Customs Brokers play a pivotal role in facilitating international trade by acting as agents for importers and exporters. To operate legally, individuals must obtain a license and adhere to specific regulations outlined by the Customs Brokers Licensing Regulations, 2018. This comprehensive guide outlines the licensing requirements, application process, examination procedures, and other essential details for aspiring Customs Brokers.
CUSTOMS BROKERS
CUSTOMS BROKERS LICENSING REGULATIONS, 2018
A Customs Brokers is licensed to act as an agent on behalf of the importer or an exporter for purposes of transaction of any business relating to the entry or departure of conveyances or the import or export of goods at any Customs Station.
- LICENSE WHERE NOT REQUIRED:
(a) An importer or exporter transacting any business at a Customs Station solely on his own account;
(b) Any employee of any person or a firm transacting business generally on behalf of such person or firm, and holding an identity card or a temporary pass issued by the Deputy Commissioner of Customs or Assistant Commissioner of Customs.
(c) An agent employed for one or more vessels or aircrafts in order solely to enter or clear such vessels or aircrafts for work incidental to his employment as such agent.
- INVITATION OF APPLICATION
The Commissioner may invite applications for the grant of such number of licences as assessed by him, to act as Customs Brokers in the month of August only every year by means of a notice published on web portal and publication in at least two leading national newspapers.
- APPLICATION FOR LICENSE:
The applicant shall fulfil following conditions:
a. He is a citizen of India;
b. He is a person of sound mind;
c. He is not adjudicated as insolvent;
d. He holds an Aadhaar number;
e. He holds a valid PAN card;
f. He has not been penalised for any offence under the Act, the Central Excise Act, 1944 (1 of 1944), the Finance Act, 1994(32 of 1994), the Central Goods and Services Act, 2017 (12 of2017) and Integrated Goods and Services Tax Act, 2017 (13 of 2017);
g. He has neither been convicted for contempt of court nor has any criminal proceedings pending against him.
h. An individual applicant or in case the applicant is a firm, its partner or in the case of company, its director or an authorised employee who may handle the Customs work shall—
(i) Be a graduate from a recognized University; and
(ii) Possess a professional degree such as Masters or equivalent degree in Accounting, Finance or Management, CA/CS/MBA/LLM/ACMA/FCMA or Diploma in Customs Clearance work from any Institutes or University recognised by the Government or is having at least two years’ experience in transacting Customs Broker work as G-Card holder;
i. The applicant has financial viability as evidenced by a certificate issued by a Scheduled Bank and shall be in possession of assets of value of not less INR 5,00,000.
j. A retired Group A officer from the Indian Revenue Service(Customs and Central Excise)having a minimum of five years’ experience in Group ‘A’ post shall also be eligible to apply for a license to act as a Customs Broker
An application for license to act as Customs Brokers in a Custom Station be made in Form A along with a fee of INR 500 and containing the name and address of the person applying
If the applicant is the firm-
- The name and the address of every partner of the firm, the firm’s name and
- the name of the partner or the duly authorised employee, who will actually be engaged in the clearance of goods or conveyances through the customs.
If the applicant is a company-
- the name of each director, manager, managing director, and
- the names of director, manager or the duly authorised employee, who will actually be engaged in the clearance of goods or conveyances through the customs.
EXAMINATION PROCESS:
> The applicant shall clear both the online written as well as oral examinations as conducted by NACIN. In case if the applicant has any license under previous laws viz, Custom House Agents Licensing Regulation, 1984, Custom House Agents Licensing Regulation, 2004 or Customs Brokers Licensing Regulations, 2013 shall not be required to appear for any further examination.
> The Written examinations would be conducted in First Quarter of calendar year whose results would be declared within 30 days from date of examination.
> The oral exams would be held in Second Quarter of the calendar year and only the candidates who have cleared written examinations would be allowed to appear in oral examinations. Result of oral examinations would be declared in the month of July.
> Applicant would have maximum of 6 attempts.
> The examination may include questions on the following:
a. Arrival entry and clearance of vessels;
b. Preparation of various kinds of bill of entry and shipping bills;
c. determination of value for assessment;
d. tariff classification and rates of duty
e. conversion of currency
f. drawback
g. offences under the Act, etc
8. GRANT OF LICENSE:
> Applicant who has passed both the examinations shall pay a fee of INR 5000 within 2 months from date of result of oral examinations.
> The department will issue license within 1 month.
> Before granting of license applicant shall enter into bond (Form D) and surety bond (Form E) and shall also furnish a bank guarantee or National Savings Certificates or fixed deposit receipts or postal security worth INR 5,00,000.
PERIOD OF VALIDITY OF A REGULAR LICENCE:
> A Regular shall be valid for lifetime until cancelled.
> However licence may be revoked in case if the licence holder is inactive for a period of 1 year.
TRANSFERABILITY:
> Every licence granted under this regulation shall not be transferable.
MEMBERSHIP OF ASSOCIATIONS:
> Each Customs Broker shall enroll himself as a member of the Customs Brokers’ Association, if there is one registered in the Customs Station.
> No Customs Broker shall enroll himself in more than one Association at a given time.
Conclusion: Navigating the Customs Brokers Licensing Regulations, 2018, is essential for individuals seeking to become licensed Customs Brokers. From fulfilling eligibility criteria to clearing examinations and obtaining a license, adherence to regulatory protocols is paramount. By understanding the intricacies of the licensing process and complying with regulatory standards, aspiring Customs Brokers can establish themselves in the industry and contribute to the facilitation of international trade. For further assistance or clarification on any aspect of the licensing process, individuals are encouraged to consult relevant authorities or professional associations.
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