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TMI BlogGuidelines regarding Provisional Assessment under section 18 of the Customs Act, 1962X X X X Extracts X X X X X X X X Extracts X X X X ..... No.38/2016-Customs dated 22.08.2016 on the above mentioned subject. 2. The Customs (Provisional Duty Assessment) Regulations 2011 issued under notification no. 81/2011 - Customs (NT) dated 25.11.2011 were reviewed in view of references from the field formations regarding guidelines on the implementation of Regulation 2(2) and Regulation 4. 3. Regulations 2(2), 3 and 4 require three elements - namely, (a) deposit of 20% of the differential duty between provisional duty and duty to be finally assessed or re- assessed' ; (b) execution of a bond; and (c) surety or security or both, as deemed fit. 3.1 Section 18 of the Customs Act, 1962 defines the cases where provisional assessment may be resort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any, between the duty as may be finally assessed and the duty provisionally assessed; and (b) furnishes such security as the proper officer deems fit for the payment of the deficiency. 3.3 In view of the requirement that the importer binds himself to pay the deficiency, 3.4 if any, between the duty as may be finally assessed and the duty provisionally assessed, it would be necessary to obtain a bond for meeting the aforesaid condition. 3.5 Insofar as the requirement of obtaining a 20% deposit of the duty provisionally assessed, the Board has decided that this condition be dispensed, particularly, as it necessitates following the procedure of refunds in cases where final assessment is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g goods provisionally 3.8 Wherever, duty is to be assessed provisionally, the importer shall: (a) for the purposes of undertaking to pay on demand the deficiency, if any, between the duty as may be finally assessed and the duty provisionally assessed, execute a bond in the prescribed form (enclosed); and (b) furnish such security for the payment of the duty deficiency, as indicated in para 3 below. 3.9 The security to be furnished by the importer shall be in the form of a bank guarantee or a cash deposit, as convenient to the importer. 4. The following guidelines shall be followed while obtaining security where provisional assessment under section 18 of the Customs Act is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(a) Cases related to verification of origin under FTAs based on the reasonable belief that the matter involves mis-declaration of origin I value addition. 100% Based upon Operational Certification Procedures contained in the non- tariff notifications issued on Rules for determination of Origin 5(b) Cases selected on random basis for verification of origin. 0% 5(c) Cases related to verification of signatures and seals under FTAs 100% Provided that the Principal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessments under section 18 are to be carried out with respect to cases where the duty is in dispute. Cases relating to execution of a bond or undertaking specified as a condition to a notification or those requiring compliance of conditions under allied acts are not to be provisionally assessed under section 18 of the Customs Act. This position had been earlier clarified by the Ministry of Law and Justice and circulated vide Ministry F.No. 353/91/74 - Cus dated 28th January 1977. 5. Difficulties, if any, in implementation of this procedure may be brought to the notice of the undersigned. Encl: Format of bonds (R.B. TIWARI) PRINCIPAL COMMISSIONER - Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X
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