PESHAWAR, Oct 31: Customs clearing agents have been given one-year grace period to convert themselves into companies to be registered with the Securities and Exchange Commission of Pakistan (SECP).

Through a circular issued recently, the Federal Board of Revenue (FBR) directed all customs collectorates not to seek annual audit accounts and other allied documents from the existing licencees because they had been granted a one-year grace period to get themselves incorporated.

The collectorates have been advised that the existing licences should be renewed before the end of the grace period by following the criteria laid down in rules. They have also been directed to verify business addresses of the applicants seeking renewal.

Directives have been issued after the FBR received various representations seeking clarification, especially regarding renewal of the existing licences.

The FBR had on August 8 issued new licensing rules for customs clearing agents. The rules have been criticised by the clearing agents.

Frontier Customs Agents Group chairman Zia-ul-Haq Sarhadi said: “The circular is not more than eyewash because clearing agents are demanding deletion of all clauses that bind old agents to be graduates and produce their annual audited accounts.”

Under new rules, the licencees are required to convert themselves into companies to be incorporated with the SECP and produce annual audit reports of their accounts to the FBR.

Likewise, they have been asked to nominate their managing director or at least one director who must hold a graduate degree from any university recognised by the Higher Education Commission.

The FBR is also planning to conduct computer-based courses for customs clearing agents and their staff to equip them with knowledge about the existing international practices.