TMI Blog2021 (5) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... ments and found the importers to be genuine - The second set of documents which the appellant received is in the form of invoices along with the consignments. These are received from the overseas exporter. Based on these documents, the appellant filed declarations with the customs. On investigation, customs officers found that the shoes which were imported were counterfeit Nike shoes. The fact that they were counterfeit was ascertained after an expert evaluation by Nike Creations, the brand holder. The appellant, as an authorized courier, is prohibited from opening the packages. It would have been a difference case, if there was sufficient evidence that the appellant was aware that the goods were counterfeit shoes or if the appellant had a role to play in the scheme to import them - The only fault of the appellant is that instead of receiving the KYC documents directly from the hands of the owners of M/s Legend Creations and M/s. Personal Creations, it received the documents with covering letters handed over by Balvinder Singh. This action of the appellant does not constitute not exercising due diligence to ascertain the correctness and completeness of any information which he s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lects the customs duties from them. 3. Since this is a sensitive job involving clearance of imported goods, the permission to operate as courier for import and export goods requires registration which is granted after ensuring that the necessary qualifications and conditions are made. Regulation 12 places some obligations on the authorized courier. Regulation 13 provides for the suspension and revocation of the registration of the authorized courier and forfeiture of security deposit on some grounds including failure of the authorized courier to comply with any of the provisions of the Regulations. Regulation 14 provides for imposition of penalty upto ₹ 50,000/- upon the authorized courier. 4. Regulation 12, 13 and 14 are reproduced:- 12. Obligations of Authorised Courier. (1) An Authorised Courier shall - (i) obtain an authorisation, from each of the consignees or consignors of the imported goods for whom or from whom such Courier has imported such goods; or consignees or consignors of such export goods which such Courier proposes to export, to the effect that the Authorised Courier may act as agent of such consignee or consignor, as the case may be, for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to influence the conduct of any officer of Customs in any matter pending before such officer or his subordinates by the use of threat, false accusation, duress or offer of any special inducement or promise of advantage or by the bestowing of any gift or favour or other thing or value; (ix) maintain records and accounts in such form and manner as may be directed from time to time by an Assistant Commissioner of Customs or Deputy Commissioner or Customs for a period of five years and submit them for inspection to the Assistant Commissioner of Customs or an officer authorised by him, wherever required; and (x) abide by all the provisions of the Act and the rules, regulations, notifications and orders issued there under. 13. Suspension or revocation of registration of authorised courier. (1) The Commissioner of Customs may revoke the registration of an Authorised Courier and also pass an order for forfeiture of security on any of the following grounds namely:- (a) failure of the Authorised Courier to comply with any of the conditions of the bond executed by him under regulation 11; (b) failure of the Authorised Courier to comply with any of the provisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86575442140 M/s. B S Imports Nike Zoom Pegasus 33 30 3 86575442559 M/s. B S Imports Nike Zoom Pegasus 33 30 4 86575442563 M/s. B S Imports Nike Zoom Pegasus 33 30 5 86575442517 M/s. B S Imports Nike Zoom Pegasus 33 30 6 86575442553 M/s. B S Imports Nike Zoom Pegasus 33 30 7 86575442558 M/s. Legend Creations Nike Zoom Pegasus 33 30 8 86575442564 M/s. Legend Creations Nike Zoom Pegasus 33 30 9 86575442510 M/s. Legend Creations Nike Zoom Pegasus 33 30 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich were filed in the name of B.S. Imports. He said that he was aware that the goods were covered under IPR Act and that he accepted his mistake of mis-declaration and undertook to pay duty and penalty, as applicable. Subsequent investigations showed that in fact, all the 15 consignments were imported by Balvinder Singh- six in the name of his firm and rest in the names of M/s Legend Creations and M/s. Personal Creations using their IEC without their knowledge. 8. Statement of Rajesh Mehta, Director of the appellant firm was recorded wherein he inter-alia stated that he was well conversant with the rules and procedures related to import and export; that he knew that a case of mis-declaration had been booked; that his company had filed Bills of Entry with the description of goods as sample shoes‟ whereas on examination the consignment was found to be of commercial quantity of shoes; and that he was shown the statement of Balvinder Singh who had accepted having mis-declared the goods. He further said that it was a case of mis-declaration on the part of importer and that the Bills of Entry has been filed on the basis of the documents provided by the shippers and submitted s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines the role of the responsibility of Customs House Agent. The observation are as follows:- Apex Court vide order dated 14/01/2016 has observed that, The CHA occupies a very important position in the Customs House. The Customs procedures are complicated. The importers have to deal with a multiplicity of agencies viz. carriers, custodians like BPT as well as the Customs. The importer would find it impossible to clear his goods through these agencies without wasting valuable energy and time. The CHA is supposed to safeguard the interests of both the importers and the Customs. A lot of trust is kept in CHA by the importers/exporters as well as by the Government Agencies. To ensure appropriate discharge of such trust the relevant regulations are framed. Regulation 14 of the CHA Licensing Regulations lists out obligations of the CHA. Any contravention of such obligations even without intent would be sufficient to invite upon the CHA the punishment listed in Regulation 13. The Adjudicating Authority further held that the authorized courier being a key person between the customs officers and the importer/exporter has a very similar role to play to that of the CHA and reject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls to clear the consignments; (b) As a courier, they are not authorized to open and examine the goods. Only the customs officers have the right to do so. Regulation 5(2)(v) specifically states no person shall, except with the permission of proper officer, open any package of imported goods ; (c) After opening and inspecting the goods and getting them further examined by the brand owner M/s Nike, the customs officer came to the conclusion that they were counterfeit goods. Balvinder Singh was the person involved in these fraudulent imports and he has confessed to the crime. Nothing in his statement or in the statement of the appellant or of anyone else suggests that they were aware of the nature of the goods; and (d) Regulation 12(1)(v) requires the appellant to exercise due diligence to ascertain the correctness and completeness of any information which he submits to the proper officer with reference to any work related to the clearance of imported goods or of export goods . They had verified the KYC documents which were received, though through Balvinder Singh, but under the cover of letters of the three importer firms. They have verified the KYC documents. Thereafter, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el.) (iii) Rubal Logistics Pvt. Ltd. versus Commissioner of Customs (General), New Delhi 2019 (368) E.L.T. 1006 (Tri. Del.). 20. We have considered the arguments of both sides and have perused the record. 21. The job of an authorized courier agent is somewhat similar to the job of a customs broker. He is required to file declarations before the customs officers in respect of all the consignments, which were imported by him based on the documents. He has no authority to open the consignment. Further he is also required to verify the identity of the importers through KYC documents. In other words, he needs to verify whether the importer actually exists or otherwise which is part of the due diligence process. In this case, the appellant received the KYC documents of all the three alleged importers under the cover of their letters but they were received through Balvinder Singh. Having received the documents, the appellant verified the KYC documents and found the importers to be genuine. There is no dispute that all the three importers in whose name the imports were made exist. 22. The second set of documents which the appellant received is in the form of invoices alo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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