Provisional Customs Assessment Rules: Key Timelines & Compliance

Customs:  Provisional Assessment Rules 2025

The Ministry of Finance identified delays and inefficiencies in the finalization of provisional customs assessments under the 2018 regulations. To resolve this, the Customs (Finalisation of Provisional Assessment) Regulations, 2025 dated 12^th September, 2025  were introduced, bringing clear timelines, accountability, and transparency to streamline the process and enhance ease of doing business.

Time-bound Finalization of Provisional Assessments:

Missing Documents: When an assessment is provisional because of missing documents or data:

• The proper officer must inform the importer/exporter within 15 days about the specific documents or details required.
• The importer/exporter must submit them within 2 months of the request.
• The officer may allow extensions up to 14 months in total, if reasons are recorded in writing.

Further Enquiry: If the provisional assessment is made because further enquiry is required:

• The customs officer must complete the enquiry within 14 months from the date of provisional assessment and submit the report to the proper officer for finalization.

Pending Cases as on 29 March 2025

• For cases already pending on 29th March 2025, the time limits for submission of documents and enquiries will be counted from that date, not from the date of original provisional assessment.

Time-Limit for Finalization

1. The proper officer should finalise the provisional assessment within 3 months after:
   • Receiving all documents/information, or
   • Completion of enquiry.
2. An extension of 2 months can be given by a superior officer, but the entire process must be completed within 2 years from the date of provisional assessment.

1. For pending cases as on 29 March 2025, this 2-year period is counted from that date.

Exceptions:

If delay is due to reasons such as:

• Information sought from foreign authorities,
• Pending court or tribunal cases,
• Interim stay orders,
• Specific CBIC directions, or
• Pending applications before the Settlement Commission,

then the 2-year limit will apply after those reasons cease to exist.

During provisional assessment, the importer or exporter may:

• Voluntarily pay any amount electronically towards likely customs duty.
• This amount will be adjusted during final assessment.
• Interest, if applicable, must also be paid as per Section 18(3) of the Customs Act.

After the final assessment:

• If the provisional and final assessment are the same, or the duty/interest is fully paid, the bond and security given at the time of provisional assessment will be cancelled or returned.
• If any amount remains unpaid for over 90 days, it will be recovered from the security or under Section 142 of the Customs Act.
• If the importer/exporter is entitled to a refund, it will be processed under Section 18(4) and (5) of the Act.

Important points to be considered for Final Assessment:

• The finalisation shall be done as per Section 18 of the Customs Act.
• If the final assessment differs from the provisional one, a speaking order must be passed, ensuring natural justice.
• If both match, the importer/exporter must confirm acceptance in writing.
• Any additional duty payable must be paid along with interest.
• The officer will return the Bill of Entry/Shipping Bill for payment processing.

In case you are any query or need any support in customs clearance/GST or need any clarification, you may like to connect with us.

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Abhinarayan Mishra FCA, FCS, LL.B, IP, RV; Partner, KPAM & Associates, Chartered Accountants, SAM Law Associates LLP,  New Delhi ; +91 9910744992; ca.abhimishra@gmail.com; samlawassociates18@gmail.com