The Central Board of Indirect Taxes and Customs (CBIC) notified the amendments regarding provisional assessment under section 18 of the Customs Act 1962 and Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR).
In order to align the Circular no. 38/2016-Customs dated August 22, 2016 with CAROTAR, 2020, the entries at Sl No. 1, 2, 5(a) and 5(c) of Table at paragraph 3 of the said Circular are substituted with the entries.
Firstly, in case of imports by Authorised Economic Operators (AEO – T3), 0% including cases at Sl. No. 4 to 6b, except 5(a) and 5(c) In terms of Circular no.33/2016-Customs dated 22nd July 2016, as amended.
Secondly, in the case of imports by Authorised Economic Operators (AEO – T1 and AEO – T2) excluding importers mentioned at Sl. No. 3, 0% in terms of SI. No. 5 (b), 6(a) and 6(b) (2) and 50% (for AEO-T1) or 25% (for AEO-T2) of the applicable bank guarantee or cash deposit specified at SI. No. 4, 6(b)(1), in terms of Circular no.33/2016-Customs dated 22nd July 2016, as amended.
Thirdly, cases related to determination of origin under FTAs based on the reasonable belief that the matter involves misdeclaration of origin, 100% in terms of Rule 5 or Rule 6(1)(b) of CAROTAR, 2020 (notification no. 81/2020 dated August 21, 2020.
Lastly, Cases related to verification of signatures and seals under FTAs, 100% in terms of Rule 6(1)(a) of CAROTAR, 2020 (notification no. 81/2020 dated August 21, 2020).
“all class of importers, including Authorised Economic Operators (AEO), are required to furnish 100% of differential duty as a security if provisional assessment is requested by the importer when inquiry is initiated in terms of rule 5 or when verification is initiated in terms of rule 6(1)(a) or 6(1)(b) of CAROTAR, 2020,” the Board notified.Subscribe Taxscan AdFree to view the Judgment