Customs issues norms for handling return of export cargo amid disruptions
The Customs department has come out with norms for dealing with export cargo returning to Indian ports due to the closure of the Strait of Hormuz and disruptions in maritime routes amid the West Asia crisis.
The norms, issued by the CBIC on March 8 and to be valid for 15 days, stipulate that in all such cases the vessel shall be permitted to berth only at the same Indian port from which it departed, except in the case of transhipment.
The field offices under the Central Board of Indirect Taxes and Customs (CBIC) will recover all export incentives, including IGST, drawback, etc., manually from such cargo, if they have already been disbursed, said the CBIC circular.
The CBIC said it has received representations from field formations indicating that, 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 has been requested to prescribe a simplified procedure for handling such cargo.
Stating that the present circumstances constitute an exceptional situation affecting international shipping routes and export logistics, the CBIC prescribed procedures to facilitate trade and ensure expeditious 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.
Roughly, a fifth of global seaborne crude transits Hormuz daily. The Strait of Hormuz is a vital artery for seaborne oil transportation, with limited alternative routes. The crisis in West Asia has led to spiralling prices of global oil and natural gas. The Strait is a narrow 33-kilometre passage connecting the Persian Gulf to the Arabian Sea.
On February 28, the US and Israel launched military strikes on Iran, which retaliated with attacks on American bases in the region, as well as Israel. The crisis in West Asia has escalated since then, with trade being affected. The CBIC prescribed procedure for handling cargo in three situations.
In case the cargo is loaded on a vessel, and the vessel is within Indian territorial waters, and an Export General Manifest (EGM) and a Sea Departure Manifest (SDM) are not filed, the master of the vessel/captain shall submit an undertaking stating that the vessel has not crossed the territorial waters of India.
The containers may be offloaded at the port terminal without filing a Bill of Entry, subject to verification of related shipping documents. Where requested by the exporter, the Back to Town facility may be permitted by the proper officer.
In case a vessel is within Indian territorial waters, and an EGM or SDM was filed, or the vessel is beyond Indian territorial waters and is in international waters and returning without calling any foreign ports, the master of the vessel/captain shall submit an undertaking.
The containers may be offloaded at the port terminal without filing a Bill of Entry, subject to verification of SDM and related shipping documents. Details of such cancelled Shipping Bills shall be shared with the RBI, DGFT and other concerned agencies by ICEGATE.
In the third situation, where a vessel is beyond Indian territorial waters and is in international waters and returning to India after calling any foreign port without discharge of any container, the CBIC said such consignments shall be treated as exported out of India.
These containers may be offloaded at the port terminal without filing a Bill of Entry, subject to verification of SDM and related shipping documents. Details of such cancelled Shipping Bills shall be shared with RBI, DGFT and other concerned agencies by ICEGATE.“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,” the CBIC circular said.
