Sources said exporters are removing consignments from terminals to avoid demurrage charges levied by terminal operators after the mandatory free period of 12 hours from the issuance of the Customs Let Export Order (LEO).
In trade parlance, Back-to-Town refers to the withdrawal of cargo from the Customs area following cancellation of exports due to reasons such as off-loading of goods, flight cancellations, or cancellation of export orders. In such situations, exporters typically withdraw goods from Customs areas quickly to avoid additional charges or deterioration of cargo.
Sources said exporters are removing consignments from terminals to avoid demurrage charges levied by terminal operators after the mandatory free period of 12 hours from the issuance of the Customs Let Export Order (LEO).
Under normal circumstances, such withdrawals attract a ₹1,000 levy by Customs. However, sources said Customs authorities at several locations have decided to waive the charge considering the extraordinary situation.
Public notices
Many Customs houses, including those at Mundra, Kandla and Nhava Sheva, have issued public notices granting such waivers. The Kolkata Custom House is also likely to issue such a notice. The Principal Commissioner of Customs, Custom House, Mundra Port, Kutch, Gujarat, on Saturday issued a notification waiving BTT-related fees and penalties for specific shipments.
Meanwhile, the Central Board of Indirect Taxes & Customs on Sunday issued a circular prescribing the procedures to be followed to facilitate trade and ensure expeditious handling of such cargo, where export cargo is brought back to Indian ports due to the closure of the Strait of Hormuz or similar disruptions.
The CBIC laid out procedure for three different situations:
- Cargo loaded on vessel and vessel is within Indian territorial waters and EGM (Export General Manifest) and SDM (Sea Departure Manifest) not filed
- Cargo loaded on vessel and vessel is within Indian territorial waters and EGM or SDM filed OR Vessel is beyond Indian territorial waters and is in International waters and returning without calling any foreign ports.
- Vessel is beyond Indian territorial waters and is in International waters and returning to India after calling any foreign port without discharge of any container.
CK Govil, CMD of Delhi-based Activair Airfreight India Pvt Ltd, welcomed the waiver but said there is still no clarity on whether it would apply retrospectively. While the notification was issued on Saturday, exporters want it to apply retrospectively since cargo has been stranded since Thursday, he told businessline.
“We request a public notice stating that due to force majeure this charge should neither be levied nor paid. There should not be any charge on account of this as there are around 209-plus requests pending since Friday/Saturday,” Govil said.
J Krishnan, Partner at Chennai-based S Natesa Iyer Logistics LLP, said exporters are seeking to cancel bookings due to the disruption and lack of alternative flight options.“With no option to move the cargo, it is safer to withdraw it and minimise the economic damage,” Krishnan added.
However, industry sources in Chennai said no such withdrawal requests have been reported so far at the city’s air cargo terminal.
“Government departments through DPIIT and other ministries are continuously engaging with trade representatives and discussing issues related to stranded cargo or consignments already loaded. Hopefully, by Monday or Tuesday we will get some guidance,” sources said.
According to the Customs department, the move aims to mitigate hardship faced by exporters and prevent congestion at port terminals. The relaxation applies to BTT movement of stranded export containers or shipping bills for which Export General Manifest (EGM) has not been filed.
In all such cases the vessel shall be permitted to berth only at the same India port from which it was departed except in case of transhipment.
Published on March 8, 2026