Customs broker due diligence under Regulation 10(n) requires reasonable document verification, not physical surveillance of the client.

Regulation 10(n) of the Customs Broker Licensing Regulations, 2018 requires a customs broker to verify the correctness of the IEC and GSTIN, the client's identity, and whether the client functions at the declared address by using reliable, independent and authentic documents or information. The obligation does not extend to checking whether government officers correctly issued the IEC or GSTIN, nor to conducting physical investigation or continuous surveillance of the client. Official registration documents carry a presumption of genuineness, and IEC, GSTIN and PAN may be sufficient for identity and address verification. On the stated facts, the documents produced were treated as adequate and no forged or invalid material was shown.

---

---

Issues: Whether the revocation of the customs broker licence, forfeiture of security deposit and penalty were sustainable on the alleged violation of Regulation 10(n) of the Customs Broker Licensing Regulations, 2018 for failure to verify the correctness of IEC, GSTIN, identity of the client and functioning at the declared address.

Analysis: Regulation 10(n) requires verification of the correctness of IEC and GSTIN, the identity of the client, and the functioning of the client at the declared address by using reliable, independent and authentic documents, data or information. The obligation does not extend to ensuring that government officers correctly issued the IEC or GSTIN, nor does it require the customs broker to conduct a physical investigation or continuous surveillance of the client. Officially issued registration documents are entitled to a presumption of genuineness, and documents such as IEC, GSTIN and PAN may be sufficient to establish identity and address verification. On the facts, the documents produced by the appellant were held adequate and there was no material to show that the documents were forged or invalid.

Conclusion: The alleged violation of Regulation 10(n) was not made out and the punitive order was unsustainable.

Final Conclusion: The appeal succeeded and the impugned order revoking the licence, forfeiting the security deposit and imposing penalty was set aside.

Ratio Decidendi: A customs broker satisfies Regulation 10(n) by reasonably verifying the genuineness of client documents and using reliable, independent and authentic material to establish identity and address, without being required to police the correctness of government issuance or to physically ensure the client's continuing presence at the declared premises.

---