Knowledge of export-goods misdeclaration is essential before customs penalties can be imposed on a broker's G-card holder.

Penalties for export-goods misdeclaration under the Customs Act require proof that the person penalised knew of the misdeclaration. The notes state that a customs broker's G-card holder obtained KYC documents from the exporter and filed export documents based on the exporter's declaration, while Revenue did not establish knowledge that containerised goods differed from the shipping bills. On that basis, penalties under Sections 114(iii) and 114AA were not imposable and were set aside.

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Issues: Whether penalties for export-goods misdeclaration could be imposed on a customs broker's G-card holder under Sections 114(iii) and 114AA where knowledge of the misdeclaration was not established.

Analysis: The appellant had obtained KYC documentation from the exporter and filed export documents according to the exporter's declaration. The Revenue did not establish that the appellant knew that the goods stuffed in the container differed from those declared in the shipping bills.

Conclusion: Penalties under Sections 114(iii) and 114AA of the Customs Act, 1962 were not imposable on the appellant and were set aside.

Ratio Decidendi: Penalty for misdeclaration requires proof that the person penalised had knowledge of the misdeclaration.

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