Provisional customs assessment must be finalised when no retroactive origin check is initiated within the prescribed time.

Where imports are supported by certificates of origin claimed for duty exemption, and no retroactive check is initiated within the prescribed period under the applicable origin rules, provisional assessment cannot be left open indefinitely. If the customs authorities do not act within that period, they must complete the provisional assessment and cannot continue to retain the importer's bank guarantees without justification, especially where a bond is already in place. The Court therefore directed release of the bank guarantees and completion of the provisional assessments within the time granted.

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Issues: Whether the customs authorities were bound to release the bank guarantees and complete the provisional assessments after the prescribed period for retroactive check had expired without any such check being initiated.

Analysis: The import was covered by certificates of origin produced for claiming duty exemption under the relevant notification and rules. The respondents confirmed that no retroactive check had been initiated. In that situation, the time limit prescribed for such check had expired, and the provisional assessment could not be kept pending indefinitely. The continuation of the bank guarantees, when a bond was already in place, was therefore unwarranted.

Conclusion: The authorities were directed to release the bank guarantees and to complete the provisional assessments within the time granted by the Court.

Ratio Decidendi: Where no retroactive check is initiated within the prescribed period under the applicable origin rules, the customs authorities must finalize provisional assessment and cannot continue to retain the importer's bank guarantees indefinitely.

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