India Extends Export Relief to March 31 Amid Hormuz Strait Shipping Crisis

The Central Board of Indirect Taxes and Customs (CBIC) has issued a fresh standard operating procedure under the Customs Act, taking into account the prolonged uncertainty in the region. The earlier relief measures, announced last week, were valid only till March 23.

As part of the updated guidelines, the government has now expanded international transshipment facilities for less than container load (LCL) cargo to all notified ports and airports across the country.

Earlier, this facility was limited to select ports such as Chennai and Cochin.

The new measures also allow temporary unloading and storage of diverted liquid and bulk cargo within customs areas.

This is expected to ease congestion and help manage shipments that are being rerouted due to the disruption.

To further simplify procedures, containers returning to Indian ports can now be unloaded at terminals without filing standard import documents like a Bill of Entry.

However, customs authorities will verify shipping documents and check the integrity of container seals.

Any container found with tampered or broken seals will undergo a 100 per cent physical examination.

In addition, the CBIC has allowed the cancellation of shipping bills for such consignments, even in cases where the Export General Manifest (EGM) has already been filed.

A new feature will be introduced in the ICES system to enable such cancellations and ensure that export incentives are not wrongly claimed.

The disruption has significant implications for India's trade, especially with the Gulf Cooperation Council, which includes countries like Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman.

The bloc is India's largest trading partner, with bilateral trade reaching $178.56 billion in FY25, accounting for about 16 per cent of the country's total global trade.

The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is a crucial route for this trade.

However, the waterway has been severely affected following the outbreak of conflict involving Iran, Israel and the United States, leading to major shipping disruptions.

- IANS