TMI BlogPosting of staff at Customs areas and collection of Cost Recovery ChargesX X X X Extracts X X X X X X X X Extracts X X X X ..... at various customs facilities such as ports, airports, air cargo complexes (ACCs), courier terminals diamond plazas, inland container depots (ICDs) and Container freight stations (CFSs), the rates of cost recovery charges and exemption from payment of cost recovery charges. Sl. No. Letters/circulars/instructions Date Subjects/issues covered 1. F. No. A.-1108/9/91-Ad.IV 1-4-1991 Payment of cost recovery charges at 1.85 times of the monthly average salary and allowances. 2. Circular No. 52/97-Cus. 17-10-1997 Staffing norms for ICDs and CFSs 3. Circular No. 34/2002-Cus. 26-6-2002 Standard set of guidelines for appointment of custodian of seaports and air cargo complexes 4. Circular No. 27/2004-Cus. 6-4-2004 Appointment of custodian for air cargo complex and seaports 5. F. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ire clarifications in the absence of which there is an inordinate delay in getting approvals from the competent authority for the grant of exemption from payment of cost recovery charges in respect of eligible facilities. Further, there is no uniformity amongst field formations in these matters. Accordingly, it has been decided to issue comprehensive guidelines in respect of posting of officers and staff on cost recovery basis and grant of exemption from payment of cost recovery charges. These guidelines subsume the relevant portions of the aforelisted circulars/letters/instructions. 4. Applicability 4.1 The requirement that the custodian shall hear the cost of customs staff posted at customs area shall apply to all customs areas such as seaports, airports, air cargo complexes, courier terminals, diamond plazas, ICDs, and CFSs, notified after June 26, 2002. 4.2 The requirement that the custodian shall bear the cost of customs staff posted at customs area shall not apply in the following cases : (a) the facility notified under section 45 of the Customs Act, 1962, before June 26, 2002 with no change in custodianship or area after June 26, 2002 ; (b) the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 78 0 24 144 Class B Airport 2 4 29 48 0 16 97 Class C Airport 3 0 8 16 0 4 28 5.2. In the initial stages of operation of a facility due to less volume of work, full strength of the officers may not be required. In such cases, if the facility requests, the Principal Commissioner or Commissioner of Customs may, after his consideration, post less than the sanctioned strength of officers. Gradually, when the business picks up, the full contingent of staff may be posted. 6. Creation of posts on the basis of cost recovery chargess 6.1. Creation of cost recovery posts is essential before issuance of necessary notifications by the jurisdictional commissioners of Customs to operationalize facility as a customs area. The jurisdictional Principal Commissioner or Commissioner of Customs shall forward the proposals for the creation or continuatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every quarter. 7.4. If the facility fails to deposit the cost recovery charges in advance, for any particular quarter, and in case such charges remain unpaid either wholly or partly, the deployment of staff at the facility should not be abruptly put on hold. The Principal Commissioner or Commissioner of Customs concerned may consider the facility operator s financial contingencies and on case to case basis may allow a certain period of delay (not more than three months at a time and not on more than two occasions) in payment with interest. The interest in such cases shall be at the rate specified for delated payment of duty under the Customs Act, 1962. A public display in this regard shall be made so that the trade can clear the containers that have already entered the facility. And or non-payment of advance, the entry of containers would be restricted till pending dues with interest are said so that the facility does not have any uncleared containers once it is to be shut down. 8. Eligibility for exemption from cost recovery charges 8.1. The cost recovery posts should have the Department of Expenditure s specific permission for continuation before seeking/claiming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of cost recovery charges shall be subject to the following conditions : (a) the facility should have achieved the benchmark performance as prescribed in paragraph 8.2 ; (b) the application for the exemption from cost recovery charges is complete in all respects (in case any deficiency is noticed, the Commissionerate shall issue a deficiency memo for the applicant to complete the application) ; (c) the exemption will be effective from the beginning of the fourth month from the date of issuance of this circular or the date of receipt of the complete application, whichever is later ; (d) the facility shall not have any other dues to be paid under the Customs Act, 1962 ; (e) no investigation under the Customs Act, 1962, shall be pending against the facility ; (f) the payment of cost recovery charges would be up-to-date ; (g) the exemption shall be prospective from the fourth month onwards ; and (h) conditions specified at paragraph 9.1. below. 8.6. DGHRD shall complete the regularization process and obtain the approval of the competent authority within a period of three months in order to enable the exemption to be available from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inconsistent with the provisions of this circular would continue to be in force. 13. The above guidelines may be circulated widely to all customs facilities and the field formations may be suitably sensitized. The jurisdictional Principal Commissioner or Commissioner of Customs shall undertake a review of the existing facilities and take necessary action in terms of these guidelines. 14. Any difficulty while implementing the guidelines may be brought to the notice of the Board. Yours faithfully, (Sd.) Sharad Srivastava, Director (Anti-Smuggling. [F. No. 394/51/2020-Cus.(As)] ANNEXURE 1 9 (to the Board s Circular No. 2/2021-Customs) Proposal for creation/continuation of posts on cost recovery basis 1. The proposal is for __Creation of posts__ Continuation of posts 2. Name of the Commissionerate 3. Customs zone 4. Name of the facility 5. Date of approval of the facility/letter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Havaidar 2. Details of cost recovery charges collected Year Amount (In Rs. crores) 3. Whether any amount is pending to be recovered __ Yes __ No 4. Revenue generated from the facility Year Amount (In Rs. crores) 5. Other details, if any Part D : Certificate : Certified that : 1. there is a shortage of the posts proposed to be created ; 2. the above posts are required to be created/to be continued on cost recovery basis as needed by the facility concerned ; and 3. I am personally satisfied with the need to create/continue with the above posts and appropriate amount will be collected from the facility concerned. Place : Signature of the Commissioner : Date : Name : Notes : 1. The proposal shall be supported with facts and figures. DGHRD on its part shall take into account the total picture emerging out of all the cadres taken together while processing the proposal. 2. If the proposal was earlier seen by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STA/TA/EA Havaldar/Sepoy 9. Cost recovery charges collected Year Amount (In Rs. crores) 10. Whether any amount is pending to be recovered ? Yes/No 11. Revenue generated from the facility Year Amount (Rs. crores) 12. Other details, if any Note : The details for the past two/four years snail be submitted depending on the eligibility. Certified that : (i) the facility has fulfilled the workload as per the prescribed benchmark in respect of TEUs and documents and passengers, as the case may be ; (ii) the customs staff have been continuously posted in the facility, on cost recovery basis ; (iii) all the arrears of cost recovery charges till the date of waiver should be paid by the facility ; (iv) there is no other amount to be recovered fro ..... 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