The Ministry of Finance, through Notification No. 75/2024-Customs ( N.T ) dated November 7, 2024, has announced amendments to the Handling of Cargo in Customs Areas Regulations, 2009 effective from the date of publication.
The title of the Handling of Cargo in Customs Areas Regulations, 2009 has now been updated to the Handling of Cargo in Customs Areas ( Amendment ) Regulations, 2024.
The amendments introduce important changes, including a reduction in the required financial guarantees and an extension of approval validity for CCSPs authorized under the AEO program.
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Reduction in Financial Guarantee Requirement: In Orginal Regulation (2009), Under Regulation 5, the Customs Cargo Service Providers were required to furnish a bond covering the duty on imported goods and 10% of the export goods’ value, along with a bank guarantee or cash deposit equivalent to 10% of this duty.
This requirement has now been reduced to a 5% bank guarantee or cash deposit effectively reducing the financial burden on service providers.
Extended Authorization Validity under AEO Program: Under the original 2009 regulations, Customs Cargo Service Providers ( CCSPs ) received initial authorization valid for two years, extendable in five-year increments. For CCSPs authorized under the Authorized Economic Operator ( AEO ) program recognized globally for upholding high standards in compliance and security, this period could be extended to ten years. However, all CCSPs, regardless of AEO status were required to undergo periodic renewals.
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The new amendment removes the need for renewal within these intervals for AEO-authorized CCSPs. Now, their approval remains continuously valid as long as their AEO authorization is active, only expiring if the AEO status is suspended or revoked under Regulation 12.
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