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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 04/20 17-Customs
Room No. 227B, North Block,
New Delhi, the 16th February, 2017
To
All Principal Chief Commissioners/Chief Commissioners of Customs /Customs(Preventive)
All Principal Chief Commissioners / Chief Commissioners of Customs & Central Excise
Principal Director General / Director General, DRI
All Principal Commissioners / Commissioners of Customs / Customs (Preventive)
All Principal Commissioners / Commissioners of Customs & Central Excise.
Sir/Madam,
Subject: Expansion of 24x7 customs clearance and clarification of levy of MOT charges
in CFSs attached to 24x7 ports-reg.
CBEC had on a pilot basis introduced 24x7 customs clearance 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 [Circular No. 22/20 12-Cus refers].
Subsequently, vide instruction from F. No. 450/25/2009-CusIV dated 31st May 13, the
facility of 24x7 clearance [on pilot basis] was simultaneously extended to another 13 Air cargo
complexes and to include all shipping bills free or otherwise filed at the said Air cargo
complexes.
Since the clearances were run on pilot basis, therefore, on
31st Dec 14 [Circular 19/2014-
Customs], 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 4 sea
ports designated earlier). 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.
2. Providing logistics support like machinery/ cranes for container movement, labour etc
is the primary responsibility of Custodian or the Customs broker/ importer. CBEC initially
restricted the 24x7 to facilitated bills of entry only, keeping in view the time needed to be given
to all the stakeholders to gear up for 24x7 clearance. More than two years have passed since
CBEC has introduced 24x7 clearance. This much lead time should be enough for the all the
stakeholders to put necessary arrangements in place to enable round the clock clearance of all
import cargo and not just facilitated one. Customs is anyways operating 24x7 at designated
ports/ airports. Therefore, it has been decided to extend 24x7 customs clearance to all bills of
entry and not just facilitated bills of entry.
3. 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) shall 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.
(a) 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.
(b) CFSs are an extension of the Port. In the overall ecosystem of Customs clearance, CFSs
have played an important role in faster clearance of EXIM goods. As a result, bulk of
regulatory activity other than appraising, has shifted to CFSs.
(c) Factory stuffed containers are already covered under 24x7 operations, therefore, MOT
charges are not required to be paid in lieu of services (like verification of seals etc)
rendered by customs officers at CFSs in respect of such containers.
(d) Other than at the manufacturing premises, stuffing can inter-alia also occur at CFSs for
export against free shipping bills or otherwise. In the case of sea ports, free shipping
bills are already covered under 24x 7 scheme while the goods exported against a claim
to benefit are not. Considering that the customs work carried out in the CFSs is actually
an extension of the clearance activity at the port, therefore, logically no MOT charges
should be leviable in lieu of services rendered by customs officers within the CFS
premises even in the case of export against a claim to benefit.
(e) 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.
4. Difficulty faced, if any, may be brought to the notice of the Board
Yours faithfully,
(Zubair Riaz)
Director (Customs)
[F. No.450/ll/2003-CusIV]
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