The customs broker is expected to function as an extended arm of the Customs Department

The customs broker is expected to function as an extended arm of the Customs Department and is required to act in such a manner that the provisions of Customs Act and enacted rules and regulations are implemented efficiently. The CHA cannot escape the vicarious liability for the action of their employees.

2018 (5) TMI 731 - CESTAT NEW DELHI

EXIM CARGO SERVICES VERSUS CC, NEW DELHI

Revocation of CHA license - forfeiture of security deposit - it was alleged that the appellant misdeclared goods in terms of description as well as undervaluation - Held that: - During the interrogation G Card Holder admitted in the statements that he had carried out forgery of the import invoices using his computer and using such forged invoices, misdeclared the import goods in the bills of entry filed in terms of both valuation as well as description.

For monetary benefits G Card holder acted to secure clearance of the goods without scrutiny by customs by resorting to preparation forged copies of the invoices, thereby declaring lesser value and changing the description of the goods to “Paper-Rolls”. This clearly establish the contravention of various Regulations under CBLR, 2013. It has been submitted on behalf of the CHA that the CHA cannot be held liable for the errant behavior of one of their employees

But, it was imperative for the Customs Broker to keep control and supervision over the conduct of their employees and he can’t escape from the responsibilities.