Government Implements New Measures for Exporters Affected by Iran Conflict
Synopsis
Key Takeaways
New Delhi, March 18 (NationPress) The Indian government has introduced a series of customs and logistics facilitation measures designed to assist exporters in managing cargo that has become stranded or returned due to the closure of the Strait of Hormuz amidst the ongoing conflict in the Middle East.
These measures permit exporters to reintegrate cargo into the domestic supply chain while reducing storage and handling costs, as shipping lines halt bookings and Gulf ports face operational restrictions due to the Iran war. The initiatives aim to eliminate procedural delays as shipments are either rerouted or returned due to these disruptions.
A recent directive issued by the Central Board of Indirect Taxes and Customs (CBIC) enables shipping lines to submit new arrival manifests at the port of destination, followed by the verification of containers and their seals, with a mandatory 100 percent inspection in cases where seals are identified as tampered.
The directive clarifies that if a vessel returns to an alternative Indian port without stopping at a foreign destination, shipping lines or their representatives must submit a Sea Arrival Manifest (SAM) at the port of docking, adhering to customs regulations. A placeholder port code will be utilized in such scenarios.
Furthermore, the directive allows for “Back to Town” clearance following proper verification, facilitating exporters in reintegrating returned cargo into the domestic supply chain.
However, measures are being implemented to guarantee that the exporting port takes necessary actions to ensure the reversal or recovery of any previously disbursed export incentives.
Shipping bill cancellations are also permitted even post the submission of the export general manifest, with details of such cancellations to be communicated to agencies including the Reserve Bank of India (RBI) and the Director General of Foreign Trade (DGFT) through the Indian Customs Electronic Data Interchange Gateway (ICEGATE).
Until these facilitation measures are fully operational, the field formations of the Customs Department have been instructed to maintain manual records and update them once the system is functional.
The customs directive also temporarily expands international transshipment capabilities, facilitating the movement of less-than-container load (LCL) cargo from all designated ports and airports until March 31, with appropriate safeguards in place.
It also permits the temporary unloading and storage of liquid bulk and break-bulk cargo redirected to Indian ports under customs supervision and stringent conditions to prevent such cargo from entering the domestic market.
In parallel, the Navratna PSU Container Corporation of India (CONCOR) has implemented temporary relief measures at its inland container depots (ICDs) for export containers that are delayed in transit. It has provided an additional 30 days of free storage and a 30 percent discount on plug-in charges for refrigerated containers.
Additionally, CONCOR has lowered wharfage fees for warehouse-stuffed cargo and waived terminal, infrastructure, and equipment imbalance charges if exporters retrieve containers within designated timelines. An extra 5 percent discount on rail freight for containers returned from ports to ICDs has also been announced, as per an official statement.
These facilitation measures will apply to cargo and containers processed during March, reflecting the immediate impact of the disruptions on export logistics, according to an official statement.