India’s textile and apparel exporters are set to benefit from a simplified customs procedure for handling export cargo that is offloaded at foreign ports and returned to India amid ongoing disruptions in maritime routes, particularly due to the closure of the Strait of Hormuz.

The Central Board of Indirect Taxes and Customs (CBIC) has introduced a streamlined framework under Section 143AA of the Customs Act, 1962, to address challenges faced by exporters whose consignments are diverted or returned without reaching their destination.

The move comes in response to industry concerns, including those from textile and apparel exporters, regarding procedural bottlenecks and legal ambiguities when export containers are offloaded at intermediate ports, such as in Sri Lanka, and subsequently shipped back to India.

Under the revised procedure, shipping lines or their authorised representatives must file a Supplementary Arrival Manifest (SAM) to reflect changes in vessel, consignor-consignee details, and Bill of Lading information arising from cargo diversion and return. This ensures proper documentation and traceability of export consignments, according to the industry sources.

Customs authorities will verify container details against shipping bills and related documents, including RFID (radio frequency identification) e-seal data for factory-stuffed consignments. Where seal integrity is intact and matches declared details, containers can be offloaded at Indian ports without filing a Bill of Entry, significantly reducing clearance time and procedural burden, as per the notification issued by Central Board of Excise and customs (CBEC) under the Department of Revenue of the Ministry of Finance.

The procedure also allows cancellation of shipping bills and Let Export Orders (LEO) through the EDI (electronic data interchange) system, enabling exporters to regularise documentation efficiently. Additionally, ‘back to town’ provisions will permit returned cargo to re-enter the domestic market under prescribed norms, offering relief to exporters dealing with disrupted shipments.

However, in cases where container seals are found tampered or not intact, customs authorities will conduct 100 per cent examination, and standard re-import procedures will apply. Authorities have also been directed to ensure recovery of export incentives such as IGST refunds and duty drawback, if already disbursed, to safeguard revenue.

The temporary relaxation, effective until April 30, 2026, is expected to ease operational challenges for India’s export-oriented sectors, including textiles and apparel, which have been impacted by global shipping disruptions and geopolitical tensions affecting key trade routes.

Fibre2Fashion News Desk (KUL)