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The latest amendments in customs rules on provisional assessments of imports and exports will aid revenue protection, trade facilitation and bring closure to long-pending cases, industry experts said on Tuesday.
The Central Board of Indirect Taxes and Customs (CBIC) has issued the Customs (Finalisation of Provisional Assessment) Regulations, 2025, aimed at enhancing speed, certainty, and transparency in customs administration. The new regulations lay down specific timelines for completing provisional assessments.
Industry experts expect the move to alleviate persistent bottlenecks in trade and customs administration.
"The Customs (Finalisation of Provisional Assessment) Regulations, 2025 mark a long-awaited move towards certainty and efficiency in customs administration. By introducing clear timelines, CBIC has addressed a pain point that has long burdened both trade and authorities," said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat.
Businesses will experience faster release of blocked working capital, lower compliance costs, and improved predictability in supply chains, he said.
Mishra, however, added that the true test will be in implementation -- especially in matters tied to Special Valuation Branch proceedings, DRI investigations, or prolonged litigation.
"Timely finalisation, while safeguarding the assessee’s right to present submissions, will be critical. If executed in the intended spirit, these regulations can balance revenue protection with trade facilitation, bringing closure to long-pending cases and building greater trust between industry and administration,” he further said.
Under the new rules, importers and exporters must provide required documents within 15 days of requisition, with a possible extension of up to two months. Customs officers are required to complete enquiries within 14 months. The finalisation of provisional assessments is to be completed within two years from the date of provisional assessment, except in cases involving appeals, stay orders, or international information requests, the notification said.
The new framework permits voluntary duty payments in the provisional assessment phase, which shall be adjusted against the duty finally assessed, at the time of finalisation.
Interest obligations and penalties up to Rs 25,000 apply for non-compliance. Additionally, procedures for refunds, duty recovery, and bond cancellations have been detailed to streamline processes.