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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 ..... oms dated 22.08.2016 on the above mentioned subject. 2. The Customs (Provisional Duty Assessment) Regulation 2011 issued under Notification No. 81/2011-Customs (NT) dated 25.11.2011 were reviewed by Board 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; (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 resorted, as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en 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. 3.4 In view of the requirement that the importer binds himself to pay the deficiency, 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 conditions be dispensed, particularly, as it necessitates following the procedure of refunds in cases where final assessment is in favour of the importer. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.8 Wherever, duty is to be assessed provisionally, the importer shall: (a) for the purpose 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 4 below. 3.9 The security to be obtained 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 being undertaken: Sl. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per Circular No. 5/2016-Customs dated 09.02.2016 issued from F. No. 465/12/2010-Cus V 5(a) Cases related to verification of origin under FTAs based on the reasonable belief that the matter involves mis-declaration of origin/value addition 100% Based upon Operational Certification Procedures contained in the nontariff notifications issued on Rules for determination of Origin. 5(b) Cases selected on random basis for verification of origin. 0% 5(c) Cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the basis of duty differential and not the CIF value of the goods. 4.2 It is also clarified that provisional assessments 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, may be brought to the notice of the undersigned. (SHRAWAN KUMAR) CO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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