Custom House Agents Licensing Regulations Amended
CBEC has amended the CHALR, 2004. The salient features of the amendments are:
i) Regulation 8(1) is amended to reduce the frequency of examination for CHAs from two times a year to once a year .
ii) After sub-regulation (8) in Regulation 8, sub-regulation (9) is inserted which reads as follows:
(9) Notwithstanding anything contained in these regulations, any person who had passed the examination conducted in regulation 9 of the Customs House Agents Licensing Regulation, 1984, and has not yet been granted license under these regulations, upon declaring successful in a written examination conducted on the following subjects, shall be deemed to have passed the examination referred to in regulation 8 for the purpose of these regulations.
(a) The Patents Act, 1970 and Indian Copyright Act, 1957;
(b) Central Excise Act, 1944;
(c) Export promotion schemes;
(d) Procedure on appeal and revision petition;
(e) Prevention of Corruption Act, 1988;
(f) Online filing of electronic Customs declarations;
(g) Narcotic Drugs and Psychotropic Substances Act, 1985; and
(h) Foreign Exchange Management Act, 1999 ;
In this regard, it may be noted that in a recent judgement of the High Court of Madras - , it was held that an examination passed under CHALR, 1984 does not entitle for a licence under CHALR, 2004 as the same cannot be treated as a vested right. The above amendment is probably an attempt to negate this High Court ruling.
(iii) In Regulation 13 relating to the obligations of a CHA, after sub-regulation (n), sub-regulation (o) is inserted which reads as follows:
(o) verify antecedent, correctness of Importer Exporter Code (IEC) Number, identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information.
Board in the Circular No. 9/2010-Cus (see below), has explained this amendment as an attempt to inculcate the Know Your Customer guidelines for CHA so that they are not used intentionally or unintentionally by importers / exporters who indulge in fraudulent activities.
(iv) In Regulation 20 relating to suspension or revocation of licence, sub-regulation (2) is amended to stipulate that Commissioner of Customs may suspend the licence within fifteen days from the date of receipt of a report from the investigating authority .
(v) After sub-regulation (2) thereof, sub-regulation (3) is inserted which reads as follows:
(3) Where a licence is suspended under sub-regulation (2), n otwithstanding the procedure specified under regulation 22, the Commissioner of Customs may, within fifteen days from the date of such suspension, give an opportunity of hearing to the Customs House Agent whose licence 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 House Agent. ”
(vi) In Regulation 22, which relates to the procedure to be followed for suspension or revocation of licence, sub-regulation (1) is amended to stipulate that the Commissioner of Customs shall issue a notice in writing to the CHA within ninety days from the date of receipt of offence report, stating the grounds on which it is proposed to suspend or revoke the licence and requires the CHA to submit his written statement of defence within thirty days .
(vii) After sub-regulation (1), a proviso is inserted which reads as follows:
Provided that the procedure prescribed in regulation 22 shall not apply in respect of the provisions contained in sub-regulation (2) to regulation 20.”
(viii) Regulation 22(5) is amended to stipulate that the Assistant/Deputy Commissioner of Customs shall prepare a report of the inquiry recording his findings and s ubmit his report within ninety days from the date of issue of a notice under Regulation 20(1). ”
(ix) Regulation 22 (6) is amended to stipulate that the time limit for submission of CHA's representation to the report prepared by the Assistant/Deputy Commissioner of Customs is reduced from sixty days to thirty days .
(x) Regulation 22 (7) is amended to stipulate that the Commissioner of Customs shall , after considering the inquiry report furnished by the Assistant/Deputy Commissioner of Customs in terms of Regulation 22(5) and after considering the representation if any made by the CHA, pass such orders as he deems fit within ninety days from the date of submission of the inquiry report .
Notification. , Dated: April 8, 2010