Customs broker verification under Regulation 10(n): reliance on authentic documents and independent material is sufficient, without continuous surveillance.

A customs broker satisfies Regulation 10(n) of the Customs Broker Licensing Regulations, 2018 by verifying IEC and GSTIN through reliable, independent and authentic documents or data and by obtaining other material to confirm the client's identity and declared address. The broker is not required to supervise the correctness of the issuing authorities' acts, conduct a physical inspection in every case, or maintain continuous surveillance to ensure the client remains at the same premises. Officially issued registration and identity documents carry a presumption of genuineness, and later non-traceability of the exporter does not by itself establish broker default unless there is evidence of forged documents or knowledge of fraud.

---

---

Issues: Whether the customs broker violated Regulation 10(n) of the Customs Broker Licensing Regulations, 2018 by failing to verify the correctness of IEC, GSTIN, the client's identity, and the client's functioning at the declared address.

Analysis: Regulation 10(n) requires verification through reliable, independent and authentic documents, data, or information. The obligation is satisfied when the customs broker verifies that the IEC and GSTIN are genuinely issued by the competent authorities and obtains independent, reliable material to establish the client's identity and address. The provision does not require the customs broker to supervise the correctness of the issuing officers' actions, to conduct a physical inspection in every case, or to maintain continuous surveillance to ensure that the client remains at the same premises. Officially issued registration and identity documents carry a presumption of genuineness, and the broker is not expected to treat later non-traceability of the exporter as proof of its own default absent material showing fake or forged documents or knowledge of fraud.

Conclusion: The alleged violation of Regulation 10(n) was not established and the revocation, forfeiture, and penalty could not be sustained.

Final Conclusion: The appeal succeeded and the broker was held not liable for action on the basis of the subsequent verification report alone.

Ratio Decidendi: A customs broker discharges the verification obligation under Regulation 10(n) when it relies on authentic government-issued documents and other independent material to verify identity and address, and it is not required to investigate the correctness of the issuing authority's act or maintain continuing physical surveillance of the client.

---