or exiting through their notified Customs areas.
The integration is expected to facilitate efficient process automation and progressively eliminate manual intervention in container movement procedures.
Trade-Friendly Implementation Directed
All Customs field formations have been instructed to implement the facilitation measures in a trade-friendly manner.
The concerned Customs authorities may issue suitable Public Notices to inform shipping lines, agents, port operators and other stakeholders about the revised procedure.
Any difficulty encountered in implementing Circular No. 32/2026-Customs may be brought to the notice of the Central Board of Indirect Taxes and Customs.
Key Benefits of the Revised Procedure
The revised framework will:
- discontinue manual submission of container movement documents and statements;
- automate monitoring of containers through the ICEGATE portal;
- eliminate transaction-wise manual debit and credit of bonds;
- reduce compliance time and operational costs for shipping lines;
- improve coordination between Customs, DG Systems and port operators;
- facilitate electronic gate-in and gate-out records; and
- strengthen the efficiency, transparency and security of the export-import supply chain.
The initiative forms part of the Government’s continuing efforts to promote Ease of Doing Business, simplify Customs procedures and increase the use of digital systems in cargo and container management.
The Circular can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1003333/ENG/Circulars
