Cost recovery charge waiver depends on verified trade-volume benchmark compliance, while liability continues for the admitted shortfall period.

Cost recovery charges at an inland container depot remain payable for the period in which the prescribed trade-volume benchmark was admittedly not achieved. For subsequent periods, waiver depends on verification by the customs authority that the applicable benchmark was met. Where compliance is established, the waiver must be granted and any resulting amounts due must be adjusted and released in accordance with law. The mediated resolution therefore distinguishes confirmed liability for the earlier period from conditional waiver for later periods based on regulatory verification.

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Issues: Liability for cost recovery charges at an inland container depot where the prescribed benchmark volume of trade was not achieved, and the treatment of charges for subsequent periods.

Analysis: The controversy between two State instrumentalities was resolved through judicially facilitated mediation. The accepted terms distinguished the period in which the benchmark was admittedly not achieved from later periods requiring verification of benchmark compliance. Waiver for later periods was made contingent upon the customs authority's assessment under the applicable law, with reciprocal adjustment and release of amounts due.

Conclusion: CONCOR is liable to bear cost recovery charges for 2009-10. For subsequent periods, waiver shall be granted where benchmark compliance is established on verification, and any amounts due shall be adjusted and released in accordance with law.

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