CBIC Extends Hormuz-Disruption Cargo Facilitation to 31 October 2026 (Circular 36/2026-Customs)

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 36/2026-Customs dated 20 August 2026, continuing a temporary framework that lets international cargo diverted to Indian ports because of the Strait of Hormuz closure be transhipped and re-exported through India without being treated as an ordinary import. The measures run up to 31 October 2026. For shipping lines, freight forwarders, custodians and Customs House Agents (CHAs) handling Gulf-linked and transhipment cargo, this keeps a workable clearance path open while maritime routes in West Asia remain unstable.

What Happened

CBIC has extended and consolidated the facilitative measures first put in place earlier in 2026 for cargo affected by disruption of maritime routes and uncertainties in the Gulf region. The Circular is issued under Section 143AA of the Customs Act, 1962 — the provision that lets the Board prescribe trade-facilitation measures — and follows a series of earlier circulars on the same crisis: Circular No. 12/2026-Customs (17 March 2026), Circular No. 15/2026-Customs (27 March 2026) and Circular No. 25/2026-Customs (14 May 2026).

In practical terms, the Circular clarifies two things. First, international transhipment of both Full Container Load (FCL) and Less than Container Load (LCL) cargo is permitted from all seaports and international airports, including cases routed through other Customs stations, subject to the Customs Act and rules. Second, it prescribes temporary handling for Liquid Bulk, Break Bulk and Solid/Dry Bulk international cargo: where a vessel is compelled to divert to an Indian port owing to maritime security concerns, disruption of international shipping routes or other logistical exigencies, the jurisdictional Principal Commissioner/Commissioner of Customs may permit temporary unloading, storage and onward transhipment.

Such cargo may be held in Customs areas, bonded warehouses, bonded tanks, silos, yards or other approved storage facilities solely for onward international transhipment or re-export. Critically, the Circular makes clear that this cargo cannot be cleared for home consumption or diverted into the Domestic Tariff Area (DTA).

Why This Matters — Background

The Strait of Hormuz — the chokepoint through which a large share of the world's seaborne crude, LNG and LPG moves — has been effectively closed to normal commercial traffic through 2026, forcing widespread diversion and re-routing of vessels. When a ship bound for a foreign port cannot complete its voyage, it may need to offload or tranship at the nearest safe port. Without a facilitation framework, such cargo can get stuck in a regulatory grey zone at Indian ports: it was never intended for import into India, yet ordinary Customs procedure is built around home consumption or warehousing for domestic use.

Circular 36/2026-Customs resolves that by giving field formations clear authority to receive, store and re-export diverted cargo under Customs control, without forcing it through the import-assessment machinery. It is a continuation, not a new relaxation — the Board notes that representations from trade and industry confirmed that operational challenges from the Gulf disruption continue to persist.

Who's Affected

Shipping lines and vessel operators diverting Gulf-route cargo to Indian ports; freight forwarders and NVOCCs managing transhipment bookings; port custodians and terminal operators asked to store diverted FCL/LCL and bulk consignments; and CHAs filing transhipment permissions. Exporters and importers whose cargo is caught in a diversion also benefit, because there is now a defined route to keep goods moving rather than stranded.

Operational Detail

Procedures already prescribed under Circular No. 14/2007-Cus (16 March 2007) and the March 2026 circulars for FCL/LCL transhipment continue to apply. A designated Nodal Officer is to ensure transhipment permissions are granted on priority by the jurisdictional Assistant/Deputy Commissioner of Customs. For transhipment across multiple Customs stations, the procedure under Circular No. 15/2026-Customs continues: the Nodal Officer at the originating station obtains prior consent by official email from the transit or destination station, which confirms it has sufficient, safe and secure storage, adequate infrastructure and readiness to supervise the cargo. Movement then proceeds under Customs control, with container sealing where required. Custodians at each station remain responsible for safe custody, secure storage, proper handling, accounting, record-keeping and immediate reporting of any discrepancy, damage or irregularity.

What Forwarders, Shipping Lines and CHAs Should Do Now

• Identify any Gulf-route or Hormuz-affected cargo likely to be diverted to Indian ports and flag it early to the jurisdictional Customs formation and the designated Nodal Officer.
• Confirm storage readiness in advance — bonded warehouse, tank, silo or yard capacity — before requesting transit or destination-station consent.
• Keep the full documentary trail (manifest, transhipment application, sealing records) to demonstrate the cargo is for onward international movement, not DTA clearance.
• Treat 31 October 2026 as the current sunset for these measures; watch for a further extension circular if the Gulf disruption continues, and do not assume the framework auto-renews.
• Do not attempt to clear such diverted cargo for home consumption — the Circular expressly prohibits it.

The Bigger Picture

Circular 36/2026-Customs sits alongside CBIC's other 2026 continuity measures — such as the SCMTR deadline extension — as part of a pattern of the Board using Section 143AA to keep trade flowing through a period of sustained maritime disruption. For India, positioned near the Gulf, the ability to serve as a transhipment refuge for diverted cargo also reinforces its ports' role in regional logistics. The repeated three-to-six-month sunset dates signal that CBIC sees the disruption as ongoing but is unwilling to make the relaxations permanent.

Frequently Asked Questions

Can I clear Hormuz-diverted cargo into the Indian market under this Circular? No. The Circular permits temporary storage and onward international transhipment or re-export only. Home consumption and diversion into the DTA are expressly barred.

Does it cover bulk cargo, or only containers? Both. FCL and LCL container transhipment is confirmed, and separate temporary measures cover Liquid Bulk, Break Bulk and Solid/Dry Bulk cargo.

How long does the facilitation last? The provisions of Circular No. 36/2026-Customs remain in force up to 31 October 2026, unless further extended.

Who authorises the transhipment? The jurisdictional Principal Commissioner/Commissioner of Customs, with a designated Nodal Officer ensuring priority processing; multi-station movements need prior consent from the transit/destination station.

Conclusion

For anyone moving cargo through or near the Gulf, Circular 36/2026-Customs is the operative rulebook for handling diversions into Indian ports until at least 31 October 2026. Plan storage and permissions ahead, keep the paper trail clean, and remember the cargo must leave India again — it cannot enter the domestic market.

This summary is for general guidance. Exporters, importers, forwarders and CHAs should rely on the official text of Circular No. 36/2026-Customs and related circulars as published by CBIC at cbic.gov.in and consult a qualified customs professional for consignment-specific decisions.