Customs Procedure for Returned Export Containers Amid Strait of Hormuz Disruption
The Office of the Commissioner of Customs, Chennai-IV has issued Public Notice No. 27/2026 under Section 143AA of the Customs Act, 1962, putting in place a special, time-bound procedure to deal with export containers that were offloaded at foreign ports and are now coming back to India due to closure of the Strait of Hormuz and related disruptions in shipping routes.
This framework aims to:
- Enable quick clearance and movement of such returned export cargo
- Avoid unnecessary filing of Bill of Entry where seals are intact
- Ensure proper cancellation of Shipping Bills and LEO
- Safeguard revenue by recovering export incentives such as IGST refund and drawback
- Provide clear coordination mechanisms between Chennai III (Preventive) and Chennai IV (Export) Commissionerates
1. Background and Legal Basis
1.1 Context of the disruption
Due to ongoing hostilities in the Middle East, the closure of the Strait of Hormuz has:
- Interrupted major international shipping lanes
- Led to suspension of bookings by leading shipping lines
- Caused closure or restricted functioning of key Gulf ports
As a result, a substantial number of export consignments from India, particularly those routed through intermediate ports like Sri Lanka, have been discharged at foreign ports and are now returning to Indian ports without reaching their final overseas destination.
Trade bodies and field formations reported practical and legal difficulties in handling such consignments, especially where:
- Export containers have already been shipped from India
- Cargo did not reach the foreign consignee
- Containers are being sent back to India, either to the original port of export or other Indian ports
1.2 Board’s instructions under Section 143AA
To address these issues, the CBIC has invoked Section 143AA of the Customs Act, 1962 and issued:
- Circular No. 21/2026-Customs dated 15.04.2026, and
- Earlier related Circulars:
- Circular No. 09/2026-Customs dated 08.03.2026
- Circular No. 10/2026-Customs dated 10.03.2026
- Circular No. 12/2026-Customs dated 17.03.2026
- Circular No. 15/2026-Customs dated 27.03.2026
- Circular No. 19/2026-Customs dated 10.04.2026
The present Public Notice operationalises these instructions locally for Chennai Customs Zone, providing detailed procedure for:
- Cargo at port/terminal
- Cargo moved to CFS under PNR movement
- Transshipment cargo originating from other Customs formations
The relaxation is valid till 30.04.2026, as specified in Circular No. 21/2026-Customs dated 15.04.2026.
2. General Simplified Procedure for Returning Export Containers
The Board has outlined a special, simplified mechanism for handling export containers that are coming back to India without having been delivered abroad.
2.1 Filing of SAM
- The Shipping Line or its authorised representative must file a SAM (Sea Arrival Manifest) for such containers.
- This is mandatory because key particulars change on account of the cargo being offloaded and returned:
- Vessel details
- Consignor–consignee particulars
- Bill of Lading details
2.2 Verification of container and seal particulars
Customs officers must:
Match container numbers, marks, and description with:
- Shipping Bills
- Other related shipping documents
In the case of factory-stuffed self-sealed containers with RFID e-seal, as per:
- Circular No. 26/2017-Customs dated 01.07.2017
- Circular No. 36/2017-Customs dated 28.08.2017
they must:
- Verify that the RFID e-seal is physically intact
- Confirm that seal details tally with what is recorded in Shipping Bills and allied documents
For containers stuffed at CFS/ICD with either RFID e-seal or Customs bottle seal with unique numbers:
- Field formations must coordinate with DG Systems
- Obtain seal details entered in ICES during stuffing
- Use these details for cross-verification where the information is not directly visible to the officer in the system
2.3 Offloading without Bill of Entry – conditional relaxation
Subject to proper verification of SAM and related documents:
- Containers may be offloaded at the port terminal without filing a Bill of Entry, provided:
- The seal is intact
- The seal number and particulars match the data declared in the Shipping Bill and other records
Important:
This relaxation from filing Bill of Entry is strictly limited to cases where seal integrity is confirmed and seal details completely match the declared particulars.