Export Cargo Return Due to Strait of Hormuz Closure : Sriya Enterprise

March 12, 2026
EDPMS
5 minute read

Simplified Guidance Based on Circular No. 09/2026-Customs

Due to the closure of the Strait of Hormuz and the consequent disruption in maritime routes, certain vessels carrying export cargo from India are unable to reach their destination ports and are returning to Indian ports. It is noted that the present circumstances constitute an exceptional situation affecting international shipping routes and export logistics. We have created a simplified instruction blog about the content of Circular No. 09/2026-Customs, which is on the handling of such cargo, where export cargo is brought back to Indian ports due to the closure of the Strait of Hormuz or similar disruptions. In all such cases the vessel shall be permitted to berth only at the same India port from which it was departed except in case of transhipment.

This process will assist exporters for reference of closure of the shipping bills in EDPMS portal, where due to exceptional situation beyond their control, the cargoes are being brought back to port of loading.

Simplified Procedures for Different Scenarios

The simplified procedures to be followed in different situations are prescribed as below:

Scenario A: Vessel in Indian Waters (EGM/SDM Not Filed)

Berthing: Permitted without a Sea Arrival Manifest (SAM) if a Captain’s undertaking is provided stating the vessel never left Indian waters or called at a foreign port.
Offloading: Allowed without a Bill of Entry filling hence no issues with IDPMS, pending document verification.
Verification: Container particulars and seals must match Shipping Bills. 100% examination is required if seals are tampered.
Cancellation: Proper officers must cancel Shipping Bills and “Let Export Orders” (LEO).
Back to Town: Facility permitted upon exporter request

Scenario B: Vessel in Indian or International Waters (EGM/SDM Filed)

Documentation: Requires a Captain’s undertaking that no foreign ports were visited. No SAM is required for berthing.
Offloading: Allowed without a Bill of Entry, subject to SDM and shipping document verification.
System Cancellation: A new ICES system option will be used to cancel Shipping Bills post-EGM to prevent wrongful export incentives.
Data Sharing: Details of cancellations are shared with RBI, DGFT, and ICEGATE.
Manual Records: Field units must maintain manual records until the new system is operational.

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Scenario C: Vessel Returning After Calling a Foreign Port

Status: Cargo is officially treated as “Exported out of India.”
Mandatory Filing: A Sea Arrival Manifest (SAM) must be filed by the shipping line.
Consistency: Follows the same verification and cancellation procedures as Scenario B.

Key General Mandates

These guidelines outline the procedures for cargo returning to India under different vessel locations and filing statuses. Here is a crisp breakdown of the requirements:

Authorities must manually recover any disbursed IGST, Drawback, or other incentives.
Existing provisions continue to apply in terms of Transhipment

Frequently Asked Questions

Why are export cargo vessels returning to Indian ports?

Due to the closure of the Strait of Hormuz and disruptions in maritime routes, some vessels carrying export cargo are unable to reach their destination ports and are returning to the original Indian port of loading.

Which circular provides guidance for handling such returned cargo?

The procedures are outlined in Circular No. 09/2026-Customs, which explains how customs authorities should handle export cargo brought back to Indian ports due to exceptional disruptions.

Can the vessel berth at any Indian port when returning?

No. The vessel is generally permitted to berth only at the same Indian port from which it originally departed, except in cases involving transhipment.

Is a Bill of Entry required when cargo is offloaded from the returning vessel?

In certain situations, such as when the vessel has not visited a foreign port, cargo can be offloaded without filing a Bill of Entry, subject to verification by customs authorities.

What happens to the Shipping Bills when cargo returns to the port of loading?

Customs authorities will cancel the Shipping Bills and Let Export Orders (LEO) in the system to ensure that the shipment is not treated as completed exports.

Conclusion

The closure of the Strait of Hormuz has created an exceptional disruption in international shipping routes, impacting exporters whose cargo is being returned to Indian ports. Circular No. 09/2026-Customs provides clear procedural guidance to handle such situations efficiently while ensuring proper documentation, verification, and system updates. By outlining different scenarios based on vessel location and filing status, the circular helps customs authorities and exporters manage returned cargo without unnecessary delays or compliance issues. Exporters must ensure timely coordination with shipping lines, customs authorities, and banks for proper cancellation of Shipping Bills and closure of entries in EDPMS. Following these simplified procedures will help avoid incorrect export incentive claims and maintain regulatory compliance during this extraordinary logistics disruption.