In a significant trade facilitative measure aimed at promoting cruise tourism and ensuring seamless clearance at Indian cruise ports, the Central Board of Indirect Taxes and Customs (CBIC) has notified that no Merchant Overtime (MOT) charges shall be levied on 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 decision has been communicated vide Circular No. 27/2026-Customs dated 15th June, 2026 issued by the Customs Policy Wing, CBIC.
The Circular draws attention to the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998 notified vide Notification No. 69/98-Cus.(N.T.) dated 04.09.1998, as amended by Notification No. 46/2016-Cus.(N.T.) dated 01.04.2016, read with various Board Circulars issued from time to time for operationalisation of the 24×7 Customs clearance facility at notified customs ports and airports.
The Board had received representations from the Ministry of Ports, Shipping & Waterways (MoPSW), the Cruise Bharat Mission, and other stakeholders, highlighting concerns regarding the levy of MOT charges for services rendered by Customs Officers in connection with the clearance of cruise passengers and their accompanied baggage at customs ports notified for 24×7 operations.
After examining the matter, and with a view to ensuring uniformity in implementation and facilitating smooth cruise operations, the Board has decided, as a trade facilitative measure, that no Merchant Overtime (MOT) charges shall be levied for services rendered by Customs Officers in relation to the clearance of cruise passengers and their accompanied baggage at Customs locations notified for 24×7 operations.
All Principal Chief Commissioners / Chief Commissioners of Customs / Customs (Preventive) / Customs & Central Tax have been directed to ensure strict compliance with the Circular and to maintain uniformity in its implementation across all notified cruise ports.
The move is expected to give a significant fillip to India’s cruise tourism sector under the Cruise Bharat Mission, reduce the cost of compliance for cruise operators, ensure faster passenger and baggage clearance at Indian cruise ports, and reinforce the Government’s commitment to ease of doing business and trade facilitation in line with global best practices.
The Circular can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1003327/ENG/Circulars
