Draft Circular on Customs (Provisional Duty Assessment) Amendment Regulations, 2011 – CBEC Invites Comments

[Ref: F.No.450/5/2011-Dir (Cus) dated 29 July 2011]

Introduction of `Self-Assessment’ in Customs has led to a need for making certain changes in Customs (Provisional Duty Assessment) Regulations, 1963 to harmonize it with the amended provisions of Finance Act, 2011. These amendments are proposed to be given effect by way of a fresh Notification. Accordingly, draft Customs (Provisional Duty Assessment) Amendment Regulations, 2011 are enclosed herewith (Annexure – ‘A’).

2. CBEC solicits views, comments and suggestions on draft ‘Customs (Provisional Duty Assessment) Amendment Regulations, 2011’ from the trade and industry associations, departmental officers and others. The views, comments and suggestions to the draft Regulations may please be sent, latest by 13^th August, 2011, to Director (Customs), Ministry of Finance, Department of Revenue, Central Board of Excise & Customs, Room No.227-B, North Block, New Delhi – 110001 or at Fax No. (011) 23092173 or at e-mail I.D.: dircus@nic.in

3. It is emphasized that the draft Customs (Provisional Duty Assessment) amendment Regulations, 2011 have been put up only to elicit public response. No final decision has been taken as yet by the Government / Board, which will proceed further in the matter only after due examination of the response received.

Encl: Annexure ‘A’.

Annexure – `A’

In exercise of the powers conferred by section 157 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby makes the following regulations to amend the Customs (Provisional Duty Assessment) Regulations, 1963, namely:-

1. Short title and commencement, —

(i) These regulations may be called the Customs (Provisional Duty Assessment) Amendment Regulations, 2011.

(ii) They shall come into force on the date of their publication in the Official Gazette.

2. In the Customs (Provisional Duty Assessment) Regulations, 1963 -

(i) For regulation 2, the following shall be substituted namely:-

“2. Conditions for allowing provisional assessment. — Where an importer or an exporter, as the case may be, is unable to make self-assessment and makes a request in writing to the proper officer for provisional assessment or the proper officer on account of any of the grounds specified in sub-section (1) of section 18 of the Customs Act, 1962 (52 of 1962), is not able to verify the self-assessment or make re-assessment of the duty on the imported goods or the export goods, as the case may be, he shall make an estimate of the duty that is most likely to be levied (hereinafter referred to as the provisional duty). If the importer or the exporter, as the case may be, executes a bond in an amount equal to the difference between the duty that may be finally assessed or re-assessed and the provisional duty and deposits with the proper officer such sum not exceeding twenty per cent of the provisional duty, as the proper officer may direct, the proper officer may assess the duty on the goods provisionally at an amount equal to the provisional duty.”

(ii) In regulation 3, the following clause shall be inserted namely;-

“(a) Where provisional assessment is allowed on request of the importer or the exporter, as the case may be, the terms of the bond shall be that the person executing the bond shall pay the deficiency, if any, between the duty finally assessed or re-assessed and the duty provisionally assessed.”

(iii) In regulation 3, the existing clauses (a) shall be re-lettered as (c).

(iv) In regulation 3, for the words “finally assessed” wherever they occur, the words “finally assessed or re-assessed”, as the case may be, shall be substituted.