1 tonne red sanders ‘caught’ before export, high court revokes customs broker’s licence

The Delhi High Court has maintained the suspension of a customs broker's licence following allegations that the broker lent his credentials to an employee, who subsequently filed a shipping bill without authorization for a consignment of 1,158 kg of red sanders. Justices Anil Kshetarpal and Shail Jain emphasized that a customs broker's regulatory violation is a violation regardless of the department's inability to prove the broker's direct involvement.

The broker, who had admitted to lending his licence and digital dongle, was accused of facilitating the unauthorized export of the goods. The shipping bill was filed in the name of Deepnidhi International for export to Sweden, and customs officials discovered the red sanders during their investigation. The additional commissioner of customs revoked the broker's licence, seized his security deposit of Rs 75,000, and imposed a Rs 50,000 fine.

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) confirmed the decision, and the broker appealed to the Delhi High Court. The broker's legal team argued that he had verified the IEC and GST details of the exporter and that there was no evidence of his knowledge or involvement in the prohibited export of red sanders.

However, the court dismissed the appeal, finding no evidence of active facilitation or knowledge on the broker's part and concluding that the procedural lapse was not sufficient to overturn the revocation of his licence.