Customs broker licence revocation fails when the foundational export allegation is dropped in the underlying proceedings.

Customs Brokers Licensing Regulations action based on offence reports failed once the core allegation that Let Export Orders were issued before the goods were carted no longer survived in the underlying show cause proceedings. The regulatory proceedings had been founded on that allegation to support a higher drawback-related export fraud theory, but the charges against the customs officers who issued the orders were dropped. With the foundational allegation eliminated, the basis for revocation of the Customs Brokers licence and forfeiture of the security deposit ceased to exist, and the revocation order was set aside.

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Issues: Whether the revocation of the Customs Brokers licence and forfeiture of security deposit could be sustained when the foundation of the proceedings, namely the allegation that the Let Export Orders had been issued before the goods were carted, had been dropped in the underlying offence reports.

Analysis: The proceedings under the Customs Brokers Licensing Regulations, 2018 were initiated on the basis of offence reports arising from show cause notices issued under the Customs Act. The decisive allegation was that Let Export Orders were issued before the export goods were carted, thereby enabling exports to obtain a higher drawback rate. It was found that in the show cause notices forming the offence reports, the charges against the customs officers who issued the Let Export Orders had been dropped. Once that core allegation no longer survived, the basis on which the regulatory action had been taken ceased to exist.

Conclusion: The revocation order could not be sustained and the impugned order was set aside, with the appeal allowed in favour of the appellant.

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