What a customs broker (CHA) does, and the CBLR licence

A customs broker is a person or firm licensed by Indian Customs to deal with customs for importers and exporters. Traders still say CHA, short for custom house agent, the older name. Under section 146 of the Customs Act, nobody may do this work as a business at a customs station without a licence granted under the Customs Brokers Licensing Regulations, 2018 (CBLR).

You do not have to use one. An importer or exporter can register on ICEGATE and file their own bill of entry or shipping bill. Most small traders still use a broker, because a broker knows the codes, the documents and the way each port works.

• Files the bill of entry for an import or the shipping bill for an export on ICEGATE, signed digitally.
• Helps you settle the HS code, the value and the duty, and claim any exemption or lower rate you are entitled to.
• Uploads your supporting documents, answers customs' queries and attends the examination when customs selects your goods.
• Pays duty out of the funds you give for it, and accounts to you for what was paid.
• Follows the shipment through to out of charge for an import, or the Let Export Order for an export.

Inside a broker's firm, only people with a customs photo identity card may work at the customs station. Under regulation 13 of CBLR, the person who passed the licence exam holds an F card, staff who pass an exam held by the customs station hold a G card, and other approved staff hold an H card. Only F and G card holders may sign bills of entry and shipping bills.

Regulation 10 of CBLR lists a broker's duties. Several of them explain why a careful broker asks you so many questions. A broker must:

• Get your written authorisation before acting for you.
• Verify your IEC, your GSTIN, who you are and that you really work from the address you declared, using reliable, independent documents.
• Advise you to follow the Customs Act and the allied laws, and report it to customs if you do not.
• Take due care that what they tell you about clearing goods is correct.
• Keep records of every bill of entry and shipping bill for at least five years.

You apply to the Principal Commissioner or Commissioner of Customs where you want to work. Regulation 5 of CBLR sets the conditions. The main ones are:

• You are a citizen of India with an Aadhaar number and a PAN.
• You are a graduate and also hold a professional qualification, such as a master's in accounting, finance or management, CA, CS, MBA, LLM, ACMA, FCMA or a diploma in customs clearance work, or you have at least two years' experience as a G card holder.
• You have assets of at least five lakh rupees, shown by a bank certificate or other proof customs accepts.
• You have not been penalised under customs, excise or GST law, and you have no criminal conviction or pending criminal case.

A firm or company can hold a licence if at least one partner, director or authorised employee has passed the exam.

1. 1NACIN, CBIC's training academy, invites applications. The regulations say it does this in August each year.
2. 2The written exam is held online in the first quarter of the year. The syllabus in regulation 6 covers bills of entry and shipping bills, classification, valuation, currency conversion, examination, warehousing, drawback, offences and the allied laws.
3. 3Candidates who pass the written exam are called for an oral exam in the second quarter.
4. 4Once you pass both, you pay the licence fee and the Commissioner grants the licence. It is valid for ten years and can be renewed.

You get at most six attempts, and sitting the written exam counts as an attempt even if your application is later cancelled.