Finalization of Provisional Bill of Entry under Customs (Finalisation of Provisional Assessment) Regulations, 2018

Introduction

In international trade, importers are sometimes required to clear goods based on provisional assessments due to unavailability of complete information necessary for final assessment. The Customs (Finalisation of Provisional Assessment) Regulations, 2018, notified vide Notification No. 73/2018-Customs (N.T.) dated 14th August 2018, provide a structured framework for the finalization of such provisional assessments. This article outlines the requirement, procedure, and process for finalizing the provisional Bill of Entry (BoE), along with details on the cancellation of Provisional Duty (PD) Bonds and the printing of the final assessed Bill of Entry.

Requirement of Provisional Assessment

Provisional assessment of a Bill of Entry becomes necessary when:

• The importer is unable to produce complete documents at the time of clearance.
• Certain test reports, certifications, or valuations are pending.
• The customs officer requires additional information to finalize the assessment.

In such cases, the importer must furnish security in the form of a PD Bond along with suitable bank guarantee as determined by the proper officer.

Procedure for Finalization of Provisional Bill of Entry

The Customs (Finalisation of Provisional Assessment) Regulations, 2018 prescribe a defined process for finalizing provisional assessments. The key steps involved are as follows:

1. Submission of Requisite Documents

The importer is obligated to provide all pending documents or information required for final assessment within the time stipulated by the proper officer, generally within two months from the date of provisional clearance. An extension may be granted on request if justified.

2. Verification and Examination

Upon receipt of the necessary documents, the assessing officer conducts verification. This includes review of test reports, valuations, certificates of origin, etc. The final assessment is then carried out based on the complete data set.

3. Issuance of Final Assessment Order

Once satisfied, the proper officer issues an order finalizing the provisional assessment under Section 18(2) of the Customs Act, 1962. The final duty is calculated accordingly.

Process of Duty Adjustment

Depending on the outcome of the final assessment:

• If additional duty is payable, the importer must remit the differential amount along with applicable interest under Section 18(4).
• If excess duty was paid provisionally, a refund may be claimed under Section 27 of the Customs Act. The refund is subject to the principle of unjust enrichment.

Cancellation of PD Bond

Once the provisional assessment is finalized and all dues (if any) are cleared:

• The importer may apply for cancellation or discharge of the PD Bond.
• The proper officer, upon verification of compliance and payment of differential duties, if any, issues an order for bond cancellation.
• The importer is relieved of further obligations under the said bond.

This step is crucial, as it marks the completion of the provisional assessment cycle and removes any financial liabilities backed by the bond.

Printing of Finalized Bill of Entry

After final assessment:

• The system-generated final Bill of Entry becomes available on the ICEGATE portal or through the Customs Automated System.
• Importers can download and print the duly assessed final BoE for their records, accounting, and compliance purposes.
• This document is necessary for closure of bank guarantees, audit purposes, and regulatory compliances with other government agencies (e.g., DGFT, GST authorities).

Time Frame and Compliance Monitoring

As per the 2018 Regulations:

• Customs authorities are required to monitor and finalize provisional assessments expeditiously, ideally within six months from the date of provisional assessment.
• Delay beyond the stipulated period necessitates reporting and justification by the assessing officer.

Conclusion

The Customs (Finalisation of Provisional Assessment) Regulations, 2018, aim to bring transparency, accountability, and time-bound finalization of provisional assessments. Importers are advised to maintain clear documentation, respond to information requests promptly, and track the finalization status to ensure compliance and avoid unnecessary delays or financial liabilities. The cancellation of PD Bonds and proper documentation of the finalized Bill of Entry completes the procedural compliance and ensures smooth trade operations.