SHIPPING AGENTS

Shipping Agents / Ship Chandlers Licensing Rules

"Customs Agents" means as Agent licensed under these rules, for the transaction of any business relating to entrance or clearance of any conveyance or the import or export of goods or baggage in a Custom House, Station, Port or Airport.

"FORM" means a form appended to these rules;

"LICENSE" means a license granted under these rules to act as a Customs Agent.

"LICENSEE" means a Customs Agent holding a license;

"LICENSING AUTHORITY" means an officer of Customs not below the rank of Assistant Collector of Customs empowered to act as Licensing Authority under these rules.

Application: An application for a license shall be made in “Form A”, appended to these rules to the licensing authority and shall be accompanied by a Treasure Challan for Rs. 10/= (Rupees ten only) as application fee which shall in no case be refundable.

Eligibility: Every applicant, including each partner in a partnership firm or Manager of firm shall satisfy the Licensing Authority that the applicant:-

(i). is not below 21 years of age;

(ii). is of good character;

(iii). is sufficiently educated and possesses adequate knowledge of Customs laws and procedure to perform the duties of a Customs Agent; and

(iv). is of sound financial position.

Applicant to Qualify a Test:

(1) The Licensing Authority on receipt of the application may put such applicant to a written or oral examination with a view to ascertaining his knowledge of Customs laws and procedure and his fitness to render proper service to the clients and on being satisfied that all the requirements of this chapter have been fulfilled, shall grant him a license in “Form B”, appended to these rules.

(2) The Licensing Authority may reject an application for the grant of license if the applicant fails to pass the examination or is not otherwise suitable for the grant of a license.

Area of Function: A license may be for all or any specified business for any Customs House, Station, Port or Airport pertaining to the jurisdiction of a Collectorate of Customs or Customs-House and shall remain valid for three years unless renewed or earlier revoked.

Fee:

(1) The fee for grant of license shall be FIFTY thousand rupees and the fee for renewal thereof shall be One thousand rupees and the aforesaid fees shall be in addition to any other tax or fee that may be livable under any other law for the time being in force.

(2) An applicant approved for the grant of a license shall, within fifteen days of the communication to him of such approval :-

I. deposit with the Licensing Authority, as security for his faithful behavior as regards the Customs regulations and officers, the sum of Rs. 100,000.00 (Rupees One hundred thousand only) for operating in one Customs station and Rs. 500,000.00 (Rupees Five hundred thousand only), for operating, on a country wide basis, either in cash or in approved Government securities and also execute a bond in “Form C”, appended to these rules;

II. furnish a s olvent surety for a sum of Rs. 5,000.00 (Rupees Five thousand only) in “Form D”, appended to these rules;

III. deposit the fee as prescribed in Rule 95(i) of SRO 450(i)/2001dt18.6.2001;

IV. for transacting customs business, employ the necessary number of persons who shall undergo a test conducted by the Custom House, or Customs Port or as the case may be and Customs Station to ascertain their fitness to work at the Customs Port or the Customs station;

V. establish an office for conducting his business.

(3) After the issue of a license, the licensee shall, if so required by the Licensing authority, open or deposit account within the time prescribed by it and regularly operates that account.

License Not Transferable: The license shall not be transferable and no licensee shall, except with the previous approval of the Licensing Authority:

(1) In the case of an individual, take any partner in his business;

(2) In the case of a firm, bring about a change in its composition.

In case of Demise:

(1) In the case of the death of an individual licensee, the license may be reissued in the name of his legal heir who shall undergo the examination prescribed above and be otherwise found fit to hold a license.

(2) The new licensee shall execute a fresh bond and furnish a fresh surety for the purpose but the Licensing Authority may allow the transfer of the security deposit held in the name of the deceased licensee to the name of new licensee, subject to the liabilities attached to such deposit.

Maintenance of Records:-

(1) Every licensee shall maintain and preserve for a period of three years, complete records of his financial transactions relating to the licensee and of all Customs documents handled by him and copies of all correspondence, bill, accounts, statements and other papers relating to the customs business;

(2) The record specified in sub-rule (1) shall be made available for examination at any time to any officer of Customs deputed by the Licensing Authority and no licensee shall refuse access to or taking extracts there from, nor shall conceal, remove or destroy any part of any such records.

Renewal of License:-

(1) An application for the renewal of the license shall be made to the Licensing Authority two months before the expiry of the License.

(2) The Licensing Authority may call for the records specified in above for scrutiny and check.

(3) The Licensing Authority may refuse to renew the license if it finds that;

a. the licensee’s previous performance has not been satisfactory or he has not been true to the Customs Authorities or towards his clients;

b. the volume of business transacted by the licensee during the period to which the license relates is less than the minimum prescribed by the Licensing authority; or

c. the licensee’s previous record of business at the Custom House, Station, Port or Airport due to his being concerned in any Customs offence is not free from reasonable doubt;

(4) in case the license or Customs permit is lost or torn, a duplicate thereof may be granted on a written request and on payment of a fee of Rs. 5.00 (rupees five only).

Submission of Documents by Representative:-

(1) A licensee may authorize one or more persons to sign Customs documents on his behalf;

(2) Such authorization shall be in “Form E”, appended to these rules and shall be valid only when accepted by the Licensing Authority or an officer authorized by it on his behalf.

Issuance of Permits:-

(1) The licensee shall apply to the Licensing Authority in form ‘F’ appended to these rules for the grant of Customs Permit to such clerks as he employs for transacting business at the Custom House, station, port of airport;

(2) Such applications shall bear a Court-fee stamp, of the value of Rs. 13 and shall be accompanied by three passport size photographs of the clerks whom permits are applied for;

(3) The candidate for a customs permit may be put to an oral or written test or both by an officer authorized by the Licensing Authority, in regard to knowledge of the English language and of Customs law and procedure.

(4) A Customs permit may be refused to those candidates who fail to pass the written or oral test prescribed in sub-rule(3) or a re-considered otherwise unsuitable by the Licensing Authority.

(5) A Customs permit shall not be transferable and shall be issued to a person on behalf of one licensee only.

(6) A Customs permit shall be issued in “Form G”, to these rules on payment of Rs. 500.00 (Rupees five hundred only) and shall be valid for one year unless renewed or earlier revoked in accordance to these rules.

a. The licensee shall apply for the renewal of the Customs permit of his clerk at least one month before the expiry of the permit and shall pay the renewal fee of Rs. 100.00 (Rupees One hundred only).

b. The licensee shall inform the Licensing Authority immediately in case the services of any permit holder are terminated and surrender the Customs permit to the Licensing Authority for cancellation.

c. A customs permit shall be liable to be revoked or suspended at any time by the Licensing Authority for any irregularity miss behavior or any or all the reasons for which a license can be revoked or suspended.

d. The customs permit shall always be carried by the person to whom it has been issued and shall be produced before appropriate officer of Customs on demand.

e. The licensee shall be responsible for all acts of his clerk holding a customs permit;

Responsibilities of Licensee: A licensee shall:-

furnish, whenever required by the Licensing Authority, an authorization from each of the firms or persons by whom he is employed to act as their Customs Agent;
not represent a client before an Officer of Customs in any matter which the licensee dealt as an officer or employee of the Department or of the facts of which he gained knowledge while in Government service;
not appear, plead or act in any proceedings under Sections 179, 193, 194 or 196 of the Customs act’1969, for and on behalf of any person other than the person for whom he acted as licensee in relation to matters out of which the proceedings have arisen;
where he knows that a client has not complied with the law or has made any error in or omission from any documents which the law requires such client to execute, advise his client promptly of the fact of such non-compliance, error or omission and immediately bring the matter to the notice of the appropriate officer of Customs in writing.
exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any Customs business;
not withhold information relating to any Customs business form a client who is entitled to such information;
promptly pay over to Government when due, all sums received for payment of any duty, tax or other debt or obligation owing to the Government and promptly account to his clients any money received for them from Government, or received from them in excess of Governmental, or the other charges properly payable in respect of the clients Customs business;
not attempt to influence the conduct of any officer of Customs in any matter pending before the Custom House, Station, Port or Airport by the use of threat, false accusation, duress or the offer of any special inducement or promise of advantage, or of any gift or favor or other thing of value;
not procure or attempt to procure, directly or indirectly, information from Customs records or other Government sources of any kind to which access is not granted by proper authority;
not employ in any capacity, with power of attorney, by delegation of otherwise, for the promotion of or in connection with the work relating the license :-

any person whose application for license or Customs permit has been refused; or
any person whose license or permit has been revoked or whose conduct as a partner, manager, director, officer or servant has been the cause of the revocation of the license or permit;

not lend money to any officer or employee in the service of the Custom House or Customs-station or become surety for the repayment of money borrowed by any such officer or employee ; and
intimate to the Licensing Authority any change of address immediately after such change is effected.

Action in Case of Violations:

(1) The Licensing Authority may, by order, suspended or revoke a license for any of the following reasons, namely:

breach by the licensee of any provision of these rules;
negligence, dilatoriness or inefficiency of the licensee in the discharge of his obligations as such;
unsatisfactory conduct or unfaithful behavior of the licensee as regard the Custom House, Station, Port or as the case may be, Customs-airport regulations or officer or in relation to any person who has entrusted him with any business pertaining to the Customs House, Station Port or Airport;
failure of the licensee to comply with any of the bond executed by him under these rules;
punishment of the licensee under the Act;
concealing, removing or destroying by the licensee of his financial or business records or refusing to allow an officer of Customs to inspect them and take extracts there from;
attempting to influence the conduct of any employee in the Customs House, Station, Port or Airport by use of threat, false accusation, duress or the offer of any special inducement or by the bestowal of gift;
failure of the licensee to exercise due diligence and care to apprehend and forestall an untrue declaration in respect of description, content, sort, quality or value of the imported goods by his client; and
withholding by the licensee from the proper officer of Customs of any information, document or other evidence which is likely to prevent any fraud or evasion of customs-duty and other taxes or dues and the circumvention or contravention of any restrictions imposed by any law for the time being in force.

(2) While passing orders under sub-rule (1), the Licensing Authority may also direct forfeiture of the security deposited by the licensee under rule 95(2) of SRO450(i)/2001dt18.6.2001, in addition to any penalty to which he may be liable under the Act or any other law for the time being in force.

Provided that Appeal against an order made under this rule 103 of SRO450(i)/2001dt18.6.2001 shall, within three months from the date of communication of such order, lie to the collector of Customs and shall be accompanied by a certified copy of such order.

Action upon Conviction:

(1) The license shall stand revoked if the licensee or any partner of a licensed firm commits any act of insolvency or is convicted by a Court of law for any offence punishable under the Act, or for an offence involving moral turpitude or misappropriation of property or breach of trust under the Pakistan Penal Code.

(2) In the case of revocation of a license under sub-rule (1), the Licensing Authority may, after issuing show cause notice to the licensee, forfeit the whole or part of the security deposited by the licensee under rule-95(2) of SRO450(i)/2001dt18.6.2001 for the settlement of any customs-duty, penalty or any other charges due from him.

(3) The Licensing Authority may, in cases where immediate action is considered necessary against a licensee, suspend his license forthwith pending final action under rule’103 of SRO450(i)/2001dt18.6.2001.

Repayment of Security Deposits: The security deposit of a licensee shall not become repayable, as a result of revocation or surrender of his license, until after six month from the date of such revocation or surrender.

Following Rules Are Notified Vide SRO-241(I)/80 Dated 19-02-1980 for Issue of Licenses to Ship Chandlers;