The Federal Board of Revenue (FBR) has introduced a new rule that could have serious consequences for customs clearing agents who make false statements or are found guilty of misdeclaration. Under a newly introduced point system, FBR will cancel the licenses of agents who violate these rules. The changes were made through an amendment to the Customs Rules, 2001, and a new SRO 2071 was issued on Friday.
These new amendments are meant to ensure that customs agents comply with the regulations. By introducing a point system, the FBR hopes to make the process of monitoring violations more efficient and transparent. If agents accumulate too many points for violations, their licenses will be revoked, and they will face penalties.
New Point System for Customs Agents
The most significant change under the new rules is the introduction of a point system. This system will automatically apply penalties for any misdeclaration or false statements made by the licensee. Points will be deducted from an agent’s total points, which starts at 50 points.
How the Point System Works:
- Violation of rules: Whenever a customs agent violates the rules (like making false statements or misdeclaring goods), points will be deducted from their total.
- Zero points: If the agent’s total points drop to zero, their license will be blocked. This will trigger an automatic review process for the revocation or cancellation of their license.
For example, if an agent has 50 points and is found guilty of misdeclaration, they might lose 10 points. If they continue to violate the rules, their points could reach zero, causing their license to be blocked. At that point, a review process for cancellation or revocation will begin.
When Will a License Be Blocked or Cancelled?
A license can be blocked and proceedings for cancellation or revocation will begin under the following conditions:
- Points reduce to zero: If an agent’s total points fall to zero, their license will be automatically blocked.
- Failure to file a declaration: If the agent has not filed any goods declaration within the last one year, this will trigger an automatic review.
- Failure to appear for identification: If the agent fails to appear for identification or confirmation before the licensing authority, their license will be at risk.
How to Obtain a Customs Agent License
The FBR has also outlined a procedure for obtaining a customs agent license. Starting November 1 each year, the FBR will invite applications for new licenses through advertisements in reputable newspapers. Applicants must go through a competitive process to qualify for a license.
Qualification Test for New Applicants
To get a customs agent license, applicants will have to pass a qualification test conducted by an accredited institution. This test will assess knowledge of:
- Customs laws
- Regulations and rules
- Computer proficiency
- Familiarity with the customs computerized system
The first examination under these rules will take place after an accredited institution is hired to conduct the test. The results of this exam will decide whether the applicant is eligible for a license.
Existing Provisional License Holders
If you already hold a provisional license, you will need to appear for the qualification test as well. If you fail to appear, your provisional license will be canceled. There are two chances to pass the exam. If you fail the test twice, your license will be blocked. However, a third chance will be provided for those who fail twice.
Minimum Marks Requirement
No applicant will be granted a license unless they secure at least 50% marks in the written exam. This ensures that only qualified individuals can work as customs agents, providing a level of professionalism and competency in the industry.
| Issue | Action/Procedure | Consequences |
|---|---|---|
| Violation of rules (misdeclaration/false statements) | Points deducted automatically in the customs system. | If points drop to zero, license is blocked. |
| Failure to file goods declaration (1 year) | License review begins if no goods declaration is filed. | Possible license revocation or cancellation. |
| Failure to appear for identification | License review begins if agent does not appear for ID confirmation. | License may be canceled or revoked. |
| Obtaining a customs agent license | Pass a qualification test covering customs laws, regulations, and proficiency in computer systems. | Must score at least 50% in the exam. |
| Provisional license holders | Appear for the qualification exam. | Failure to appear results in cancellation of provisional license. |
| Two chances to pass the exam | Take the exam twice, with a third chance if necessary. | Failing the exam twice results in the provisional license being blocked. |
Summary
The new rules by the Federal Board of Revenue (FBR) aim to ensure that customs agents follow all regulations and maintain a high level of professionalism. The introduction of the point system for violations such as misdeclaration and false statements will help improve compliance and accountability in the customs clearing process. If you are a customs agent or are planning to apply for a license, it is important to understand these new rules and ensure you meet the required standards to avoid penalties, blocked licenses, or revocation.
