The Central Board of Indirect Taxes and Customs (CBIC) notified verification regulations for new importers, exporters and customs brokers, where non-compliance may lead to penalty of Rs 50,000.
The Board issued the Customs (Verification of Identity and Compliance) Regulations, 2021, on Tuesday. They will not apply to central government, state governments, and public sector undertakings.
“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 said in 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.
“This is a good move on the part of the government from perspective of preventing revenue leakage and with GST collections on rise with the introduction of preventive regulations, it is hoped that these rules would lead to better customs duty collection as well,” said Abhishek Jain, tax partner at EY.
“Having said this, the government will have to ensure that genuine taxpayers don’t face unnecessary hassles,” he added.
The regulations state that 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.
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 Commissioner of Customs has been empowered to ask for any document or information in the Customs Automated System from the person, with a view to protecting the interest of revenue or preventing smuggling.
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 from the date of determination,” the notification added.
The regulations also state provisions for appeal by the affected party.
Source: economictimes