Section 99B explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 99B lets a senior-authorised customs officer require a person to undergo Aadhaar authentication, or furnish proof of an Aadhaar number, or submit other documents or information, where verification is considered necessary to protect revenue or prevent smuggling. If the person fails, a Principal Commissioner or Commissioner may suspend a list of benefits until the person complies. This article explains the section as printed in the text on the CBIC portal updated to 30 March 2022.
The proper officer, authorised by the Principal Commissioner or Commissioner, may require a person whose verification he considers necessary for protecting the interest of revenue or preventing smuggling to undergo Aadhaar authentication or furnish proof of possession of an Aadhaar number, and to submit other documents or information, in the manner and time prescribed. If the person fails or submits incorrect documents, the Commissioner may, by a reasoned order, suspend clearance, refund, drawback, exemption, licence or registration, or other benefits until the person complies.
The text consulted is the CBIC copy last updated on 30 March 2022 (the Act as amended up to the Finance Act, 2022). Later Finance Acts may have changed this section, so check it before acting.
Where section 99B sits
Section 99B is the only section of Chapter XIIB, headed "Verification of identity and compliance". The footnote says the Chapter was inserted with effect from 1-8-2019 by section 71 of the Finance (No.2) Act, 2019 (23 of 2019). It follows the audit chapter, covered in our article on Section 99A, and comes before the chapter on searches, seizure and arrest.
Importers and exporters often hold an import-export code, and a suspension of a licence or registration under this section can affect it. Our page on IEC modification and update explains how we help keep such records correct.
Sub-section (1): who may be asked, and for what
The proper officer, authorised in this behalf by the Principal Commissioner of Customs or the Commissioner of Customs, may require a person to do all or any of the following.
| Clause | Requirement |
|---|---|
| (a) | Undergo authentication, or furnish proof of possession of Aadhaar number, in such manner and within such time as may be prescribed |
| (b) | Submit such other document or information, in such manner and within such time as may be prescribed |
The power has three limits written into the text:
- Purpose. It is for ascertaining compliance with the Act or any other law for the time being in force.
- Person. It applies to a person whose verification the officer considers necessary for protecting the interest of revenue or for preventing smuggling.
- Authorisation. The officer must be authorised by the Principal Commissioner or Commissioner.
Proviso: alternatives. Where the person has not been assigned an Aadhaar number, or has one but authentication has failed due to technical reasons or reasons beyond his control, the person shall be provided an opportunity to furnish other alternative and viable means of identification, in such form, manner and time as may be prescribed.
The Act does not say what the prescribed manner or time is, and the text consulted names no rule or regulation for this section. This article names none.
Sub-section (2): persons outside the section
Sub-section (1) does not apply to such person or class of persons as may be prescribed. The text names none.
Sub-section (3): suspension
Sub-section (3) begins "Notwithstanding anything contained in any other provisions of this Act". It operates where the Principal Commissioner of Customs or the Commissioner of Customs comes to the conclusion, based on reasons to be recorded in writing, that the person has acted in one of two ways.
Clause (i): failed to comply or gave incorrect material. The person has failed to comply with the requirements of sub-section (1), or has submitted incorrect documents or information under it. The Commissioner may, by order, suspend the items below, relating to that person, subject to such conditions as may be prescribed.
| Item | What may be suspended |
|---|---|
| (a) | Clearance of imported goods or export goods |
| (b) | Sanction of refund |
| (c) | Sanction of drawback |
| (d) | Exemption from duty |
| (e) | Licence or registration granted under the Act |
| (f) | Any benefit, monetary or otherwise, arising out of import or export |
Clause (ii): failed authentication. The person has failed authentication as required under sub-section (1). The Commissioner may, by order, direct that the person shall not have the benefit of any of the items in sub-clauses (a) to (f) of clause (i).
The two clauses differ. Clause (i) speaks of suspension for non-compliance or incorrect material. Clause (ii) speaks of directing that the person shall not have the benefit where authentication has failed. Both need reasons recorded in writing.
Example. Harbor Gems Pvt Ltd is asked, through an authorised officer, to furnish proof of Aadhaar for its authorised signatory and some further documents within the time prescribed. The company submits papers that turn out to be incorrect. The Commissioner, after recording reasons in writing, may by order suspend clearance of its imported goods, refund sanction and the other listed items until the correct documents are furnished.
Sub-section (4): how long the suspension lasts
The order of suspension under sub-section (3) remains in force until the person concerned complies with the requirements of sub-section (1) or furnishes correct document or information under it.
So a suspension is not for a fixed period. It ends on compliance. The text does not say who decides that compliance has occurred or in what time the suspension must be lifted; those matters are not addressed in the section.
Explanation: Aadhaar number
The expression "Aadhaar number" has the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. The text says nothing more about that Act, and neither does this article.
Key points for businesses
| Question | Answer from the text |
|---|---|
| Who asks? | A proper officer authorised by the Principal Commissioner or Commissioner |
| For what purpose? | Ascertaining compliance, where verification is necessary to protect revenue or prevent smuggling |
| What can be required? | Aadhaar authentication or proof of Aadhaar number, and other documents or information |
| If there is no Aadhaar number or authentication fails for technical reasons? | An opportunity to furnish other alternative and viable means of identification |
| Who can suspend? | The Principal Commissioner or Commissioner, by order, with reasons recorded in writing |
| How long does suspension last? | Until the person complies or furnishes correct documents or information |
Practical steps
- Respond within the prescribed time. Both clause (a) and clause (b) tie the requirement to a manner and time as prescribed.
- Use the alternative route where it applies. If there is no Aadhaar number or authentication failed for reasons beyond your control, ask for the opportunity to furnish other means of identification.
- Check what you submit. Incorrect documents or information can lead to suspension.
- Know what a suspension covers. Clearance, refund, drawback, exemption, licence or registration and other benefits are all in the list.
- Get the reasons. Suspension or denial must rest on reasons recorded in writing; a copy of the order helps in planning a response. If you wish to challenge it, see how to file a customs appeal.
Refund of tax on exports is a separate subject under other laws and is not governed by this section; this article says nothing on it.
Need help with an identity verification notice?
If your business has received a requirement under section 99B or an order suspending clearance, refund or registration, we can help you keep your import-export code and records correct. See our IEC modification and update page.
Key takeaways
- An authorised proper officer may require Aadhaar authentication or proof, and other documents or information, from a person whose verification is necessary for protecting revenue or preventing smuggling.
- Where there is no Aadhaar number or authentication fails for reasons beyond the person's control, an opportunity to furnish alternative means of identification must be given.
- The Principal Commissioner or Commissioner may, by reasoned order, suspend six listed categories of benefit.
- Suspension remains in force until the person complies or furnishes correct documents or information.
- Later Finance Acts may have changed this section; check before acting.
Read next
- Section 99A: customs audit of importers and exporters
- Sections 100 to 102: search of suspected persons
- IEC modification and surrender
- Import Export Code (IEC): complete registration guide
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.