Customs Brokers Licence - Double Security?
IN a recent meeting of the Cochin Custom House, the Cochin Customs Broker's Association requested the Commissioner to exempt submission of the Security Deposit of Rs.75,000 at the time of submission of renewal application. He stated that, after completion of all scrutiny and verification by the Department, before the formal renewal of CHA License by the Commissioner, the CHA may be permitted to submit the same. He explained that, in cases of renewal, already a Security Deposit of Rs.75,000 is pending with the Department and as the processing of the renewal application requires two-three months, in the present scenario - double the required amount will be blocked with the Department.
The Commissioner stated that the submission of Bank Guarantee / Demand draft for the prescribed amount along with the application for renewal is a pre-requisite. However, if the existing Bank Guarantee / Demand draft is valid for a reasonable period beyond the renewal time, the Department does not insist for BGs/DDs afresh. He also stated that in all normal cases wherein the documents submitted along with renewal application are proper, all efforts are being taken to grant the renewal within a week's time.