Expansion of 24x7 customs clearance and clarification of levy of Merchant Overtime Fee (MOT) charges in CFSs Attached to 24x7 ports

Circular No.ES/315  /2016-17                                      February 22, 2017

To: Members of the Council

Sub: Expansion of 24x7 customs clearance and clarification of levy of Merchant Overtime Fee (MOT) charges in CFSs Attached to 24x7 ports

Dear Member,

We wish to inform you that CBEC has issued Circular No. 4/ 2017-Customs  dated 16.02.2017 on the above subjects.

(a) Expansion of 24x7 customs clearance

• CBEC  vide Circular  No. 22/2012-Customs had introduced 24x7 customs clearance on a pilot basis  at 4  designated  Air  Cargo  complexes  and 4 sea ports  in  respect  of facilitated Bills  of Entry and  factory  stuffed  containers  and goods shipped under free shipping bills.

• Subsequently, vide instruction No.450/25/2009-CusIV dated 31.5.13, the pilot based facility of 24x7 clearance  was simultaneously extended  to another 13 Air Cargo complexes to include  all  shipping bills free or otherwise  filed at the said Air  Cargo  complexes.

• Since clearances were on pilot basis, CBEC issued Circular 19/2014-Customs dated 31.12.14 wherein CBEC allowed the facility of 24x7 customs clearance for goods covered by facilitated Bills of Entry and specified exports i. e. factory stuffed containers and goods shipped under free shipping bills on permanent basis at the designated 18 Sea Ports (including the above 4 sea ports). Currently, this facility is available at 19 Sea ports with Krishnapatnam having been added later. On the airside also this facility was made available on permanent basis for facilitated Bills of Entry and all shipping bills at the designated 17 Air Cargo Complex.

• More than two years have passed since CBEC has introduced 24x7 clearances for making the stakeholders to put necessary arrangements in place to enable round the clock clearance of all import cargo and not just facilitated one. As Customs is operating 24x7 at designated ports/ airports, it has been decided to extend 24x7 customs clearance to all bills of entry and not just facilitated bills of entry.

(b) Clarification of levy of Merchant Overtime Fee (MOT) charges in CFSs Attached to 24x7 ports

Board has amended the Customs (Fees for Rendering Services by the Customs Officers) Regulations, 1998 to provide that at 24x7 customs ports and airports, no fee i.e. Merchant Overtime Fee (MOT) hall be collected in lieu of the services rendered by the customs officers. Thus, as on date no MOT charges are required to be collected in respect of the services provided by the customs officers at 24x7 customs ports and airports. Reference has been received seeking clarification as to whether MOT charges are to be collected in respect of stuffing of export goods at CFSs.

The issue has been examined in the Board. It is observed that a designated 24x7 sea port can have a number of CFSs attached to it. While Board has already exempted MOT charges at 24x7 ports, the reference in essence seeks clarification as to whether MOT exemption can be extended to attached CFSs as well.

Accordingly, it is clarified that no MOT charges would be collected at CFSs attached exclusively to 24x7 ports In lieu of services rendered within the CFS. This will bring the MOT collection norms at par with the situation on the air side which cover all shipping bills free or otherwise.

For more information, members may kindly refer to the above Circular and make note of the same.

Thanking you,

V.ANIL KUMAR
EXECUTIVE DIRECTOR