Entire procedure from creation of posts on Cost Recovery (CR) basis to exemption from the payment of CR charges and regularization of such posts

For the purpose of Customs clearance at the ICDs, CFSs, Seaports, Air Cargo Complexes, Courier Terminals, Diamond Plazas etc., Customs staff is provided on cost recovery basis by issue of a sanction order by DGHRD. The custodians are required to pay @ 185% of total salary of officers actually posted at the ICD, CFS etc.

The zonal Chief Commissioners forward the proposal for creation of posts on CR basis as per CBEC letter D.O.F. No. A.11018/14/2008 Ad.IV dated 02.07.2008 in the prescribed checklist- I and proforma-I.

The no. of posts on CR basis are proposed to be created as per laid down staffing norms vide CBEC Circular No. 52/ 97- Cus dated 17.10.97 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. At present, the staffing norms are as follow: -

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

*The ICDs notified under section 7 (aa) and approved for export only will have customs staff of 7 (AC-1; Appraise-1; Examining Officer-1; STA/ TA-2; Sepoy-2).

The staffing norms forAirportswill be determined on the basis of the Class of the Airport (Class A, B or C) as per the criteria of minimum number of international flights and passengers. Also, it is envisaged that there would be 4 shifts at Class A and B Airports and 2 shifts at Class C Airports. The norms for identifying the Class of an Airport, the staffing norms for the posting of Customs staff on cost recovery basis.

Norms for identifying the Class of an Airport:

Class of Airport / Minimum No. of international flights per annum
(incoming and outgoing) / Minimum No. of passengers per annum
(incoming and outgoing)
Class A / 12,000 / 10 lakhs
Class B / 6,000 / 5 lakhs
Class C / 3,500 / 3 lakhs

Staffing norms for Airports:

Class of Airport / Staffing Norms
Dy./Asst. Commissioner / Superintendent / Inspector / Sepoy / Total
Class A / 4 / 38 / 78 / 24 / 144
Class B / 4 / 29 / 48 / 16 / 97
Class C / - / 8 / 16 / 4 / 28

The proposal is scrutinized in the CRB cell (EMC) of DGHRD. After examination, if proposal is found in order, the same is forwarded to Integrated Finance Unit/ Department of Expenditure for necessary sanction/ approval.

The posts on Cost Recovery basis are created on temporary basis initially for one year, for which custodian pay Cost Recovery charges as prescribed in CBEC’s Circular No. 128/95-Cus dated 14.12.95 for ICDs/ CFS & CBEC Circular No. 34/2002- Cus dated 26.06.2002 for facilities other than ICD/ CFS.

These posts are regularized for those ICDs/ CFSs which have been in operation for two consecutive years and achieved the benchmark prescribed 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. The benchmark is as follow: -

(i).Norms for grant of waiver of CR charges in respect of 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 (BE or SB) by ICD / 7200
No. of documents processed (BE or SB) by CFS / 1200

Note: The above benchmark shall be reduced by 50% for those ICDs/ CFSs exclusively dealing with exports, as per staffing norms.

(ii)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 LakhsMTs. / 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

(iii)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)andthe minimum number of passengers is 3 lakhs (both incoming and outgoing)in each of the preceding two financial years.

Thus, the concern facilities are granted exemption from payment of cost recovery charges with the prospective date with no claim for the past period and no Cost Recovery charges should be outstanding. After regularization, the posts are encadred in the total staff strength of CBEC as permanent posts. Thereafter, the cost of such posts is borne by the Department.

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