LI Network
Published on: February 4, 2024 at 11:36 IST
The Delhi High Court has ruled that a customs broker cannot be held responsible when exporters become untraceable after the issuance of ‘Let Export Orders’ and the subsequent export of goods out of the country.
Justice Yashwant Varma and Justice Ravinder Dudeja emphasized that once the Importer Exporter Code (IEC) details are verified by Customs, there is no statutory requirement for the Customs House Agent (CHA) to independently verify the information provided by the exporter.
The petitioner, holding a customs broker license valid until December 19, 2025, faced accusations related to the export of ball bearings initiated by an investigation team.
The Court noted that the petitioner had no role in assessing the value of the exported goods and had no obligation to undertake an independent exercise to verify exporter details post-IEC validation.
The Court criticized the Commissioner of Customs for accepting findings against the customs broker for non-compliance with certain regulations, emphasizing the lack of evidence of fraudulent IEC details or other misconduct.
Case Title: Naman Gupta v. Commissioner Of Customs Airport And General
