Payment of Cost Recovery Charges or Merchant Overtime (MOT) - Central Excise Practice Manual (OLD) - Central Excise

Payment of Cost Recovery Charges or Merchant Overtime (MOT) EOUs carry out their manufacturing activities under Bond in the terms of the Manufacturing Other Operations Warehousing Regulations, 1966 (as amended). One of the conditions of Private Bonded Warehousing Licence Bond is payment of cost recovery/other charges in respect of officers dealing with the work of EOUs. However, there is a provision for sharing of cost recovery charges in respect of units located in close proximity. Further, vide Circular No. 31/2003-Customs, dated 7.4.2003 , facility to exercise an option to avail services of bond officer on payment of Cost Recovery charges or on payment of Merchant Overtime (MOT) has been given to such units.