Case Law Details
World Line Cargo Movers Vs Commissioner of Customs (CESTAT Delhi)
Introduction: The case of World Line Cargo Movers vs Commissioner of Customs, heard by the CESTAT Delhi, delves into the obligations of customs brokers and the extent to which they are responsible for verifying the background of their clients.
Detailed Analysis: The appeal was filed against the revocation of the appellant’s Customs Broker license, the forfeiture of the security deposit, and the imposition of a penalty. The Commissioner of Customs alleged that the appellant violated provisions of the Customs Brokers Licensing Regulations (CBLR), 2018, by not following Know Your Customer (KYC) guidelines.
The appellant argued that they were not provided with relied upon documents such as the DGARM report, violating principles of natural justice. Additionally, they contended that non-traceability of exporters does not necessarily imply fraudulent activity.
Regulation 10(n) of CBLR, 2018 mandates customs brokers to verify the identity and functioning of clients at the declared address using reliable, independent, authentic documents, data, or information. The appellant argued that obtaining necessary documents and conducting verification based on available information sufficed to fulfill this obligation.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
