Circular No. 27/2026-Customs, Dated 15-06-2026
The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular clarifying that Merchant Overtime (MOT) charges shall not be levied for services rendered by Customs officers in relation to the clearance of international cruise passengers and their accompanied baggage at Customs locations notified for 24×7 operations.
The clarification has been issued to ensure uniform implementation of Customs procedures and facilitate the growth of cruise tourism and related operations.
1. No MOT Charges for Passenger and Baggage Clearance
Under the circular, Customs officers providing services relating to:
-
- Clearance of international cruise passengers; and
- Clearance of the accompanied baggage carried by such passengers
at the notified 24×7 Customs locations shall not attract Merchant Overtime charges.
Accordingly, cruise operators and passengers will not be required to bear additional MOT costs for such services.
2. Applicability Restricted to 24×7 Customs Locations
The exemption applies only to Customs locations that have been officially notified for round-the-clock (24×7) operations.
At such locations, passenger and baggage clearance services rendered by Customs officers will be treated as part of normal operations and will not attract overtime charges.
3. Objective of the Circular
The circular has been issued to:
-
- Ensure uniform implementation of Customs procedures across ports;
- Eliminate ambiguity regarding the levy of MOT charges;
- Facilitate international cruise operations; and
- Support the ease of doing business in the cruise tourism sector.
4. Impact on Cruise Operations
The exemption is expected to:
-
- Reduce operational costs associated with international cruise services;
- Improve passenger facilitation;
- Streamline Customs clearance procedures; and
- Promote the development of India’s cruise tourism ecosystem.
5. Key Takeaway
CBIC has clarified that no Merchant Overtime (MOT) charges shall be levied for Customs services relating to the clearance of international cruise passengers and their accompanied baggage at 24×7 Customs locations, thereby facilitating smoother and more cost-effective cruise operations.
