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Showing contexts for: import export code in Baid International Service vs -Kolkata(Admn Airport) on 21 August, 2023Matching Fragments
2. The appellant submits that during the financial year 2019-20, 2020-21 they have filed several Bills of Entry and Shipping Bills for its customers numbering approximately 2000. They contend that before taking up the job and/or assignment under the Custom Brokers Licensing Regulations, 20181, they verify the antecedents and functioning of their clients at the declared address by reliable, independent, authentic document, data or information. In usual course they verify the importer exporter code number, GST number and identity of the clients by taking bank verified documents etc and conduct physical verification by visits, and only after being satisfied and bonafides of the client being established, the assignment of the work is accepted by them.
Regulation 10(n) of CBLR, 2018: A Customs Broker shall verify correctness of Importer Exporter Code (IEC) number, Goods and Services Tax Identification Number (GSTIN), identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information.
In the present case, it appears that the CB did not verify correctness of Importer Exporter Code (IEC) number, Goods and Services Tax Identification Number (GSTIN), identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. It appears that the CB Customs Appeal No. 75597 of 2022 has not even contacted the exporters and voluntarily in lieu of monetary consideration facilitated the exporters without verifying the KYC causing huge loss to the Department. Therefore, it appears that the CB violated the provisions of Regulation 10(n) of CBLR, 2018."
(a) Customs Broker has violated the Regulation 10(n) of CBLR, Findings:- As per Regulation 10(n) of CBLR, 2018, a Customs Broker shall verify correctness of Importer Exporter Code (IEC), Goods and Service Tax Identification Number (GSTIN), identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information.
I find that Regulation 10(n) of C.B.L.R., 2018 puts strict liabilities on the C.B. to verify correctness of Importer Exporter Code (IEC) number, Goods and Services Tax Identification Number (GSTIN), identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. Though, Mr. Praveen Kumar stated in his written submission as well as oral submission during PH that they had physically visited the premises of the exporters, he has no documentary evidence in this regard. It is admitted that physical verification of addresses of the exporters is not expected by the CB but there is no evidence to suggest that he verified the Customs Appeal No. 75597 of 2022 existence of the exporters over phone or mail. The plain reading of the obligation of Custom Broker under Rule 10 of CBLR, 2018 shows that Customs Broker is created as link between Customs authorities and the exporters/importers with an object of facilitating the clearances at Customs as well as the importers/exporters. The Hon'ble Supreme Court in K.M. Ganatra and Co. v. Commissioner of Customs reported in 2016(332) ELT 15(SC) while relying upon the decision of Mumbai Tribunal in the case of Noble Agency vs Commissioner of Customs, Mumbai reported in 2002 (142) ELT 84 has held as follows:
20. As far as revenue loss on account of IGST, is concerned, nothing in the CBLR, even remotely suggests that it is the responsibility of the Customs Broker to ensure its realisation. The Customs Broker has no real role to play in availment or payment of IGST. To pass on this burden as a responsibility on the Customs Broker is simply hypothetical wishful and beyond the parameters of law.
21. Regulation 10(n) merely requires the Customs Broker to verify the correctness of Importer Exporter Code, (IEC) number, Goods and Service Tax Identification number at the declared address by using reliable independent authentic documents, data or information. Obviously, this responsibility does not extend to physically going to verify the premises of each of the exporters to ensure that they are functioning at the premises. When a Government Officer issues the certificate bearing registration number with an address, it is not for the Customs Appeal No. 75597 of 2022 Customs Broker to sit in judgement over such a certificate. The Customs Broker cannot be faulted for trusting the certificates issued by the various government bodies/department. It is a different matter, if the documents are not authentic and are forged by the Customs Broker or the Customs Broker had reason to believe that the said documents were not truthful and their veracity was in doubt. The Customs Broker is only a processing agent of documents with respect to a document submitted to him. The Hon'ble Delhi High Court in the case of Kunal Travels (Cargo) Vs. CC (I&G), IGI Airport, New Delhi 2017 (354) ELT447 Del. has held that "The CHA is not an inspector to weigh the genuineness of the transaction. It is a processing agent of documents with respect of clearance of goods through Customs House and that process only such authorised personnel of the CHA can enter the Custom House area.---- It would be far too onerous to expect the CHS to enquire into and verify the genuineness of the ID code given to it by client for each import export transaction. When such code is mentioned, there is a presumption that an appropriate background check in this regard that is the KYC would have been done by the customs authority."