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If your company’s operations involve exporting or importing products, you are aware that getting your package through customs is always a complex process. The documentation appears stressful, especially if you need more technical knowledge of the regulations. To facilitate the process, the Government of India grants a ‘Customs House Agent (CHA)’ or ‘Customs Broker’ license to persons who assist traders with all of their documentation and other customs-related duties.
Who is a Customs House Agent?
In India, a Customs House Agent (CHA) or Customs Broker is a licensed agent who assists exporters and importers with their cargo at customs stations. They function as a link between their clients and customs authorities, helping them with any cargo-related documentation. CHAs ensure that the shipment goes through customs smoothly and arrives on time.
When do you need a Customs Broker?
The best time to contact a customs broker is before you sign any international trade agreements. A knowledgeable broker is well-equipped to walk you through the entire process and organize customs clearances ahead of time.
They will advise you on which terms and conditions to include in the agreement. If you are an importer, even if you decide to attend the international facility to administer your cargo, it is usually best to keep your broker informed throughout the process.
This reduces the danger of your shipment getting into difficulties at the customs station due to a lack of documentation or other complications. Having a customs broker represent you or be by your side from the start of the contract pays off in the long run.
What does a Customs Broker, or CHA, do?
According to the Customs Act 1962, IATA regulations, and the Customs Broker Licensing Regulations of 2018, the three primary activities of a Customs Broker are:
- Vessels and carriages are processed both inside and outside.
- This means that a customs broker may handle conveyance clearance and inward and outward entry for all sorts of carriers, including ships, railway trains, and aircraft.
- Import and export of products.
- An audit of the same at any customs station that has approved the broker.
Also Read This: Emerging Trends in India’s Import-Export Sector: E-commerce and Digitalization
Do custom house agents work for the government?
Custom house agents do not work for the government. Anyone seeking to become a customs broker or CHA must first complete the relevant licensing requirements. Once received, the brokerage license is usable at all customs posts around the country. However, there’s a catch.
As a customs broker or CHA, you must obtain endorsement from the station(s) from which you wish to operate. With it, the CHA or customs broker can perform their duties.
Benefits of Using a Customs Broker
Make Informed Trading Decisions
Maintaining up with all of the legal and policy changes can be difficult, especially if you have a large organization to run. This can be prevented by engaging a CHA to represent you before the customs department. Their technical expertise ensures that your paperwork is secure as a fortress and that there are no last-minute shipment issues.
Increase Global Trade Opportunities
Countries frequently enter into trade agreements to strengthen their export-import industry. A CHA monitors all of these changing conditions and alerts you when a profitable opportunity arises. An informed, hands-on customs broker can help you make the most of such chances.
Always have steam.
Customs brokers are experts who are trained to process massive amounts of paperwork in record time because it is their primary skill. Their resource bank is quite large, and they can tap into it as necessary. You can take advantage of all of these by hiring an experienced CHA or customs broker.
Sail Smoothly Through Compliance
A customs broker, also known as a CHA, is familiar with all of the major countries’ legislation and compliance requirements. You won’t have to worry about filling out crucial papers for your shipment when you engage a qualified CHA. Your CHA walks you through all of the appropriate procedures and obtains the clearances needed to import or export the cargo.
CHAs also know about customs jargon and can be a valuable asset throughout the export/import procedure.
Wrapping It Up
No law requires an exporter or importer to hire a CHA or a customs broker. However, it is recommended that you engage one, especially if the cargo movement is vital, urgent, or involves expensive products.
FAQs
How much does a CHA charge?
When it comes to a small or regular-sized consignment, the expense of hiring a customs broker or a CHA normally ranges between INR 4,000 and 5,000.
What is the procedure of CHA?
In the process of clearing goods through customs, CHA is exclusively responsible.
What are the requirements for the CHA exam?
Diploma in Customs Clearance work from any government-recognized institute or university, with practical understanding of computers and customs procedures.
What is ‘CHA’ Full Form?
The full form of CHA is Customs House Agent.
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