Customs Brokers Licensing Regulations, 2018 Notified
[Customs Notification No. 41 (Non
Tariff) dated 14th May 2018]
1. Short
title, commencement and application
2.
Definitions
3. Customs
Brokers to be licensed
4. Invitation
of application
5. Conditions
to be fulfilled by the applicants
6.
Examination of the applicant
7. Grant of
License
8. Execution
of bond and furnishing of security
9. Period of
validity of a license
10.
Obligations of Customs Broker
11. Change in
constitution of any firm or a company
12. Change in
the constitution of a concern
13.
Engagement or employment of persons
14.
Revocation of licence or imposition of penalty
15.
Prohibition
16.
Suspension of license
17. Procedure
for revoking license or imposing penalty
18. Penalty
19. Appeal
20. Membership of
associations
Form A
Application Form for Grant of Customs Brokers License under section 146 of the
Customs Act, 1962
Form B1
License for Customs Broker (L-I)
Form B2
License for Customs Broker (L-O)
Form C
Intimation by Customs Broker to work at another Customs Station
Form D BOND
No
.of 20....
Form E
SURETY BOND No.
of 20....
Form F
Identity Card
Form G
Identity Card
Form H
Identity-Cum-Authority Card
In exercise of the powers conferred by
sub-section (2) of section 146 of the Customs Act, 1962 (52 of 1962), and in
supersession of the Customs Brokers Licensing Regulations, 2013, published vide
number G.S.R. 395 (E), dated the 21st June, 2013, except as respect things
done or omitted to be done before such supersession, the Central Board of
Indirect Taxes and Customs hereby makes the following regulations, namely:-
1. Short title, commencement and
application
(1) These regulations may be called the
Customs Brokers Licensing Regulations, 2018.
(2) They shall come into force on the
date of publication in the Official Gazette.
(3) These regulations shall apply to, a
Customs Broker who has been licensed and such other persons who have been
employed or engaged by a licensed Customs Broker under these regulations or the
Customs House Agents Licensing Regulations, 1984 or the Customs House Agents
Licensing Regulations, 2004 or the Customs Brokers Licensing Regulations, 2013.
(4) Every license granted or renewed
under these regulations shall be deemed to have been granted or renewed in
favour of the licensee, and no license shall be sold or otherwise transferred.
2. Definitions
(1)In these regulations, unless the
context otherwise requires,
(a) Aadhaar number means
an identification number issued to an individual under subsection
(3) of section 3 of The Aadhaar
(Targeted Delivery of Financial and Other Subsidies, Benefits and Services)
Act, 2016 (18 of 2016);
(b) "Act" means the Customs
Act, 1962 (52 of 1962);
(c) "company" means a company
as defined in the Companies Act, 2013(18 of 2013);
(d) "Customs Broker " means a
person licensed under these regulations 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 including audit;
(e) "firm", "firm
name", "partner" and "partnership" shall have the same
meanings respectively assigned to them in the Indian Partnership Act, 1932 (9
of 1932), but the expression "partner" shall also include any person who,
being a minor, has been admitted to the benefits of partnership;
(f) "Form" means the form
appended to these regulations;
(g) F card holder means
a person who has passed the examination referred to in regulation 6 and has
been issued a photo identity card in Form F;
(h) G card holder means
a person who has passed the examination referred to in regulation 13 and has
been issued a photo identity card in Form G;
(i) H card holder means
a person who has not passed the examination referred to in regulation 13 and
has been issued a photo identity card in Form H;
(j) PAN
is the Permanent Account Number issued
under section 139A of the Income Tax Act, 1961(43 of 1961);
(k) GSTIN
means a 15 digit state-wise PAN- based Goods
and Services Tax Identification Number assigned at the time of issue of Goods
and Services Tax registration certificate.
(l) "section" means a section
of the Act.
(2) The words and expressions used
herein and not defined in these regulations but defined in the Act shall have
the same meanings respectively assigned to them in the said Act.
3. Customs Brokers to be licensed
No person shall carry on business as a
Customs Broker relating to the entry or departure of a conveyance or the import
or export of goods including work relating to auditat any Customs Station
unless such person holds a license granted under these regulations:
Provided that no license under these
regulations shall be required by-
(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, as the case may be; and
(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.
4. Invitation of application
(1) The Directorate General of
Performance Management (DGPM) shall in the month of April of every year invite
applications for conducting examination and subsequent grant of license to act
as Customs Broker in Form A by publication in two leading national daily
newspapers in English and Hindi in addition to disseminating the information on
the web portal.
(2) The application for a license to
act as a Customs Broker in a Customs Station in Form A along with a fee of five
hundred rupees shall be made to the Principal Commissioner of Customs or
Commissioner of Customs, as the case may be, having jurisdiction over the area
where the applicant intends to carry on his business.
5. Conditions to be fulfilled by the
applicants
(1) The applicant for a license to act
as a Customs
Broker in a Customs Station, shall
before applying to the Principal Commissioner of Customs or Commissioner of
Customs, meet the following conditions that: -
(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 of 2017)
and Integrated Goods and Services Tax Act, 2017 (13 of 2017);
(g) he has neither been convicted by a
competent court for an offence nor any criminal proceeding is pending against
him in any court of law;
(h) an individual applicant or in case
the applicant is a firm, its partner or in the case of a 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 oris 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 or such
other proof acceptable to the Principal Commissioner of Customs or Commissioner
of Customs, as the case may be, in terms of possession of assets of value of
not less than five lakhs rupees.
(2) 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 provided he
satisfies the conditions specified at (a), (b), (c), (d), (e), (f), (g) and
(i)of sub-regulation (1) above.
(3) The Principal Commissioner or
Commissioner of Customs, as the case may be, may for the purpose of this
regulation, make such enquiries to verify the eligibility of the applicant as
he may deem fit before forwarding the application to Directorate General of
Performance Management.
6. Examination of the applicant
(1) An applicant, who satisfies the
requirements of regulation 5, shall be required to appear for a written (preferably
online) as
well as oral examination conducted by the Directorate General of Performance
Management:
Provided that an applicant who has
already passed the examination referred to in regulation 9 of the Custom House
Agents Licensing Regulation, 1984 or regulation 8 of the Custom House Agents
Licensing Regulation, 2004 or regulation 6 of the Customs Brokers Licensing
Regulations, 2013 shall not be required to appear for any further examination.
(2) The written examination shall be
conducted on specified dates in the month of January of each year for which
intimation shall be sent individually to applicants in advance before the date
of examination and the result of the said examination shall be declared by end
of May each year.
(3) The applicant who is declared
successful in the written examination shall be called for an oral examination
on specified dates in the month of June of each year, the result of which shall
be declared in the month of July of each year.
(4) The applicant shall be required to
clear both the written examination as well as corresponding oral examination.
(5) An
attempt at the written exam shall be deemed to be an attempt and notwithstanding
the disqualification/ cancellation of application, the fact of appearance of
the applicant at the examination will count as an attempt.
(6) An
applicant shall be allowed a maximum of six attempts to clear the examination.
(7) The
examination may include questions on the following:
(a) preparation of various kinds of
bills of entry, bills of export, shipping bills, and other clearance documents;
(b) arrival entry and clearance of
vessels;
(c) tariff classification and rates of
duty;
(d) determination of value of imported
and export goods;
(e) conversion of currency;
(f) nature and description of documents
to be filed with various kinds of bills of entry, shipping bills and other
clearance documents;
(g) procedure for assessment and
payment of duty including refund of duty paid;
(h) examination of goods at Customs
Stations;
(i) prohibitions on import and export;
(j) bonding procedure and clearance
from bond;
(k) re-importation and conditions for
free re-entry;
(l) drawback and export promotion
schemes including the Special Economic Zone scheme;
(m) offences under the Act;
(n) provisions of the allied Acts
including the Central Goods and Services Act, 2017 (12 of 2017) and section 5
of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Indian
Explosives Act, 1884 (4 of 1884), the Destructive Insects and Pests Act 1914 (2
of 1914), the Dangerous Drugs Act, 1930 (2 of 1930), the Drugs and Cosmetics
Act, 1940 (23 of 1940), the Central Excise Act, 1944 (1 of 1944), the Copy
Right Act, 1957 (14 of 1957), the Trade and Merchandise Marks Act 1958 (43 of
1958), the Arms Act 1959 (54 of 1959), the Patents Act, 1970 (39 of 1970), the
Narcotics Drugs and Psychotropic Substances Act, 1985 (61 of 1985), the
Environment (Protection) Act, 1986 (29 of 1986), the Foreign Trade (Development
and Regulations) Act, 1992 (22 of 1992), the Foreign Exchange Management Act,
1999 (42 of 1999), the Design Act, 2000 (16 of 2000) and the Food Safety and
Standard Act, 2006 (No. 34 of 2006) and other laws for the time being in force
applicable to EXIM trade and the rules and regulations made under these Acts in
so far as they are relevant to clearance of goods through Customs;
(o) provisions of the Prevention of
Corruption Act, 1988 (49 of 1998);
(p) procedure for appeal and revision
applications under the Act; and
(q) online filing of electronic bills
of entry and shipping bills vide the Indian Customs and Central Excise
Electronic Commerce or Electronic data interchange gateway (ICEGATE) and Indian
Customs Electronic data Interchange System (ICES).
(r) knowledge of regulations, rules,
notifications, etc. under the Customs Act and other Allied Acts.
(8) The Principal Commissioner of
Customs or Commissioner of Customs shall satisfy himself that the individual
applicant or in cases where applicant is a firm or company, its partner or
Director or authorised employees who may be engaged for handling the customs
work shall possess satisfactory knowledge of English and the local language of
the Customs Station:
Provided that in case of a person
deputed to work extensively in the docks, knowledge of English shall not be
compulsory and knowledge of Hindi shall be considered as desirable
qualification.
7. Grant of License
(1) The applicant who has passed the
written as well asoral examination shall make a payment of a fee of five
thousand rupees within two months of the declaration of the results of the oral
examination and inform the payment particulars to the Principal Commissioner or
Commissioner of Customs referred to in sub-regulation (2) of regulation 4 and
the said Principal Commissioner or Commissioner shall, on verification of the
payment particulars grant license to the applicant within one month of the
payment of the said fee:
Provided that where the successful
applicant fails to make the payment of the said fee within the stipulated
period, the right to be granted a license to an applicant shall be forfeited.
(2) The applicant who has paid the fee
referred to in sub-regulation (1)
shall be granted a license by the
Principal Commissioner or Commissioner of Customs, as below:-
(a) An individual shall be granted the
license in FormB1 if that individual has passed the examination referred to in
regulation 6.
(b) A customs brokers
license may be granted to any company, firm or association in FormB2 if at
least one director, partner, or an authorised employee, as the case may be, has
passed the examination referred to in regulation 6:
Provided that at any given time such
director, partner or an authorised employee shall not engage himself for
transacting business under these regulations on behalf of more than one such
firm or company:
Provided further that where a company
or a firm which has been granted a license under this regulation undergoes any
change in the directors, or managing director or partner, such change shall
forthwith be communicated by such licensee to the Principal Commissioner of
Customs or Commissioner of Customs, as the case may be, within one month of
such change:
Provided also that where a company or a
firm which has been granted a license under this regulation undergoes any
change whereby there is a change in the PAN, the licensee shall apply for a
fresh license to the Principal Commissioner of Customs or Commissioner of
Customs, as the case may be, within sixty days of such change.
(3) The applicant who has been granted
license under sub- regulation (2) shall be eligible to work as Customs Broker
in all Customs Stations subject to intimation in Form C to the Principal
Commissioner or Commissioner of Customs of the Customs Station where he intends
to transact business and a copy of this intimation shall also be sent to the
Principal Commissioner or Commissioner of Customs who has issued the license in
Form B1 or FormB2, as the case may be.
(4) A customs broker shall be eligible
to transact business under these regulations at a customs station which
requires intimation under the said Form C, subject to the condition that such
customs broker shall be able to transact such business only after a period of
two years from the date of issue of license in Form B1 or FormB2:
Provided that the said period of two
years shall be waived in respect of a license issued to a customs broker under
the respective provisions of the Customs House Agents Licensing Regulations,
1984 or the Customs House Agents Licensing Regulations, 2004 or the Customs
Brokers Licensing Regulations, 2013:
Provided further that the period of two
years referred to in sub-regulation (4)
shall not be applicable where the
intimation under the said Form C is to the Principal Commissioner or the
Commissioner of Customs, as the case may be, referred to in sub-regulation (2) of
regulation 4.
8. Execution of bond and furnishing of
security
(1) Before granting the license under
regulation 7, the Principal Commissioner or Commissioner of Customs shall
require the successful applicant to enter into a bond in Form D and where
specified a surety bond in Form E for due observance of these regulations and
furnish a bank guarantee, ora postal security or National Saving Certificate or
a fixed deposit receipt issued by a nationalised bank, in the name of the
Principal Commissioner of Customs or Commissioner of Customs, as the case may
be, for an amount of five lakhs rupees for carrying out the business as a
Customs Broker.
(2) In cases where a postal security or
National Saving Certificate or a fixed deposit receipt is furnished, the
benefit of interest on the instrument shall accrue to the Customs Broker
concerned.
9. Period of validity of a license
(1) A license granted under regulation
7 shall be valid for a period of ten years from the date of issue and shall be
renewed from time to time in accordance with the procedure specified in
sub-regulation (2):
Provided that the renewal procedure and
fees for licenses issued under the Customs House Agents Licensing Regulations,
1984 or the Customs House Agents Licensing Regulations, 2004 or the Customs
Brokers Licensing Regulations, 2013 shall be in accordance with the procedure
specified in sub-regulation (2) and fees specified in sub-regulation (3)
respectively:
Provided further that a license granted
to a Customs Broker, authorised under the Authorised Economic Operator
Programme referred to in Board's Circular No. 28/2012-Customs dated 16.11.2012
or 33/2016-Customs dated 22.7.16, shall not require renewal till such time the
said authorisation is valid.
(2) Subject to the provisions of
regulation 7, the Principal Commissioner of Commissioner of Customs may, on an
application made by the licensee before the expiry of the validity of the
license under sub-regulation (1), renew the license for a further period of ten
years from the date of expiration, if the performance of the licensee is found
to be satisfactory with reference, inter alia, to the obligations specified
in this regulation including the absence of instances of any complaints of
misconduct within one month of the date of receipt of application.
Provided that where the Customs Broker
fails to submit the application for renewal before the expiry of the validity
of the license, the Principal Commissioner or Commissioner of Customs may after
satisfying himself to the genuineness of the reasons of delay, renew the
license upon payment of two thousand rupees as late fee by the Customs broker
in addition to the fee for renewal within one month of the date of receipt of
application.
(3) The
fee for renewal of the license shall be fifteen thousand rupees.
10. Obligations of Customs Broker
A Customs Broker shall
(a) obtain an authorisation from each
of the companies, firms or individuals by whom he is for the time being
employed as a Customs Broker and produce such authorisation whenever required
by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as
the case may be;
(b) transact business in the Customs
Station either personally or through an authorised employee duly approved by
the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the
case may be;
(c) not represent a client in any
matter to which the Customs Broker, as a former employee of the Central Board
of Indirect taxes and Customs gave personal consideration, or as to the facts
of which he gained knowledge, while in Government service;
(d) advise his client to comply with
the provisions of the Act, other allied Acts and the rules and regulations
thereof, and in case of non-compliance, shall bring the matter to the notice of
the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the
case may be;
(e) exercise due diligence to ascertain
the correctness of any information which he imparts to a client with reference
to any work related to clearance of cargo or baggage;
(f) not withhold information contained
in any order, instruction or public notice relating to clearance of cargo or
baggage issued by the Customs authorities, as the case may be, from a client
who is entitled to such information;
(g) promptly pay over to the
Government, when due, sums received for payment of any duty, tax or other debt
or obligations owing to the Government and promptly account to his client for
funds received for him from the Government or received from him in excess of
Governmental or other charges payable in respect of cargo or baggage on behalf
of the client;
(h) not procure or attempt to procure
directly or indirectly, information from the Government records or other
Government sources of any kind to which access is not granted by the proper
officer;
(i) not attempt to influence the
conduct of any official of the Customs Station in any matter pending before such
official or his subordinates by the use of threat, false accusation, duress or
the offer of any special inducement or promise of advantage or by the bestowing
of any gift or favour or other thing of value;
(j) not refuse access to, conceal,
remove or destroy the whole or any part of any book, paper or other record,
relating to his transactions as a Customs Broker which is sought or may be
sought by the Principal Commissioner of Customs or Commissioner of Customs, as
the case may be;
(k) maintain up to date records such as
bill of entry, shipping bill, transhipment application, etc., all
correspondence, other papers relating to his business as Customs Broker and
accounts including financial transactions in an orderly and itemised manner as
may be specified by the Principal Commissioner of Customs or Commissioner of
Customs or the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be;
(l) immediately report the loss of
license granted to him to the Principal Commissioner of Customs or Commissioner
of Customs, as the case may be;
(m) discharge his duties as a Customs
Broker with utmost speed and efficiency and without any delay;
(n) verify correctness of Importer
Exporter Code (IEC) number, Goods and Services Tax Identification Number
(GSTIN),identity of his client and functioning of his client at the declared
address by using reliable, independent, authentic documents, data or
information;
(o) inform any change of postal
address, telephone number, e-mail etc. to the Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be, of all Customs Stations
including the concerned Deputy Commissioner or Assistant Commissioner of the
Commissionerate who has granted the license immediately within two days;
(p) maintain all records and accounts
that are required to be maintained under these regulations and preserve for at
least five years and all such records and accounts shall be made available at
any time for the inspection of officers authorised for this purpose; and
(q) co-operate
with the Customs authorities and shall join investigations promptly in the
event of an inquiry against them or their employees.
11. Change in constitution of any firm
or a company
(1) In the case of any firm or a company,
granted a license under these regulations, any change in the constitution which
makes the holding of such license invalid in view of the conditions specified
in clause (b) of sub-regulation (2) of regulation 7 notwithstanding the
continued engagement or employment of the person who has passed the examination
referred to in regulation 6, then such change shall be reported by such firm or
company, as the case may be, to the Principal Commissioner or Commissioner of
Customs forthwith, and any such firm or a company undergoing such change shall
make a fresh application to the said Principal Commissioner or Commissioner of
Customs within a period of sixty days from the date of such change for the
grant of license under regulation 7, and the Principal Commissioner or
Commissioner of Customs may, if there is nothing adverse against such firm or
company, as the case may be, grant a fresh license.
(2) The firm or company making an
application as referred to in sub-regulation (1) above shall be similarly subject
to condition referred to in clause (b) of sub-regulation (2) of regulation 7:
Provided that if the licensee firm or
company moves an application for such changes, then such firm or company may be
allowed to carry on business of Customs Broker with the approval of the
Principal Commissioner of Customs or Commissioner of Customs, as the case may
be, till such time a decision is taken on the fresh application of such firm or
company.
(3) Notwithstanding anything contained
in sub-regulation (1), in case of any firm or a company where a license has
ceased to be in force because of the death or retirement of any partner or
director or an authorised employee, who has passed the examination referred to
in regulation 6, the firm or the company may apply for replacement of the name
of the demised person by the name of another partner, director or authorised
employee who has passed the examination referred to in regulation 6:
Provided that if there is no such
person in the firm or company, then such firm or company, as the case may be,
may authorise any other partner, director or authorised employee who is a G
card holder, referred to in sub-regulation (5) of regulation 13, to pass the
examination referred to in regulation 6 within a period of two years from the
date of the demise or retirement of such person, and the firm or company may be
permitted to carry on the business of a Customs Broker with the approval of the
Principal Commissioner of Customs or Commissioner of Customs, as the case may
be till such time such partner, director or authorized employee passes the said
examination.
Provided that where the G-card holder
of the firm or company or association has appeared in the written examination
referred to in regulation 6 within the said two years, then notwithstanding the
expiry of the said two years, the time period to clear the examination shall be
deemed to be extended till the declaration of the result of the examination.
12. Change in the constitution of a
concern
(1) Where a license granted or renewed
under these regulations in favour of a person, not being a firm or a company,
changes constitution of his concern to a firm or a company, such new firm or
new company may, pending the grant of a license in accordance with these
regulations, be permitted to act as Customs Broker through an employee duly
qualified as per regulation 6, with the approval of the Principal Commissioner
of Customs or Commissioner of Customs, as the case may be.
(2) Notwithstanding anything contained
in sub-regulation (1), where a license granted or renewed under these
regulations in favour of a person which has ceased to be in force because of
the death of that person, his legal heir, who is a major and a G card holder,
referred to in sub-regulation (5) of regulation 13, may be permitted to work as
a Customs Broker with the approval of the Principal Commissioner of Customs or
Commissioner of Customs, as the case may be, and such legal heir shall be
required to pass the examination referred to in regulation 6 within a period of
two years from the date of demise of the original licensee:
Provided that where the G-card
holder of the firm or company or association has appeared in the written
examination referred to in regulation 6 within the said two years, then
notwithstanding the expiry of the said two years, the time period to clear the
examination shall be deemed to be extended till the declaration of the result
of the examination:
Provided further that where such G card
holder does not meet the requisite educational qualification as specified in
regulation 5, then relaxation shall be allowed only if he has been holding the
G card for a minimum of five years prior to the date of demise of the original
licensee.
13. Engagement or employment of persons
(1) A person who has qualified the
examination referred to in regulation 6 may engage himself in the work relating
to the clearance of goods through customs on behalf of a firm or a company
licensed under these regulations.
(2) A Customs broker who has been
issued a license under sub-regulation (2) of regulation 7 shall be issued a
photo-identity card in Form F by the Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be:
Provided that in the case of the
license issued under clause (b) of sub-regulation (2) of regulation 7, the
photo-identity card in Form F shall be issued to the person or persons who has
actually passed the examination referred to in regulation 6.
(3) A Customs Broker may, having regard
to the volume of business transacted by him, employ any number of persons other
than an F card holder to assist him after verifying their antecedents and
identity at the declared address by using reliable, independent, authentic
documents, data or information:
Provided that such an employed person
shall possess the Aadhaar number issued to him and that the minimum educational
qualification of such persons so employed shall be 10+2, or equivalent.
(4) Employment of a person referred to
in sub-regulation (3) shall be made only after obtaining the approval of the
Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the
case may be, who shall in granting approval, take into consideration the
antecedents and any other information pertaining to the character of such
person.
(5) The person referred to in
sub-regulation (3) shall, within four attempts from the date of his
appointment, pass a written examination conducted by the said Deputy
Commissioner of Customs or Assistant Commissioner of Customs, as the case may
be, and the examination shall be such as to ascertain the adequacy of knowledge
of such person regarding the provisions of the Act subject to which goods and
baggage are cleared through Customs and the person shall, on passing the
examination, be issued a photo-identity card in Form G by the Deputy
Commissioner of Customs or Assistant Commissioner of Customs, as the case may
be.
(6) Notwithstanding anything contained
in sub-regulation (5), a G card holder who is employed under a Customs Broker
may, on his employment under any other Customs Broker, with the approval or no
objection of the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, be exempted from passing of such examination.
(7) A Customs Broker shall authorise
only such employee who has been issued a photo identity card in Form F or Form
G as the case may be to sign the declaration on the bills of entry, shipping
bills, annexure thereof or any other document generated in connection with the
proceedings under the Act or the rules or regulations made thereunder.
(8) Where the Customs Broker has
authorised any person employed by him in accordance with sub-regulation (7) to
sign documents relating to his business on his behalf, he shall file with the
Deputy Commissioner of Customs or Assistant Commissioner of Customs of each Customs
Station, as the case may be, a written authority in this behalf and give prompt
notice in writing if such authorisation is modified or withdrawn.
(9) The Deputy Commissioner of Customs
or Assistant Commissioner of Customs, as the case may be, shall issue a
photo-identity card to every person employed by a Customs Broker in Form H in
case he has not passed the examination referred to in sub-regulation (4) for a
period of five years:
Provided that the minimum educational
qualification of such a person shall be 10+2.
(10) Any person who has been issued a
photo identity card under this regulation shall, at all times when he transacts
the work at the Customs Station, carry photo identity card with him and produce
it for inspection on demand by any officer of the Customs Station.
(11) Any change in the persons issued a
F card or G card or H card and actually engaged in the work in the Customs
Station on behalf of a licensee firm or company shall be communicated forthwith
by the firm or the company, as the case may be, to the Deputy Commissioner of
Customs or Assistant Commissioner of Customs, and no new person other than 'F',
'G' or 'H' card holders, shall be allowed to work in the Customs Station as a
duly authorised employee on behalf of that firm or company.
(12) The Customs Broker shall exercise
such supervision as may be necessary to ensure proper conduct of his employees
in the transaction of business and he shall be held responsible for all acts or
omissions of his employees during their employment.
14. Revocation of licence or imposition
of penalty
The Principal Commissioner or
Commissioner of Customs may, subject to the provisions of regulation 17, revoke
the license of a Customs Broker and order for forfeiture of part or whole of
security, on any of the following grounds, namely: -
(a) failure to comply with any of the
conditions of the bond executed by him under regulation 8;
(b) failure to comply with any of the
provisions of these regulations, within his jurisdiction or anywhere else;
(c) commits any misconduct, whether
within his jurisdiction or anywhere else which in the opinion of the Principal
Commissioner or Commissioner of Customs renders him unfit to transact any
business in the Customs Station;
(d) adjudicated as an insolvent;
(e) of unsound mind; and
(f) convicted by a competent court for
an offence involving moral turpitude or otherwise.
15. Prohibition
Notwithstanding anything contained in
these regulations, the Principal Commissioner or Commissioner of Customs other
than those referred to in regulation 7 may prohibit any Customs Broker from
working in one or more sections of the Customs Station, if he is satisfied that
such Customs Broker has not fulfilled his obligations as laid down under
regulation 10 in relation to work in that section or sections:
Provided that the period for which any
Customs Broker may be prohibited from transacting business in one or more of
the Customs Stations shall not exceed one month from the date of such
prohibition:
Provided further that where the license
of the Customs broker is suspended as a consequence to prohibition, the time
period specified in regulation 16, shall be reckoned from the date of such
suspension.
16. Suspension of license
(1) Notwithstanding anything contained
in regulation 14, the Principal Commissioner or Commissioner of Customs may, in
appropriate cases where immediate action is necessary, suspend the license of a
Customs Broker where an enquiry against such Customs Broker is pending or
contemplated:
Provided that where the Principal Commissioner
or Commissioner of Customs may deem fit for reasons to be recorded in writing,
he may suspend the license for a specified number of Customs Stations.
(2) Where a license is suspended under
sub-regulation (1), the Principal Commissioner of Customs or Commissioner of
Customs, as the case may be, shall, within fifteen days from the date of such
suspension, give an opportunity of hearing to the Customs Broker whose license
is suspended and may pass such order as he deems fit either revoking the suspension
or continuing it, as the case may be, within fifteen days from the date of
hearing granted to the Customs Broker:
Provided that in case the Principal
Commissioner of Customs or Commissioner of Customs, as the case may be, passes
an order for continuing the suspension, further procedure thereafter shall be
as provided in regulation 17.
17. Procedure for revoking license or
imposing penalty
(1) The Principal Commissioner or
Commissioner of Customs shall issue a notice in writing to the Customs Broker
within a period of ninety days from the date of receipt of an offence report,
stating the grounds on which it is proposed to revoke the license or impose
penalty requiring the said Customs Broker to submit within thirty days to the
Deputy Commissioner of Customs or Assistant Commissioner of Customs nominated
by him, a written statement of defense and also to specify in the said
statement whether the Customs Broker desires to be heard in person by the said
Deputy Commissioner of Customs or Assistant Commissioner of Customs.
(2) The Commissioner of Customs may, on
receipt of the written statement from the Customs Broker, or where no such
statement has been received within the time-limit specified in the notice
referred to in sub-regulation (1), direct the Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be, to inquire into the
grounds which are not admitted by the Customs Broker.
(3) The Deputy Commissioner of Customs
or Assistant Commissioner of Customs, as the case may be, shall, in the course
of inquiry, consider such documentary evidence and take such oral evidence as
may be relevant or material to the inquiry in regard to the grounds forming the
basis of the proceedings, and he may also put any question to any person tendering
evidence for or against the Customs Broker, for the purpose of ascertaining the
correct position.
(4) The Customs Broker shall be
entitled to cross-examine the persons examined in support of the grounds
forming the basis of the proceedings, and where the Deputy Commissioner of
Customs or Assistant Commissioner of Customs declines permission to examine any
person on the grounds that his evidence is not relevant or material, he shall
record his reasons in writing for so doing.
(5) At the conclusion of the inquiry,
the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the
case may be, shall prepare a report of the inquiry and after recording his
findings thereon submit the report within a period of ninety days from the date
of issue of a notice under sub-regulation (1).
(6) The Principal Commissioner or
Commissioner of Customs shall furnish to the Customs Broker a copy of the
report of the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, and shall require the Customs Broker to submit,
within the specified period not being less than thirty days, any representation
that he may wish to make against the said report.
(7) The Principal Commissioner or
Commissioner of Customs shall, after considering the report of the inquiry and
the representation thereon, if any, made by the Customs Broker, pass such
orders as he deems fit either revoking the suspension of the license or
revoking the license of the Customs Broker within ninety days from the date of
submission of the report by the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, under sub-regulation (5):
Provided that no order for revoking the
license shall be passed unless an opportunity is given to the Customs Broker to
be heard in person by the Principal Commissioner of Customs or Commissioner of
Customs, as the case may be.
(8) Where in the proceedings under
these regulations, the Principal Commissioner of Customs or Commissioner of
Customs, as the case may be, comes to a conclusion that the F card holder is
guilty of grounds specified in regulation 14 or incapacitated in the meaning of
the said regulation, then the Principal Commissioner of Customs or Commissioner
of Customs may pass an order imposing penalty as provided in regulation 18:
Provided that where an order is passed
against an F card holder, he shall surrender the photo identity card issued in
Form F forthwith to the Deputy Commissioner of Customs or Assistant
Commissioner of Customs.
(9) Where in an offence report, charges
have been framed against an F card holder in addition to the Customs Broker who
has been issued a license under regulation 7, then procedure prescribed in
regulations 16 and 17 shall be followed mutatis mutandis in so far as
the prescribed procedure is relevant to the F card holder:
Provided that where any action is
contemplated against a G card holder alone under these regulations, then
instead of authority referred to in sub-regulation (8), a Deputy Commissioner
or Assistant Commissioner rank officer shall pass such order as mentioned in
the said sub-regulation along with debarring such G card holder from
transacting the business under these regulations for a period of six months
from such order.
Provided further that where an order is
passed against a G card holder, then he shall surrender the photo identity card
issued in Form G forthwith to the Deputy Commissioner of Customs or Assistant
Commissioner of Customs.
Explanation.-Offence report for the purposes of this
regulation means a summary of investigation and prima facie framing of charges
into the allegation of acts of commission or omission of the Customs Broker or
a F card holder or a G card holder, as the case may be, under these regulations
thereunder which would render him unfit to transact business under these
regulations.
18. Penalty
(1) The Principal Commissioner or
Commissioner of Customs may impose penalty not exceeding fifty thousand rupees
on a Customs Broker or F card holder who contravenes any provisions of these
regulations or who fails to comply with any provision of these regulations.
(2) The Deputy Commissioner or an
Assistant Commissioner of Customs may impose penalty not exceeding ten thousand
rupees on a G card holder who contravenes any provisions of these regulations
in connection with the proceedings against the Customs Broker.
(3) The imposition of penalty or any
action taken under these regulations shall be without prejudice to the action
that may be taken against the Customs Broker or F card holder or G card holder
under the provisions of the Customs Act, 1962 (52 of 1962) or any other law for
the time being in force.
19. Appeal
A Customs Broker or F card holder, who
is aggrieved by any order passed by the Principal Commissioner of Customs or
Commissioner of Customs, as the case may be, under regulation 16 or regulation
17, may prefer an appeal under section 129A of the Act to the Customs, Central
Excise and Service Tax Appellate Tribunal established under sub-section (1) of
section 129 of the Act:
Provided that a G card holder aggrieved
by any order passed by the Deputy Commissioner or Assistant Commissioner of
Customs under these regulations may prefer an appeal under section 128 of the
Act to the Commissioner of Customs(Appeals) against the orders of the Deputy
Commissioner or Assistant Commissioner of Customs, as the case may be, who
shall proceed to decide the appeal expeditiously within two months of the
filing of the appeal.
20. Membership
of associations
(1) Each Customs Broker shall enroll
himself as a member of the Customs Brokers
Association, if there is one registered
in the Customs Station under the Parent Customs Zone and recognised by the
Principal Commissioner of Customs or Commissioner of Customs, as the case may
be.
(2) No Customs Broker shall enroll
himself in more than one Association at a given time.
(3) The Principal Commissioner of
Customs or Commissioner of Customs, as the case may be, at any Customs Station,
may recognise more than one Customs Broker association provided that the
minimum number of members of each such association shall not be less than
thirty percent of the total licenses issued in FormB1 or FormB2 or intimation
received in the Form C.