‘Broker’ Concept Replaced with New Customs Representation Model

Baku: Customs representation is undergoing a significant transformation as the concept of 'customs broker' is replaced with 'indirect customs representation.' A new registry will be established, direct customs representation will be introduced, and existing licensing requirements will be abolished, according to APA reports.

According to Azeri-Press News agency, the amendment proposed to the Customs Code was discussed during the latest session of the Milli Majlis. The new model entails replacing the 'customs broker' concept with 'indirect customs representation,' where registration in a relevant registry will be necessary to qualify as an 'indirect customs representative.' The registry will be publicly accessible on the customs authority's website, thereby enhancing foreign trade participants' ability to utilize professional services and fostering a competitive environment in the field. Indirect customs representation will be executed by legal entities and will involve handling import, export, or transit of goods and vehicles across the customs territory. These entities will assume all responsibilities of individuals moving goods across borders, with electronic submission of customs declarations and documents to the customs authority.

The draft also introduces direct customs representation, to be conducted by individuals authorized through a power of attorney by the represented person, thereby offering additional opportunities for foreign trade participants. Presently, only licensed legal entities can act as customs carriers, but the amendment proposes to simplify these requirements. It will expand the eligibility for carriers to include both legal entities and individuals engaged in entrepreneurial activities transporting goods and vehicles under customs control. The customs authority will maintain and update lists of these carriers on its official website, ensuring accessibility for foreign trade participants and maintaining records and electronic histories for service providers.

Additionally, a customs fee, determined by the relevant executive authority, will be imposed for issuing qualification certificates to specialists in customs clearance. Following thorough discussions, the draft law was successfully voted on and adopted in the third reading.