Delhi HC ruled that a customs broker cannot be penalised solely for not personally meeting the exporter. The court held that compliance is determined by documentation and declaration accuracy, not physical interaction.
Customs Broker Cannot Be Penalised for Not Meeting Exporter: Delhi HC
In a relief to customs brokers, the Delhi High Court held that failure to personally meet an exporter does not, by itself, warrant penal action. The court emphasized that statutory compliance hinges on the accuracy and completeness of filed documents, not on physical interaction between the broker and client.
The petitioner, a licensed customs broker, was penalised under the Customs Act, 1962 for allegedly not verifying export details in person. The court rejected this ground, stating that electronic records, verified declarations, and supporting documents fulfill due diligence requirements.
"The law does not prescribe a personal meeting as a precondition to lawful representation,"the bench clarified.
This decision reinforces procedural fairness in enforcement actions against intermediaries. Practitioners should note that brokers are expected to exercise reasonable care in documentation, but physical verification is not mandatory. The ruling may impact disciplinary proceedings against brokers in customs facilitation cases.
Citations
- Customs Act, 1962
