CBIC amends Customs Circular on Guidelines for Provisional Assessment under Section 18 of the Customs Act, 1962 

By:
No Comments

The Central Board of Indirect Taxes and Customs (“CBIC”) vide Circular No. 42/2020 – Customs dated September 29th, 2020 has amended Circular No. 38/2016 – Customs dated August 22nd, 2016 on Guidelines for Provisional Assessment under Section 18 of the Customs Act, 1962 and Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (“CAROTAR, 2020”) issued vide Notification No. 81/2020-Customs (N.T.) dated August 21st, 2020.

In order to align the Circular no. 38/2016-Customs dated August 22nd, 2016 with CAROTAR, 2020, the entries at Serial No. 1, 2, 5(a) and 5(c) of Table at paragraph 3 of the said Circular are substituted with the entries as below-

 1

Imports by Authorised Economic Operators (AEO – T3)

0 % (including cases at Sl. No. 4 to 6b, except 5(a) and 5(c)).

In terms of Circular No.33/2016 Customs dated July 22nd, 2016, as amended.

2

Imports by Authorised Economic Operators (AEO – T1 and AEO – T2) (excluding importers mentioned at Sl. No. 3)

(a) 0% (in terms of SI. No. 5 (b), 6(a) and 6(b) (2) (b) 50% (for AEO-T1) or 25% (for AEO-T2) of the applicable bank guarantee or cash deposit specified at SI. No. 4, 6(b)(1).

In terms of Circular No.33/2016 Customs dated July 22nd, 2016, as amended.

5 (a)

Cases related to determination of origin under FTAs based on the reasonable belief that the matter involves mis-declaration of origin.

100%

In terms of Rule 5 or Rule 6(1)(b) of CAROTAR, 2020 (Notification No. 81/2020 dated August 21st, 2020)

5 (c)

Cases related to verification of signatures and seals under FTAs

100%

In terms of Rule 6(1)(a) of CAROTAR, 2020 (Notification No. 81/2020 dated August 21st, 2020)

With the above amendments, all class of importers, including Authorized Economic Operators (AEO) are required to furnish 100% of differential duty as a security if provisional assessment is requested by the importer when inquiry is initiated in terms of rule 5 or when verification is initiated in terms of rule 6(1)(a) or 6(1)(b) of CAROTAR, 2020.

The Complete Circular can be accessed at: https://www.cbic.gov.in/resources/htdocs-cbec/customs/cs-circulars/cs-circulars-2020/Circular-No-42-2020.pdf

CLOSE
CLOSE