TIOL-DDT 2134 · Tuesday, 25 June 2013 · story 2 of 7

Comparison between the CBLR, 2013 & CHALR, 2004

Regulation

CBLR, 2013

CHALR, 2004

2

Definition

Definition

3

Customs broker to be licensed

Customs house agent to be licensed

4

Invitation of application

Invitation of application

5

Condition to be fulfilled by the applicants

Application for licence

6

Examination of the applicant

Condition to be fulfilled by the applicant

7

Grant of licence

Scrutiny of application for licence

8

Execution of bond & furnishing of security

Examination of the applicant

9

Period of validity of a licence

Grant of licence

10

Licence not transferable

Execution of bond & furnishing of security

11

Obligations of a Customs Broker

Period of validity of a licence

12

Change in directors of company, etc.

Licence not transferable

13

Change in constitution of any firm or a company

Obligation of Customs House Agent

14

Change in the constitution of a concern

Change in directors of company etc

15

Engagement of persons qualified in examination referred to in regulation 6 etc.

Change in constitution of any firm or a company

16

Inspection of accounts

Change in constitution of a concern

17

Employments of persons

Engagement of persons qualified in the examination referred to in regulation 8, etc.

18

Revocation of licence or imposition of penalty

Maintenance & inspection of accounts

19

Suspension of licence

Employment of persons

20

Procedure for revoking licence or imposing penalty

Suspension or revocation of a licence

21

Appeal by Customs broker

Prohibition

22

Penalty

Procedure for suspending or revoking licence under regulation 20

23

Prohibition

Grant of licence no right to accommodation

24

Membership of Associations

Membership of Associations

THE total regulation count remains the same.

However, some of the notable features of the new Regulations are as below -

+ Regulation 5. Conditions to be fulfilled by applicant - The conditions are to be fulfilled before writing the exam. More eligibility conditions added - importantly of the applicant being a person of sound mind, that he is not adjudicated as insolvent, that he has not been convicted by a competent court for an offence nor any criminal proceeding is pending against him in any court of law and that he has not been penalised for any offence under the Customs Act, the Central Excise Act and the Service Tax law. For the Group A officer the earlier condition of having a minimum of 10 years service in Group A has been reduced to five.

+ Regulation 8 - Execution of bond & furnishing of security - Before granting the licence under regulation 7, the Commissioner of Customs shall require the successful applicant to enter into the bond in Form D and where specified a surety bond in Form E for due observance of these regulations and furnish a bank guarantee, a postal security or National Saving Certificate in the name of Commissioner of Customs for an amount of five lakhs rupees for carrying out the business as Customs Broker. Earlier this amount stood at Rs.75,000/-.

+ 12. Change in directors of company, etc. - In case a company holding a licence under regulation 7 undergoes any change in the directors, or managing director, such change shall forthwith be communicated by such licensee to the Commissioner of Customs within one month of such change. Earlier the period was sixty days.

+ 17. Employment of persons - (1) A Customs Broker may, having regard to the volume of business transacted by him, employ any number of persons to assist him after verifying their antecedent and identity at the declared address by using reliable, independent, authentic documents, data or information: Verification of antecedents etc. of employees before appointment was not mandated earlier.

+ Regulations 19 & 20 of CHBR, 2013 - Suspension of licence and Revocation of licence dealt with separately unlike earlier Regulation 22 of CHALR, 2004. Procedure for imposition of penalty also introduced.

+ 21. Appeal by a Customs broker - Provisions for appealing before the CESTAT against any order passed by Commissioner under these regulations is introduced. Earlier, the appeal to the CESTAT could be made only against the decision/order passed under regulation 20 or sub-regulation (7) of regulation 22 and which pertained to Suspension or revocation of a licence.

+ 22. Penalty - A Customs Broker, who contravenes any provisions of these regulations or who fails to comply with any provision of these regulations shall be liable to a penalty which may extend to fifty thousand rupees. Penalty provision introduced separately. This was not there earlier.

+ No Regulation akin to earlier Regulation 23 of CHALR, 2004 - This Regulation in CHALR, 2004 laid down that grant of a licence under these regulations does not confer any right to accommodation in a Customs Station. This Regulation does not figure in the new scheme of things. Does it mean they will get accommodation?

Notification dated June, 21, 2013

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