India Eases Customs Rules for Exporters Hit by Iran War Shipping Disruptions

The Indian government has introduced customs facilitation measures to help exporters manage cargo stranded or returned due to the closure of the Strait of Hormuz amid the Middle East conflict. Key steps include allowing shipping lines to file fresh arrival manifests and enabling "Back to Town" clearance to reintegrate goods into the domestic supply chain. Simultaneously, CONCOR has announced temporary relief, including 30 days of free storage and discounts on rail freight for affected containers. These measures, applicable for March, aim to prevent procedural bottlenecks and ease cost burdens as shipping lines suspend bookings and Gulf ports operate under restrictions.

Key Points: India Eases Export Rules for Cargo Stuck Due to Iran Conflict

  • Fresh arrival manifests for returned cargo
  • Back to Town clearance for domestic supply chain
  • CONCOR offers free storage & freight discounts
  • Safeguards for export incentive reversal
  • Temporary transshipment expansion till March 31
3 min read

Govt eases rules to help exporters handle cargo stuck due to Iran war

Govt & CONCOR announce customs facilitation & cost relief for exporters facing cargo delays from Strait of Hormuz closure amid Middle East conflict.

"The measures allow exporters to bring back cargo into the domestic system while easing storage and handling costs - Official Statement"

New Delhi, March 18

The government has rolled out a set of customs and logistics facilitation measures to help exporters handle cargo that has been stranded or returned due to the closure of the Strait of Hormuz amid the ongoing Middle East conflict.

The measures allow exporters to bring back cargo into the domestic system while easing storage and handling costs, as shipping lines suspend bookings and Gulf ports operate under restrictions due to the Iran war. The steps are aimed at preventing procedural bottlenecks as shipments are rerouted or returned due to the disruption.

A latest circular issued by the Central Board of Indirect Taxes and Customs (CBIC) allows shipping lines to file fresh arrival manifests at the port of landing, followed by verification of containers and their seals, with mandatory 100 per cent examination in cases where seals are found tampered.

The circular specifies that if a vessel returns to a different Indian port without visiting a foreign destination, shipping lines or their agents must file a Sea Arrival Manifest (SAM) at the port where it docks, as per customs rules. A dummy port code will be used in the system for such cases.

The circular also provides for permitting "Back to Town" clearance after due verification, enabling exporters to take returned cargo back into the domestic supply chain.

However, provisions are being made to ensure that the port of export takes steps to ensure reversal or recovery of such export incentives if these have already been disbursed.

The cancellation of shipping bills even after export general manifest filing is also being allowed, with details of such cancellations to be shared with agencies including the Reserve Bank of India (RBI), and Director General of Foreign Trade (DGFT) through Indian Customs Electronic Data Interchange Gateway (ICEGATE).

Till this facilitation measure is in operation, field formations of the Customs Department have been directed to maintain records manually and update them once the system is in place, it said.

The customs circular also provides for temporarily expanding international transshipment, allowing movement of less-than-container load (LCL) cargo from all notified ports and airports till 31 March, subject to safeguards.

It further permits temporary unloading and storage of liquid bulk and break-bulk cargo diverted to Indian ports, under customs supervision and with strict conditions to ensure that such cargo is not diverted into the domestic market.

Meanwhile, Navratna PSU Container Corporation of India (CONCOR) has also introduced temporary relief measures at its inland container depots (ICDs), for export containers that are stuck in transit. It has offered 30 days of additional free storage and a 30 per cent discount on plug-in charges for reefer containers.

Besides, CONCOR has reduced wharfage charges for warehouse-stuffed cargo and waived terminal, infrastructure and equipment imbalance charges if exporters take back containers within the specified timelines. It has also announced an additional 5 per cent discount on rail freight for containers returned from ports to ICDs, according to an official statement.

The facilitation measures will apply to cargo and containers handled during March, reflecting the immediate impact of the disruption on export logistics, according to an official statement.

- IANS

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Reader Comments

R
Rohit P
Good step, but implementation is key. "Field formations to maintain records manually" sounds like a recipe for confusion and delays. The system should have been ready. Also, the recovery of export incentives is fair, but the process must be transparent to avoid harassment of genuine exporters.
A
Arjun K
Finally, some proactive policy! The global supply chain is fragile, and India's exports can't afford to be held hostage by distant conflicts. The 'Back to Town' clearance and the dummy port code are smart, tech-enabled solutions. Kudos to CBIC for thinking on their feet.
S
Sarah B
As someone working in logistics, the 100% examination rule for tampered seals is absolutely necessary for security, even if it causes a slight delay. The discounts on rail freight and plug-in charges are a significant cost relief. Hope other logistics players follow CONCOR's lead.
V
Vikram M
This is a Band-Aid solution. The real issue is our over-dependence on that single shipping route. We need to fast-track the International North-South Transport Corridor (INSTC) via Iran and Russia. That's a strategic, long-term answer to bypass the Strait of Hormuz permanently.
K
Kavya N
The measures till March 31st show they expect a quick resolution? Or is this just the first phase? Small businesses need clarity. What if the conflict drags on? Will these facilitations be extended? The circular should have mentioned a review mechanism.

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