The Central Board of Indirect Taxes and Customs (CBIC) on Saturday gave three more months for re-export of imported containers lying at domestic ports, according to an official circular. This decision has been taken to address the problem of shortage of containers for exports.

Currently, duty-free imports of containers are allowed with the condition of re-export in the next six months. However, keeping containers beyond six months is considered as deemed import and thus import duty is levied, a policy aimed at ensuring faster turnaround of containers. 

To avoid such import duties, shipping lines export empty containers to evade duty payment on containers which are lying empty. However, such practices are aggravating the problem of shortage of containers for exports. 

The CBIC on Saturday asked its field officers to give three months more time for the re-export of imported containers lying at domestic ports. 

As a temporary measure to improve availability of containers for export of containerised cargo and to promote export of laden marine containers, the CBIC has issued a guidance to its field offices to extend this period by three months where the container is being taken out of the country in laden condition, provided the six-month period falls before the end of this financial year. Extension of time has to be sought by the importer concerned to benefit from this relaxation of policy, the CBIC’s circular has added. 

Disruptions due to the COVID pandemic has resulted in high shipping freight rates and container shortage globally, a problem which has been raised repeatedly by exporters. 

These issues have been brought out in stakeholders’ consultations by the Commerce Ministry that the problem could be eased through creating policy incentives for discouraging export of empty containers.