Do we have Customs House Agents or Brokers or None Now?
AS per the Finance Act 2013, after 10th May 2013, there are no Customs House Agents - there will be only Customs Brokers. The Customs Brokers Licensing Regulations, 2013 have just been notified and there is no Customs Broker licenced yet under the new Regulations. It is not clarified as to what would happen to the old Custom House Agents. Do they automatically become Customs Brokers or should they get new licences? But as of now, we have neither Custom House Agents nor Customs Brokers. The transactions by CHAs from 21.6.2013 seem to be illegal!
Then in DDT 2213 we said - Customs Broker's Licence Exam Notified - This is fine, but what about the Custom House Agents who existed prior to the coming in to force of the Customs Brokers regime. Are they converted into Customs Brokers or are they illegally functioning in the Custom Houses?
Be that as it may, we came across a Public Notice dated 25/11/2013 issued by the Commissioner of Customs (General), NCH, Mumbai with the following subject line - "Fast Track procedure for renewal of Customs Broker Licence-reg.".
As mentioned in the opening, this Customs Broker terminology came in to being this Union Budget, 2013 only. And as per Regulation 9(1) (Period of validity of licence), a licence granted is valid for a period of ten years.
So, the subject line to the Public Notice is a misnomer . Probably, what is suggested is that a CHA can convert himself into a Customs Broker by following the “fast track procedure” contained in the Public Notice.
The Public Notice also requires the application for renewal to be accompanied by Service Tax returns for the past 3 financial years.
Are these officers not exceeding their brief by seeking the Service Tax returns? And what are they going to do? Book cases against these CHAs for not paying ST or allege undervaluation or question the CENVAT credit availed?
The Public Notice also seeks from the CHA the Original Customs Broker Licence along with Xerox Copy of the same. It seems they wanted to refer to the original CHA licence.
We desist ourselves from commenting further on the Public Notice but let Netizens enjoy reading this line - " The payment receipt (TR 6 Challan (?) copy duly endorsed by the Cash Department) should be submitted to the Customs Broker Section which in turn will make the endorsement of renewal on the Customs Broker Section." [Is it ‘on the Customs Broker licence'?]
Public Notice dated 25.11.2013