Customs broker cannot be held liable for violation of post import condition by importer

RDR Clearing Agent Vs Commissioner of Customs (CESTAT Kolkata)

CESTAT Kolkata held that revocation of customs broker licence for violation of post import condition of the exemption notification by the importer unsustainable as customs broker has a limited role of filing bill of entry and at no stretch of imagination can be held liable for violation of post import condition.

Facts- The appellant handled import consignment of the importer, wherein, exemption under notification no. 32/97-Cus was claimed against ‘jobbing-cum-export’ bond. It is alleged that total nine consignments were imported, out of which eight consignments were assessed and allowed the exemption benefit. However, with respect to one consignment, instead of re-export the same was diverted to home consumption.

A Show Cause Notice dated 29.06.2018 was issued under CBLR, 2013, by the Respondent under Regulation 20(1) of CBLR 2013, alleging violation of Regulations 11(d),11(f), 11(m) and 17((9) of CBLR 2013. On conclusion of the Inquiry Proceedings, the “Respondent”, vide order dated 27-12-2018, ordered revocation of the Appellant’s Custom Broker License NO.CA/LC/02/2011 and forfeiture of the whole of the Security Deposit, amounting to Rs. 75,000 under Regulation 18 of the Customs Brokers Licensing Regulations, 2013 and hence the instant appeal.

Conclusion- The Custom Broker has a limited role of filing the bills of entry as per the instructions of importer and the authority of deciding the admissibility of any Exemption Notification was exclusively bestowed on Assistant/ Deputy Commissioner concerned as the Proper Officer under Section 143 of the Customs Act, 1962. In case of any violation of terms and conditions of the Exemption Notification by the importer, invocation of the terms and the conditions of Bond including that of re-export Bond is the exclusive liability of the Departmental Officer and in no way the responsibility can be shifted to the Customers Broker. The appellant as the customs broker at no stretch of imagination can be held liable for violation for the post import conditions of the Exemption Notification against which the consignment was cleared since no such authority has been bestowed on the appellant. Thus, we hold that the Appellant cannot be held responsible for the violation, if any, committed by the importer.

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