Is MOT payable when the

[Guest]

We are registered as “Custodians” under the provisions of Section 45 of the Customs Act 1962 read with the provisions of “Handling of Cargo in Customs Area Regulation 2009”. We have our own private jetty. The Customs officers are deployed on Cost Recovery basis. We import our raw materials from foreign countries through sea route on payment of applicable Customs duty. We also procure raw materials, which are exempt from Customs duty, from domestic suppliers through sea route. We export our finished pro0duct through sea routes also using our jetty. The customs officers insist on payment of Merchant Overtime (MOT) both while importing and exporting and also on coastal cargo. As per our understanding Merchant overtime is not required to be paid when customs officers are deputed on “Cost Recovery” basis. We would like to have your valuable views as to whether the demand of Merchant overtime by customs officers is legal?

AI Summary

Debate on Merchant Overtime Fees for Customs Officers on Cost Recovery Basis at Private Jetties under Customs Rule. A discussion on a forum addresses whether Merchant Overtime (MOT) fees are applicable when customs officers are deployed on a Cost Recovery basis at a private jetty. The party, registered as 'Custodians,' questions the legality of MOT demands during import and export processes. One response suggests that if services are hired on a Cost Recovery basis, MOT should not be required, referencing a customs circular. Another response states MOT charges are not applicable during official working hours. The original inquirer clarifies they are not covered by the cited circular, but a reply indicates similar provisions apply to their situation.