No. CLE-HO/POL/CIRCULAR/15-16
Sept. 2, 2016

Regional Directors (Chennai, Delhi, Mumbai, Kolkata)
Office Incharge, CLE, Agra and Kanpur
APO, CLE, Jalandhar

Sub : Provisional assessment of duty on export/import goods

Please send the enclosed circular to members of your region by e-mail and confirm.

ED,CLE

NO:CLE-HO/POL/CIRCULAR/2016
Sept. 2, 2016

Members of the Council,

Sub : Provisional assessment of duty on export/import goods

Dear Sirs,

The Central Board of Excise and Customs has issued a Customs circular No.38/2016 dated 22nd Aug 2016 (copy enclosed) regarding provisional assessment under section 18 of the Customs Act, 1962. The highlights are as follows.

A. Provisional assessment of items may arise in the following situation.

Where the importer or exporter is unable to make self-assessment under sub-section (1) of section 17 and makes a request in writing to the proper officer for assessment; or

Where the proper officer deems it necessary to subject any imported goods or export goods to any chemical or other test; or

Where the importer or exporter has produced all the necessary documents and furnished full information but the proper officer deems it necessary to make further enquiry; or

Where necessary documents have not been produced or information has not been furnished and the proper officer deems it necessary to make further enquiry.

B. Insofar as the requirement of obtaining of 20% deposit of the duty provisionally assessed, the Board has decided that this condition be dispenses, particularly, as it necessitates following the procedure of refunds in cases where final assessment is in favour of the importer. Such requirements add to the transaction costs, lead to delays in clearance and detract from the ease of doing business. Therefore, the Board has decided that the requirement of security needs to be met by either obtaining a bank guarantee or a cash deposit, as convenient to the importer, and that no sureties shall be obtained.

C. Wherever, duty is to be assessed provisionally, the importer shall: 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 furnish such security for the payment of the duty deficiency, as indicated in para 3 below

D. The security to be obtained shall be in the form of a bank guarantee or a cash deposit, as convenient to the importer.

Members may kindly note the above.

Thanks & regards,
R.Ramesh Kumar
Executive Director
COUNCIL FOR LEATHER EXPORTS

Circular