Strait of Hormuz Disruption: CBIC Customs Facilitation for Diverted Cargo Runs Only Until 31 October 2026

Exporters, importers and freight forwarders with cargo caught up in the Strait of Hormuz disruption have a customs relief window — but it is closing. CBIC's facilitation for diverted and returned international cargo is in force only until 31 October 2026, so anyone with affected shipments should use the mechanism while it lasts.

What Happened

The Central Board of Indirect Taxes and Customs issued Circular No. 36/2026-Customs (dated 20 August 2026) under Section 143AA of the Customs Act, 1962, to deal with cargo that was returned or diverted from international waters because of the Strait of Hormuz closure/disruption. It builds on earlier facilitation circulars (12/2026, 15/2026 and 25/2026) and remains valid up to 31 October 2026.

The circular allows vessels that cannot complete their intended voyage to divert to an Indian port, where the cargo can be temporarily handled, stored and transhipped onward under customs supervision — rather than being stranded.

Why / Background

The Strait of Hormuz is one of the world's most critical maritime chokepoints, and disruption there ripples across West Asia / Gulf routes that carry a large share of India's energy imports and a significant volume of containerised and bulk trade. When vessels are diverted, cargo bound for foreign ports can end up sitting off or at Indian ports with no clear customs pathway. The circular creates that pathway so legitimate international cargo keeps moving.

Who's Affected

• Freight forwarders and shipping lines rerouting vessels away from the Gulf corridor.
• Exporters and importers whose FCL/LCL, liquid-bulk, break-bulk or dry-bulk cargo has been diverted or returned.
• Customs brokers (CHAs) and port custodians handling the temporary unloading, storage and onward transhipment.

What the Facilitation Allows

• FCL and LCL cargo: International transhipment is permitted from all seaports and international airports, including transhipment through other customs stations, subject to the Customs Act and rules.
• Liquid bulk, break bulk and solid/dry bulk: Jurisdictional Principal Commissioners / Commissioners may allow temporary unloading, storage and transhipment of foreign-bound cargo when a vessel is diverted to an Indian port, on a case-by-case basis. Cargo may be held in customs areas, bonded warehouses, tanks, silos or yards.
• Safeguards: Customs supervises discharge, ullage survey and quantity determination. Cargo stays with an approved custodian under Section 45, with inventory records, a bond/undertaking and testing where needed. Crucially, such cargo cannot be cleared for home consumption or moved into the Domestic Tariff Area — it must continue to its foreign destination.
• Repacking: Permitted inside customs areas on a case-by-case basis, under supervision.
• Multi-station transhipment: The originating station's Nodal Officer must obtain prior email consent from the transit/destination station, which confirms storage, infrastructure and readiness; custodians at each station keep the cargo secure and report discrepancies.
• Priority processing: Nodal Officers are to ensure permissions are granted on priority by the authorised Assistant/Deputy Commissioner.

What Forwarders, CHAs and Traders Should Do Now

• Identify affected shipments immediately and check whether they qualify as diverted/returned cargo under the circular.
• Engage the jurisdictional Nodal Officer early — bulk-cargo relief is granted case-by-case and needs port readiness checks.
• For multi-station moves, secure the prior email consent of the transit/destination station before cargo leaves the originating station.
• Line up an approved custodian (Section 45) and prepare the bond/undertaking, inventory and ullage/quantity documentation.
• Act before 31 October 2026 — the facilitation lapses on that date unless extended; cargo not processed under it afterwards will not get this treatment.
• Do not plan on home consumption for this cargo: it must be re-exported/transhipped to its foreign destination.

The Bigger Picture

The circular is a pragmatic, time-boxed measure to keep trade flowing through a geopolitical chokepoint without compromising customs control. Because it is tied to a 31 October 2026 sunset, its renewal depends on how the Strait of Hormuz situation evolves. Forwarders should build contingency routing and watch for any CBIC extension or fresh circular closer to the deadline.

Frequently Asked Questions

Does this circular reduce or waive any duty? No. It is a facilitation for handling and transhipment of diverted foreign-bound cargo under customs supervision, not a duty concession. The cargo cannot be cleared for home consumption.

Which cargo types are covered? FCL/LCL containers, and liquid-bulk, break-bulk and solid/dry-bulk cargo diverted or returned because of the Strait of Hormuz disruption.

What is the deadline? The facilitation under Circular No. 36/2026-Customs is in force up to 31 October 2026.

Can I store the cargo at any port? FCL/LCL transhipment is allowed from all seaports and international airports; bulk-cargo unloading/storage is permitted case-by-case by the jurisdictional Commissioner, in approved customs areas or bonded facilities.

This is a time-sensitive alert for general guidance. Verify eligibility and current validity against CBIC Circular No. 36/2026-Customs and any later CBIC instruction on the CBIC/ICEGATE portal, and coordinate with your jurisdictional customs Nodal Officer.