In a major relief to exporters hit by disruption in the Strait of Hormuz, the Central Board of Indirect Taxes and Customs (CBIC) has clarified that containers loaded at one Indian port but offloaded at another on return can be cleared under the back-to-town (BTT) procedure.
The move resolves confusion that had emerged over the past week, where Customs authorities at the port of discharge were reluctant to clear containers originally shipped from another port citing jurisdictional issues.
uniform procedure
Issuing directions on Tuesday, CBIC asked all Custom Houses to adopt a uniform procedure to ensure faster handling of export cargo brought back to Indian ports due to the closure of the Strait of Hormuz or similar disruptions. The clarification comes as a relief to exporters such as Venkata Ramarao Pothina, CEO of Vijayawada-based Venspra Impex, who has been struggling to retrieve 21 containers of cargo at Mundra while they were loaded at Chennai.
Over the past week, Pothina has been travelling between Chennai and Mundra to secure the release of his shipment bound for Jebel Ali.
The containers, carrying nearly 500 tonnes of micro silica, were loaded at Chennai on March 23. However, the vessel returned to India amid the West Asia crisis and discharged the cargo at Mundra. When Pothina approached Customs in Mundra, he was asked to obtain a No Objection Certificate (NOC) from Chennai, the port of origin. But officials in Chennai declined, citing lack of jurisdiction since the cargo was physically located in Mundra.
To address such cases, CBIC noted that representations had been received regarding procedures for transhipment and BTT when vessels return to a different Indian port than the original port of departure.
Under the revised procedure, the shipping line or its authorised agent must file a sea arrival manifest (SAM) at the port where the vessel lands. The system will generate a dummy port code for vessels returning to India, whether or not they have called at a foreign port.
Customs officials at the port of landing will verify the containers against the manifest and accompanying documents, including checking the integrity of seals. If seals are found tampered with, the containers will undergo 100 per cent examination.
At the request of the exporter, Customs at the port of landing will coordinate with officials at the original port of export to confirm whether export incentives, such as IGST refunds or duty drawbacks, have been issued and to cancel the shipping bill and let export order (LEO).
Once verification is complete, the Customs officer at the port where the containers are currently located, can permit clearance under the BTT procedure, subject to compliance with documentation requirements.
The directive is expected to streamline cargo handling and reduce delays for exporters impacted by geopolitical disruptions affecting key shipping routes.
Welcoming CBIC’s direction, Dushyant Mulani, Immediate Past Chairman of the Freight Forwarders Association in India, said the industry body had represented to CBIC seeking a uniform practice across all ports, including inland container depots and container freight stations for export consignments stranded after Customs clearance.
However, he pointed out that non-vessel operating common carriers, shipping lines and custodians are yet to agree on reducing costs such as detention charges and ground rent, consideration towards this by not charging higher cost will help Indian trade and industry.
Published on March 17, 2026
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