**Executive Summary**
Circular No. 27/2026-Customs, issued on June 15, 2026, announces the exemption of Merchant Overtime (MOT) charges for the clearance of international cruise passengers and their baggage. This measure applies to customs locations notified for 24x7 operations to facilitate cruise tourism and ensure uniform implementation. Principal Chief Commissioners are directed to ensure immediate compliance and report any implementation challenges to the Board.
**Key Points / Main Content**
**Regulatory Context**
* The circular refers to the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998, and subsequent amendments regarding 24x7 customs clearance facilities.
* The decision follows representations from the Ministry of Ports, Shipping & Waterways (MoPSW), Cruise Bharat Mission, and other industry stakeholders.
**Exemption Provisions**
* Merchant Overtime (MOT) charges are now waived for services rendered by Customs Officers specifically for cruise passenger and baggage clearance.
* The exemption is strictly applicable at customs ports and locations already notified for 24x7 operations.
**Operational Objectives**
* The policy serves as a trade facilitative measure to support cruise operations in India.
* The Board emphasizes the need for standardized and uniform implementation of these rules across all relevant customs jurisdictions.
**Impact Analysis**
**Principal Chief Commissioners / Chief Commissioners / Customs Officers**
**Impact**
Customs authorities are no longer authorized to levy MOT charges for cruise-related passenger services at 24x7 notified locations.
**Action Required**
Officers must ensure strict compliance with the new directive and report any difficulties faced during implementation to the Board immediately.
**Cruise Operators and Trade Stakeholders (e.g., Cruise Bharat Mission)**
**Impact**
These entities will benefit from reduced operational costs and standardized customs procedures at notified ports.
**Action Required**
Stakeholders should align their operational cost structures with this exemption and report any inconsistencies in implementation to the relevant authorities.
**International Cruise Passengers**
**Impact**
Passengers benefit from streamlined baggage and personal clearance processes without the associated costs of overtime charges at 24x7 ports.
**Action Required**
No specific action is required from passengers.
Key Entities Referenced
Merchant Overtime Charges (MOT): Fees levied for services rendered by Customs officers, which are now exempted for international cruise passengers and baggage at 24x7 ports.
Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998: The primary regulatory framework governing the levy of fees for customs services, referenced for the implementation of this exemption.
Central Board of Indirect Taxes and Customs (CBIC): The regulatory body that issued the circular and oversees the implementation of customs policies and tax collection.
Cruise Bharat Mission: A government initiative aimed at promoting cruise tourism, which advocated for the removal of MOT charges to facilitate operations.
Ministry of Ports, Shipping & Waterways (MoPSW): The ministry responsible for maritime transport that requested the exemption of MOT charges for cruise operations.
Circular No.27/2026-Customs
No. 450/214/2015-Cus.IV
Government of India
Ministry of Finance
(Department of Revenue)
(Central Board of Indirect Taxes and Customs)
Room No. 16049, Kartavya Bhavan-I
New Delhi, the 15th June, 2026.
To
All Principal Chief Commissioners / Chief Commissioners (Customs / Customs
(Preventive) / Customs & Central Tax)
All Principal Commissioners / Commissioners of Customs / Customs (Preventive) /
Customs & Central Tax)
AllP r. Director General/Director Generals under CBIC.
Subject: Exemption of Merchant Overtime Charges (MOT) on International
Cruise passengers and baggage clearance at cruise ports-reg
Madam/Sir,
Attention is invited to the Customs (Fees for Rendering Services by Customs
Officers) Regulations, 1998 [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, and the
various Board Circulars issued for operationalization of the 24x7 Customs
clearance facility at notified customs ports and airports.
2. Representations have been received from the Ministry of Ports, Shipping &
Waterways (MoPSW), Cruise Bharat Mission and other stakeholders regarding
levy of Merchant Overtime (MOT) charges for services rendered by Customs
Officers in relation to the clearance of cruise passengers and their accompanied
baggage at customs ports notified for 24x7 operations.
3. The matter has been examined by the Board. In order to ensure uniformity in
implementation and to facilitate cruise operations, it has been 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 for24x7 operations.
4 AllP rincipal Chief Commissioners/Chief Commissioners of Customs are
directed to ensure strict compliance with this Circular and uniformity in its
implementation.
5. Any difficulty faced in implementation may be brought to the notice of the
Board immediately.
Hindi Versions follows.
Yours faithfully,
(Munesh Kumar Meera)
OSD (Cus-IV),
Customs Policy Wing.