Eligibility norms for exemption from cost recovery charges - CBEC's Customs Manual 2023 - Customs

4. Eligibility norms for exemption from cost recovery charges: 4.1 Cost recovery charges may be waived if the facility fulfils the laid down norms for a consecutive period of two financial years. Specific orders in individual cases for grant of exemption from the payment of cost recovery charges are issued by Ad.IV Section of the Board. The cost recovery posts are also considered for regularization. In each and every case the waiver of cost recovery charges would be prospective with no claim for past period. 4.2 ICD/CFS: The eligibility performance norms for the grant of exemption from cost recovery charges in respect of Customs staff posted at ICDs/CFSs are as discussed in Table 28.4. Table 28.4: Eligibility performance norms for the grant of exemption from cost recovery charges in respect of Customs staff posted at ICDs/CFSs (i) No. of containers handled by ICD 7200 TEUs per annum (ii) No. of containers handled by CFS 1200 TEUs per annum (iii) No. of B/E processed by ICDs / CFSs 7200 per annum for ICDs and 1200 for CFSs Note: Benchmark at (i) to (iii) shall be reduced by 50% for these ICDs / CFSs exclusively dealing with exports as per staffing norms. [Refer Instruction F.No.434/17/2004-Cus-IV, dated 12-9-2005] 4.3 Sea Ports, Air Cargo Complexes, Courier Terminals and Diamond Plaza: The eligibility performance norms for the grant of exemption from cost recovery charges in respect of Customs staff posted at Sea Ports, Air Cargo Complexes, Courier Terminals and Diamond Plaza are discussed in Table 28.5. Table 28.5: The eligibility performance norms for the grant of exemption from cost recovery charges in respect of Customs staff posted at Sea Ports, Air Cargo Complexes, Courier Terminals and Diamond Plaza Facility Minimum Annual Volume/Value of Import Export Cargo Minimum Annual Number of Documents- Bills Entry/Shipping Bills Sea Port 6 Lakhs MTs 3,000 Air Cargo Complex 12,000 MTs 35,000 Courier Terminals 1.5 Lakh Packages 20,000 Diamond Plaza Rs.15,000 Crores 12,000 Note: Both performance norms (cargo and documents) would be reduced by 50% for facilities that handle only import or export cargo. 4.4 Airports: Minimum number of international flights is 3500 (both incoming and outgoing) and the minimum number of passengers is 3 lakhs (both incoming and outgoing) in each of the preceding two financial years. 4.5 The conditions for grant of exemption from payment of cost recovery charges for all facilities viz. Sea Ports, Air Cargo Complexes, Courier Terminals, Diamond Plazas and Airports shall be as follows: (a) Both performance norms i.e. volume/value and number of documents in case of Sea Ports, Air Cargo Complexes, Courier Terminals, Diamond Plazas and number of international flights and number of passengers in case of Airports must be met in each of the preceding two financial years. (b) Exemption from cost recovery charges shall be prospective; and (c) No cost recovery charges should be outstanding. Based upon the aforementioned norms, jurisdictional Commissioners would review the existing facilities and send proposals for waiver of cost recovery charges to DG, HRD, CBEC. [Refer Circular No. 02/2021 dated 19.01.2021]