Welcome to Vanuatu Customs & Inland Revenue WEBSITE

Customs broker licensing issues explained

The ability for individuals to lodge customs declarations for others or for themselves has never been properly administered or subject to any quality control. With the advent of ASYCUDA, users were registered regardless of their technical knowledge in customs matters.

As a result, Vanuatu Customs has attempted to improve compliance levels and the quality of declarations being lodged through levying on-the-spot fines for non fraudulent errors on declarations. This approach has been supplemented with some information sessions on the ASYCUDA system and processes. 

The opportunity to review the Customs Act provided the means of legally identifying the customs brokers’ role and improving the management of their activity through a licensing regime. It was recognised that to improve the compliance levels of importers it was essential to improve the quality of the brokers, who provide the important link between their clients and Customs. As with most licensing regimes, it is important that certain criteria are met before a license is issued. Customs viewed that the most important criteria to be met is that of competency in the role. To improve the levels of competency, Vanuatu has had international experts deliver training in tariff classification, valuation, rules of origin and information sessions on the new Customs Act and Regulations.

It is generally appreciated that the role of customs brokers, if they fulfill their role effectively, has become more complex as free trade agreements develop, and meeting the rules of valuation determined by the WTO. Customs will continue to provide training to brokers as new initiatives arise or particular areas of vulnerability are identified. This level of support cannot be provided economically to everyone who wishes to submit their own declarations.

Consequently the role of customs brokers has been identified as best given to those who fulfill the task on a regular/fulltime basis, and who have the necessary experience and technical knowledge to reach the professional standards required. The starting point for testing experience is measuring the number of declarations actually lodged by individual brokers over a year. The number ranges from almost 5000 by some to just 2 for others. Customs considered that 200-declarations-per year was a reasonable benchmark for those who are considered fulltime brokers operating their own brokerage business. For those who only lodge declarations for their own businesses, 100-declarations-per year was considered a reasonable quantity to achieve the level of experience required.

To identify the level of technical knowledge held, customs expects those who wish to be licensed as brokers to pass an exam as a true display of the technical knowledge they posses. It is customs ambition to deal with a professional and capable body of customs brokers, who are able to properly serve their clients as well as operating consistent with customs laws, and unfortunately in developing this body, small time individual importers cannot compete.