West Asia crisis: CBIC waives fee for cancellation or amendment of export documents

With several cargo shipments stuck at sea in the backdrop of the West Asia conflict, the government has decided to waive fees for cancellation or amendment of export documents. The Central Board of Indirect Taxes and Customs on Wednesday notified this relaxation following representations from exporters.

“In view of the exceptional situation affecting international shipping routes and export logistics arising from the closure of the Strait of Hormuz, and in exercise of the powers conferred under sub-clauses (c) and (d) of section 143AA of the Customs Act, 1962, it is clarified that where amendment or cancellation of export documents becomes necessary solely due to force majeure circumstances, the proper officer may allow such amendment or cancellation without insisting on payment of the prescribed under the Levy of Fees (Customs Documents) Regulations, 1970, as amended,” the CBIC said.

Such cases may include situations where export consignments are required to be withdrawn from the Customs area or export documents require amendment on account of cancellation or non-operation of flights, withdrawal or rescheduling of vessels, disruption of, cargo services by carriers, closure or operational disruption of ports or airports, natural disasters, government-mandated restrictions affecting transport operations, or other comparable circumstances beyond the control of the exporter, it said.

The CBIC noted that these are exceptional circumstances and the need to cancel or amend the export documents are not due to any lapse on the part of the exporter or customs broker.
The waiver of fees is expected to provide some relief to exporters who have been facing challenges of delayed shipments or shipments coming back due to the war and the blockade of the Strait of Hormuz.

Exporters have already been battling delays and higher freight and insurance charges and crucial perishable items like fruits for the Gulf market has been stuck at Indian shores.

The move comes soon after the CBIC also prescribed relaxations in procedure for export cargo returning from international waters due to the closure of the Strait of Hormuz. In a notification issued on March 8, the CBIC had said that in all such cases, the vessel shall be permitted to be berth only at the same Indian port from which it had departed, except in the case of transhipment.