Board's Clarifications to Field Formations with regard to Issue of CHA licences
CERTAIN field formations expressed their difficulties to the CBEC in issuance of CHA licences for eligible persons and also in implementing the provisions of CHALR, 2004. After consulting the field formations and holding a meeting with the Chief Commissioners of Customs having jurisdiction over major Custom Houses and an internal meeting of the Board, the following clarifications are issued:
(i) Minimum number of CHAs required in a Customs station:
The CHALR, 2004 do not provide for any restrictions on the number of CHAs. Board is of the view that no restriction should be placed on the number of CHAs operating in the Custom Houses and the market forces should govern the number of proficient and qualified persons required to carry out the job of CHA commensurate with the volume of import / export cargo.
(ii) Employment of person by a CHA:
Board has clarified that the DC/AC concerned may ensure that individuals involved in any fraudulent activity (i.e., individuals suspended or blacklisted or denied permission to work in any section of the Custom House) shall not be allowed to be employed by a CHA for transacting business with Customs.
(iii) Suspension or revocation against CHAs operating on ‘C' form intimation basis:
Board clarifies that action may be initiated against a CHA who operates under Form ‘C' intimation at other Customs stations, by the Commissioner of Customs who issued the license even for violations of CHALR by such CHAs at other Customs stations. However, 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 of the violations. When CHA licence is suspended, all ‘G' and ‘H' cards issued in r/o that licence would become non-operational.
(iv) Know Your Customs (KYC) norms for identification of clients by CHAs:
In the context of increasing number of offences involving various modus operandi such as misuse of export promotion schemes, fraudulent availment of export incentives and duty evasion by bogus IEC holders etc., Board has decided 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.
Circular No. , Dated : April 8, 2010