Who is custom house agent

Which type of Exporters hires them? To shed more light on these questions, you have landed in the right place. Custom House Agents work as a Legal advisor , they suggest the correct classifications of good. Whenever custom officers raise the query then CHA resolves the same. They have all the required knowledge of the matter. We can say that the customs clearance process becomes easy with the help of CHA in trading.

CHA cannot charge more than the rates approved by the commissioner though their charges are negotiable. It is not mandatory to hire a CHA but it all depends upon the Firm or businessman. CHA must advise the client and impart correct, relevant information for the clearance of cargo or baggage. Establishing and maintaining a good relationship status with CHA can prove to be beneficial to the export businessmen.

With the change in government policies for Export Import Trade, the Scope of work for custom house agent in India is widening. The Person has to obtain a valid license issued by the commissioner of Customs under section of the Customs Act, as per Customs House. Conclusion: Not everyone enjoys the paperwork or documentation in the customs clearance process of Export Import.

There are many such other factors that raise the question not bad ones on hiring a CHA. From my perspective, it depends upon the experience and size of the business whether to hire a CHA or not for exports. Read more. Your email address will not be published.

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Shopping cart close. Enroll Now Office H. All these accounts are regularly detailed, itemized and updated. All the shipments require a clearance certificate from the custom-house before their distribution and sale. A Custom House Agent or a CHA, as defined under Regulation-2 c of the Custom House Agents Licensing Regulations, , refers to a person authorized under these regulations to operate as an agent for all the transactions for the business of import and export of goods or entry and departure of conveyances at a particular custom port or station.

As mentioned earlier, a custom house agent is an authority for any business transactions involving the import and export of goods and conveyances at the customs station or port. Since this work requires utmost efficiency and experience, CHA needs to obtain a valid license issued by the commissioner of customs under Section of the Customs Act, , as per the regulations.

Regulation-6 of the Regulations provides for educational qualifications and other requirements to apply for the CHA which is as follows:. A CHA can acquire either a temporary or permanent regular license. Regulation-5 states that the applicant must apply for the same in Form-A to the commissioner of customs within the appropriate jurisdiction. Information that the applicant has to specify differs in the following cases:.

On receiving the application, the commissioner of customs must carefully evaluate and verify it, as Regulation-7 provides. The commissioner may make inquiries essential in this respect. Only after the applicant fulfills all the conditions under regulations-5 and 6, they will be eligible to appear for the written and oral examination as stated in Regulation Once they clear the written exam, they can appear for the oral exam.

It is essential to pass both exams. A maximum period of seven years is allowable within which they have to clear the exams. The exam may include some of the following questions:.

Before the grant of a license, the applicant must enter into a bond in Form-D and a surety bond in Form-E for the due observance of all the regulations. Regulation-9 states that the commissioner must furnish the license in Form-B to the applicant on successful completion of exams, on payment of fees of Rs.

Now the applicant is a CHA and can work in any custom station across the country. They have to inform where they want to work in Form-C. Regulation states that the licence will be valid for ten years from the date of issue and renewed in accordance with the provisions in the Regulations.

Regulation states that the license may be subject to revocation by the commissioner of customs if:. CHAs assist the importers and exporters in understanding complicated procedures. These procedures include rates of duty fees and admission requirements etc.

A recent study suggests that custom work involves around forty-four percent of the time to meet the demands of drafting and processing paperwork documents. But soon, there will be a reduction by thirty-one percent in terms of both cost and time when digitization will come on the scene.

Similarly, there would be an increase of EUR billion in Europe. It is because what hampers the income is the declaration of workflow and document for both the clearing agents and consignment partners. The present paperwork documentation is not only time-consuming but also costly and often referred to as sunk costs. It highlights the need for a viable system that would enable sharing shipping documents digitally.

Such structured documentation will make trade far more convenient by making them available to the authorized parties for every consignment. Apart from that, it will enable the agents to expedite filing and processing for the shipments. Hiring a customs house agent can be a good decision.

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