Responsibilities of licensee

Rule 101(e) of Customs Rules, 2001, requires a clearing agent to pay the evaded amount of duties and taxes only in case it is established that the evasion has taken place because of negligence and failure to perform his functions as prescribed under the law and/or because of connivance or wilful act of its employee or permit holder

Similarly, other sub-clauses of R.101 require customs authorities to establish connivance and willful negligence on the part of the clearing agent.

Rule 101(e) of Customs Rules, 2001,provided that importer could not evade payment of amount of duties and taxes along with 1% additional customs duty as warehousing surcharge to Department levied on actual value of imported goods

Department could recover such duty from importer inasmuch as importer was jointly and severally responsible along with Department for causing loss to National Exchequer by misdeclaration of imported goods chargeable at the time of in-bonding of goods in public/private bonded tanks terminals under Finance Act, 1991.