India Extends Export Relief As Hormuz Crisis Hits Shipments, See Changes

With Iran war showing no signs of de-escalation, India has extended relief measures for exporters. The decision comes as shipping routes through the Strait of Hormuz remain disrupted due to the conflict. 

The Central Board of Indirect Taxes and Customs (CBIC), on Tuesday, extended relief measures till March 31, according to official circular accessed by NDTV Profit. The earlier deadline was March 23. Officials said the move is meant to ease pressure on exporters facing delays and uncertainty. 

The development comes just a day after Commerce Secretary Rajesh Agarwal said, "March could be a difficult month for trade". He, however, added that India is still targeting about $860 billion in exports for FY26.

What Has Changed Now?

CBIC has issued a fresh standard operating procedure (SOP) under the Customs Act. This sets out how ports should handle cargo that is stuck or diverted. One key change is for ships that return to a different Indian port. Earlier, such vessels often had to go back to the original port. Now, they can unload cargo at the nearest suitable port. This will save time and cost.

The government has also expanded international transshipment for less than container load cargo to all notified ports and airports till March 31. Less than container load, or LCL, means small shipments that share space in one container. Earlier, this facility was limited to a few ports like Chennai and Cochin. Now it is available more widely.

Another relief is for bulk cargo such as oil or chemicals. Temporary unloading and storage of such cargo is now allowed within customs areas if shipments are diverted. CBIC has also added a new system option to cancel shipping bills after the export general manifest is filed. A shipping bill is the main document filed when goods are exported. The export general manifest, or EGM, is a record filed by the shipping line after goods leave the country. This change will help exporters correct records if shipments do not reach their destination.

Reasons Behind Simpler Port Procedures?

The crisis in the Middle East has disrupted one of the world's busiest trade routes. The Strait of Hormuz handles a large share of global oil and cargo traffic. With geopolitical tensions rising, several ships have been forced to turn back. This has created problems for Indian exporters. Goods sent abroad are returning to Indian ports without reaching buyers. This is especially risky for sectors like agriculture and pharmaceuticals, where delays can damage goods or contracts. 

Earlier, CBIC had allowed such cargo to be unloaded without full import procedures. For example, a Bill of Entry was waived in some cases. A Bill of Entry is a document normally required when goods are imported into India. Waiving it reduces paperwork and speeds up handling. Customs also ensured that export documents are cancelled for such shipments. This prevents exporters from claiming incentives for goods that never reached foreign markets. These details are shared with agencies like the Reserve Bank of India and Directorate General of Foreign Trade.

Trade Already Under Pressure

The latest steps come at a time when India's trade numbers are mixed. Merchandise exports in February were almost flat at $36.61 billion. Imports rose sharply to $63.71 billion, mainly due to higher gold and silver prices.

With global routes under stress, officials say logistics could remain a challenge in the coming weeks. The government has set up daily meetings to resolve issues as they arise. For now, the extended relief is expected to give exporters some breathing space as the situation in the Middle East evolves.