No MOT Customs Fee for Cruise Passenger and Their Baggage

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that Merchant Overtime (MOT) charges will not be levied for services rendered by Customs Officers in connection with the clearance of international cruise passengers and their accompanied baggage at Customs locations notified for 24x7 operations.

Key Highlights:

· The circular refers to the Customs (Fees for Rendering Services by Customs Officers) Regulations, 1998 and related instructions governing 24x7 Customs clearance facilities.

· The decision follows representations received from the Ministry of Ports, Shipping & Waterways (MoPSW), the Cruise Bharat Mission, and other stakeholders seeking relief from MOT charges.

· As a trade facilitation and tourism promotion measure, Customs officers will provide passenger and baggage clearance services at notified 24x7 cruise ports without charging MOT fees.

· The exemption applies specifically to:

o International cruise passengers; and

o Their accompanied baggage.

· The measure is intended to ensure uniform implementation across Customs formations and facilitate smoother cruise operations in India.

· Field formations have been directed to ensure strict compliance and maintain uniformity in implementation.

Impact

The waiver of MOT charges is expected to:

· Reduce operational costs for cruise operators.

· Enhance the ease of travel for international cruise passengers.

· Support the objectives of the Cruise Bharat Mission and strengthen India's position as a preferred cruise tourism destination.

· Promote greater utilization of 24x7 Customs facilities at cruise ports.

[CBIC Circular No. 27/2026 dated 15^th June, 2026]

Subject: Exemption of Merchant Overtime Charges (MOT) on International Cruise passengers and baggage clearance at cruise ports.

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 for 24x7 operations.

4. All Principal 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.