CHA Not Obliged to Verify Genuineness Of IE Code For Each Import/Export Transaction: CESTAT

CESTAT has ruled that a customs house agent (CHA) is not legally obligated to verify the authenticity of the Import Export Code (IEC) for every import or export transaction. The case arose when customs authorities held a CHA liable for issues related to the genuineness of an importer’s IEC. However, the tribunal ruled in favor of the CHA, stating that their role is limited to facilitating customs procedures and does not extend to verifying the legality of every document. This ruling provides clarity on the responsibilities of CHAs in import-export transactions.