Section 146 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 146 says that no person may carry on business as a customs broker relating to the entry or departure of a conveyance, or the import or export of goods, at any customs station unless the person holds a licence granted in accordance with the regulations. Sub-section (2) gives the Board power to make regulations and lists seven matters they may cover.
This article reads the section as per the text on the CBIC portal updated to 30 March 2022 (the Act as amended up to the Finance Act, 2022). Please check later Finance Act changes to section 146 before acting.
No person may work as a customs broker at a customs station for the entry or departure of a conveyance or the import or export of goods without a licence granted under the regulations. The Board can make regulations on the licensing authority and validity, form and fees, qualifications, the examination, restrictions and conditions including security, suspension or revocation, and appeals. The section's heading and operative words say "customs broker".
Section 146(1): the licence requirement
Section 146(1) reads: "No person shall carry on business as a customs broker relating to the entry or departure of a conveyance or the import or export of goods at any customs station unless such person holds a licence granted in this behalf in accordance with the regulations."
Breaking the sentence down:
| Element | What the text says |
|---|---|
| The restriction | No person shall carry on business as a customs broker |
| The subject-matter | The entry or departure of a conveyance, or the import or export of goods |
| The place | At any customs station |
| The exception | The person holds a licence granted in this behalf in accordance with the regulations |
Three things follow. First, the rule is about "business", so the section is aimed at those who carry on customs broking as a business. Second, the work includes both conveyances (entry or departure) and goods (import or export). Third, the licence must be granted "in accordance with the regulations", so the conditions of the licence are found in the regulations and not in the Act.
Importers and exporters who use a customs broker should check that the broker is licensed. Section 146A recognises "a customs broker licensed under section 146" as one of the persons who may appear as an authorised representative; see our article on section 146A. Our ICEGATE registration service can help you set up your own access to the customs system, which is useful whether you file through a broker or yourself.
The word "customs broker"
The footnote at section 146 shows that the section was substituted by the Finance Act, 2013 (17 of 2013), section 82, with effect from 10 May 2013. The section it replaced was headed "Customs house agents to be licensed" and spoke of an "agent". The older wording is not law and is not explained here. We mention the change only so that a reader who meets the older term understands that the section as it stands in this copy uses "customs broker".
Section 146(2): what the Board's regulations may cover
Sub-section (2) says the Board may make regulations for carrying out the provisions of the section and, in particular, they may provide for the following.
| Clause | Subject |
|---|---|
| (a) | The authority by which a licence may be granted and the period of validity of the licence |
| (b) | The form of the licence and the fees payable for it |
| (c) | The qualifications of persons who may apply for a licence, and of persons to be employed by a licensee to assist him in his work as a customs broker |
| (d) | The manner of conducting the examination |
| (e) | The restrictions and conditions (including the furnishing of security by the licensee) subject to which a licence may be granted |
| (f) | The circumstances in which a licence may be suspended or revoked |
| (g) | The appeals, if any, against an order of suspension or revocation of a licence, and the period within which such appeal may be filed |
The Act prints no fee, period, qualification or security amount. Each of these is a matter for the regulations. This article states none.
An example. Rina wants to start a customs clearance business at a port. Under section 146(1), she cannot carry on business as a customs broker at a customs station until she holds a licence granted under the regulations. What she must qualify in, how the examination is conducted and what security she has to furnish are set by the Board's regulations, as clauses (c), (d) and (e) allow. She should read the regulations in force before she applies.
The regulations made under section 146(2)
The regulations that name section 146(2) in their opening lines are the Customs Brokers Licensing Regulations, 2018. The copy consulted is dated 24 June 2022; that is the date of the regulations copy, not of the Act text. Their opening words say they are made under sub-section (2) of section 146, and their list of contents covers grant of licence, bond and security, period of validity, obligations of a customs broker, suspension, revocation, penalty and appeal. We leave the regulation-wise detail to a separate article and state no form field, fee or amount here. Our guide on the customs broker licence under CBLR 2018 gives a practical overview. Please check the regulations in force before acting.
What section 146 does not do
- It does not set any licence fee, validity period, security amount or syllabus; those are for regulations.
- It does not say whether the licensee must be an individual, a firm or a company. The word is "person".
- It does not itself provide the penalty for working without a licence. The copy of section 146 is silent on that, and this article states none.
- It does not say what a customs broker may be asked to do on a client's behalf; the Act's provisions on agents are in sections 147 and 148, covered in our article on liability of principal and agent.
Practical points for businesses
- Check the licence. Before you hand over shipping documents, confirm the broker's licence is valid and that it covers the customs station where your goods will be handled.
- Keep your own papers. The owner, importer or exporter is liable under section 147 for things done by an agent unless the contrary is proved. A licensed broker does not remove the need to check what is filed.
- Know your authority. If you appoint a broker to appear in proceedings, section 146A applies; our article on that section sets out who is an authorised representative.
- Income-tax treatment of a broker's income is a separate subject; see our income-tax guides, including our post on customs broker and clearing agent income tax.
- Registration steps. A first-time importer or exporter should have registrations in place before engaging a broker; see our guide to import export code registration.
Need help getting set up to file with customs?
Whether you work through a licensed broker or file yourself, you need access to the customs system and consistent registrations. Our team can help you with ICEGATE registration and the related checks.
Key takeaways
- Section 146(1): no person may carry on business as a customs broker at a customs station without a licence granted in accordance with the regulations.
- The work covers the entry or departure of a conveyance and the import or export of goods.
- Section 146(2): the Board may make regulations on the authority and validity, form and fees, qualifications, examination, restrictions and security, suspension or revocation, and appeals.
- The Customs Brokers Licensing Regulations, 2018 name section 146(2) as their source of power.
- The section uses "customs broker", which replaced the earlier term "customs house agent" in the 2013 substitution.
Read next
- Section 146A: appearance by authorised representative
- Sections 147 and 148: liability of principal and agent
- Customs broker licence under CBLR 2018
- Section 149: amendment of bill of entry and shipping bill
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.