Page 30 - ELT_15th May 2020_VOL 372_Part 4th

COST RECOVERY CHARGES
By
CS Dr. M. Govindarajan
PRACTICING COMPANY SECRETARY

Cost Recovery charges :
Vide Circular No. 52/97, dated 17-10-1997 the Department posts
Customs Staff to ICS/CFS on collection of cost recovery charges to meet the spe-
cial needs of Customs supervision, sealing and clearance. The Government of
India has approved norms for sanction of Customs staff for ICD and CFS as
under -
• The ICDs notified under Section 7(aa) and approved for export only
will have Customs staff of 7 (Asstt. Commissioner-1; Appraiser-1;
Examining Officer-1; UDC-1; LDC-1; Sepoys-2);
• The ICDS notified under Section 7(aa) of Customs Act, 1962 and
approved both for Export and Import work will have Customs staff
of 13 (AC-1; Appraiser-be obtained for all formations ab initio.
The circular further states that the custodians, in the initial stages of op-
erations, may not need the full strength of the Officers in the cadres where more
than one officer is sanctioned like Appraiser, Examining Officer, UDC and LDC.
In such a situation, of, at the custodians request, the Commissioner of Customs
may, after due consideration post the officers less than the sanctioned strength in
the said formations though the sanction will be obtained for the full compliment.
Gradually when the business pick up at ICD, the full contingent of staff may be
posted. The Commissioner of Customs also would accept the deposit of advance
cost recovery charges for the number of staff which will be actually posted in the
said formation. Advance deposit may be made for the staff for three months.
Waiver from recovery :
Instructions F. No. 434/17/2004-Cus-IV, dated 12-9-2005 provides that
the Cost recovery charges to be paid by ICD/CFS may be waived if they fulfil the
laid down norms and are in existence for a consecutive period of two financial

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