CBIC Exempts Overtime Charges for Cruise Passenger Clearance at 24x7 Ports [Read Circular]

The Central Board of Indirect Taxes and Customs (CBIC) has announced that international cruise passengers will no longer have to pay Merchant Overtime Charges (MOT) for baggage clearance at designated 24x7 Customs ports.

The decision follows representations from the Ministry of Ports, Shipping & Waterways and cruise industry stakeholders, who raised concerns about the levy of MOT fees on services provided outside regular working hours. MOT refers to charges collected when Customs officers work beyond standard office timings, such as evenings, weekends, or holidays.

By removing these charges, CBIC aims to streamline passenger movement and reduce costs for cruise operators, making India’s cruise tourism sector more attractive. The circular directs all Customs Commissioners to ensure strict compliance and uniform implementation across notified ports. Any challenges in applying the exemption must be reported to the Board immediately.

Merchant Overtime Charges (MOT)

Merchant Overtime Charges (MOT) are fees collected by Customs when their officers provide services outside normal working hours.

For example:

• If a ship arrives late at night or on a weekend, Customs officers still need to clear passengers and baggage.
• Since this work falls outside their regular duty hours, the law allows Customs to charge an additional fee called MOT.

So, in simple terms, MOT refers to extra charges for Customs services performed after hours.

The new CBIC circular says that for international cruise passengers at ports with 24x7 Customs facilities, these overtime charges will no longer apply. This makes travel smoother and cheaper for passengers and cruise operators.

Central Board of Indirect Taxes and Customs (CBIC)

The Central Board of Indirect Taxes and Customs (CBIC) is India’s top government authority responsible for managing and overseeing indirect taxes, mainly Goods and Services Tax (GST), Customs duties, and Central Excise.

It works under the Ministry of Finance (Department of Revenue) and ensures that tax laws are properly implemented across the country. CBIC issues notifications, circulars, and instructions to guide Customs and GST officers, simplify compliance for businesses, and facilitate trade at ports and borders.

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