Continuity bond

[Mukund Honkan]

In regard to import from associated concerns, on provisional assessment by SVB, we are depositing full custom duty with 1% RD. However, customs demand bond to the extent of assesseable value instead of differential duty .  Wehave a case with Supreme Court which we won in tribunal & customs went to Supreme Court where customs treat assesseable value as 120% of invoice value. Can some body guide us provisions for taking bonds.

Regards,

Mukund M Honkan

[Rama Krishana]

Do you wish to know the Rules for provisional assessment and requirement of furnishing bond? If yes, please follow this link:

https://www.taxtmi.com/acts?actId=52

AI Summary

Provisional assessment bond requirement: whether bonds must cover full assessable value or only differential duty under SVB provisional assessments. Consignee under provisional assessment by SVB deposits full customs duty with 1% reduced deposit but customs demands a continuity bond based on the assessable value (alleged at 120% of invoice) instead of a bond limited to the differential duty; guidance is sought on the statutory rules governing provisional assessment and bond requirements.