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18. The submission of the learned authorised representative is that the appellant had filed Shipping Bill in the name of a non- existent exporter and that despite being aware, had not reported the overvaluation of the exports. Insofar as the existence of an exporter is concerned, the Director General of Foreign Trade5 issues the Importer Exporter Code (IEC). The presumption is that DGFT has not issued benami IECs to non-existent exporters. If DGFT is issuing benami IECs and the Customs ICES system is allowing export on the basis of such benami IECs to exporters who do not exist at all or exist only on paper, the problem is not of the appellant or any other Customs Broker but it is a deep rooted systemic problem where neither DGFT nor Customs checks the existence of the exporter/importer while allowing exports and giving out export benefits. Even a ration card which gives the poor families subsidised rations worth a few thousand rupees is not issued without verifying the existence of the persons and their family size. Likewise, even a passport, which gives one nothing but a right to leave the country and return to it 5 DGFT is not issued without police verification- prior to or after the issue.

21. Regulation 10(n) reads as follows:

"A Customs Broker shall -
(n) 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;"

22. Learned counsel for the appellant submitted that the appellant had a limited role in verifying the existence and functioning of the exporter . The appellant had obtained the KYC documents, IEC, GSTIN, etc. The appellant also verified the correctness of these from the websites of the concerned departments and found that they were issued by the respective officers. He further submitted that the exporter was available and was represented through Shri Saurabh Tanwar and Mrs. Savinder Sharma at the time of Panchnama and Seizure. Therefore, the appellant had not violated Regulation 10(n).

23. Learned authorised representative for the Revenue submits that investigation showed that the exporter was non-existent and was only on paper. The appellant had not physically verified the existence of the exporter and therefore, the appellant failed to exercise due diligence and therefore, violated Regulation 10(n).

24. We have considered the submissions. We find that Regulation 10(n) requires the Customs Broker 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. This responsibility does not extend to physically going to the premises of each of the exporters to ensure that they are functioning at the premises. When a Government officer issues a certificate or registration with an address to an exporter, the Customs Broker cannot be faulted for trusting the certificates so issued. It has been held by the High Court of Delhi in the case of Kunal Travels6 that "the CHA is not an inspector toweigh the genuineness of the transaction. It is a processing agent of documents with respect of clearance of goods through customs house and in that process only such authorized personnel of the CHA can enter the customs house area........ It would be far too onerous to expect the CHA to inquire into and verify the genuineness of the IE code given to it by a client for each import/export transaction. When such code is mentioned, there is a presumption that an appropriate background 6 2017 (3) TMI 1494- Delhi High Court check in this regard i.e., KYC, etc. would have been done by the customs authorities....." (emphasis supplied)."

25. We now proceed to examine the scope of the obligations of the Customs Broker under Regulation 10(n). It requires the Customs Broker 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. This obligation can be broken down as follows:

a) Verify the correctness of IEC number