Custom House Agents – Board issues Draft Circular – KYC for CHA
BOARD proposes to issue guidelines regarding certain issues pertaining to Customs House Agents (CHA) Licence.
(i) Minimum number of CHAs required in a Customs station:
The Board has decided against fixing a numeric criterion governing the number of CHA licences being issued. However, the Board is examining the suggestion for enhancement of the quality of services provided by CHAs in consultation with all concerned. Till a final view is taken the present provisions for inviting application for grant of CHA licences shall continue and the examination under Regulation 8 shall be conducted on an annual basis instead of twice a year, by suitably amending the sub-regulation (1) to Regulation 8.
(ii) Employment of person by a CHA:
It is reiterated that it is only those persons who have qualified themselves in the examination conducted under regulation 19(3) and who have been authorized by CHA in terms of regulation 19(5) alone are allowed to sign the declarations filed before Customs for transacting the work at any Custom station. Those persons who have not qualified in the examination but who are still in employment with CHA are being given ‘H' card for identifying the persons who may assist the CHA in his work. However, the Commissioner of Customs in a Custom House / Station shall undertake an annual review of the number of such ‘H' Cardholders with each CHA to ensure that discredited individuals are not being allowed to work as ‘H' Cardholders. The examination under Regulation 19(3) shall also be conducted by Commissionerate of Customs on annual basis.
(iii) Suspension or revocation against CHAs operating on ‘C' form intimation basis:
It is clarified that the suspension action against CHA's operations may be taken by the Commissioner of Customs at the station who issued the CHA license and such action would either be limited to a particular customs station where a violation has been noticed or action against the CHA in general, applicable at all customs stations where the CHA operates, depending upon the gravity and seriousness of the violation.
(iv) Know Your Customs ( KYC ) norms for identification of clients by CHAs :
It has been decided by the Board to put in place the “Know Your Customer ( KYC )” guidelines for CHAs so that they are not used intentionally or unintentionally by importers / exporters who indulge in fraudulent activities.
(v) Time limit for completion of suspension proceedings against CHA licensee under regulation 22
: The investigating authority shall furnish its report to the Commissioner of Customs who had issued the CHA license (Licensing authority), within thirty days of the detection of an offence. The Licensing authority shall take necessary immediate suspension action within fifteen days of the receipt of the report of the investigating authority.
(vi) CHA licenses in respect of individuals who had passed the examination under CHALR , 1984:
Board had decided that there was no generalized case for grant of CHA licences to those who have not qualified the requisite examination prescribed under the CHALR , 2004, and the concerned persons for the aforesaid reasons will have to pass the Examination under CHALR , 2004.