Conditions for provisional assessment - CBEC's Customs Manual 2023 - Customs

2. Conditions for provisional assessment: 2.1 For making provisional assessment the proper officer is required to estimate the duty to be levied i.e. the provisional duty. Wherever, duty is to be assessed provisionally, in terms of section 18 , the importer or exporter shall: (a) for the purposes of undertaking to pay on demand the deficiency, if any, between the duty as may be finally assessed or re-assessed and the duty provisionally assessed, execute a bond, in the prescribed form and; (b) furnish such security for the payment of duty deficiency as prescribed. 2.2 The security to be obtained shall be in the form of bank guarantee or a cash deposit, as convenient to the importer. 2.3 CBIC has issued comprehensive guidelines for provisional assessment vide Circular No. 38/2016-Customs dated 22.08.2016 . This circular has been revised after the implementation of the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (referred to as the CAROTAR, 2020) issued vide Notification No. 81/2020-Customs (N.T.) dated 21st August, 2020. The latest standing CBIC Circular prescribing guidelines for provisional assessment are provided in Circular 19/2021-Customs dated 16.08.2021.