Implementation of Customs (Provisional Assessment) Regulations, 2025

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....sment) Regulations, 2025 - Reg. Madam/Sir, Attention is invited to the changes in the Section 18 of Customs Act, 1962 dealing with the Provisional Assessment in the Finance Act, 2025, which came into effect from 29th March, 2025. 2. In brief, the changes brought through Finance Act, 2025 in relation to Provisional Assessment is summarized as below: a. provide time limit of two years for finalisation of provisional assessment which shall be extended by Principal Commissioner of Customs or the Commissioner of Customs, if the sufficient cause is shown. b. for pending cases, the time-limit shall be from 29th March 2025, i.e., the date of enactment of the Finance Act, 2025. c. provide for certain grounds on wh....

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....l also apply to pending cases where the duty payable on goods has not been finally assessed as of 29.03.2025. In this regard, officers shall obtain the pending documents or information, or complete necessary enquiries, within fourteen months from 29.03.2025, i.e., by 29.05.2026, so that provisional assessments can be finalised within the prescribed time limit under Section 18 of the Customs Act, 1962. d. Where possible to do so, the proper officer shall finalise the assessment within three months from the obtaining of pending documents or information or conclusion of enquiry, or seek extension from the officer to whom the proper officer is sub-ordinate, but within the prescribed time limit under section 18 of Customs Act, 1962. ....

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....urned for payment. The importer or exporter shall also be liable to pay interest on the differential amount as per sub-section (2) of Section 18 of the Act. Similarly, If the importer or exporter is entitled to a refund after finalization, the same shall be processed in accordance with sub-sections (4) and (5) of Section 18 of the Act. j. Upon finalization of the provisional assessment, the bond and security furnished at the time of provisional assessment shall be cancelled or re-credited, and the security returned, provided there are no pending dues. This applies in cases where the provisional assessment is confirmed, where duty along with interest has been fully paid for home consumption or exportation, or where an appropriate bo....