COST RECOVERY BASIS CRB DIRECTORATE GENERAL OF HUMAN

COST RECOVERY BASIS (CRB) DIRECTORATE GENERAL OF HUMAN RESOURCE DEVELOPMENT ( DGHRD) 11/4/2020 1

COST RECOVERY POSTS CREATION OF POSTS FUNCTION OF CRB CELL CRB CONTINUATION OF POSTS EXEMPTION OF CRC & REGULARISATION OF POSTS 11/4/2020 2

PROCEDURE FOR SETTING UP OF CUSTOMS FACILITIES Ministry of Commerce to issue Letter of Intent for development of necessary Infrastructure of ICD/ CFS. CBIC to issue Notification under Section 7 (1) (aa) of Customs Act, 1962 declaring a place for unloading of imported goods and loading of export goods. Sanction of posts on cost recovery basis by DGHRD. The jurisdictional Commissioner to issue Notifications under Section 8 & 45 of the Customs Act, 1962 and to issue Notification for Commencement of Customs facility. 11/4/2020 3

STAFFING NORMS Customs Facility Dy. /Asst. Appraiser/ Commissioner Superintendent Inspector EA/TA Havaldar Total ICDs/ CFS 1 2 2 4 4 13 Sea Port 2 4 12 2 12 32 Air Cargo Complex Courier Terminals 2 8 12 4 5 31 4 9 12 4 8 37 Diamond Plaza 1 2+2 8 2 4 19 11/4/2020 4

EXEMPTION FROM THE PAYMENT OF COST RECOVERY CHARGES: Both performance norms i. e. volume/value and number of documents must be met in each of the preceding two financial years. Exemption from cost recovery charges shall be prospective & No cost recovery charges should be outstanding. In order to avail exemption, there is pre-condition that posts on Cost Recovery Basis should be continued up to date. However, it is often observed that the field formations do not seek continuation of posts on yearly basis which further delay timely grant of exemption. CRC liability continue to accrue which results in frivolous litigation. 11/4/2020 5

Norms for grant of exemption of CR charges for ICDs/ CFSs For facilities ICDs/ CFSs As per norms prescribed vide CBEC letter F. No. 434/17/2004 - Cus. IV dated 12. 09. 2005 No. of container handled by ICD 7200 No. of container handled by CFS 1200 No. of documents processed (Bills of Entry or Shipping Bills) by ICD 7200 No. of documents processed (Bills of Entry or Shipping Bills) by CFS 1200 Note: The above benchmark shall be reduced by 50% for those ICDs/ CFSs exclusively dealing with exports, as per staffing norms. 11/4/2020 6

Norms for eligibility for grant of exemption from the payment of cost recovery charges in respect of facilities Sea Ports, Air Cargo Complex, Courier Terminals and Diamond Plaza: Facility Minimum Annual Volume/Value of Import & Export Cargo Minimum Annual Number of Documents – Bills of 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 11/4/2020 7

Norms for grant of exemption of CR charges in ICDs/ CFSs………. For facilities ICDs/ CFSs As per norms prescribed vide CBEC letter F. No. 434/17/2004 - Cus. IV dated 12. 09. 2005 No. of container handled by ICD 7200 No. of container handled by CFS 1200 No. of documents processed (Bills of Entry or Shipping Bills) by ICD No. of documents processed (Bills of Entry or Shipping Bills) by CFS 7200 1200 Note: The above benchmark shall be reduced by 50% for those ICDs/ CFSs exclusively dealing with exports, as per staffing norms. 11/4/2020 8

Norms for eligibility for grant of exemption from the payment of cost recovery charges in respect of facilities Sea Ports, Air Cargo Complex, Courier Terminals and Diamond Plaza: Facility Sea Port Air Cargo Complex Courier Terminals Diamond Plaza Minimum Annual Volume/Value of Import & Export Cargo 6 Lakhs MTs. 12, 000 MTs 1. 5 Lakh Packages Rs. 15, 000 Crores Minimum Annual Number of Documents – Bills of Entry/Shipping Bills 3, 000 35, 000 20, 000 12, 000 Norms for eligibility for grant of exemption from the payment of cost recovery charges for Air Ports: 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. 11/4/2020 9

Status of sanction strength of posts on Cost Recovery Basis • Sanctioned strength of posts (temporary, permanent/ encadred posts) AND (filled up posts) & vacant posts (date of vacancy) in respect of ICDs, CFSs, Air Cargo Complex, Sea Port, Courier Terminals, Diamond Plazas facilities etc. TABLE-A (Temporary Posts) • Sanctioned Posts in different grades (since 01. 2014) • Borne Posts (Filled up posts) in different grade • Vacant Posts along with date of vacancy (in different grades) TABLE- B (Permanent/ Encadred posts) • Sanctioned Posts (along with Sanction Order No. ) • Borne Posts • Vacant Posts in different grades along with date of vacancy 11/4/2020 10

EXEMPTION FROM THE PAYMENT OF COST RECOVERY CHARGES: Ø Cost Recovery Basis posts are regularized for those facilities which have been in operation for two consecutive years and met the prescribed eligibility criteria as provided in the CBEC letter F. No. 434/17/2004 Cus IV dated 12. 09. 2005 for ICDs/ CFSs & CBEC Circular No. 16/2013 -Customs dated 10. 04. 2013 for Air Cargo Complexes, Sea Ports, Diamond Plazas, Courier Terminals and Air Ports. Ø The conditions for grant of exemption from payment of cost recovery charges for Customs facilities are as follows: (a) Both performance norms i. e. volume/value and number of documents 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. Ø In order to avail exemption, there is pre-condition that posts on Cost Recovery Basis should be continued up to date. However, it is often observed that the field formations do not seek continuation of posts on yearly basis which further delay timely grant of exemption. 11/4/2020 11

Norms for grant of waiver of CR charges in ICDs/ CFSs For facilities ICDs/ CFSs As per norms prescribed vide CBEC letter F. No. 434/17/2004 - Cus. IV dated 12. 09. 2005 No. of container handled by ICD 7200 No. of container handled by CFS 1200 No. of documents processed (Bills of Entry or Shipping Bills) by ICD No. of documents processed (Bills of Entry or Shipping Bills) by CFS 7200 1200 Note: The above benchmark shall be reduced by 50% for those ICDs/ CFSs exclusively dealing with exports, as per staffing norms. 11/4/2020 12

Norms for eligibility for grant of exemption from the payment of cost recovery charges in respect of facilities Sea Ports, Air Cargo Complex, Courier Terminals and Diamond Plaza: Facility Sea Port Air Cargo Complex Courier Terminals Diamond Plaza Minimum Annual Volume/Value of Import & Export Cargo 6 Lakhs MTs. 12, 000 MTs 1. 5 Lakh Packages Rs. 15, 000 Crores Minimum Annual Number of Documents – Bills of Entry/Shipping Bills 3, 000 35, 000 20, 000 12, 000 Norms for eligibility for grant of exemption from the payment of cost recovery charges for Air Ports: 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. 11/4/2020 13

CASE STUDY M/s. EICI deposited CRC for sanctioned posts only for the period 1998 to 2011 and paid MOT Charges for the additional staff deployed over and above the sanctioned strength. However, CRC is to be recovered for staff actually deployed irrespective of sanctioned strength as provisioned under Section 45 of the Customs Act, 1962. Moreover, CRC is to be recovered for period of three months in advance. 11/4/2020 14

THANK YOU! 11/4/2020 15