New Importer and Exporter must go through Customs
(Verification of Identity and Compliance) Regulations, 2021 Drill for Address
Verification
·
Measure
under Customs Supervision over and above DGFT IE Code Issue
[Notification
No. 41/2021-Customs (N.T.) dated 5 April 20201]
1. Short
title, commencement
2.
Definitions
3.
Application
4.
Verification of identity
5.
Verification of compliance
6. Time
period for verification of identity and
compliance
7. Suspension
of benefits
8. Restoration
of benefits
9. Denial of
benefits
10. Appeal
11. Penalty
G.S.R……(E). - In exercise of the powers conferred by
section 99B read with section 157 of the Customs Act, 1962 (52 of 1962), the
Central Board of Indirect Taxes and Customs hereby makes the following
regulations, namely: -
1.
Short title, commencement.
(1)
These regulations may be called the Customs
(Verification of Identity and Compliance) Regulations, 2021.
(2)
They shall come into force with effect from the date to be notified
2.
Definitions.
(1)
In these regulations, unless the context otherwise requires,-
(a)
"Act" means the Customs Act, 1962 (52 of 1962);
(b)
“Commissioner of Customs” means.-
(i) In
case of an
importer or exporter,
the Commissioner of
Customs who has jurisdiction over the customs station
where such person engages in import or export activity;
(ii) In
case of a Customs Broker, the Commissioner of Customs who has jurisdiction over
such person in accordance with the Customs Brokers Licencing
Regulations, 2018;
(c)
“principal place of business” means the primary
address specified in the Importer Exporter Code issued by Directorate General
of Foreign Trade.
(d)
“proper officer” means the Deputy Commissioner or
Assistant Commissioner sub-ordinate to the Commissioner of Customs
Note:
Any reference to the Commissioner of Customs shall also include a reference to the Principal
Commissioner of Customs.
(2)
The words and expressions used herein and not defined, but defined in the Act,
shall have the same meaning respectively assigned to them in the Act.
3.
Application.
(1)
These regulations shall apply to the following class of persons who are newly
engaging in import or export activity after the commencement of these
regulations:-
(i) Importer;
(ii) Exporter;
(iii) Customs Broker:
Provided
that 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.
(2)
These regulations shall not apply to the Central Government, State Governments
and Public Sector Undertakings.
(3)
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.
4.
Verification of identity.
(1)
The person selected for verification as per regulation 3 shall furnish the
following documents or information on the Common Portal within fifteen days of
such intimation of selection:-
(i) document of incorporation, in case of persons other than
individuals shall be the following, namely:-
(a) in case of partnership firm, partnership deed
or agreement;
(b) in case of Limited Liability Partnership, Certification of
Registration issued by Registrar and LLP Agreement;
(c) in case of company,
Certificate of Registration issued by Registrar and Memorandum of Understanding
and Articles of Association;
(d) in case
of trusts/foundations, Certificate
of Registration and
Memorandum of Understanding and
Articles of Association;
(e) in any other case, any document evidencing constitution.
(ii) document evidencing appointment of authorised
signatories, if applicable.
(iii) Permanent
Account Number;
(iv) GST
Identification Number;
(v) document such
as bank statement,
Income Tax Return
etc. evidencing financial standing of the person:
Provided
that a person who is newly engaging in import or export activity after the
commencement of these regulations shall furnish the said documents not later
than thirty days of engaging in import or export activity.
(2)
On furnishing of documents or information stipulated in sub-regulation (1),
every individual, karta, managing director, whole
time director, partners, member of managing committee of association, board of
trustees, authorised representative, authorized
signatory, shall, within the prescribed time limit, undergo on the Common
Portal-
(i) authentication of Aadhaar;
and
(ii) verification of Permanent Account Number:
Provided
that where the authentication of Aadhaar cannot be
completed due to its non- assignment or due to technical reasons, the person to
be verified shall furnish a notarised copy of valid
passport or electoral photo identity card for verification on Common Portal,
within an extended further period of five days from the date of such selection
or failure of authentication, as the case may be, or within such extended
period, as may be allowed by the Commissioner of Customs.
(3)
On submission of documents or information under sub-regulations (1) and (2), as
the case may be, the proper officer or an officer authorised
by him shall,-
(i) undertake a physical verification of the
address provided in the principal place of business not later than forty five
days from the date of submission of the documents;
(ii) evaluate the financial standing of the person:
Provided
that the proper officer may, for reasons to be recorded in writing and with the
approval of an officer not below the rank of Joint or Additional Commissioner
of Customs, in lieu of the physical verification of the place of business,
carry out the verification of such documents as he may deem fit:
Provided
further that, where the verification of identity is completed by means other
than authentication of Aadhaar, the physical
verification shall not be waived.
(4)
The verification of identity shall be considered to have succeeded, if the
identity is established on the basis of the documents specified under
sub-regulations (1) and (2).
(5)
The verification of identity shall be considered to have failed when the
identity cannot be established on the basis of the documents provided for under
sub-regulations (1) and (2) or on the basis of the physical verification
conducted under sub-regulation (3).
(6)
The outcome of the verification of identity shall be captured in the Customs
Automated System and informed to the person verified.
5.
Verification of compliance.
(1)
Notwithstanding the verification of identity of persons in terms of regulation 4, 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.
6.
Time period for verification of identity and
compliance.
(1)
The proper officer, shall undertake verification in accordance with regulations
4 and 5, and prepare a verification report on the Customs Automated Systems
within thirty days of the submission of the documents and information:
Provided
that the verification report may be prepared within sixty days of the
submission of the documents and information, in case physical verification is
required to be undertaken:
Provided
further that, 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 fifteen days.
(2)
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.
(3)
The outcome of the verification shall be informed to the person concerned on
the Common Portal within a period of seven days from the date of determination.
7.
Suspension of benefits.
The
Commissioner of Customs may, based on reasons to be recorded on the Customs
Automated System, order suspension of any or all of the benefits mentioned in
clause (i) of sub-section (3) of section 99B of the
Act and inform such decision to such person in case he-
(i) failed to comply with the requirements of
the regulation 4; or
(ii) submitted incorrect documents or information under
regulation 4.
(2)
Where the benefits are suspended under sub-regulation (1), the Commissioner of
Customs, shall within a period of fifteen days from the date of such
suspension, give an opportunity of being heard to such person whose benefits
are suspended and may pass such order as he deems fit, either revoking the
suspension or continuing it, as the case may be, within a period of fifteen
days from the date of hearing granted to such person.
8.
Restoration of benefits.
The
benefits suspended under regulation 7 shall be restored
when the person concerned complies with the requirements of regulation 4 or
furnishes correct document or information sought thereunder.
9.
Denial of benefits.
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.
Provided
that no such order shall be issued without providing an opportunity of being
heard to such person by following the procedure prescribed under section 122A
of the Act.
10. Appeal.
(1)
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.
11. Penalty.
(1)
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.
[F.No. 450/104/2019-Cus IV]