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Guidelines regarding Provisional Assessment under Section 18 of the Customs Act, 1962
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....urity or both, as deemed fit. 3.1 Section 18 of the Customs Act, 1962 defines the cases where provisional assessment may be resorted, as under: - (1) Notwithstanding anything contained in this Act but without prejudice to the provisions of Section 46- (a) where the importer or exporter is unable to make self- assessment under sub-section (1) of Section 17 and makes a request in writing to the proper officer for assessment; or (b) where the proper officer deems it necessary to subject any imported goods or exported goods to any chemical or other test; or (c) where the importer or exporter has produced all the necessary documents and furnished full information but the proper officer deems it necessary to make further enquiry; or (d) where necessary documents have not been produced or information has not been furnished and the proper officer deems it necessary to make further enquiry, 3.2 Further, Section 18 goes on to state how a provisional assessment is to be carried out: "the proper officer may direct that the duty leviable on such goods be assessed provisionally if the importer or the exporter, as the case may be, furnishes such security as the proper offic....
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....as decided that the following procedure and guidelines will be followed by all Customs stations while assessing goods provisionally: 3.8 Wherever, duty is to be assessed provisionally, the importer shall: (a) for the purpose of undertaking to pay on demand the deficiency, if any, between the duty as may be finally assessed and the duty provisionally assessed, execute a bond in the prescribed form (enclosed); and (b) furnish such security for the payment of the duty deficiency, as indicated in para 4 below. 3.9 The security to be obtained shall be in the form of a bank guarantee or a cash deposit, as convenient to the importer. 4. The following guidelines shall be followed while obtaining security where provisional assessment under section 18 of the Customs Act is being undertaken: Sl. No. Class of Importer Amount of Bank Guarantee or Cash deposit to be obtained as "security" of the differential duty Remarks 1. Imports by Authorised Economic Operators (AEO T3) 0% (Including cases at St. No.4 to 6b) In terms of Circular No. 33/2016-Customs dated 22nd July, 2016 as amended. 2. Imports by Authorised Economic Operators (AEO -T1 and AEO-T2) (excluding imports ment....
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.... 18 are to be carried out with respect to cases where the duty is in dispute. Cases relating to execution of a bond or undertaking specified as a condition to a notification or those requiring compliance of conditions under allied acts are not to be provisionally assessed under section 18 of the Customs Act. This position had been earlier clarified by the Ministry of Law and Justice and circulated vide Ministry F.No. 353/91/74-Cus dated 28th January 1977. 5. Difficulties, if any, may be brought to the notice of the undersigned. (SHRAWAN KUMAR) COMMISSIONER OF CUSTOMS, NS-III ============= Document 1 Bond Individual Importation (With Bank Guarantee or Cash Deposit) (To be executed by the Importer of goods with bank guarantee/cash deposit under section 18 of the Customs Act, 1962 (52 of 1962) (Circular No. 38/2016-Customs dated 22.8.2016 issued from CBEC F.No.465/01/2016-Cus-V) KNOW ALL MEN BY THESE PRESENTS THAT WE M/s having our registered office located at Import-Export Code No. and holding hereinafter called the "Importer" (which expression shall include its successors/heirs, executors, administrators and legal representatives) are held and firmly bound unto th....
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.... said sum of Rs. in the manner laid down in Section 142 of the Customs Act, 1962 without prejudice to any other mode of recovery. IN WITNESS WHEREOF the importer has herein set and subscribed its hands and seals the day, month and years first above written. SIGNED AND DELIVERED by and on behalf of the importer at the present of :- (place) in (Signature of Authorised Signatory and Corporate Seal) Witnesses: 1. 2. Accepted for and on behalf of the President of India (Signature of the Proper Officer) Schedule to Bond (Individual Importation) (With Bank Guarantee or Cash Deposit) (To be executed by the Importer of goods with bank guarantee/cash deposit under section 18 of the Customs Act, 1962 (52 of 1962) (Circular No. 38/2016-Customs dated 22.8.2016 issued from CBEC F.No.465/01/2016-Cus-V) Bill of Date Value at which Bond Entry provisionally Value Details of Remarks security Signature/date/name/ (attach bank designation of officer No. assessed bank deposit or guarantee/cash guarantee in original) which ever is applicable making the entry deposit receipt (1) (2) (3) (4) (5) (6) (7) Bond Individual Importation (Without Bank Guarantee or ....
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....y recover the said sum of Rs. in the manner laid down in Section 142 of the Customs Act, 1962 without prejudice to any other mode of recovery. IN WITNESS WHEREOF the importer has herein set and subscribed its hands and seals the day, month and years first above written. SIGNED AND DELIVERED by and on behalf of the importer at (place) in the present of :- (Signature of Authorised Signatory and Corporate Seal) Witnesses: 1. 2. Accepted for and on behalf of the President of India (Signature of the Proper Officer) Schedule to Bond (Individual Importation) (Without Bank Guarantee or Cash Deposit) (To be executed by the Importer of goods without bank guarantee/cash deposit under section 18 of the Customs Act, 1962 (52 of 1962) (Circular No. 38/2016-Customs dated 22.8.2016 issued from CBEC F.No.465/01/2016-Cus-V) Bill of Date Value at which Bond Entry provisionally Remarks Value any) No. assessed (1) (2) (3) (4) (5) (if Signature/date/name/ designation of officer making the entry (6) Continuity Bond (With Bank Guarantee or Cash Deposit) (To be executed by the Importer of goods with bank guarantee/cash deposit under section 18 of the Customs Act, 196....
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....ll be void and of no effect; otherwise the same shall remain in full force and virtue. AND IT IS HEREBY AGREED AND DECLARED by the importer as follows:- 1. This bond and cash deposit/bank guarantee are given under the orders of the Central Government for the performance of an act which is in public interest. 2. The President through the [Deputy Commissioner/Assistant Commissioner of Customs] or other officer may recover the said sum of Rs. in the manner laid down in Section 142 of the Customs Act, 1962 without prejudice to any other mode of recovery. 3. This bond and the cash deposit/bank guarantee shall remain in force from the date hereof and the obligation and liability of the importer shall be a continuing one in respect of all goods imported from time to time by the importer between the period of and the payment by the importer of the difference between the duty finally assessed and the duty provisionally assessed in respect of the goods imported from time to time. IN WITNESS WHEREOF the importer has herein set and subscribed its hands and seals the day, month and years first above written. SIGNED AND DELIVERED by and on behalf of the importer at the present....
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....ed in the schedule hereto annexed upon the importer agreeing to furnish such bond as is herein contained; and NOW THE CONDITION of the above written bond is such that (1) If the importer shall within - days or within such extended period as the Proper Officer may allow, produce such documents and furnish such information as may be called for by the Proper Officer, and (2) If the importer pays to the President, the difference between the duty finally assessed and the duty provisionally assessed in respect of goods imported from time to time and mentioned in the Schedule hereto annexed. Then the above written bond shall be void and of no effect; otherwise the same shall remain in full force and virtue. AND IT IS HEREBY AGREED AND DECLARED by the importer as follows:- 1. This bond is given under the orders of the Central Government for the performance of an act which is in public interest. 2. The President through the [Deputy Commissioner/Assistant Commissioner of Customs] or other officer may recover the said sum of Rs. in the manner laid down in Section 142 of the Customs Act, 1962 without prejudice to any other mode of recovery. 3. This bond shall remain in forc....