Customs House Agent due diligence and knowledge of misdeclaration justified penalty for fraudulent drawback assistance

Customs House Agent licensing obligations require due diligence on the correctness of information supplied and on the conformity of documents prepared or presented on behalf of the client. Where the Tribunal found that the agent knew the goods were misdeclared and overvalued to support a fraudulent drawback claim, those findings were treated as factual and not shown to be perverse. On that basis, the penalty was sustained because the agent's knowledge of the misdeclaration and failure to exercise the required diligence brought the conduct within the regulatory breach.

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Issues: Whether the Customs House Agent could be penalised for assisting exports where the goods were misdeclared and overvalued to claim fraudulent drawback, and whether the Tribunal's factual findings warranted interference.

Analysis: The relevant obligations under Regulation 14(e) and 14(i) of the Custom House Agent Licensing Regulations, 1984 required the agent to exercise due diligence as to the correctness of information supplied to the client and to ensure that documents prepared or presented on behalf of the client conformed to the export order. The Tribunal found that the appellant was aware that the goods were overvalued and misdeclared, and that a statement made by him supported knowledge of the fraudulent drawback attempt. Those findings were treated as findings of fact and were not shown to be perverse.

Conclusion: The penalty on the appellant was sustained and no interference was called for.

Final Conclusion: The appeal failed because the appellant's knowledge of the misdeclaration and failure to exercise the required diligence brought the case within the regulatory obligations governing Customs House Agents.

Ratio Decidendi: A Customs House Agent who knowingly assists or fails to prevent misdeclaration for fraudulent drawback cannot escape penalty where the factual findings of knowledge and breach of due diligence are not perverse.

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