CBIC Prescribes Interim Customs Framework for Return and Transhipment of Cargo Due to Strait of Hormuz Closure
The ongoing geopolitical crisis in the Gulf region, particularly the closure and security concerns around the Strait of Hormuz, has significantly disrupted global shipping lanes. As a result, export consignments originally meant for foreign destinations are being forced to return from international waters or divert to Indian ports and airports.
To address these operational disruptions and maintain continuity in international trade, the Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 36/2026-Customs dated 20 August 2026, under the enabling powers of Section 143AA of the Customs Act, 1962. This circular temporarily relaxes and streamlines procedures for international transhipment and handling of diverted bulk cargo at Indian Customs stations, while ensuring that Customs control and safeguards remain intact.
This write-up explains the key elements of the circular in an easy-to-understand manner, the conditions attached, and how trade stakeholders and Customs officers are expected to operationalize these measures up to 31.10.2026.
Background and Context
Earlier facilitation due to West Asia crisis
In view of the instability in West Asia, CBIC had already issued a series of circulars to ease international cargo movement:
- Circular No. 12/2026-Customs dated 17.03.2026
- Circular No. 15/2026-Customs dated 27.03.2026
- Circular No. 25/2026-Customs dated 14.05.2026
All three circulars were issued under Section 143AA of the Customs Act, 1962, with the objective of providing a facilitative regime for international transhipment through Indian ports and airports during the West Asia crisis.
Despite these measures, trade and industry have continued to flag practical difficulties, particularly due to:
- Ongoing disruption and uncertainty across maritime routes in the Gulf region
- Sudden diversion of vessels and cargo towards Indian ports
- Safety and security concerns forcing temporary return or diversion of export consignments
In response, CBIC has now expanded and clarified the facilitative framework through Circular No. 36/2026-Customs, specifically addressing both containerized and bulk cargo.
International Transhipment of Containerized Cargo (FCL/LCL)
Continued permission for FCL and LCL cargo
The circular confirms that international transhipment of both:
- FCL (Full Container Load), and
- LCL (Less than Container Load)
shall be permissible from all Indian seaports and international airports.
This permission also extends to situations where:
- The cargo needs to pass through more than one Customs station within India, i.e., involving multiple ports or airports.
Important: All such transhipments must strictly comply with the provisions of the
Customs Act, 1962and the rules made thereunder. The circular does not dilute statutory requirements; it only simplifies and clarifies procedures for the current crisis.
Applicability of earlier procedural circulars
The Board has specifically reiterated that the detailed procedure already prescribed in the following circulars shall continue to apply for international transhipment of FCL/LCL cargo from all ports and airports:
- Circular No. 14/2007-Cus dated 16.03.2007
- Circular No. 12/2026-Customs dated 17.03.2026
- Circular No. 15/2026-Customs dated 27.03.2026
The procedural framework in these earlier circulars remains fully operative and is to be read together with Circular No.