Customs Broker Agreement (India)
CUSTOMS BROKER AGREEMENT
Customs Act 1962 | Customs Brokers Licensing Regulations 2018 | Indian Contract Act 1872
This Customs Broker Agreement ("Agreement") is entered into on [Agreement Date] between:
(1) [Client Name], having its registered office at [Client Address], IEC: [Client IEC], GSTIN: [Client GSTIN], PAN: [Client PAN] (hereinafter referred to as the "Client"); and
(2) [Broker Name], having its registered office at [Broker Address], CBLR Licence No.: [Broker Licence No], GSTIN: [Broker GSTIN] (hereinafter referred to as the "Customs Broker").
1. APPOINTMENT AND SCOPE
1.1 The Client hereby appoints the Customs Broker, and the Customs Broker hereby accepts the appointment, to act as the Client's licensed customs broker at [Customs Station] for the purpose of [Appointment Scope] on behalf of the Client, in accordance with the Customs Act 1962, the Customs Brokers Licensing Regulations 2018, and all other applicable laws and regulations.
1.2 The Customs Broker is authorised to: (a) file Bills of Entry and Shipping Bills (as applicable) on the ICEGATE portal on the Client's behalf; (b) appear before customs authorities for examination, assessment, and clearance of the Client's consignments; (c) execute bonds, undertakings, and declarations on the Client's behalf as required by customs law; and (d) pay customs duty, IGST on imports, and other government levies on the Client's behalf using funds provided by the Client.
1.3 This Agreement does not grant the Customs Broker any authority to make any binding representation to any person on behalf of the Client except as specifically required for customs clearance purposes.
2. CLIENT'S OBLIGATIONS
2.1 The Client shall provide the Customs Broker with true, complete, and accurate documentation for each consignment, including: commercial invoice, packing list, bill of lading or airway bill, import/export licences, certificates of origin, phytosanitary certificates, BIS/FSSAI certificates, and any other documents required for customs clearance.
2.2 The Client warrants that all information provided to the Customs Broker (including the declared value, description, and classification of goods) is accurate and compliant with the Customs Act 1962 and the Customs Tariff Act 1975. Any false declaration made to the Customs Broker which is subsequently filed with customs authorities shall be the sole responsibility of the Client.
2.3 The Client shall provide the Customs Broker with the Client's IEC, GSTIN, and PAN for all transactions, and shall notify the Customs Broker immediately of any change in these details.
2.4 The Client shall obtain all required import/export licences, permits, and clearances from the Directorate General of Foreign Trade (DGFT), and from other relevant regulatory authorities (FSSAI, BIS, DCGI, etc.) before instructing the Customs Broker to file the clearance documents.
3. CUSTOMS BROKER'S OBLIGATIONS
3.1 The Customs Broker shall comply with all obligations prescribed under Regulation 10 of the Customs Brokers Licensing Regulations 2018, including: advising the Client on their customs obligations; exercising due diligence in verifying the information provided by the Client before filing documents; and not passing on any information provided by the Client to any third party without the Client's consent.
3.2 The Customs Broker shall maintain records of all transactions for a period of five years as required under the CBLR 2018, and shall provide the Client with copies of all filed documents and customs orders.
3.3 The Customs Broker shall promptly remit to the appropriate authority all customs duty, IGST, and other government levies collected from the Client, and shall render a detailed account of all disbursements to the Client within 7 days of clearance of each consignment.
4. FEES AND PAYMENT
4.1 The Client shall pay the Customs Broker brokerage fees as follows: [Brokerage Fee]. All fees are exclusive of GST at the applicable rate (currently 18% under the CGST Act 2017).
4.2 Disbursements: [Disbursement Policy].
4.3 The Customs Broker shall issue a GST-compliant tax invoice for each consignment or billing period. The Client shall pay each invoice within [Payment Timeline].
4.4 The Customs Broker shall have a lien on the Client's documents and goods in their custody for any unpaid brokerage fees and disbursements.
5. INDEMNITY AND LIABILITY
5.1 The Client shall indemnify and keep indemnified the Customs Broker against all penalties, fines, duties, and legal costs arising from: (a) inaccurate, incomplete, or false information or documents provided by the Client; (b) the Client's failure to obtain required licences or clearances; or (c) any breach by the Client of the Customs Act 1962, FEMA 1999, or any other applicable law.
5.2 The Customs Broker shall not be liable for any delay in customs clearance caused by: (a) customs examination orders or queries; (b) shortage of government staff or system downtime; (c) the Client's failure to provide complete documentation in time.
6. TERMINATION
6.1 Either party may terminate this Agreement by giving 30 days' written notice to the other party. Termination does not affect any rights or obligations that have accrued prior to the date of termination.
6.2 Either party may terminate this Agreement immediately by written notice if the other party commits a material breach of this Agreement and fails to remedy the breach within 15 days of receiving written notice of the breach.
7. GOVERNING LAW AND DISPUTE RESOLUTION
7.1 This Agreement shall be governed by and construed in accordance with the laws of India, including the Customs Act 1962, CBLR 2018, and the Indian Contract Act 1872.
7.2 Any dispute arising out of or in connection with this Agreement shall be referred to arbitration under the Arbitration and Conciliation Act 1996. The seat of arbitration shall be Mumbai and the proceedings shall be conducted in English.
Authorised Signatory (Client)
________________
Signature
Authorised Signatory (Customs Broker)
________________
Signature
Witness
________________
Signature
What Is a Customs Broker Agreement (India)?
A Customs Broker Agreement in India records the bargain between the parties, fixing their respective rights, duties and remedies.
The agreement defines the scope of the broker's authority, the documents the broker is authorised to file on the principal's behalf, the fee structure, the obligation to pay customs duty and other government levies, the record-keeping requirements, and the conditions under which either party may terminate the appointment.
Under Section 146 of the Customs Act 1962, no person can carry on business as a customs broker without a licence issued by the Commissioner of Customs. The CBLR 2018 regulate the grant, suspension, and revocation of such licences and prescribe the obligations of customs brokers. A properly documented customs broker agreement protects both parties: it confirms the scope of the broker's authority, limits the broker's liability for information provided by the principal, and establishes the client's responsibility to provide true declarations.
The legal framework governing the Customs Broker Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Customs Broker Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Indian Contract Act, 1872 sets the foundational requirements.
When Do You Need a Customs Broker Agreement (India)?
A Customs Broker Agreement is needed whenever an Indian business regularly imports goods into India or exports goods from India and wishes to appoint a licensed professional to handle customs clearance formalities on its behalf. Customs clearance in India involves filing the Bill of Entry (for imports) or Shipping Bill (for exports) electronically through the ICEGATE portal of the Central Board of Indirect Taxes and Customs (CBIC), coordinating with the port/airport/ICD authorities, and confirming compliance with the Customs Act 1962, the Foreign Trade Policy, DGFT regulations, FSSAI (for food imports), BIS (for standardised goods), and other sector-specific regulations.
You need this agreement before the broker begins acting on your behalf so that the scope of authority, fee structure, and liability are clearly defined. You need it to provide the customs broker with a Power of Attorney (under Regulation 10(2) of CBLR 2018, a broker must hold a specific authority from the client) — this agreement typically accompanies or incorporates the Power of Attorney.
You also need this agreement if your business is subject to customs audit or investigation, as the clear documented authority from the client to the broker defines the boundaries of the broker's representation and the client's responsibility for declarations.
Parties in India should prepare a Customs Broker Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Customs Broker Agreement (India)
A thorough India Customs Broker Agreement should contain the following key elements.
Parties: Full legal names, registered addresses, IEC numbers, GSTIN, and PAN of both the client and the customs broker, along with the broker's licence number issued under CBLR 2018.
Appointment and Scope: The specific customs stations at which the broker is authorised to act and whether the appointment covers imports, exports, or both.
Broker's Authority: The specific acts the broker is authorised to perform — filing Bills of Entry, Shipping Bills, managing physical examination of goods, paying customs duty on the client's behalf.
Client's Obligations: To provide true and complete documentation including commercial invoices, packing lists, bills of lading/airway bills, import licences, certificates, and accurate HS codes.
Fees and Payment: Brokerage fee structure, GST at 18%, and timeline for reimbursement of disbursements.
Indemnity: Client's obligation to indemnify the broker for liability arising from inaccurate information.
Record Keeping: Five-year retention of documents as required under CBLR 2018.
Termination: Notice period and conditions for termination by either party.
Governing Law: Customs Act 1962, CBLR 2018, and Indian Contract Act 1872.
Additional compliance elements for a Customs Broker Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Customs Broker Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/business/shipping/customs-broker-agreement-india
"Customs Broker Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/business/shipping/customs-broker-agreement-india.
@misc{formslegal-customs-broker-agreement-india,
author = {{Forms Legal}},
title = {Customs Broker Agreement (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/business/shipping/customs-broker-agreement-india}},
note = {Free legal document template. Based on Indian Contract Act, 1872}
}Frequently Asked Questions
In India, a customs broker (formerly called a Custom House Agent or CHA) is a licensed professional authorised to transact business relating to the entry or departure of conveyances, or the import or export of goods, at a customs station on behalf of a client. The practice is governed by the Customs Brokers Licensing Regulations 2018 (CBLR 2018), issued under Section 146 of the Customs Act 1962. Under Regulation 7 of CBLR 2018, a customs broker licence is granted by the Commissioner of Customs after the applicant passes the prescribed examination conducted by the Central Board of Indirect Taxes and Customs (CBIC). Licences are granted for specific customs stations or, in some cases, for all India operations. The licence holder must pass both a written examination and an oral interview and must furnish a security deposit (a bank guarantee of ₹5 lakh for individual brokers and ₹10 lakh for firms or companies). Regulation 10 of CBLR 2018 sets out the obligations of a customs broker, including: acting in accordance with the provisions of the Customs Act 1962 and Customs Tariff Act 1975; advising the client on their obligations; not acting for any person who is not authorised; and not engaging in misleading practices. A customs broker can be suspended or have their licence revoked under Regulation 14 for misconduct, including aiding in the removal of goods without payment of duty.
Under the Customs Brokers Licensing Regulations 2018 and general principles of agency law under the Indian Contract Act 1872, both the customs broker and the client (importer/exporter) have specific obligations. Customs Broker Obligations (Regulation 10, CBLR 2018): (a) to act in accordance with the Customs Act 1962 and related legislation; (b) to advise the client on their obligations under the Customs Act and ensure that goods are classified and valued correctly; (c) to exercise due diligence in ascertaining the correctness of all information supplied by the client before filing documents with customs authorities; (d) to maintain records of all transactions for a period of five years; (e) to ensure that import/export documentation is filed within prescribed timeframes; (f) not to pass on any information given by the client to any other person; and (g) to promptly pay any duties or charges collected from the client to the relevant authority.
Customs broker fees in India are not regulated by any statutory fee schedule — they are a matter of private negotiation between the customs broker and the client. However, the fee structure is subject to GST (Goods and Services Tax) under the CGST Act 2017, as customs brokerage services fall under the taxable category of business support services. Typical fee structures include: (a) a flat fee per shipment (consignment basis), where the broker charges a fixed amount for each import or export consignment regardless of the value of goods; (b) an ad valorem fee (percentage of the CIF value of imports or FOB value of exports), typically ranging from 0.25% to 1.5%; (c) a combination of a base fee plus disbursement reimbursements (covering port charges, terminal handling charges, inland haulage, and other out-of-pocket expenses); and (d) a retainer model for large importers/exporters with consistent shipment volumes. GST implications: customs brokerage services are subject to 18% GST (9% CGST + 9% SGST for intra-state or 18% IGST for inter-state services). The customs broker must issue a GST-compliant tax invoice to the client. The client (if a GST-registered business) can claim input tax credit (ITC) on the GST paid on the broker's fees.
A Customs Broker Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Indian Contract Act, 1872 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Customs Broker Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Indian Contract Act, 1872, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Import Export Agreement (India)
A comprehensive trade agreement for cross-border transactions under India's Foreign Trade Policy, Customs Act 1962, and FEMA 1999. Governs the terms of sale, delivery (Incoterms), payment methods, documentation, customs duties, and dispute resolution for Indian importers and exporters.
Bonded Warehouse Agreement (India)
A formal agreement for the storage of dutiable imported goods in a Customs-bonded warehouse under Sections 57–73 of the Customs Act 1962. Governs the terms of warehousing, duty deferment, storage charges, and removal of goods for home consumption or re-export.
Supply Agreement (India)
A comprehensive Supply Agreement for India, governed by the Indian Contract Act 1872 and Sale of Goods Act 1930. Covers goods supply terms, pricing, delivery obligations, quality standards, GST invoicing, MSME payment obligations, force majeure, and termination rights.