Customs Brokers Legislation Review

The proper functioning of customs brokers is crucial in modern customs administration, as they are responsible for submitting correctly prepared customs declarations and paying duties and taxes assessed on imports and exports. The current regulatory regime in Mongolia needs to be revised, as customs brokers and licensed customs specialists are reportedly not satisfactorily performing their functions. The key stakeholders, including CGA, customs brokers, and the Ministry of Finance, have different views regarding an appropriate new regulatory regime for customs brokers and licensed customs specialists. CGA has proposed intensively regulating customs brokers, including requirements for training and licensing, while customs brokers favor a regime where training and licensing are performed by non-governmental organizations (NGOs) and they are free to determine their fees for services. The Ministry of Finance opposes new customs brokers' legislation and shifting licensing from the Minister of Finance to CGA. To resolve these differences, a "matrix" was prepared analyzing the CGA legislative proposal and suggesting changes based on international standards and best practices. The next steps may include the formulation of an alternative proposal by the customs brokers, dialogue between the key stakeholders, and the preparation of a draft law incorporating the agreed-upon new regime for customs brokers. A new regulatory regime should include a financial guarantee program based on insurance contracts and bank guarantees as an alternative to the "Risk Fund" proposed by CGA. The importance of customs brokers and licensed customs specialists to improved trade facilitation necessitates a new regulatory regime to be approved and in place by the end of 2012. The proposed Law on Customs Brokers should be consistent with international standards and best practices, as reflected in the World Customs Organization's Revised Kyoto Convention and World Trade Organization agreements. The development of a new regulatory regime for customs brokers and licensed customs specialists requires the agreement of the three key stakeholders, as well as traders and other concerned stakeholders. The agreement process may involve the formulation of an alternative proposal by the customs brokers, dialogue between the key stakeholders, and the preparation of a draft law incorporating the agreed-upon new regime for customs brokers. A new regime should prioritize the proper functioning of customs brokers and licensed customs specialists to facilitate trade and improve customs administration in Mongolia. The proposed Law on Customs Brokers should address the key issues and differences between the stakeholders, including the regulation of customs brokers, training and licensing requirements, and the financial guarantee program. The new regulatory regime should be designed to improve trade facilitation and ensure the proper functioning of customs brokers and licensed customs specialists in Mongolia. The implementation of the new regime should either be through the adoption of new legislation or the promulgation of new regulations, with a focus on improving customs administration and facilitating trade in the country.