Custom broker mandatorily needs to verify credentials of importers

Sky Sea Services Vs Commissioner of Customs (General) (CESTAT Mumbai)

Custom brokers are required to conduct all possible enquiries through independent reliable sources/ documents to verify the credentials of the clients. No such effort made by the appellant proves that they have failed to observe due diligence in this regard.

Facts-

SIIB (import) Air Cargo Complex, have conducted an investigation into imports made by M/s. Akash Corporation and M/s. Sugam Auto India, who have engaged the appellant as a custom broker. Revenue was of the opinion that the appellant did not follow the procedure for examination of Cargo for Clearance and they did not verify the credentials of the importers. Accordingly, the license of the appellant was suspended vide order dated 01.01.2016. Based on the investigation and enquiry, the security deposit was forfeited and penalty was imposed on the appellant. Being aggrieved, the appellant filed appeal before CESTAT.

Conclusion-

Please become a Premium member. If you are already a Premium member, login here to access the full content.