Import of goods during pendancy of Advance Rulling

[Abhijeet Mane]

Hi, I want to know if client wants to apply for Customs Advance Rulling for HSN Classification- then how he can import goods during the pendency of Advance Rulling- is it on provisional assement basis. if yes do we have any legal reference to it

[Shilpi Jain]

Provisional assessment is an option. 

Further facts will help to advice better.

[Raghunandhaanan rvi]

Yes, opt for the provisional assessment. To avail of this scheme for the differential duty, you must submit a bond with security to the Customs department. Since you are an AEO entity, No security in the form of a bank guarantee is required.

[Narayana Chambers]

Dear Abhijeet-ji, 

Advance Ruling can be sought only for proposed imports (goods imported in future). Thus, it is advised that subject-goods need not be imported, upto the date of filing the Application.

You will need to disclose the name of Custom Station (Port /Airport). from where you'll be importing the subject-goods. The CAAR Ruling is applicable only qua the Commissioner, for that Customs Station. 

These days, a Ruling from CAAR is received within 6 months. You can consider warehousing the goods, during pendency of litigation (if feasible).

Or you can also provisionally clear the imported goods, pending final outcome (from the named Customs Station).  

AI Summary

Provisional assessment allows import pending an advance ruling, subject to bond/security and station-specific limitations. Provisional assessment permits import during the pendency of an Advance Ruling by executing a bond with prescribed security to cover differential duty; AEO status can obviate bank guarantee requirements. Advance Ruling applies only to proposed future imports and must nominate the customs station, with the ruling binding the Commissioner of that station. Goods may be warehoused or provisionally cleared pending the final determination.