The Central Board of Indirect Taxes and Customs (CBIC) notified the Customs (Verification of Identity and Compliance) Regulations, 2021, which will be applicable to Importers; Exporters; and Customs Brokers who are newly engaging in import or export activity.
As per the new Regulations, the Commissioner of Customs may select any person, who may have engaged in import or export activity or availed or claimed the benefits mentioned in sub-clause (a) to (f) of clause (i) of sub-section (3) of section 99B of the Act or engaged as a Customs Broker in such activity or in availing or claiming such benefits prior to the commencement of these regulations and these regulations shall apply to such person.
These regulations shall not apply to the Central Government, State Governments, and Public Sector Undertakings.
“The person selected shall be informed about such selection immediately through the Common Portal, to the extent available, and in other cases, through such means as deemed appropriate by the Commissioner of Customs,” the CBIC notified.
The person selected for verification 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.
Moreover, the Commissioner of Customs, may, with a view to protecting the interest of revenue or preventing smuggling, cause verification of the compliance to the provisions of the Act or any other law for the time being in force, by such person and for this purpose require the person concerned to produce any document or information in the Customs Automated System.
The proper 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.
However, the verification report may be prepared within 60 days of the submission of the documents and information, in case physical verification is required to be undertaken and the Commissioner of Customs may, having regard to the circumstances under which the proper officer could not prepare the verification report, extend the periods specified above by a further period of 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 from the date of determination.
In case of failure of authentication, as required under the sub-section (1) of section 99B, the Commissioner of Customs may, by order, under clause (ii) of sub-section 3 of section 99B of the Act, direct that such person shall not have the benefit of any of the items specified in sub-clause (a) to (f) of clause (i) of sub-section (3) of section 99B of the Act.
The regulation consisting of the provision related to the Appeal wherein it stated that A person who is aggrieved by any order passed by the Commissioner of Customs under regulations 7 or 9, may prefer an appeal under section 129A of the Act to the Customs, Central Excise and Service Tax Appellate Tribunal, established under sub-section (1) of section 12 of the said Act.
“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 CBIC while elaborating on the provision related to the penalty said.
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