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India Extends Export Support Measures Amid Gulf Shipping Disruptions

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The Union government has extended export relief measures till March 31 to support shipments affected by ongoing disruptions in the Strait of Hormuz, where conflict-linked uncertainties continue to disrupt global shipping routes.

The decision, announced on Tuesday, aims to assist exporters dealing with delays, rerouted cargo and logistical challenges in the Gulf region. The earlier set of relief measures had been scheduled to remain in force only until March 23.

The Central Board of Indirect Taxes and Customs has issued a revised standard operating procedure under the Customs Act, factoring in the prolonged instability affecting maritime trade flows.

Under the updated framework, the government has expanded international transshipment facilities for less than container load cargo to all notified ports and airports across the country. Previously, such facilities were limited to a few locations, including Chennai and Cochin, restricting flexibility for exporters and logistics operators.

Authorities have also permitted the temporary unloading and storage of diverted liquid and bulk cargo within designated customs areas. This measure is intended to ease congestion at ports and facilitate the handling of shipments that are being rerouted due to disruptions along key maritime corridors.

To streamline processes further, containers returning to Indian ports can now be unloaded at terminals without the requirement of filing standard import documentation such as a Bill of Entry. Customs officials, however, will continue to verify shipping documents and inspect container seals to ensure compliance.

Any container found with tampered or broken seals will be subjected to a full physical examination, according to the revised guidelines.

In another significant step, the CBIC has allowed exporters to cancel shipping bills for consignments even after the Export General Manifest has been filed. To operationalise this, a new feature will be introduced in the ICES system, enabling such cancellations while ensuring that export incentives are not claimed inappropriately.

The disruption has broader implications for India’s trade, particularly with the Gulf Cooperation Council, which includes key partners such as Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman.

The bloc remains India’s largest trading partner, with bilateral trade reaching $178.56 billion in the financial year 2024–25, accounting for nearly 16 percent of the country’s total global trade.

The Strait of Hormuz, which links the Persian Gulf with the Arabian Sea, is a vital route for energy and cargo shipments. However, the waterway has been significantly affected following the escalation of conflict involving Iran, Israel and the United States, leading to major disruptions in shipping movements.

With uncertainty continuing in the region, the government’s extension of relief measures signals an effort to maintain trade continuity and reduce the operational burden on exporters navigating one of the world’s most critical maritime routes.

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