CBEC to un­veil new li­cens­ing reg­u­la­tions

At the re­cently-held 10th EC meet­ing for 2015-17 of Fed­er­a­tion of Freight For­warders’ As­so­ci­a­tions in In­dia (FFFAI), the Cen­tral Board of Ex­cise and Cus­toms (CBEC) in­formed of the plan to in­tro­duce a new ver­sion of the ear­lier Cus­toms Bro­kers Li­cens­ing Re

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Laud­ing the vi­tal role played by In­dian Cus­toms Bro­kers in fa­cil­i­tat­ing In­dia’s for­eign trade Ananya Roy, Mem­ber (Cus­toms), Gov­ern­ment of In­dia, re­it­er­ated full sup­port from the gov­ern­ment for safe­guard­ing their (CBs) in­ter­est at th­ese chang­ing times. She un­der­scored the present part­ner­shiprela­tion­ship be­tween gov­ern­ment and in­dus­try stake­hold­ers. “I must com­pli­ment In­dian Cus­toms Bro­kers as well who played the crit­i­cal role be­hind the suc­cess­ful im­ple­men­ta­tion of GST on July 1, 2017,” Roy added. She also shared that gov­ern­ment of In­dia is hold­ing the An­nual Con­fer­ence of Tax Ad­min­is­tra­tors, 2017, on Septem­ber 1 and 2, where top­ics per­tain­ing to GST, Trade Fa­cil­i­ta­tion and Cus­toms Clear­ance would be dis­cussed elab­o­rately. The con­fer­ence will also be ad­dressed by Prime Min­is­ter Naren­dra Modi. Roy ad­dressed some other press­ing op­er­a­tional is­sues raised by FFFAI of­fice bear­ers and EC mem­bers.

The sce­nario is re­mark­ably dif­fer­ent from ear­lier. We are now treated as a part­ner of the gov­ern­ment in fram­ing the pol­icy I must com­pli­ment In­dian Cus­toms Bro­kers who played the crit­i­cal role be­hind the suc­cess­ful im­ple­men­ta­tion of GST on July 1, 2017

Re­spond­ing to Roy, Samir Shah, Chair­man, FFFAI com­mended the present gov­ern­ment’s ini­tia­tives on trade fa­cil­i­ta­tion through var­i­ous mea­sures. “For last three decades or so we were dis­cussing what type of cus­toms rules should guide us. Now the sce­nario is re­mark­ably dif­fer­ent from ear­lier. We are now treated as a part­ner of the gov­ern­ment in fram­ing up the pol­icy and suc­cess­ful im­ple­men­ta­tion of the same. Mu­tual re­spect is clearly vis­i­ble in ev­ery steps and de­ci­sion per­tain­ing to cus­toms clear­ance, trade fa­cil­i­ta­tion and chang­ing rules and reg­u­la­tions,” said Shah. Ashish Ped­nekar, Chair­man Elect, FFFAI, De­bashish Dutta, Im­me­di­ate Past Chair­man and Amit Ka­mat, Hon­orary Sec­re­tary, FFFAI con­veyed the same sen­ti­ment.

High­lights of Draft CBLRR

Pro­posed to be named as Cus­toms Bro­kers Li­cens­ing and Re­vo­ca­tion Reg­u­la­tions (CBLRR), 2017, the new reg­u­la­tions to ap­ply to a Cus­toms Bro­ker who has been li­censed un­der th­ese reg­u­la­tions or reg­u­la­tions pre­ced­ing thereto and also such other per­sons who have been em­ployed or en­gaged by the said Cus­toms Bro­ker un­der th­ese reg­u­la­tions or reg­u­la­tions pre­ced­ing thereto. 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.

Ac­cord­ing to the draft CBLRR, 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 at any Cus­toms Sta­tion un­less such per­son holds a li­cense granted un­der th­ese reg­u­la­tions.

The draft CBLRR stated that 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 af­ter ful­fill­ing cer­tain con­di­tions, by pub­li­ca­tion in two lead­ing na­tional daily news­pa­pers in English and Hindi in ad­di­tion to dis­sem­i­nat­ing the in­for­ma­tion on the web por­tal. The ap­pli­cant who is de­clared suc­cess­ful in the writ­ten ex­am­i­na­tion shall be called for an oral ex­am­i­na­tion on spec­i­fied dates in month of June of each year, the re­sult of which shall be de­clared in the month of July of each year. The ap­pli­cant shall be re­quired to clear writ­ten ex­am­i­na­tion as well as oral ex­am­i­na­tion.

An ap­pli­cant, who fails to clear the oral ex­am­i­na­tion within two years from date of dec­la­ra­tion of re­sult of the re­lated writ­ten ex­am­i­na­tion, shall be treated as hav­ing failed in the ex­am­i­na­tion. An ap­pli­cant shall be al­lowed a max­i­mum pe­riod of seven years from the date of orig­i­nal ap­pli­ca­tion within which he shall pass both writ­ten and oral ex­am­i­na­tions and no fur­ther ex­ten­sion shall be granted. The draft CBLRR also touched upon prob­a­ble top­ics/ques­tions of the ex­am­i­na­tion.

How­ever, 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.

The draft CBLRR also elab­o­rately dis­cussed about cri­te­ria of grant­ing a li­cense; ex­e­cu­tion of bond and fur­nish­ing se­cu­rity; pe­riod of va­lid­ity of a li­cense; obli­ga­tions of Cus­toms Bro­ker; change in con­sti­tu­tion of any firm or a com­pany; change in the con­sti­tu­tion of a con­cern; en­gage­ment or em­ploy­ment of per­sons; re­vo­ca­tion of li­cense; sus­pen­sion of li­cense; pro­ce­dure for re­vok­ing li­cense or im­pos­ing penalty; ap­peal, etc.

Samir Shah Chair­man FFFAI

Ananya Roy Mem­ber (Cus­toms) Gov­ern­ment of In­dia

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