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FBR tightens rules for shipping agents and imposes conditions for renewal of licenses

FBR tightens rules for shipping agents and imposes conditions for renewal of licenses

MULTAN: The Federal Board of Revenue (FBR) has further tightened the rules for shipping agents and imposed some significant conditions for renewal of licenses.

The Federal Board of Revenue has imposed a new condition on the renewal of licenses of shipping agents. The condition requires shipment agents to provide an affidavit declaring that the applicant has not faced any criminal proceedings from any court in the last ten years from the date of application.

The FBR has further tightened the rules for shipping agents and imposed some significant conditions in this regarding.

The FBR has issued further amendments in the Customs Rules through Chapter XXVI. An additional condition has been introduced stating that if the license has remained valid for the last ten years and no criminal proceedings have been initiated or pending against the licensee, the license may be renewed for a period of five years.

There will be also a condition that an affidavit to be presented that no conviction has taken place from a court of law or tribunal against the licensee or any of the partners. The new also suggested that all information about total number of transactions of shipping activity, details of shipments made and proof of fulfilment of criteria and conduct of customs business as prescribed by the Collector.

Another condition has been inserted that “A fee of Rupees 5,000 may be charged by the Directorate General as examination fee” the expression “Each applicant shall deposit a course fee of Rs5,000 for examination related expenses in the respective account of the Directorate General of Training and Research (Customs) and its Regional Directorates.

The rules also say that the applicant must proof of payment of renewal fee which shall be Rs.2,000 for renewal of license for two years, Rs.3,000 for renewal of license for three years, Rs.4,000 for renewal of license for four years and Rs.5,000 for renewal of license for five years. In case of any additional charges other than freight, the licensee shall collect them only if mentioned in notified or published tariff of the shipping agent or carrier and is made available to the client or as specifically written on the bill of lading, airway bill or bill of freight, the rules say.

Another condition says, if mutually agreed between shipper and shipping line, detention tariff per container per day including free days shall be mentioned on the bill of lading, airway bill and bill of freight, otherwise detention shall be applicable and charged as per local published tariff of the shipping agent or carrier which is made available to the client.In case of violation in respect of any additional charges other than freight not mutually agreed by shipper and shipping line that are not mentioned in publicly notified or published tariff of the shipping agent or carrier and are not made available to the client or are not specifically written on the bill of lading, airway bill or bill of freight, punitive action envisaged in the Act and these rules shall be initiated against the delinquent licensee following the due process of law, suggested in the new rules.

They also say that in case of violation in terms of detention charges after lapse of exact free days not mutually agreed by shipper and shipping line that are not mentioned in publicly notified or published tariff of the shipping agent or carrier and are not made available to the client or are not specifically written on bill of lading, airway bill or bill of freight, punitive action as envisaged in the Act and these rules shall be initiated against the delinquent licensee through process of law.

The licensee shall make arrangements for performing transactions which do not require payment of security deposit and only require payment of security deposit when absolutely necessary. The changeable amount of security deposit shall be reasonable and the licensee shall refund the security deposit within fifteen working days after satisfying their accounts. In case of any delay in refund of security deposit beyond the terminal period, punitive action shall be initiated as per law, the rules suggested.