Customs Brokers’ Responsibilities Limited to Document Authenticity, Not Physical Verification: CESTAT

Friends Cargo Services Vs Commissioner of Customs (CESTAT Delhi)

This case involves Friends Cargo Services (FCS), a customs broker, and the Commissioner of Customs, New Delhi. The Department revoked FCS’s license, claiming they violated regulations by handling exports linked to untraceable companies. FCS appealed, arguing they met all Know Your Customer (KYC) requirements and shouldn’t be held liable for exporters’ traceability issues.

Background:

• The Directorate General of Analytics and Risk Management (DGARM) identified risky exporters involved in potentially fraudulent IGST refunds.

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