Regulations tightened for identity verification of exporters, importers & CHAs

New Delhi : The government has notified verification regulations named Customs (Verification of Identity and Compliance) Regulations, 2021, for new importers, exporters and customs brokers.

The Customs (Verification of Identity and Compliance) Regulations, 2021, gives customs authorities’ power to undertake identity verification of existing importers, exporters and customs brokers.

The Commissioner of Customs may impose a penalty not exceeding fifty thousand rupees on a person who contravenes any provision of these regulations or who fails to comply with any provision of these regulations,” the Central Board of Indirect Taxes and Customs (CBIC) said in the notification on Tuesday.

However, these regulations will not apply to central government, state governments, and public sector undertakings.

According to the notification, in case of failure of authentication, benefits of goods clearance, refunds, drawback or any other any monetary benefit arising out of import or export will be suspended.

”Commissioner of Customs may select for verification any importer or exporter that has availed benefits of goods clearance, refunds, drawback or any other any benefit, monetary or otherwise, arising out of import or export,” the notification added.

Such person will be informed through the Common Portal and shall furnish the various documents or information namely document of incorporation, a document evidencing the appointment of authorized signatories, if applicable, PAN, GSTIN, and bank statement, Income Tax Return, etc. evidencing financial standing of the person on the Common Portal within 15 days of such intimation of selection.

The officer shall undertake verification and prepare a verification report on the Customs Automated Systems within 30 days of the submission of the documents and information. This is permitted to 60 days in case of physical verification, extendable by 15 days.

The Commissioner of Customs shall on the basis of the report of verification submitted by the proper officer, and other evidence as deemed necessary, determine the outcome of the verification within fifteen days and cause its entry on the Customs Automated System.

“The outcome of the verification shall be informed to the person concerned on the Common Portal within a period of 7 days fr0m the date of determination,” the notification added.

Source : KNN India