CUSTOM LAWS (PRACTICAL APPROACH) VOLUME 2 2082-83

CHAPTER 16
PROVISIONS RELATING TO CUSTOMS CLEARANCE REPRESENTATIVE

96. APPOINTMENT OF CUSTOMS CLEARANCE REPRESENTATIVE:

Section Provision
96(1) Where the owner of any goods is unable to clear or export or import such
goods personally from the office, or desires to have any office-related
work be performed on their behalf, the owner may appoint a Customs.

Provided that a customs agent shall not re appoint another agent for
clearance purposes.
96(2) Where the owner of any goods is a firm, company, organized institution,
or any entity registered under the prevailing law, the director, partner,
chief executive, administrative head, or executive head of such firm,
company, institution, or entity may, through an officer-level employee of
the organization, attend the office and carry out the clearance of goods
or perform any office-related functions.

RULE 95: APPOINTMENT OF CUSTOMS CLEARING AGENT:

Rule Provision
95(1) The format of the appointment letter for appointing a Customs Clearing
Agent pursuant to Section 96 of the Act shall be as prescribed under
Schedule-27.

95(2) The owner of the goods shall provide information on the appointment of a
customs clearance representative pursuant to Sub-rule (1) by attaching the
following documents to the chief of the office of exporting or importing the
goods through such representative.
(Ka) Original copy of the appointment letter,
(Kha) The licence of the Customs Agent,
(Ga) Evidence confirming the identity of the goods owner,
(Gha) Certificate of Export-Import Code (EXIM Code),
(Nga) Certificate of registration of the firm, company,
incorporatedinstitution, or entity, and in the case of a natural
person, a Nepali citizenship certificate or national identity card.
95(3) Notwithstanding anything contained in Sub-rule (2), where the goods
owner has to re-appoint the same Customs Agent at the same Office,
documents which are not required to be renewed under this regulation
shall not be required to be re-submitted.
95(4) If it is deemed necessary to verify the authenticity of the document
submitted pursuant to Sub-rule (2), the chief of the office may demand an
original certificate.
95(5) If, while inquiring the documents submitted pursuant to Sub-rule (2), it
appears reasonable to allow the customs agent to perform customs-related
work, the Office Chief may, by keeping a record of the appointment letter,
grant permission to perform such work.
95(6) If, while conducting an inquiry pursuant to Sub-rule (5), it appears
unreasonable to allow the customs agent to perform customs-related work,
the Office Chief shall not recognize such appointment and shall inform the
concerned owner thereof in writing through the same customs agent.

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RULE 97: SELF-CLEARANCE OF GOODS BY THE GOODS OWNER:

Rule Provision
97 Even in cases where a Customs Agent has been appointed pursuant to
this Chapter, the goods owner may personally appear at the concerned
Office and carry out customs clearance of the goods or any other related
work connected with the Office.

97. AUTHORIZATION OF CUSTOMS AGENT:

Section Provision
97(1) Any Nepali citizen who intends to act as a customs agent for clearing,
exporting, importing, or performing any office-related work shall obtain
a license from the Department.
97(2) To be eligible for a license under Sub-section (1), the applicant must
satisfy the following requirements:
(Ka) A Nepali citizen of at least twenty-one years of age,

(Kha) Obtained a Bachelor’s degree or equivalent qualification from a

recognized educational institution,

(Ga) Not convicted for any criminal offense by a competent court.

97(3) For the selection of customs agent, the Department shall conduct an
examination within two years of the commencement of this Act, and
thereafter periodically conduct an examination, as required. During
such selection, preference shall be given to persons with experience in
the relevant field.
97(4) Notwithstanding anything contained in this Section, any person who
holds a customs agent license at the commencement of this Act shall,
automatically, be deemed a Customs Agent under this Act.

RULE 96: PROCEDURE FOR ISSUANCE OF CUSTOMS AGENT LICENCE:

Rule Provision
96(1) The Department may invite applications for persons desirous of
obtaining a license of customs agent pursuant to Section 97 of the Act
by publishing a twenty-one days public notice.
96(2) A person who has fulfilled the qualifications as per sub-section (2) of
section 97 of the Act, shall submit an application within the time limit
of the notice published pursuant to sub-rule (1).
96(3) The format of the application to be submitted pursuant to Sub-rule (2)
and the fee payable shall be as determined by the Department.
96(4) For the purpose of selecting Customs Agents, a written examination,
oral examination, and other methods of evaluation shall be adopted.
96(5) The Department may request any government body engaged in the
conduct of examination to conduct the examination as per Sub-section
(3) of Section 97 of the Act.
96(6) A person who has been selected pursuant to Sub-rule (4) shall, within
sixty days of receipt of the notice of selection, submit an application to
the Department for the purpose of obtaining a licence, enclosing
therewith a cash security deposit of Seven Lakh Rupees or equivalent

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bank guarantee, and proof of payment of Twenty Thousand Rupees as

licence fee deposited in revenue.
96(7) Upon receipt of the application pursuant to Sub-rule (6), the
Department shall issue the licence in the format prescribed under
Schedule-28 within thirty days.
96(8) A license shall not be issued to a person who does not submit an
application within the period as per Sub-rule (6).
96(9) A licence issued pursuant to Sub-rule (7) shall remain valid for three
fiscal years from the date of issuance.
96(10) The licensee who wishes to renew the license pursuant to Sub-rule (7)
shall, prior to the expiry of the licence period, submit an application to
the Department along with the following documents, by paying the
renewal fee of Twenty Thousand rupees before the expiry of the license
period.

(Ka) Tax Clearance Certificate

(Kha) If a customs clearance agent license has been obtained

by lodging a bank guarantee, the bank guarantee valid
until the period for which such license is renewed.
96(11) A licensee who has not been able to renew the license before the expiry
of the license period pursuant to Sub-rule (10) may renew the license
within one year from the date of expiry of the license period by paying
an additional fee of Ten Thousand rupees in addition to the fee charged
pursuant to Sub-rule (10)
96(12) Failure to renew the licence within the period prescribed under Sub-
rule (11) shall result in, ipso facto, cancellation of the licence of
Customs Agent.
96(13) Notwithstanding anything contained in Sub-rules (10) and (11), such a
person shall not be allowed to perform any work as a customs agent
during the period in which the license of a customs agent has not been
renewed.
96(14) For customs clearance or work connected with the Office, the Customs
Agent shall appear in person at the Office.
96(15) The Department or the Office may provide training on customs
clearance procedures, applied information technology, import export-
related laws, and other relevant subjects to Customs Clearing Agents,
as required.
96(16) The Department may make necessary arrangements regarding the
curriculum, conduction of examinations, training, code of conduct, and
other matters pertaining to the selection of Customs Agents, not being
contrary to the Act and these Regulations.

98. CUSTOMS AGENT DEEMED TO BE OWNER OF GOODS:

Section Provision
98 A Customs Agent appointed by the owner of any goods, under this Act or
any prevailing law relating to customs duties, for the purpose of clearing
such goods from the office or performing any office-related function shall,
for such purpose, be deemed to be the owner of such goods.

99. DUTIES AND RESPONSIBILITIES OF A CUSTOMS AGENT:

Section Provision

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99 The duties and responsibilities of a Customs Agent shall be as follows:

(Ka) Upon receiving an authority, from any exporter or

importer to clear the goods from office, declare such goods
and remove the goods after the clearance from the office
in accordance with the rules,

(Kha) Where a written notice is issued by a Customs Officer

requiring the attendance of the exporter or importer who
appointed the Customs Agent, deliver such notice to the
relevant exporter or importer,

(Ga) Assist the office in simplifying the clearance process, in

the collection of duties, and provide necessary assistance
in recovering any outstanding customs revenue,

(Gha) Comply with all applicable customs laws and regulations.

100. LIABILITY OF CUSTOMS AGENT:

Section Provision
100 A licensed Customs Agent under Section 97 who acts contrary to this Act
or prevailing laws relating to customs duties and causes loss or damage
to goods shall be liable to compensate the owner of such goods for an
amount equivalent to the loss or damage incurred.

101. SUSPENSION OR REVOCATION OF LICENSE:

Section Provision
101(1) A Customs Officer may suspend the license of a Customs Agent for a
period of one to six months under the following circumstances:
(Ka) If the agent has been punished under Section 73,

(Kha) If the agent fails to perform duties as prescribed under

Section 99,

(Ga) If the agent acts contrary to this Act or prevailing customs

law.
101(2) Where a criminal case is filed in court against any Customs Agent under
prevailing law, the license of the agent shall be automatically suspended
from the date of filing of such case.
101(3) The Director General may cancel the license of a Customs Agent under
the following circumstances:
(Ka) Where the license has been suspended three times under
Sub-section (1),
(Kha) Where the Customs Officer submits a written request to the
Director General stating that the agent obtained the license
by presenting a false educational certificate, false document
or information,
(Ga) Where the agent is found to be involved in export or import
smuggling, or any activity causing revenue leakage,
(Gha) Where the agent has been convicted of a criminal offence by
a competent court,

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(Nga) Where the agent applies to the Director General for

cancellation of their own license,
(Cha) Where the agent is physically or mentally unfit to perform
duties as a Customs Agent,
(Chha) Upon the death of the agent.
101(4) Before suspending or canceling a license under sub-section (1) or sub-
section (3)(Ka), (Kha), or (Ga), the agent shall be given an opportunity to
present his/ her defense.
101(5) A person whose license is suspended under sub-section (1) or sub-
section (2), shall not perform any functions as a Customs Agent during
the suspension period; and a person whose license is canceled under
Sub-section (3), shall not perform any functions as a Customs Agent
following cancellation.
101(6) Except in the case referred to in sub-section (3)(Cha), a person whose
license has been canceled under this Section shall not be re-eligible to
obtain a Customs Agent license.

17. DETAILS OF GOODS TO BE SUBMITTED:

Section Provision
17(1) The driver of a motor vehicle shall, before entering into the customs
area or within the twelve hours of entering into the customs area,
submit to office, or enter into the computer system, the details of such
vehicle and the details (manifest) of the goods in that vehicle.
17(2) Notwithstanding anything contained in sub-section (1), the Department
may make arrangements to allow a vehicle to enter into the customs
area only after the relevant details have been entered in the computer
system of the Office.

RULE 5: SUBMISSION OF DETAILS OF VEHICLES AND GOODS

Rule Provision
5 Pursuant to Sub-section (1) of Section 17 of the Act, the details of
vehicles and goods shall be submitted in the format prescribed under
Schedule 2 at the relevant customs office or shall be entered into the
computerized system.