Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 41/2021 – Customs dated 5th April, 2021 to introduce Customs (Verification of Identity and Compliance) Regulations, 2021 which shall come into force with effect from the date to be notified.
Key Points of the Notification are:
1) Customs (Verification of Identity and Compliance) Regulations, 2021 shall apply to the following class of persons who are newly engaging in import or export activity after the commencement of these regulations –
a) Importer;
b) Exporter;
c) Customs Broker:
2) This regulation may also apply if the Commissioner of Customs selects any person who may have engaged in import or export activity or availed or claimed the benefits i.e. sanction of refund; sanction of drawback; exemption from duty or any benefit, monetary or otherwise, arising out of import or export or engaged as a Customs Broker in such activity or in availing or claiming such benefits prior to the commencement of these regulations.
3) These regulations shall not apply to the Central Government, State Governments and Public Sector Undertakings.
4) 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.
5) The person selected for verification 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 Limited Liability Partnership, Certification of Registration issued by Registrar and LLP Agreement
b. In case of company, Certificate of Registration issued by Registrar and Memorandum of Understanding and Articles of Association
c. In case of trusts/foundations, Certificate of Registration and Memorandum of Understanding and Articles of Association
d. 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:
It has further been 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.
6) On furnishing of documents or information stipulated in sub-regulation, 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-
a) authentication of Aadhaar; and
b) verification of Permanent Account Number
It has further been provided 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.
7) On submission of documents or information , the proper officer or an officer authorised by him shall 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 and evaluate the financial standing of the person.
8) 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 seven days from the date of determination.
9) 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 i.e. sanction of refund; sanction of drawback; exemption from duty or any benefit, monetary or otherwise, arising out of import or export and inform such decision to such person in case he-
(i) failed to comply with the aforesaid requirements; or
(ii) submitted incorrect documents or information.
10) 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. The benefits suspended shall be restored when the person concerned complies with the requirements or furnishes correct document or information sought thereunder.
11) A person who is aggrieved by any order passed by the Commissioner of Customs may prefer an appeal under the Customs, Central Excise and Service Tax Appellate Tribunal.
12) 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.
For further details please refer the attached document.
Source: Central Board of Indirect Taxes & Customs
