CBIC Notifies Customs (Finalisation of Provisional Assessment) Regulations, 2025 [Read Notification]

The latest regulations apply to both assessments pending on the date of enforcement and those after the date of enforcement.

Each bill of entry or shipping bill shall now be treated as a separate case of provisional assessment. Importers and exporters are now required to submit requisitioned documents or information within two months from the date of notice, which is extendable by the proper officer for a further two months; in addition, higher authorities are empowered to allow additional time if justified. However, the maximum extension cannot exceed fourteen months from the date of provisional assessment.

In cases where provisional assessments are linked to further enquiries by customs officers, the enquiry must be completed within fourteen months. The finalisation of provisional assessments is required to be completed within two years from the date of provisional assessment, subject to exceptions such as pending appeals, stay orders, or information is being sought from an authority outside India through a legal process. The Commissioner of Customs may grant an additional one-year extension if sufficient cause is shown.

The framework also allows importers and exporters to voluntarily pay duties during the provisional phase, with such amounts adjusted at the time of finalisation. Interest obligations apply on voluntary payments and any duty differentials determined at the time of finalisation. Where final assessments differ from provisional ones, proper officers are required to pass speaking orders in accordance with natural justice.

Additionally, the Rules also contain provisions for refunds, recovery of dues, and cancellation of bonds executed at the time of provisional assessment.

A penalty provision has been introduced, making importers, exporters, authorised representatives or customs brokers liable for contraventions or failure to comply with the regulations, which is as per section 158(2)(ii) of the Customs Act.

The 2025 regulations are expected to bring greater efficiency, accountability, and transparency in provisional customs assessments, ensuring faster resolution for trade stakeholders while safeguarding revenue interests of the government

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