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Patparganj Customs Issues Procedure for Export Cargo Hit by Strait of Hormuz Disruptions

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The office of the Principal Commissioner of Customs, Inland Container Depot (ICD) Patparganj, has issued a public notice outlining a special procedure for handling export cargo affected by disruptions in international maritime routes, particularly due to the closure of the Strait of Hormuz.

The measure aims to facilitate trade and address operational challenges faced by exporters due to vessel cancellations, cargo rejections by shipping lines, and containers being returned from gateway ports.

According to the notice, trade stakeholders—including exporters, customs brokers, custodians, shipping lines, freight forwarders, rail operators, and terminal operators—have been informed about procedures for granting “Back to Town” (BTT) permission for export cargo that cannot proceed to its destination because of the ongoing shipping disruptions.

Customs authorities observed that exporters are facing difficulties such as cancellation of vessel schedules, refusal of cargo by shipping lines, and uncertainty in completing export processes even after the issuance of the Let Export Order (LEO). To prevent congestion at ICDs and ensure smooth cargo handling, uniform procedures have been prescribed.

Key Scenarios Covered

1. Shipping Bill filed but Let Export Order (LEO) not granted

Exporters or authorised customs brokers can request BTT permission from the jurisdictional Assistant or Deputy Commissioner of Customs. For self-sealed or factory-stuffed containers, if the seal is intact, BTT may be granted without examination unless there are intelligence alerts or risk parameters. However, if seals are tampered with or do not match records, the container will undergo 100% examination before approval.

For cargo other than self-sealed or factory-stuffed containers, BTT may also be allowed without examination except in cases where specific intelligence or alerts require scrutiny.

2. LEO granted but container not yet dispatched from ICD:

In such cases, exporters may again apply for BTT. Customs officers will verify shipping bill details, container numbers, stuffing records, and seal integrity. If the seal is intact and matches records, BTT may be granted without examination. If the seal is tampered with or mismatched, the container will undergo full examination. Once approved, the Let Export Order and Shipping Bill will be cancelled in the ICES system.

3. Cargo dispatched from ICD to gateway port but not loaded on vessel

If containers are returned to the ICD without being loaded on the vessel, exporters can request BTT permission. After verifying the seal integrity, Customs may allow BTT without examination unless specific risk parameters require further checks. The LEO and Shipping Bill will subsequently be cancelled in the system.

Other Situations

The notice further states that in certain scenarios—such as when cargo has already been loaded on a vessel but the ship remains within Indian territorial waters, or when vessels return without calling at a foreign port—the procedures prescribed under CBIC Circular No. 09/2026 will apply.

Aim to Prevent Congestion

The customs administration emphasized that the objective of the directive is to facilitate exporters and prevent congestion at inland container depots during the ongoing disruptions in maritime logistics caused by geopolitical tensions affecting the Strait of Hormuz.

The measure is expected to provide much-needed procedural clarity and operational relief to exporters dealing with uncertainty in global shipping routes.

Read More: Service Tax Demand Based Solely on Income Tax Return Data Quashed: Karnataka High Court 

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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