Customs broker licence suspension unsustainable absent connivance, mens rea, or mandatory premises verification under licensing regulations

Suspension of a customs broker licence was held unsustainable where the record showed no allegation of connivance, no material linking the broker to the importer's alleged DFIA-related misdeclaration, and no evidence of illegal gain or mens rea. The Tribunal noted that the broker had obtained KYC documents and authorisation and verified the IEC, while physical verification of the client's premises was not a mandatory regulatory requirement. The delayed offence report and retraction of the F Card holder's statement further weakened the suspension basis, and the licence suspension was set aside.

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Issues: Whether suspension of the customs broker licence was justified on the allegation of violation of the Customs Brokers Licensing Regulations, 2018, in connection with the alleged DFIA-related misdeclaration by the importer and the asserted failure to verify the client's antecedents.

Analysis: The appeal arose from a suspension order passed on the basis of an offence report and a show cause notice issued against other parties, in which the appellant was not a co-noticee. The Tribunal found no allegation of connivance, no established link showing that the customs broker participated in the alleged import-side misdeclaration, and no material indicating illegal gain or mens rea. It also noted that the appellant had obtained KYC documents and authorisation, verified the IEC, and that physical verification of the client's premises was not a mandated requirement under the regulations. The delayed offence report and the retraction of the statement of the F Card holder further weakened the basis for suspension.

Conclusion: The suspension of the customs broker licence was not sustainable and was set aside; the appeal was allowed.

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