Hormuz Strait Disruption: Export Relief Extended

India Extends Export Relief Measures Till March 31 Amid Strait of Hormuz Disruptions​

Government Expands Support to Ease Trade Challenges in Gulf Region​

New Delhi, March 17: The government on Tuesday extended relief measures for export cargo until March 31, as ongoing disruptions in the Strait of Hormuz continue to impact shipping routes and trade flows.

The move is aimed at supporting exporters grappling with delays and logistical challenges, particularly in the Gulf region, which remains critical to India’s international trade network.

CBIC Issues Revised SOP Under Customs Act​

The Central Board of Indirect Taxes and Customs has issued a revised standard operating procedure under the Customs Act, factoring in the prolonged uncertainty in the region.

Earlier relief measures announced last week were set to remain in force only until March 23. The extension provides additional time for exporters to manage disruptions more effectively.

Transshipment Facility Expanded Across All Ports and Airports​

A key highlight of the updated guidelines is the expansion of international transshipment facilities for less than container load cargo to all notified ports and airports across India.

Previously, this facility was restricted to select locations such as Chennai and Cochin. The broader access is expected to streamline cargo movement and reduce bottlenecks.

Temporary Storage Allowed for Diverted Cargo​

The government has also permitted temporary unloading and storage of diverted liquid and bulk cargo within customs areas.

This step is intended to ease congestion at ports and facilitate better handling of shipments that are being rerouted due to the ongoing disruptions.

Simplified Procedures for Returning Containers​

To further ease operational hurdles, containers returning to Indian ports can now be unloaded at terminals without the need to file standard import documents such as a Bill of Entry.

Customs authorities will, however, continue to verify shipping documents and inspect the integrity of container seals. Containers with tampered or broken seals will be subject to complete physical examination.

Shipping Bill Cancellation Now Permitted​

In another significant relief, the CBIC has allowed the cancellation of shipping bills for affected consignments, even if the Export General Manifest has already been filed.

A new feature will be introduced in the ICES system to facilitate such cancellations and prevent any incorrect claims of export incentives.

Gulf Trade at Stake Amid Strategic Route Disruptions​

The disruption carries substantial implications for India’s trade with the Gulf Cooperation Council, which includes Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates, and Oman.

The bloc remains India’s largest trading partner, with bilateral trade reaching $178.56 billion in FY25, accounting for nearly 16 percent of the country’s total global trade.

The Strait of Hormuz, a vital maritime corridor connecting the Persian Gulf to the Arabian Sea, plays a central role in this trade. However, the route has been severely affected following the escalation of conflict involving Iran, Israel, and the United States, leading to widespread shipping disruptions.