Mandatory KYC compliance under courier regulations upheld, but licence revocation set aside as excessive.

Mandatory KYC and authorisation requirements under the Courier Imports & Exports (Clearance) Regulations were treated as enforceable obligations, and non-compliance was established where the courier agency failed to obtain the consignor's particulars and the stated consignor was found not to exist. The regulatory breach was therefore upheld. However, the nature of the violation was considered relevant to punishment, and revocation of the courier licence was found to be excessive. The licence revocation was set aside, while the penalty was sustained.

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Issues: Whether the courier agency had failed to comply with the mandatory KYC and authorization requirements under the Courier Imports & Exports (Clearance) Regulations, and whether the revocation of licence and penalty imposed were justified.

Analysis: The requirement to obtain KYC documents and authorization was treated as mandatory under Regulations 13(a), 13(i) and 13(j) of the Courier Imports & Exports (Clearance) Regulations, 1998 read with Regulation 12(1)(i) and 12(1)(iv) of the Courier Imports & Exports (Clearance) Regulations, 2010. The agency failed to obtain the KYC particulars of the consignor, and the record showed that the stated consignor was not in existence. On that basis, the breach was held to be established. At the same time, the nature of the offence was considered relevant to the quantum of punishment, and the revocation of licence was viewed as excessive.

Conclusion: The breach of the courier regulations was upheld, but the revocation of licence was set aside and the penalty was sustained.

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