The Central Board of Indirect Taxes and Customs in India has received concerns about the suspension of Customs Broker licenses, even when it may not be warranted. This practice can have disruptive consequences, particularly for small enterprises. Regulation 16 of the CBLR, 2018 provides the Commissioner of Customs with the power to suspend licenses in cases where immediate action is necessary and when an enquiry against the broker is pending or contemplated. However, this power should be exercised only in specific circumstances, avoiding a routine or mechanical approach. The Commissioner must also provide valid reasons for considering immediate suspension.
Conclusion: Understanding the guidelines and regulations regarding the suspension of Customs Broker licenses is crucial for maintaining fairness and minimizing disruption, especially for small enterprises. By adhering to the appropriate circumstances for suspension and recording justifiable reasons, the authorities can ensure a balanced approach.
F.No. 520/01/2023-Cus.VI
Government of India
Ministry of Finance, Department of Revenue
Central Board of Indirect Taxes and Customs
Room No. 252A, North Block, New Delhi
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Instruction No. 24/2023 | Dated: 18.07.2023
To,
All Principal Chief Commissioner/Chief Commissioner of Customs/Custom (Preventive),
All Principal Chief Commissioner/Chief Commissioner of Central Tax and Customs,
All Principal Commissioner/Commissioner of Customs /Custom (Preventive),
All Principal Commissioner/Commissioner of Central Tax and Customs.
Subject: Suspension of Licence of Customs Broker – regarding
Madam/Sir,
The undersigned is directed to say that references have been received in the Board that often the suspension of Customs Broker licence is resorted even in the cases which do not merit immediate suspension of licence. It is represented that this may be disruptive, especially in the case of small enterprises of Custom Brokers.
2. The matter has been examined. The Regulation 16 of CBLR, 2018 provides that notwithstanding anything contained in Regulation 14, the Commissioner of Customs may, in appropriate cases where immediate action is necessary, suspend the licence of a customs broker, where the enquiry against such customs broker is pending or contemplated.
3. Since the power is specified to be exercised in specified circumstances, that is, the appropriate cases where immediate action is necessary, it indicates that suspension is not visualized for application in a manner routine or mechanical or in every case. This aspect is to be kept in view by the Commissioner of Customs in the course of considering a proposal to suspend the licence of a customs broker. Before doing so, the Commissioner should also take the care also of recording his/her reasons as to why it is considered an appropriate case where immediate action of suspension is necessary.
Hindi version follows.
(Tribhuwan Yadav)
OSD, Customs VI
Email:- [email protected]
