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Customs brokers on moving grounds
?Necessary ability.? While, on 31st July, the Finance Bill was being voted (with amendments), MP Mokshanand Dowarkasing (MSM) was considering issues related to the mo-dified Customs Act. Coming to section 119, he pointed out a significant change: with the amendments introduced in 2004 by the Mauritius Revenue Authority (MRA) Act, only full-fledged customs brokers would be authorised to process and sign customs declaration even for freight forwarders. Now things have been redefined. ?Section 2 of the Act is amended (?) today by inserting the words ?necessary ability?. In other words, instead of restricting the duties of clearing and forwarding to brokers only, anybody that could demonstrate his aptitude to do the job would fit.
The Member of Parliament (MP) was thus raising the question whether this amendment had defeated the purpose of introdu-cing the category of licensed brokers ?and bringing back to the situation prevailing before the MRA Act?, implying that ?the situation may become chaotic at the customs?. This fear reflects some of the preoccupations of customs brokers, who had waited for years for a more precise legal framework. ?I have been working as a broker for nearly two decades. It was a great surprise in 2006 to witness the recognition of this activity as a separate entity?, comments one of them, who has asked to remain anonymous.
His relative disappointment is as great now. ?We must see what they mean by the term ?necessary ability?. But to perform this job pro-perly is something within reach of everyone.? In 2006, only recognized brokers, through specific training and exams, could qualify for the job. A training school, the Mauritius Freight Academy, run by the current president of the Customs House Brokers? Association (CHBA), Afzal Delbar, from Silverline services, was set up.
Though we have not been able to contact Afzal Delbar, a quote from his message on the CHBA website sets the goals of this training school : ?Customs house brokers are an important link in the business activities of the economy and contribute substantially to the promotion and development of trade. It is against this background that the need for proper and adequate training arises.?
<B>Need for competent staff</B>
If one interprets the 2006 framework, licensed customs brokers would give advice to customers directed to them by the marketing departments of forwarding or freight agents. Specialization would be the key word. ?To be efficient in dealing with say secondhand import, you must have a good deal of knowledge?, points the customs broker.
?Then, how did it work before that frame was introduced??, reacts Robert Hungley, the president of the Clearing and Forwarding Agents Association and manager of Somatrans, one of the main companies in the sector. ?The reason of the amendment is purely practical. With all the operations they perform, including clearing, declaration, cargo consolidation, import and export, such companies have to rely on serviceable staff inside their structure. We have at our disposal competent staff who just need to be regularly trained too.?
The general feeling is that clearing and forwarding agents would be ?at the mercy? of customs brokers as they would not be able to do the needful by themselves. And to benefit from the necessary adjustments acquired through training whenever new technologies or procedures come in. ?Things are already evolving too slowly in that sector: we have been too accustomed to declarations of intent, including the will to treat our clients as VIP customers and a proper system of differed payment?, adds another agent. ?Importers (including commercial firms, export enterprises, manufacturers) are declaring goods at customs without proven ability?, adds Robert Hungley. ?It is already the case almost everywhere in the world. I even understand that, in some developed countries, it is the freight forwarder that appoints a clearing agent/broker and has to endorse all responsibilities for any faults committed by the agent/broker.?
The dissension between brokers and clearing agents may be partly economical: ?If we are dependent of the goodwill of customs brokers, we are exposed to the risk of exaggerated charges, delays, absences?, points Robert Hungley. ?The item of confidentiality is also better handled when we are able to do the transactions for the customer?. According to his licence, the broker is authorised to declare goods for other independent importers as well : ?You easily imagine the danger for freight forwarders of losing their clients or else when the broker leaves the company.?
An opinion rejected by the customs broker: ?We need more consideration. Our work needs a good level of ethos. But if it appears to be more advantageous for the broker to work for himself in his own office, rather than earning only some Rs 8,000 per month completing a few formulas in a company, why do you want him to remain idle. The training system gives also room for new professionals.?
Meanwhile, examinations to qualify as licensed brokers have been recently postponed to September, in a climate of allegations of fraud. While the MRA has been regarded as a model of integrated services by the most demanding, there are voices, from both sides concerned, which claim that Mauritian realities have been not enough taken into account both in the training process and the configuration of the customs services themselves.
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