CBIC Circular No. 36/2026-Customs: Temporary Facilitation for International Transhipment of Cargo amid Strait of Hormuz Disruptions.

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 36/2026-Customs dated 20 August 2026, introducing temporary facilitative measures for the handling and international transhipment of cargo affected by the continuing disruption of maritime routes in the Gulf region and the closure of the Strait of Hormuz.

Issued under Section 143AA of the Customs Act, 1962, the circular seeks to ensure continuity of international trade by permitting affected cargo to be diverted through Indian ports and, where necessary, temporarily unloaded, stored, handled and subsequently transhipped to foreign destinations under Customs control.

The measures are particularly significant for liquid bulk, break bulk and solid/dry bulk cargo, which may face operational difficulties when conventional maritime routes become unavailable or unsafe.

Background to the Circular

The new circular follows earlier CBIC measures issued in response to the continuing West Asia crisis, including Circular No. 12/2026-Customs dated 17 March 2026, Circular No. 15/2026-Customs dated 27 March 2026 and Circular No. 25/2026-Customs dated 14 May 2026.

CBIC has noted that operational challenges arising from disruption of maritime routes and continuing uncertainty in the Gulf region remain unresolved. Trade and industry have accordingly represented that the facilitative framework for international cargo transhipment through Indian ports should continue.

Circular No. 36/2026-Customs responds to these concerns by providing a broader operational framework for cargo that is compelled to divert to India because of maritime security concerns, disruption of shipping routes or other logistical exigencies.

International Transhipment of FCL and LCL Cargo

A major clarification in the circular is that international transhipment of both Full Container Load (FCL) and Less than Container Load (LCL) cargo shall be permitted from all seaports and international airports.

This includes situations where the cargo needs to move through more than one Customs station. Such transhipment remains subject to the provisions of the Customs Act, 1962 and the rules made thereunder.

The measure is intended to provide greater flexibility to international shipping and logistics operators by allowing India to function as a temporary transit and transhipment point when cargo cannot proceed through its originally planned route.

Special Measures for Bulk Cargo

The circular introduces temporary measures specifically for:

• Liquid bulk cargo;
• Break bulk cargo; and
• Solid/dry bulk cargo.

Jurisdictional Principal Commissioners or Commissioners of Customs may permit the temporary unloading, storage and transhipment of such cargo where foreign-destination cargo is compelled to divert to an Indian port because of maritime security concerns, disruption of international shipping routes or other logistical exigencies. The permission is intended solely for onward international transhipment or re-export. Such cargo may be temporarily handled within:

• Customs areas;
• Bonded warehouses;
• Bonded tanks;
• Silos;
• Yards; or
• Other approved storage facilities.

The central principle is that diverted cargo may be physically handled in India without being treated as cargo intended for domestic consumption.

Customs Control Remains Essential

Although the circular provides significant operational flexibility, the cargo must remain under Customs control throughout the process. Permission for temporary unloading, storage and transhipment may be granted on a case-by-case basis. The process is subject to several safeguards, including Customs supervision during discharge, ullage survey and determination of quantity. The cargo must also be stored under the custody of an approved custodian in terms of Section 45 of the Customs Act, 1962. Other requirements include:

• Maintenance of proper inventory records;
• Execution of an appropriate bond or undertaking;
• Testing of cargo wherever required;
• Continuous Customs control over the goods; and
• Prevention of clearance for home consumption or diversion into the Domestic Tariff Area.

Thus, the circular facilitates physical movement and storage without relaxing the fundamental Customs control over international cargo.

Treatment of Solid and Dry Bulk Cargo

The circular specifically provides that solid/dry bulk cargo will follow the operational framework applicable to break bulk cargo. Particular emphasis is placed on:

• Weighment;
• Verification of quantity; and
• Safeguards against diversion.

This provision is important because bulk cargo is often handled differently from containerised cargo and may require specialised facilities and methods for establishing the quantity received, stored and subsequently transhipped. By bringing solid/dry bulk cargo within the operational framework applicable to break bulk cargo, CBIC has sought to provide a consistent system of controls while allowing practical handling of diverted shipments.

Repacking of Bulk Cargo

Another useful facilitation relates to repacking. Where operationally necessary, repacking of bulk cargo may be permitted within the Customs area on a case-by-case basis. Such repacking must take place under Customs supervision and is subject to:

• Proper maintenance of accounts;
• Compliance with applicable statutory provisions; and
• Appropriate Customs controls.

The provision recognises that diverted bulk cargo may need to be repackaged before it can continue its international journey, particularly where the original logistics arrangements have been disrupted.

Priority Processing of Transhipment Permissions

The circular requires international transhipment permissions to be processed on a priority basis. The procedure prescribed under earlier CBIC Circulars, including Circular No. 14/2007-Cus dated 16 March 2007, Circular No. 12/2026-Customs and Circular No. 15/2026-Customs, is to continue to govern international transhipment of FCL/LCL cargo from ports and airports.

The Nodal Officer is required to ensure that permission for international transhipment is granted by the jurisdictional Assistant/Deputy Commissioner of Customs, duly authorised by the jurisdictional Commissioner, after necessary verification. The emphasis on priority processing is intended to prevent Customs procedures themselves from becoming an additional source of delay for cargo already affected by international shipping disruptions.

Transhipment Involving Multiple Customs Stations

The circular also provides for situations where cargo needs to pass through multiple Customs stations in India. In such cases, the Nodal Officer at the originating Customs station must obtain prior consent through official email from the Nodal Officer at the relevant transit or destination Customs station. The transit or destination station is required to communicate its consent after verifying that it has:

• Sufficient storage space;
• Safe and secure storage arrangements;
• Adequate infrastructure;
• Necessary logistics support; and
• Readiness to handle and supervise the transhipment cargo.

Once the required consent has been obtained, the originating Customs station may grant international transhipment permission on a priority basis. The movement of the cargo between Customs stations must take place under appropriate Customs control, including sealing of containers wherever required.

Responsibilities of Custodians

The circular places significant responsibility on custodians handling transhipment cargo. Custodians at the originating, transit and destination Customs stations are responsible for the safe custody, secure storage, proper handling and accounting of the cargo throughout the period it remains under their charge.

They must also:

• Comply with Customs instructions;
• Maintain proper records;
• Facilitate Customs supervision; and
• Immediately report any discrepancy, damage or irregularity concerning the transhipment cargo.

This ensures that the additional flexibility granted for diverted cargo does not compromise cargo security or Customs revenue controls.

No Domestic Clearance

A fundamental feature of the framework is that the cargo covered by these temporary measures is intended for international transhipment or re-export. The goods cannot simply enter India's domestic market because they have been temporarily diverted to an Indian port.

The circular therefore requires that the cargo remain under Customs control and specifically safeguards against its clearance for home consumption or diversion into the Domestic Tariff Area. This distinction allows India to provide logistical assistance to international trade without converting transit cargo into domestic imports.

Temporary Nature of the Measures

The measures introduced by Circular No. 36/2026-Customs are expressly temporary. The provisions will remain in force up to 31 October 2026. The time-bound nature of the framework reflects its connection with the extraordinary shipping and security conditions affecting international maritime trade in the Gulf region. CBIC may subsequently review the situation and decide whether further extension or modification is required.

Significance for International Trade

The circular provides greater operational flexibility at a time when international shipping routes are facing substantial uncertainty. For shipping lines, exporters, importers, freight forwarders, custodians and port operators, the ability to divert cargo through Indian ports can provide an alternative logistical route when the originally planned maritime journey becomes impractical.

The inclusion of liquid bulk, break bulk and solid/dry bulk cargo is particularly important because these categories often require specialised storage and handling facilities and cannot always be managed through conventional containerised transhipment arrangements. The framework also seeks to balance trade facilitation with Customs control. Cargo can be unloaded, stored, repacked where necessary and moved between Customs stations, but each stage remains subject to prescribed safeguards and supervision.

Conclusion

CBIC Circular No. 36/2026-Customs is a targeted trade-facilitation measure responding to continuing disruptions in international maritime routes arising from the West Asia crisis and the closure of the Strait of Hormuz. The circular expands the practical flexibility available for international transhipment through Indian ports and airports, including FCL and LCL cargo and, subject to case-by-case permission, liquid bulk, break bulk and solid/dry bulk cargo. At the same time, the framework maintains strict Customs control through inventory requirements, bonds or undertakings, approved custodians, quantity verification, secure storage, Customs supervision and safeguards against domestic diversion.

By allowing affected cargo to use Indian infrastructure as a temporary transit and transhipment route, the measures seek to minimise disruption to global supply chains while ensuring that Customs procedures remain secure and accountable. With the framework currently applicable until 31 October 2026, its continued relevance will depend on developments in maritime security and the restoration of stability to international shipping routes in the region.

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