Payment of MOT charges Reg.

[vinay wakde]

We are receiving coastal cargo of raw material i.e. Iron Ore  through Barges from Visakhapatnam port. We are paying cost recovery charges to the Customs officers at our port.  As per Customs rule, the custom officers may board the vessel / verified the costal cargo as & when required.  However. the Custom officers are boarding each & every coastal vessels arrived for unloading & insist us to pay MOT charges for their supervision beyound office hours under pretext that the goods are unloaded round the clock & the unlaoding place is away from their office.

Kindly clarify, as we are paying MOT charges under protest.

Regards,

VINAY

[YAGAY andSUN]

If you are availing the service of the customs department beyond their office hours then you would have to pay the MOT as per the provisions of Customs Laws unless untill proved by the court otherwise.

Further, if it is adjudicated in your favour that MOT charges were not payable then, you would have to file an application for seeking refund as you are paying the MOT charges under protest.

[vasudevan unnikrishnan]

THERE IS OPTION AVAILABLE TO DISCONTINUE THE COST RECOVERY CHARGES AND AVAIL THE SERVICES OF CUSTOMS OFFICERS ON PAYMENT OF MOT CHARGES FOR THE REQUISITE NUMBER OF HOURS,IMMATERIAL WHETHER BEYOND OFFICE HOURS OR NOT..MANY ARE OPTING FOR THIS, AS IT WILL BE ECONOMICAL..

However, if it is round the clock activity  requiring cistoms supervision,it may not be viable..However,for bulk cargo as well,there are relaxation for the customs supervision.You may seek practice adopted by counter parts in other ports engaged in same activity.

AI Summary

MOT charges liability for customs supervision arises when officers provide services beyond routine arrangements; alternatives and refund paths exist. Requirement to pay MOT charges is triggered when customs officers provide supervision for coastal cargo unloading beyond routine arrangements; operators may discontinue cost recovery and instead engage officers on an MOT basis, seek refunds if adjudicated otherwise, and consider bulk cargo relaxations or port practices as practical alternatives.