Global trade has been witnessing a period of uncertainty due to geopolitical tensions and disruptions in key shipping routes. These developments have significantly affected international logistics and cargo movement. Businesses engaged in import and export are particularly vulnerable to such disruptions, as delays or cancellations of shipments can lead to financial losses, operational inefficiencies, and contractual complications.
For exporters in India, the situation becomes even more challenging when export consignments have already reached the customs area but cannot be shipped due to sudden disruptions in shipping schedules. In many cases, exporters may need to withdraw consignments and amend or cancel export documentation. This situation is especially critical for perishable goods, seasonal products, and time-sensitive shipments.
Recognising these practical challenges faced by the trade and industry, the Government has issued Circular No. 10/2026-Customs dated 10 March 2026, granting procedural relief where exporters are required to amend or cancel export documents due to circumstances beyond their control.
Background of the Circular
Under the Levy of Fees (Customs Documents) Regulations, 1970, exporters are normally required to pay prescribed fees for amendment or cancellation of customs documents such as shipping bills and related export documentation.
However, recent global developments have disrupted international shipping routes. The circular notes that geopolitical developments affecting the Strait of Hormuz have created logistical challenges in maritime trade, leading to vessel cancellations, route diversions, and delays in cargo movement. These developments have made it difficult for exporters to execute shipments as originally planned.
In such situations, exporters may need to amend export documentation or withdraw consignments from the customs area. Importantly, these circumstances arise due to external factors and not because of any error or lapse on the part of exporters or customs brokers.
Key Relief Provided under the Circular
The Central Board of Indirect Taxes and Customs (CBIC), exercising powers under Section 143AA of the Customs Act, 1962, has provided procedural relief for exporters affected by such circumstances.
| Particulars | Position under Normal Circumstances | Position under Circular No. 10/2026 |
| Amendment of export documents | Prescribed fee payable under Levy of Fees Regulations | Fee may be waived |
| Cancellation of shipping bills | Fee payable | Fee may be waived |
| Withdrawal of export consignments | Amendment/cancellation required with fees | Allowed without fee where due to force majeure |
| Applicability | All exporters | Only where disruption arises due to circumstances beyond control |
This relaxation ensures that exporters are not required to bear additional compliance costs for events that are beyond their control.
Situations Covered under Force Majeure
The circular clarifies that the relief may be granted in several exceptional circumstances affecting export logistics.
| Force Majeure Situation | Example |
| Cancellation or non-operation of vessels or flights | Shipping line cancels vessel due to route disruption |
| Rescheduling or withdrawal of shipping services | Export cargo cannot be loaded due to change in sailing plan |
| Disruption in cargo services | Logistics operators suspend services temporarily |
| Closure or operational issues at ports or airports | Port congestion or closure due to geopolitical events |
| Natural disasters | Cyclones, floods, earthquakes affecting transport |
| Government restrictions | Sanctions or transport restrictions |
| Other comparable circumstances | Any unforeseen disruption beyond exporter’s control |
Exporters or their authorised Customs Brokers must submit a request to the jurisdictional Deputy/Assistant Commissioner of Customs, supported by documentary evidence such as:
- Shipping line communication
- Airline notifications
- Port or airport advisories
- Logistics disruption notices
Upon verification, the proper officer may permit amendment or cancellation without levying the prescribed fees.
Applicability of the Circular
The circular applies to export consignments handled across all customs stations in India.
This ensures uniform implementation across the country and provides consistent relief to exporters operating through different ports and logistics channels.
Practical Impact for Exporters
The circular provides important relief to exporters facing disruptions in international logistics. The benefits can be understood as follows:
| Area | Impact on Exporters |
| Compliance Cost | Reduction in fees for amendment or cancellation of export documents |
| Operational Flexibility | Ability to withdraw consignments without additional procedural burden |
| Risk Management | Helps exporters manage disruptions without immediate financial impact |
| Perishable Goods | Particularly beneficial where delays may lead to deterioration of goods |
This relief becomes particularly significant for sectors such as:
- Agriculture exports
- Food products
- Pharmaceuticals
- Chemicals
- Time-sensitive manufacturing exports
Understanding Force Majeure in International Trade
Force majeure refers to extraordinary events beyond the control of contracting parties that prevent the performance of contractual obligations.
In international trade, such events may include geopolitical conflicts, shipping disruptions, government restrictions, and natural disasters.
| Typical Force Majeure Events | Impact on Trade |
| War or geopolitical conflict | Closure of trade routes |
| Maritime disruptions | Vessel cancellations or rerouting |
| Natural disasters | Damage to infrastructure and logistics |
| Government restrictions | Trade embargoes or transport restrictions |
| Port closures | Delay or cancellation of shipments |
These events can disrupt supply chains, contractual obligations, and trade flows across countries.
Other Force Majeure Options Available to Businesses
While the circular provides procedural relief under customs law, businesses engaged in international trade should also explore broader force majeure protections available under commercial and regulatory frameworks.
| Risk Management Option | Description |
| Contractual Force Majeure Clause | Allows suspension or renegotiation of contractual obligations during extraordinary events |
| Renegotiation of Delivery Terms | Exporters and buyers may revise delivery timelines or shipment schedules |
| Marine Cargo Insurance | Insurance policies may cover losses arising from shipment disruptions |
| Diversion or Rerouting of Cargo | Use of alternate shipping routes or ports |
| Government Relief Measures | Monitoring DGFT, customs, and port authority notifications |
| Supply Chain Diversification | Using multiple shipping lines or logistics partners to reduce risk |
These strategies help businesses minimise losses and maintain operational continuity during periods of global disruption.
Key Takeaways
The issuance of Circular No. 10/2026-Customs reflects a pragmatic approach by the Government in addressing the operational challenges faced by exporters during periods of global disruption. By allowing amendment or cancellation of export documents without levy of prescribed fees in force majeure situations, the circular provides immediate procedural relief to the trade.
However, businesses should view this circular as only one component of a broader risk management strategy. In times of global uncertainty, exporters and importers must proactively review contractual protections, insurance coverage, and supply chain strategies to minimise potential losses arising from geopolitical and logistical disruptions.
Disclosure
This article is intended for informational purposes only and provides a general overview of Circular No. 10/2026-Customs. The views expressed are personal and should not be considered as legal or professional advice. Readers are advised to evaluate the applicability of the provisions based on their specific facts and circumstances.